By Gary Shepherd, director, business development
Financial advisory firms live and breathe investment platform data. Whether it’s for portfolio management, client reporting, or staying on the right side of regulators, having accurate investment data isn’t just nice to have; it’s essential.
Yet here’s what I keep seeing: advisory firms wrestling with inconsistent, error-prone information from multiple sources. Investment platforms, DFMs, software providers – they’re all pumping out data, but it’s often a mess when it comes together. This article breaks down why there’s a world of difference between simply collecting data and properly reconciling it, and why that distinction could make or break your business.
What is data aggregation?
Think of data aggregation as a bit like emptying several jigsaw puzzle boxes into one big pile. You’re collecting data from multiple sources and dumping it all in one place. For valuation and transaction data, investment platforms typically provide raw data feeds, which then get compiled into what looks like a unified view for your CRM systems, cashflow planning tools, and the rest.
On paper, aggregation sounds brilliant. It centralises everything from multiple platforms and means your team isn’t constantly logging into different systems. But here’s the rub, that data remains completely unverified. You could have duplicates, inconsistencies, gaps, you name it. Those discrepancies don’t magically fix themselves, which means someone on your team is going to spend their day manually sorting through the mess.
The fundamental problem? Aggregation doesn’t actually clean or structure the data. It just collects it and passes it along, creating what I call a false sense of organisation. You think you’ve got everything sorted, but you’ve really just moved the problem elsewhere.
Data reconciliation: A different beast entirely
Data reconciliation is where things get interesting. Rather than just collecting data and hoping for the best, reconciliation ensures your data is accurate, complete, and consistent across all your connected investment platforms.
This means:
- Matching and cross-checking data across multiple sources (properly, not just a quick glance)
- Hunting down and fixing discrepancies like missing or duplicated trades
- Structuring everything in standardised formats so your reporting actually works
The difference this makes is night and day. Your client reports become accurate without those embarrassing missing transactions or duplicates. More importantly, your team stops spending half their time playing data detective and can actually focus on what they’re paid to do, serve clients.
Reconciliation essentially transforms raw data into something you can actually trust and use to make proper business decisions.
The hidden costs of getting this wrong
Here’s what happens when you rely on aggregated but unreconciled data, and trust me, I’ve seen this play out countless times:
- Your staff become part-time data cleaners, wasting hours each week manually checking and fixing discrepancies instead of doing the work that actually grows your business.
- Compliance becomes a nightmare. Incorrect reporting doesn’t just look unprofessional; it can land you in hot water with regulators and potentially cost you serious money in penalties.
- Client relationships suffer. Nothing undermines confidence quite like handing over a report full of errors or inconsistencies.
- Perhaps worst of all, you end up making business decisions based on flawed information. It’s like trying to navigate with a broken compass, you might get lucky, but you’re probably heading in the wrong direction.
Robin Bevan, our CEO here at Sprint Enterprise Technology, put it perfectly:
“I was recently reminded of how poorly financial advisers are served in terms of data. We were doing some research that compared contributions and withdrawal data for around 10,000 policies on one of the leading CRMs with the corresponding data on one of the investment platforms concerned. Only 60% of the policies were on both systems. How can that meet their Consumer Duty obligations with data like that?”
Sixty percent. Let that sink in for a moment.
The FINIO data hub
This is precisely why we built the FINIO data hub. Rather than just throwing data at the wall and seeing what sticks, FINIO takes a fundamentally different approach.
We fully reconcile data across all your connected investment platforms, no exceptions, no shortcuts. Everything gets standardised to ensure consistency, then enriched with additional value markers that actually help you understand what you’re looking at. Finally, it’s delivered through flexible connection options that work with whatever systems you’re already using.
The result? Advisory firms save time, improve client service, and stay compliant through one trusted data source. It transforms those complex, messy data flows into reliable information you can actually use to make better business decisions.
Why this matters more than you think
Look, data aggregation might seem good enough on the surface. It’s certainly better than manually logging into fifteen different systems every morning. But if you’re serious about running a professional advisory firm, reconciliation isn’t just nice to have, it’s essential.
When you invest in proper reconciliation, you’re not just organising data. You’re building a foundation of trust and accuracy that touches every part of your business. Your team works more efficiently, your clients get better service, and you sleep better knowing your compliance is sorted.
The difference might not smack you in the face immediately, but give it time. Firms with properly reconciled data consistently outperform those without it in efficiency, accuracy, and ultimately, client satisfaction.
Want to see what properly reconciled data could do for your firm? Get in touch and let’s have a chat about FINIO.
