Over the past year, “data lakes” have become a more common topic of conversation among advice firms. Often mentioned alongside AI, dashboards and digital transformation, the term can sometimes feel more like a technology buzzword than a practical business solution.
In simple terms, a data lake is a central repository that brings together information from multiple systems, such as CRMs, investment platforms, back-office software, reporting tools and document management systems. Rather than holding data in separate silos, a data lake allows firms to consolidate, organise and analyse information in one place. In most cases, it sits behind the scenes in a cloud environment, with users interacting only with the reports, dashboards or AI-driven insights it helps power.
Interestingly, firms rarely start by saying they want a data lake. Instead, the conversation usually begins with broader business objectives: creating a single view of the client, improving reporting across systems, or exploring how AI can add value. As firms pursue these goals, they often discover that fragmented or inconsistent data is one of the biggest barriers to progress.
AI is undoubtedly accelerating interest in better data management. The more sophisticated the questions firms want to ask, the more important it becomes to have high-quality, accessible and connected information. A data lake is one way of achieving this, but it is not the only route.
At Transact, we do not take a prescriptive view on whether firms should build a data lake. Technology is evolving rapidly, particularly with the emergence of AI and new integration standards, making it difficult to predict a single “right” approach. Instead, our focus is on helping firms access and use their data effectively, whatever strategy they choose.
The Transact API plays an important role in this by providing secure, governed access to consistent and up-to-date information. Whether a firm is building a data lake, creating integrated reporting solutions or enabling AI tools to access data directly, the API provides a reliable foundation for modern data architectures.
The reality is that not every advice firm needs a data lake. Smaller firms are often focused on getting more value from existing systems, while mid-sized firms may prioritise joined-up reporting. Larger firms and consolidators, with more complex data requirements, are more likely to invest in dedicated data platforms.
Ultimately, the question is not whether a firm needs a data lake, but what it wants to achieve with its data. While the technology landscape will continue to evolve, firms that focus on improving the quality, consistency and accessibility of their data will be best placed to take advantage of whatever comes next.
If you would like to discuss further, please get in touch with Tom Phillips, the Integrations Manager, at tphillips@integrafin.co.uk.