{"id":485,"date":"2024-09-05T10:19:53","date_gmt":"2024-09-05T09:19:53","guid":{"rendered":"https:\/\/www.sprintenterprise.co.uk\/resources\/blog\/?p=485"},"modified":"2025-04-08T16:32:19","modified_gmt":"2025-04-08T15:32:19","slug":"why-data-hubs-are-essential-in-wealth-management","status":"publish","type":"post","link":"https:\/\/www.sprintenterprise.co.uk\/resources\/blog\/why-data-hubs-are-essential-in-wealth-management\/","title":{"rendered":"Why data hubs are essential in wealth management"},"content":{"rendered":"\n

By Gary Shepherd<\/p>\n\n\n\n


Before we get into the technical elements of data hubs and who can benefit from using one, a good place to start is to address what they are (in the example within this article, everything is related to the wealth management industry). <\/h2>\n\n\n\n

Simply put, a data hub seamlessly connects financial institutions\/multiple systems in a simpler way for the flow of complex investment data.<\/p>\n\n\n\n

The wealth management fintech landscape<\/h3>\n\n\n\n

If we think about wealth management fintech, it\u2019s fair to say there\u2019s a huge array of tech options in the market. In fact, we calculated approximately 150 pieces of fintech in the UK covering back-office software, cashflow, risk profiling, suitability, product research, client portals, client reporting, AI and CGT software. If you then factor in 24+ investment platforms data into the mix and want to use that data in any of those software systems, approximately 3,000+ point-to-point connections need to be set up and built. Once the connections have been established, it\u2019s then a case of keeping on top of all of them and ensuring they don\u2019t change or break in the back end.\u00a0<\/p>\n\n\n\n

It is refreshing to see so many platform creating great API\u2019s, but it\u2019s a case of who builds to who, and then do all of the API end-points align (i.e. does a valuations field in system A, mean the same thing in system b?). In some cases, the data hub can homogenise\/normalise the data, meaning you don\u2019t have to worry about making the disparate data make sense.  <\/p>\n\n\n\n

Benefits of a data hub<\/h3>\n\n\n\n

Plugging into the right data hub can make the data you need so much easier to use. Not only to benefit your business but also the end client (I\u2019m thinking about accurate client reporting and the quality of the data held in a back-office system and\/or a client portal).<\/p>\n\n\n\n

Now, this might seem like data hubs are aimed at large wealth management companies, but the reality is that anyone from a small advisory business, software provider, right through to an investment platform can tap into and benefit from a data hub. Simply put, the right data hub should offer the following benefits: <\/p>\n\n\n\n