In the evolving landscape of wealth management, firms are under increasing pressure to modernize and streamline their technology stacks. On a recent episode of Trading Tomorrow: Navigating Trends in Capital Markets, Milemarker’s co-founder, Jud Mackrill, shared insights on the transformative power of data, the need for unified workflows, and the path to a truly data-driven organization.

Key Trends Shaping Wealth Management

Mackrill identifies some of the biggest trends impacting wealth management today: firms are investing heavily in data warehouses, cloud-based tools, and data integration. Yet, many still struggle to realize the full potential of these investments. According to research by EY, 56% of financial service leaders say they have invested in data platforms but haven’t yet maximized their return on investment (EY Financial Services Report, 2022).

One reason for this is that, traditionally, data resides in separate silos, limiting firms’ ability to make data-driven decisions. Mackrill emphasized that “firms need to go beyond the spreadsheet” and into a cloud-enabled environment where data is accessible and actionable. Gartner reports that over 70% of finance leaders view cloud computing as essential for scalability and data integration (Gartner, 2023).

The Challenge: Fragmented Tech Stacks

For many wealth management firms, the tech stack includes numerous systems, from CRM tools to compliance software and portfolio management systems, each housing its own data. This creates friction and often means firms can only see fragments of the big picture. “Our industry is rich in innovation, but the challenge lies in bringing that innovation together,” Mackrill said, underscoring the need for systems that don’t just coexist but actively communicate.

The Wall Street Journal highlights this in a recent article, noting that one of the biggest pain points for financial firms is “the lack of integration across core systems, creating bottlenecks and manual workarounds that limit productivity” (WSJ, 2023).

Milemarker’s Solution: A Centralized Data Hub

Milemarker’s Firm Intelligence platform addresses this challenge head-on by acting as a centralized hub where data from various systems integrates and provides a single source of truth. Mackrill noted, “Our goal is to empower firms with real, actionable insights that don’t just measure activity but drive strategy.”

Unlike traditional tech solutions, Firm Intelligence is designed to be proactive, helping firms move away from outdated 90-day reporting cycles toward real-time decision-making. “With the Firm Intelligence platform, CFOs and firm leaders get the insights they need to make key decisions on hiring, investment, and growth—all in real time,” Mackrill explained.

Transformative Features of Milemarker’s Firm Intelligence Platform

1. Proactive Data Management: Many wealth management firms rely on quarterly reviews to assess performance and adjust strategy. However, as Mackrill pointed out, this reactive approach is insufficient for today’s fast-paced market. Firm Intelligence provides on-demand access to current data, allowing firms to respond swiftly to changes in the market and their client needs.

2. Comprehensive Client Profitability Analysis: Mackrill discussed the importance of understanding client profitability, citing a Fidelity study showing that a significant portion of RIA clients are unprofitable. Firm Intelligence equips advisors with data-driven insights to redesign their service models and focus on win-win client relationships. This approach enables firms to strategically identify profitable opportunities while ensuring they maintain high service standards.

3. Enhanced Data Control and Ownership: One of Milemarker’s core philosophies is ensuring that firms own their data. By leveraging cloud technology, the platform enables firms to consolidate and control their data without relying on multiple disparate systems. As Mackrill said, “We help you connect that data to your truth, giving you insights that support meaningful decisions.”

Adoption and Scalability: The Key to Real Transformation

Mackrill emphasized that a successful digital transformation goes beyond integrating tools; it’s about fostering adoption. Adoption is often the “elephant in the room,” he noted. Integration challenges are common, but adoption drives true transformation. To address this, Milemarker’s platform is designed to be intuitive and adaptable, making it easy for firms to onboard their advisors and teams.

Cloud technology plays a vital role in this transformation, particularly in enabling firms to scale without the hassle of managing on-premises infrastructure. According to Gartner, firms using cloud solutions have greater flexibility to adjust their technology needs in real-time, which is essential for responding to the rapid pace of change in wealth management (Gartner, 2022).

The Future of Data in Wealth Management

As the industry continues to embrace data-driven strategies, Mackrill sees even greater potential for artificial intelligence (AI) and machine learning (ML). He envisions a future where large language models (LLMs) and AI become essential in helping advisors gain deeper insights into client behavior, risk factors, and market opportunities.

“AI and LLMs are early in their journey, but their potential to unlock future value is immense,” Mackrill remarked. He believes these technologies will soon be integral to wealth management, driving automated, personalized insights that can guide advisors in making more informed decisions.

Conclusion: Partnering for Progress

For wealth management firms, true progress means leveraging technology not just for automation, but to unlock new levels of insight and adaptability. Through the Firm Intelligence platform, Milemarker is transforming the advisor experience by centralizing data, improving real-time insights, and fostering adoption across organizations.

As Mackrill summed up, “Our mission is to be a partner in progress for wealth management firms. We’re here to help them unlock the full potential of their technology, empowering them to make smarter, data-driven decisions that drive real value for clients.”

References:

EY’s insights on financial services: (EY Financial Services Report, 2022)

Gartner’s analysis of cloud strategies: (Gartner, 2023)

The Wall Street Journal’s coverage on audit quality: (WSJ, 2023)