Case Study: Enhancing Financial Reporting for an International Wealth Management Client

Background

An international wealth management firm faced significant challenges in managing client trades and calculating tax consequences due to a largely manual and error-prone process. Discussions with clients were disorganized, as data was not readily viewable or presented in an easily accessible dashboard format. This inefficiency was compounded by the need to apply specific tax models based on geographic regions and local tax regulations, making scaling to a larger client base difficult and time-consuming.

Challenge

The firm required an automated solution to streamline tax modeling and calculations, reduce preparation time for client meetings, and eliminate manual errors in financial reporting. The goal was to scale their operations efficiently as they expanded their client base across various territories.

Solution Implemented by Data Pro Solutions

Data Ingestion and Quality Assurance:

Data was received in CSV format via an SFTP server and loaded into a PostgreSQL staging schema using FiveTran. This included trades, tax lots, and bank securities data essential for calculating tax implications.

Major technical hurdles such as data quality and format discrepancies were addressed through close coordination with the data provider and transformation logic to correct data types.

Data Warehouse Design:

Utilizing the Kimball methodology, a star schema was developed to minimize data redundancy and optimize performance for end-user queries. This dimensional modeling approach facilitated efficient data analysis and scalability.

ETL and Data Integration:

Data was routinely imported into the staging area and processed using custom transformation logic, including regular expressions and mapping tables to handle data inconsistencies.

A Droplet instance with a pre-installed PostgreSQL server and pg_cron was set up for scheduling, striking a balance between functionality and cost-efficiency.

Business Engagement and Reporting:

Regular consultations with one of the firm’s owners ensured that the developed solutions aligned closely with business needs and processes.

The solution enabled automated, accurate, and visually accessible reporting across all clients, significantly reducing the manual effort required in preparation and ensuring consistency in client discussions.

Outcomes

• Operational Efficiency: Automated data processes allowed the firm to handle an increasing volume of client data without additional manual effort, significantly cutting down on preparation time and reducing the risk of errors.

• Scalability: The system's design allows for easy adaptation to different tax laws and client requirements, supporting the firm's growth in various international markets.

• Client Confidence: With reliable and clear data presentations, the firm can conduct client meetings with greater confidence, enhancing client satisfaction and trust.

Lessons Learned

Through this project, Data Pro Solutions gained insights into the complexities of wealth management and the critical importance of adapting technology solutions to specific business contexts and budgets.

The project underscored the value of automating financial processes through a centralized data warehouse to enhance efficiency and accuracy.

Best Practices

Data Pro Solutions recommends:

• Engaging closely with clients to understand their unique business processes and requirements.

• Employing flexible, scalable data modeling techniques to accommodate growth and changes in business strategy.

• Prioritizing data quality and integrity to build trust and reliability in automated systems.