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GDPR for Wealth Management: Will it Cramp Your Style or Boost Your Growth?

 

Getting GDPR compliance right for Wealth Management Firms

So you’re up to speed with GDPR, what it means for your Wealth Management firm and what you have to do to comply?

That’s great.

If you have a clear action plan in place and ownership, even better. You’ll have a clear view of how you’ll document your compliance and what if anything needs to change in your organisation.

Here’s another question though. Is GDPR just an extra administrative workload for you, adding to the regulation already imposed on Wealth Management firms to protect clients?

Will it have any impact on your firm’s success or ability to serve clients?

In most Wealth Management firms, you’ll already have resources managing your compliance with the Data Protection Act. GDPR does make more stringent demands, so you may need to increase budget and hours for this responsibility, giving Data Protection Controller more time or support. And in the run-up to the new legislation, there’s a one-time investment in a project to make sure you’re fully compliant and have the new processes and documentation you need in place. So there is a budgetary impact. If you need to re-educate team members or make substantial changes to processes or data storage, that cost could increase significantly.

That’s the downside. But we believe there are two potential upsides.

Strengthen business relationships with your clients.

Firstly, if you need to improve your data management to comply with GDPR, there could be an opportunity to extend your data capabilities to increase your client insight and support faster or more sophisticated operations and communication. You could turn compliance expenses into opportunity costs if at the same time you identify ways to make better use of your data or analyse and report from it more effectively. This could be the right moment to launch a CRM project for your Wealth Management firm, helping you get more from the data you hold and combine it with other sources to give you a competitive edge.

Secondly, as public awareness of GDPR grows in the coming months, you can demonstrate that your Wealth Management firm is forward looking, client-focused and agile.

Be proactive and let clients know what you’re doing to comply. Take the opportunity to communicate about the secure and intelligent systems you use to provide them with the highest quality advice and service.

In a competitive marketplace, with new generation investors highly aware of technology and data accessibility, you can let them know that your firm is at the leading edge of technology and shares their knowledge and priorities.

If you’d like advice about the CRM data opportunity for your Wealth Management firm that could go along with GDPR compliance, contact me. I’ll set you up a no-obligation discussion with one of our data consultants with specific expertise in the Wealth Management sector.