Know Your Customers: how to understand clients’ needs through data analysis

The starting point for creating value with data analysis is to stay grounded.

Data analysis can improve business profitability across the entire wealth management value chain, but, before making huge investments into Big Data solutions, it is possible to create value from the data you already own.

As we often tell our customers, data quality is more important than quantity. And financial companies tend to have high quality data.

In particular, all wealth management companies have the necessity of making their clients fill in the infamous MiFID questionnaire, which represents a mixed blessing for financial advisors. The questionnaire is subjected to the careful review made by the regulators and it represents the first step of any financial advice. Therefore, it is full of quality information, such as:

  • main social and personal data;
  • a snapshot of the patrimonial situation (active and passive);
  • data on the time horizon and risk profile;
  • data on financial knowledge/experience;

From these simple quality data, it is possible to obtain precious information on the financial DNA of the clients, which is not only used for mere regulatory purposes, but can also offer relevant business opportunities, such as the actual understanding of the needs of people.

Most people invest with an aim, with a purpose that very often it’s translated into few life needs: investing for retirement, for children, for integrating the income and so on

The analysis of these needs represents a crucial step to improve the quality of the service provided or to prevent possible situations of dissatisfaction. Moreover, with the entry into force of the MiFID II regulation, financial institutions are forced to think about products that match the needs of the customer. In this perspective, the analysis of their necessities facilitates the relationship with regulators.

A component of our data analytics solution called SideKYC, starts from the fundamental data of the MiFID questionnaire. It thus analyses the clientele, identifying their actual goals in order to offer very concrete business operational hints.


I bisogni dei clienti


The analysis of clients’ needs can be the starting point for being able to understand whether the product offer satisfies the clients’ real needs or not. Furthermore, it can underline if there are some costumers that are not adequately supervised so that specific sales actions can be started. Among other things, a business approach based on the needs analysis inevitably shifts the customer’s focus from a short-term performance to a better quality service and a long-term value creation.

In order to create value from data, and thus increase business profitability, you don’t have to directly shoot for the moon, you can do a lot by just analysing the most basic business questions, starting from the quality data you already own.

Virtual B Fintech solutions

Virtual B has been working for years in the financial sector, with a close focus on data and data analysis. Our experience has led to numerous solutions that generate value and solve issues for financial and insurance intermediaries.

SideKYC® is an advanced data analytics software created by Virtual B for banks and insurance companies. SideKYC® can profile customers, identify individual needs and map them with the best product.

If you want to find out more, visit the page and contact us

More on SideKYC®

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