Advanced technology adoption, agile mergers and acquisitions and nurturing and supporting talents are key areas in which asset and wealth management (AWM) firms can find new opportunities and boost their productivity, PWC found in their latest study.
Published earlier this year, “Asset and wealth management trends 2019” is a part of “22nd Annual Global CEO Survey” and it examines trends and opportunities for asset and wealth management firms. Findings are based on in-depth interviews conducted with 164 CEOs from asset and wealth management sector.
According to the study, for AWM firms the biggest disruptor in recent years has been the growth of passive investments and their associated lower fees. PWC estimates that 20% of fees could be cut on an asset-weighted basis across the mutual fund industry.
AWM firms can compensate for these losses and improve productivity through an increased focus on new opportunities presented by three interrelated steps.
1. Adopting technology more aggressively
Today’s successful AWM firms are recognising the importance of implementing a new way of working, which includes removing costly and cumbersome legacy systems and replacing them with new technology platforms across the business. As a result, these platforms introduce digital innovations that vastly improve effectiveness and efficiency.
2. Avoiding mergers & acquisitions
According to the study, nearly half AWM CEOs (41%) are seeking strategic alliances or joint ventures instead of merging with another firm (29%). Fresh-thinking managers are achieving the benefits of M&A through joint ventures. Joint ventures are a good way to access new skill, diversify outside their domestic markets or narrow product sets.
3. Nurturing 21st century talent
Talent development is a core prerequisite of the best companies in any industry. And AWM CEOs are well aware of their need to expand their workforce by attracting millennials, both as workforce and clients. As stated in report, AWM industry will need to push efficiencies through tech-savvy employees, scale and streamlined methodologies, while balancing costs as it adapts to the changes.
The rewards of an intelligent software
As unparalleled levels of digital disruption and an increasingly complex regulatory environment are putting asset and wealth managers under severe pressure, an investment in technology will continue to be crucial.
Obsidian’s new, advanced technology offers end to end digitization for asset and wealth managers to achieve exceptional results fast, by bridging the gap between operational, sales and investment data. Drawing together these different aspects allows AWMs to drive their business in new ways, as well as cutting costs and improving productivity.
Obsidian is trusted by thousands of leading financial firms with over $200B in assets under management across the globe, and is serving investment managers in multiple verticals, including hedge funds, funds of funds, private equity, real estate, institutional investors, family offices, prime brokerages and fund administrators.
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