Financial services have prioritised digitalisation strategies over recent years in order to stay relevant in the market, but one important area is not getting the attention it needs – revenue performance management (RPM).
RPM is a data strategy that consolidates disconnected systems and teams to foster greater collaboration and revenue growth. For wealth management firms RPM allows them to connect fee and billing, advisor compensation and enterprise-level analytics into a single location to give them greater control. Unfortunately, many firms are still not leveraging RPM, impacting their ability to maximise their growth.
Purefacts president Pete Hess explained, “Revenue is still being operationally recorded and not leveraged as a strategic growth driver.” Disconnected systems, manual billing spreadsheet-based compensation and fragmented analytics are still a common sight. Yet the firms that embrace RPM as a coordinated, end-to-end discipline can unlock significant gains. This can materialise as “doubling organic growth, expanding EBITDA margins, and telling a much more compelling enterprise value story to the board,” Hess said. “In a margin-compressed environment, RPM is no longer optional. It’s the lever.”
Not only does RPM ensure firms can better capitalise on growth, but it also helps them solve issues that are costing them financially. At the top of this list are revenue leakage and revenue spillage. The former refers to the loss of earned revenue that never makes it onto a firm’s books. These are caused by compounding errors across billing, collections, pricing execution, payout calculation and advisor incentives. Revenue leakage allegedly sees firms lose between 1-5% of topline revenue annually, amounting to $10m lost in every $200m, according to MGI Research. As for revenue spillage, this is the loss of potential revenue occurring at the front-end of the client lifecycle during the pricing, proposal generation, and onboarding, and can also carry significant annual losses.
A common cause of these incidents, and one of the biggest problem firms currently face with their RPM, is the fragmentation of data. Pricing, billing and compensation all happen independently in isolated workflows. As a result, this leads to inconsistent pricing revenue leakage, advisor misalignment and limited visibility into actual growth drivers.
Hess explained, “There is a cause and effect in the relationship between fees, compensation and practice management. To optimize revenue while managing revenue risk, firms require a single platform that addresses revenue strategy, structure, incentives, execution, governance and transparency.”
How AI is transforming RPM
Artificial intelligence (AI) has been a game changer for countless workflows across the financial services landscape and RPM is one of them.
The biggest transformation, according to Hess, is its ability to turn RPM from reactive reporting to proactive decision-making. It achieves this by surfacing anomalies before they become real issues, identify underpriced segments and recommend the next best actions at both the advisor and enterprise level. He added, “The real value isn’t just automation—it’s direction. It’s about telling advisors and their firms where to act to improve growth and profitability.”
Automation has been a core driver of AI adoption over the years, but as its capabilities deepen, it is starting to become more than that. Instead of being a tool to handle repetitive manual tasks or holistic dashboards, these tools are becoming embedded decision engines that guide behaviour in real time, especially for advisors, Hess explained.
By giving users the ability to dynamically adjust pricing, incentives and engagement strategies based on live conditions, firms will unlock a new growth avenue, he added.
While AI carries a lot of potential, firms can easily underestimate the level of work that is needed to ensure it can reach its full potential. At the root of this problem is underinvesting in its foundation. The fragmentation challenge in RPM has already been mentioned, but it also has impacts on the output of AI, and without consolidated data the technology’s capability is limited.
Hess said, “Without a unified Revenue Book of Record, AI is working with incomplete or conflicting data, which limits both trust and usefulness. Fragmentation doesn’t just create inefficiency; it actually breaks intelligence. You can’t optimize what you can’t see clearly.”
“The right balance is AI surfacing what matters, and people making faster, more confident decisions based on that clarity.”
Firms need to ensure their foundations are strong, fortified with clean data, governed process and clear ownership. Otherwise, AI will just amplify the noise, rather than provide users with value. A similar risk is to treat AI as its own tool, rather than embedding it into the core workflows.
How PureFacts is leveraging AI
PureFacts Financial Solutions is a revenue optimisation solution aimed at wealth and asset management firms. Its platform, which boasts an ability to double organic growth rates, consolidates pricing, billing, compensation and insights together into a single Revenue Book of Records. This, Hess explained, creates a trusted foundation for revenue. Through its services, PureFacts claims it can help clients achieve up to 10% more top line revenue, as well as bringing conformity across teams. In one case study, the firm helped a client capture $12m by plugging revenue leakage and save $1m in costs through automation.
What helps PureFacts stand out from other solutions in the market is its holistic approach to RPM. Hess noted that many solutions in the market are designed to solve specific problems, whereas PureFacts was built for the system. Its unified overview provides end-to-end visibility and control that fosters meaningful gains in growth, efficiency and enterprise value.
AI is an embedded part of its offering, with the technology helping to identify opportunities, flag inconsistencies and provide the next best actions that can improve outcomes. Hess said, “It’s really the combination of structure and intelligence that drives measurable impact.”
To reinforce its AI-powered RPM capabilities, PureFacts recently partnered with Innover Digital, a digital transformation and intelligent automation provider. As part of the deal, Innover’s AI expertise will help PureFacts develop scalable, insight-driven solutions that can integrate with existing technology ecosystems. A focus of the partnership will be on building predictive and generative AI capabilities that aim to reshape how firms engage with clients and manage wealth. It will also support data modernisation and cloud-native platforms to bring greater agility and efficiency to revenue performance management, as well as integrated analytics and intelligent automation to provide real-time business intelligence at scale.
While PureFacts’ AI capabilities help firms improve their ability to track anomalies and improve analysis within RPM, that does not mean they are there to replace the human analysts. Hess noted, “AI should inform, not replace.” The technology is perfect for handling scale, pattern recognition and recommendations, but the human analysts are still vital for judgement, context and accountability. It is all about finding balance. “The right balance is AI surfacing what matters, and people making faster, more confident decisions based on that clarity.”
Looking ahead to the future, Hess believes AI will continue to become an increasingly important aspect of RPM. He describes it as the “connective tissue of revenue management.” The technology will help firms monitor performance, predict outcomes and guide actions across the entire lifecycle.
He added, “Firms that embrace this will move from explaining revenue after the fact to actively shaping it in real time—which is ultimately how you double organic growth.”
Purefacts was recently named in this year’s AIFinTech100, which identifies the companies leading AI solution providers companies helping to transform financial services. The full AIFinTech100, including profiles on each company, can be found here.
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