Nine Trends Shaping The Future of Managing Asset

This is a watershed moment for the asset management industry. New technol-ogies are reshaping the sector, commoditizing large parts of the value chain, forcing incumbents to sharpen their value propositions. Inspired by platform models in other industries, clients are also advancing new demands with respect to the immediacy, connectivity and ubiquity with which they interact with their providers. At the same time, regulators are doing their best to prevent consumers from being sold inappropriate products, which are often the most lucrative for providers. As a result, regulatory costs continue to climb during a time in which fees are falling and a veritable battle to claim ownership of the client relationship has erupted.

And although the industry still enjoys growth in assets under management (mainly due to asset price inflation), the future is likely to become increasingly turbulent to players ignoring the structural changes taking place in the market. These structural changes are being driven by nine key trends that are already challenging the industry. Looking further ahead, asset managers who are will-ing to see the client as their compass are set to thrive in this environment, while the rest are likely to face accelerating headwinds.

We hope you enjoy reading this contribution to the dialogue, and invite you to share your thoughts with us.