Alternate Text

Original text


Finance


The Asset Management Industry moves towards "Uberization"

  • The asset management industry is no stranger to the change caused by the technological disruption and the new customs of the millennials.
  • 39% of institutional investors believe that artificial intelligence will allow them in the future to "create investment portfolios without the need for asset managers".
  • Asset management companies will begin to reorganize in order to provide experiences to their clients "inspired by technology designed for the digital era
Alternate Text

According to FlexFunds , the asset management industry is no stranger to the change caused by the technological disruption and the new customs of the millennials, tracing a series of challenges that range from a greater understanding of the client, the optimization of resources, to the the imperative need to adopt digital solutions.

The "uberization" of the economy , a concept adopted to refer to the shock generated by technology in traditional sectors such as transportation, or in this case, finance, is now a reality and therefore industries such as asset management wage a battle for Do not lose ground, says the firm. A recent global survey of investment fund manager Fidelity International, cited by the London-based Financial News , revealed that more than a third (39%) of the institutional investors consulted believe that artificial intelligence will allow them to "create portfolios in the future". of investment without the need for asset managers. "

This technological scenario will pose a major challenge in the coming years, as predicted in an interview the global manager of Asset Management at KPMG, Tom Brown , who believes that "the industry needs different skills," while there are "great challenges around the digital work ". In this sense, the private professional services firm Deloitte concludes in its 2018 report "Investment Management Outlook", that asset management companies will begin to reorganize in order to provide experiences to their clients "inspired by technology designed to the digital era. "

However, it also contemplates key aspects such as "the restructuring of product portfolios" and "the rationalization of operations" in a context in which there is evidence of a change in customer preferences that requires a refocusing of the strategy and the optimization of expenses. That is why the report even proposes mergers and acquisitions as a growth strategy for these firms, obtaining "a greater scope of distribution, a more diverse group of talents, a broader product portfolio, and cost efficiencies".

However, from the regulatory point of view Tom Brown of KPMG also perceives challenges due to "greater supervisory control" since the financial crisis of 2008, which has led to "a relentless focus on costs, charges and transparency".

At stake is a million-dollar business that is growing at an accelerated pace in advanced markets such as the Asia-Pacific region, where the revenues of asset managers are projected to almost double, going from about 66,000 million dollars to 112,000 million dollars in next five years, according to a study by the consulting firm McKinsey, quoted in a Financial Times report . Although the picture is not so clear to several market analysts, as expressed in a column of opinion published by Forbes : "The asset management business may be mounted on a rising tide of wealth, but this ship could easily sink in reefs hidden just below the surface, "he warns.

And is that as customers explain these services "have become more aware of the costs, more sophisticated about investment strategies, willing to make more stringent comparisons of products and services and less confident in the products actively managed." These factors force asset managers to move more agile and efficiently so as not to lose traction against lower cost models, as Deloitte explains in his report. "Agility is a way to comply with changing regulatory and fiscal requirements with new processes, rather than simply increasing the capacity of existing infrastructure," he says.

Today this adaptation is part of the agenda of firms such as FlexFunds , which is committed to asset securitization in a fast and efficient way, serving managers of any type of asset around the world. Through its products, the company is helping managers adapt to market changes through solutions that meet the need for cost control, while providing the innovative investment structures that customers are now demanding.

In short, this panorama in which different global actors converge, several of them consolidated as great titans of the industry, and a path that is traced on new technologies, need to start a disruptive or "uberization" process that allows to overcome the turbulences of the market that are fanned by a complex economic scenario in the world.In short, this panorama in which different global actors converge, several of them consolidated as great titans of the industry, and a path that is traced on new technologies, need to start a disruptive or "uberization" process that allows to overcome the turbulences of the market that are fanned by a complex economic scenario in the world.


SUBMITTED BY Funds Society

Source: https://www.fundssociety.com/es/noticias/alternativos/flx18-la-industria-de-gestion-de-activos-transita-hacia-la-uberizacion