Dassault Systèmes commissioned a survey for more than 450 senior executives in asset and wealth management on digital transformation in their industry and its prospects. The survey revealed that asset and wealth managers are taking a cautious approach to digitization, yet expect partial to full disruption in the industry within the next decade; early adopters already report gains in competitive advantage and improved customer experience. Results will be presented during the FundForum International investment management conference in Berlin June 12-14, 2017.
The survey, detailed in the full report, “Digitization of asset and wealth management: promise and pitfalls,” provides insight into the key drivers of digitization, its current state of adoption, and its blockers and enablers, as well as examines the nature of the ensuing industry disruption, its success factors and benefits.
Findings from the survey include:
- Growing cost pressures, the rising importance of fees and charges as differentiators, the rise of low-cost passive funds, the market entry of fintech and internet giants, and a new generation of digitally-savvy investors are accelerating digitization.
- 54 percent of asset managers have adopted social media tools, while 56 percent of wealth managers have adopted new digital platforms; blockchain is the least implemented of eight digital tools cited.
- 80 percent of asset managers and 77 percent of wealth managers expect digitization to partially or fully disrupt their industry within ten years.
- The majority envisages a competitive landscape of alliances with external disruptors or the development of proprietary platforms; only a minority expects external disruptors to carve out niches.
- Early adopters report reduced operating costs, stronger market position, higher efficiencies, improved regulatory compliance and better client experience.
“The key driver of digitization in the years to come will be changing client behaviors, under which financial services will evolve from being supply-led to demand-led,” said Amin Rajan, CEO, CREATE-Research. “This means that wealth management is at the dawn of a new transformation, more far reaching than anything experienced before. Digitization is not the first choice or the last choice; it is the only choice. The future belongs to those with a clear vision for their business in the digital age.”
"We commissioned this study to measure the expected impact of digital technology on the asset and wealth management industries in the next ten years and its perceived role in sustaining or transforming business models,” said Guillaume Dufour, Vice President, Financial and Business Services Industry, Dassault Systèmes. “We will continue supporting financial institutions in their digital transformation with industry solution experiences such as our ‘Innovation Factory’ to digitize processes, strengthen governance, accelerate time to market and reduce regulatory-related costs, to better serve a changing customer base.”
“Digitization of asset and wealth management: promise and pitfalls” is based on a global survey of 458 asset and wealth managers from 37 fund jurisdictions with total assets under management of $32 trillion.
