Why open finance is the missing link in wealth data strategy
JUN. 10, 2025
3 Min Read
Integrating external client accounts through open finance gives wealth managers a holistic view for better advice, capturing held-away assets, and stronger fraud defenses.
Wealth management firms integrating external accounts are gaining an edge in trust, retention, and growth. Many wealth managers operate with fragmented client data, seeing only pieces of a client’s financial life. This partial view leads to blind spots in advice and missed opportunities.
Nearly nine in ten consumers (90%) now use fintech apps to manage finances, meaning vast amounts of client information live outside traditional portfolios. Advisors who rely on siloed brokerage or banking systems risk making decisions with incomplete information, undermining client confidence and business results.
Key Takeaways
- 1. Fragmented client data leaves wealth managers with blind spots and weaker advice.
- 2. Open finance consolidates external accounts to provide a holistic view of client finances.
- 3. Complete client data allows for more personalized advice and boosts wealth management client retention.
- 4. Aggregating held-away assets reveals new opportunities and increases assets under management.
- 5. Fintech partnerships and open APIs turn data integration into a strategic growth driver.
Fragmented data leaves wealth managers with blind spots
Every day, advisors face critical questions they can’t fully answer because they don’t have the whole picture. A client might have a 401(k) or an entire brokerage account held elsewhere that goes unnoticed. These “held-away” assets are common. One study found they could represent up to 40% of an investor’s total portfolio. When such assets aren’t accounted for, financial plans are built on partial data, often leading to suboptimal strategies or overlooked risks.
Fragmented data also creates an inconsistent client experience. Advisors often depend on clients to manually share statements or updates from outside accounts, a process prone to delays and errors. 75% of advisory firms offer no digital client communication beyond email, and 62% still perform planning manually. These gaps leave advisors flying blind, making proactive advice difficult and even eroding client trust if an important part of the financial picture is overlooked.
Breaking down data silos allows advisors to turn previously inaccessible information into actionable insights
Open finance unifies external accounts for a complete client view
Open finance offers a way to turn disjointed data into a cohesive picture. It uses secure application programming interfaces (APIs) to connect banking, investment, retirement, and fintech accounts into one unified platform. With clients’ permission, account aggregation tools built on open finance pull in balances, transactions, and holdings from external sources directly into the wealth manager’s system. Open finance immediately closes those information gaps. Advisors can see all holdings—401(k)s, IRAs, bank balances, and fintech accounts—without waiting on client updates. Anomalies and risks also stand out when everything is in one place: a fraudulent transaction or an over-weighted asset allocation becomes visible in the full picture. And since 69% of consumers prioritize fraud protection when choosing a financial institution, this kind of integrated oversight is a powerful trust builder.
Moreover, open finance integration streamlines the client experience. Imagine logging into a single portal to review your entire net worth—checking, investments, loans, and more—alongside tailored advice. That convenience is now expected by digitally savvy clients. Unifying external accounts not only eliminates blind spots but also demonstrates a modern, client-centric approach. It shows you are committed to meeting clients where their money lives, even if some of it is outside your own institution.
Richer client data leads to better advice and stronger growth
A complete, enriched data set unlocks multiple advantages for both advisors and clients. Here are a few key benefits of embracing open finance data in wealth management:
- More personalized advice: With every account in view, advisors can tailor recommendations that truly reflect the client’s overall financial situation. Knowing about an outside retirement fund, for example, allows an advisor to adjust asset allocations elsewhere to avoid duplication or excessive risk.
- Capturing hidden assets: Visibility into held-away accounts grows assets under your management and ensures all assets work toward unified goals. Bringing these outside funds into the planning process can uncover opportunities to manage or consolidate them, directly boosting assets under management.
- Proactive risk management: Unified data makes it easier to spot risks early. If an account shows unusual activity or a portfolio is off-balance, you can act swiftly. Early intervention protects clients and reinforces your role as a vigilant steward of their wealth.
- Efficiency and scale: Automating data aggregation frees advisors from chasing statements and manual data entry. Firms can serve more clients without sacrificing quality by freeing advisors to focus more on strategy. This scalability is crucial for firms aiming to grow.
- Enhanced client loyalty: Covering the full financial picture builds trust. The convenience of a one-stop, integrated approach improves satisfaction—and with it, retention and referrals.
All these improvements drive measurable impact: one analysis found that integrating external data with digital tools can boost client retention by 77%, underscoring the growth potential of a richer data strategy.
Fintech partnerships turn data integration into a growth strategy
Co-creating a richer data ecosystem
Making open finance a reality doesn’t mean going it alone. Wealth managers are partnering with fintech companies and data aggregators to build richer data ecosystems. By collaborating with specialized technology providers, firms can plug into established API networks rather than building from scratch. This partnership approach is not just an IT project – it’s a strategic move to accelerate time to value. A mid-sized wealth firm can integrate new data sources in weeks instead of months, quickly expanding its offerings. Embracing external collaboration allows CIOs to deliver innovation faster and position their business to compete with larger rivals.
Open APIs for agility and speed
Adopting open APIs allows wealth managers to adapt quickly to shifting client needs. API-based architectures let you seamlessly incorporate additional accounts or fintech features as they emerge. This agility means your services can adapt continuously. With a library of reusable API connections, IT teams can onboard the next fintech partner or data source efficiently. The result is a scalable growth model where new client features can be rolled out much faster.
Turning data into tangible value
The ultimate goal of open finance integration and partnerships is to turn raw data into real business value. Breaking down data silos allows advisors to turn previously inaccessible information into actionable insights. For instance, aggregated client data can highlight unmet needs or cross-selling opportunities. This data-centric approach unlocks untapped potential within the existing client base. It also provides clear metrics: firms can track assets captured from held-away accounts, higher client retention, or faster fraud detection. Focusing on these outcomes ensures that open finance initiatives aren’t just technology upgrades, but genuine growth strategies. The combination of external data and internal expertise becomes a differentiator that boosts performance in a measurable way.
Lumenalta’s approach to open finance partnerships
This ecosystem-based, data-to-value approach is where Lumenalta helps wealth management leaders excel. We partner with CIOs to build secure open API architectures that unite siloed financial data into one platform, co-creating solutions to integrate third-party fintech data quickly while maintaining robust governance and security. Our focus is on real business outcomes, from accelerating time-to-market to maximizing technology ROI. Ultimately, firms can turn fragmented data into a strategic asset. This results in richer client profiles, stronger retention, and new growth opportunities, all achieved through a partnership-based approach.
Table of contents
- Fragmented data leaves wealth managers with blind spots
- Open finance unifies external accounts for a complete client view
- Richer client data leads to better advice and stronger growth
- Fintech partnerships turn data integration into a growth strategy
- Lumenalta’s approach to open finance partnerships
- Common questions about wealth data strategy
Common questions about wealth data strategy
How can I connect my client data systems without rebuilding everything from scratch?
What’s the best way to bring in held-away assets without slowing down our current workflows?
How do I reduce risk exposure across fragmented wealth data?
Where should I start if I want to automate more of our client data management?
How can I turn wealth data into something my business can actually act on?
Integrate external accounts, eliminate blind spots, and turn client data into stronger advice and real growth.
