A new report on the asset management industry shows that not only is the time right for participants to redefine their relationships with key stakeholders, but new realities and opportunities demand an evaluation and, if necessary, an adaptation of operations.
The rise of new technologies and investment and partnership opportunities in non-mainstream asset classes will have an impact on IT, human resources, risk management and compliance, says the report, jointly written by CACEIS and PwC.
CACEIS and PwC have highlighted some of the opportunities emerging in the industry today: the rise in pension assets inspired by a move from pay-as-you-go schemes toward funded pension plans, a growing need for infrastructure financing due to the ongoing urbanization of the world and increased potential for SME financing brought on by higher capital requirements for banks. Additionally, they say, digital technology is impacting asset management and opening doors for those adroit enough to walk through them.
“Although fund managers are not known for their technological acumen, the likelihood of technology giants like Google and Facebook entering the fund market is entirely conceivable,” the report adds. “In fact, many have already taken steps in that direction through online payment solutions.”
In the midst of increased competition, heightened regulatory scrutiny and new communication channels, asset managers who embrace and implement appropriate technologies may adapt to their new environment more easily, says the report. For instance, big data has not yet been adequately utilized within the asset management industry, it says. “Institutional investors are demanding improved risk management capabilities, which require the analysis of large amounts of data. As investment strategies become more sophisticated in the search for alpha returns in increasingly efficient markets, managing and analyzing large volumes of data will be a key component of investment decisions. Asset managers who can effectively use big data to provide deeper insights and sustainable returns will gain a competitive edge.”
To read the report in full, click here.
Data Can Protect Asset Managers Against Increasing Competition, Says Report
A new report on the asset management industry shows that not only is the time right for participants to redefine their relationships with key stakeholders, but new realities and opportunities demand an evaluation and, if necessary, an adaptation of operations.