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A wealth of data on wealth management

– We’re delighted to announce the acquisition of PriceMetrix, a Toronto-based company which helps wealth management firms harness huge amounts of data to improve client service, drive growth, and reduce risk.

Founded 16 years ago, PriceMetrix today holds data on 60,000 financial advisers across North America—everything from the types of clients they serve to the financial products they recommend and the commissions and fees they receive. Sliced, diced, and presented in smart ways, this enables companies to better understand and manage their advisory networks.

The company has invested heavily in proprietary models—some of which are patent-protected—and in online tools to deliver insights to executives, field managers, and advisers themselves.  “There are a lot of exciting opportunities to get analytics into the hands of people on the front line,” says Patrick Kennedy, co-founder and chief customer officer.

McKinsey partners Jill Zucker and Onur Erzan flanked by PriceMetrix co-founders Doug Trott and Patrick Kennedy.

By “democratizing” its analytics in this way, PriceMetrix has established itself in one of the tech sector’s most fashionable neighborhoods—software-as-a-service (Saas). The company will retain its brand, separate identity, and management team, led by co-founder/president Doug Trott.

For McKinsey, the acquisition further swells the ranks of data engineers, analytics experts, and technologists at work across our firm. In the wealth management sector alone, we’ve already developed a powerful suite of technology-enabled tools and solutions including Global Growth Cube (for market-sizing and strategy), Sales Alpha (marketing and sales effectiveness), and our flagship Global Asset Management Survey (which facilitates benchmarking across 8,000 operational metrics).

For clients, the opportunity lies in combining McKinsey industry expertise and tools with PriceMetrix analytics. “Competitive pressures and regulatory changes make this a particularly relevant time for our clients,” says Jill Zucker, a New York-based partner and leader of our Wealth Management Practice in North America. “We’ll be using our combined tools, analytics, and knowledge to help industry leaders on issues relating to performance management, compliance, and pricing.”