Produced in partnership with Netwealth.
If an organisation’s most valuable asset is its people, then data might be its second most valuable asset.
Every day for years, if not decades, advice businesses have been capturing large amounts of raw data about their clients, staff and operations.
They are sitting on a goldmine of data that could be used to identify opportunities and threats, tailor services to meet the specific needs of client cohorts and dissect financial performance.
Data can also be used to shape business models, set strategic priorities, and accelerate decision-making.
However, it doesn’t take much to turn data from an asset into a liability if it is not accurate, complete and secure.
Netwealth estimates that much of the data held by advice practices is inaccurate due to the numerous systems used to collect them, and the lack of integration between these systems and databases.
Based on our 2025 AdviceTech research most advice firms have around 21 pieces of technology, many with overlapping data. Converting data into a standardised, structured, digital format so that it can be efficiently processed and analysed by cloud-based software and AI tools, should be a goal of the connected advice firm, and can be achieved with a dedicated in-house resource, the correct software tools and partners.
While a team member toiling away exclusively on a data project for three months is a significant investment for any business, the potential benefits could supply enough of a return on investment to hopefully justify the plan.
Data and AI strategy
Advisers need a comprehensive strategy for safely collecting, managing and analysing data, and embedding AI into their processes, in order to ensure they can continue meeting the current and future needs and expectations of their business, staff and clients.
A data strategy should focus on understanding and identifying the business’ proprietary data. It should align with a business’ broader corporate strategy and vision. It should set out clear goals, activities and measurable milestones to track progress, for example, increased operational efficiency, or profitability.
The data strategy should clearly assign responsibilities to people and teams, articulate how data should be maintained and governed, whilst also considering how data skills will be developed and fostered.
Designing and implementing a data strategy will be daunting for some advice firms, particularly those that are not tech savvy and still rely heavily on manual processes. Thankfully, businesses don’t need to go on their data journey alone.
They can leverage the resources and scale of their business partners, including platforms and licensees, who have a broad view of what’s happening across the profession. Some platforms and licensees employ business growth managers and consultants to help advice firms to develop their data strategy and undertake key projects, leveraging their knowledge of what the best firms are doing and the tools they’re using.
When it comes to tools, there are a number of intuitive, cloud-based data management and analytics tools that are designed specifically for advice business, such as Netwealth Unify (formerly Xeppo, acquired a year ago). We acquired Xeppo as part of plans to better support advice firms and licensees to create a single source of truth to generate insights, improve efficiencies and reduce risks.
Netwealth Unify, provides data connectors and integrators with over 30 software solutions. Using these, it can pull client information from multiple sources, merge and normalise it to provide a single source of truth of a client. It also pushes this data back to the enterprise solutions for consistency and accuracy between systems.
Connected advice firms
The ability to efficiently store and share data from a central depository is one of several keys to building a strong data strategy for the connected advice firm.
Advice firms can use this single source of truth to gain deeper insights about clients, such as revenue, profitability, as well as risk signals (like fee for no service).
Businesses can see when clients received information including Financial Services Guides, Statements of Advice and Fee Disclosure Statements and when revenue has been received and from whom.
All this data is useful, not only for compliance reasons, but to identify potential trends, bottlenecks and risks.
Another benefit of data strategy is data portability, where advice firms can achieve greater choice and flexibility over the technology and service providers they use. They don’t need to be beholden to legacy systems and relationships because they happen to hold client information.
Increased client expectations
Today’s consumers expect their service providers, including financial advisers, to know them and their preferences.
Centralising data can provide a complete picture of client portfolios, at both an individual and corporate level. They can understand how assets are being invested, where money is flowing to and from, and which platforms, insurers, fund managers, structures and products are being used.
Increasingly, they expect businesses to anticipate their needs and respond to requests instantly, which will require businesses to embed AI tools, including machine learning and large language models, into their systems and processes.
These trends mean that advice firms need to take greater ownership of their data and be more intentional about how they use it.
By building a robust data strategy, advice firms stand to gain invaluable insights about their productivity, profitability and where the growth opportunities lie. Data can hold the key to building a connected advice firm and to competing effectively in the future.
Matt Heine is chief executive and managing director of Netwealth.
Brilliant piece, Matt and thank you for again highlighting the true value of data in an advice firm. It’s easy to focus on client conversations, strategy, and compliance, but as you point out, none of it scales without reliable, structured data. When data is clean, consistent and connected across systems, it becomes the compass for every decision, whether it’s identifying new client opportunities or improving business efficiency. What I particularly liked was your reminder that data needs stewardship, not just storage. That mindset shift is what separates firms that react from those that anticipate. We see the same pattern when helping advice businesses map and clean their own information, the moment their data is accurate and complete, clarity follows. Suddenly, bottlenecks become visible, service models sharper, and growth decisions easier to justify. Great to see more conversations in our profession moving beyond “collecting data” to actually using it as the strategic asset it deserves to be.