7 Keys Challenges Asset Management Marketers Face!
The Asset Management Industry is still growing and the global wealth and asset management industry faces unprecedented change / disruption in the year ahead. A tightening interest rate environment in the US, the Panama Papers, concerns over deflation in the Eurozone and a recession in many emerging markets comprise the backdrop for an industry part of the overall finance industry transforming itself at a very fast pace. Just in the UK it continues to go from strength to strength, with assets growing significantly faster in the UK than globally in recent years.
The industry is highly global focused, with around 40% of the £5.5 trillion of assets under management in the UK coming from overseas clients. As the industry grows, so does the scrutiny it receives from clients, regulators, policymakers and the media and special all the areas of FinTech and special the advent of the RobotAdviser.
As the industry and all finance industry are undergoing the FinTech baptism asset managers will need to respond appropriately in the coming years as their role in the economy and society continues to expand and somehow being changed. The majority of assets are still actively managed but the debate is intensifying about the relative cost and delivery of active and passive management new processes, special in automation, risk management and technological automisation.
1. New products and the emergence of ETFs and closed-end products.
In the past ten years the ETFs have grabbed more of the market shares directly from the mutual funds. Though many technical arguments exist between the ETFs and Mutual Funds, it would be very irresponsible of any management firm to overlook the reality that has become apparent. The customer wallet is slowly being transferred from the Mutual Funds to the ETFs and these are the people who are the long-term savers of ETF marketers and the ETF are doing a great job in attracting more people like these traditional long-term savers.
2. Asset Management – Talent Retention.
At this moment, the generation of investment managers is almost at an end. Most of the best talent people are scattered away and are taking help from investor’s to create boutique shops and fintech driven asset management robo adviser solutions. This is surely something to worry about for the CEOs of asset management. Considering that this is an industry where talent – people, product class is based on track record, trust and name recognition, this must be the main topic of discussions in the boardroom debate.
3. Asset Management – Distribution Strategy in a new Digitalised World.
There are about hundreds of salesperson at the big firms who sell to bank distributors, advisors, and wholesalers. New digital market places and distribution models are constantly changing as the advisors are asked to demonstrate accountability and data scalability. Customers look forward to the industry manufacturer to provide them with the value product, not just with good performance but with accuracy transparency and openness that traditionally were not provided by the mutual funds before.
4. Asset Management – Cloud base solutions and infrastructure.
Asset management cloud computing infrastructure variants and cloud-based service models using APIs integration and Big data are now the backbones of this industry. But Asset management tech and cloud solutions are still in its early days much more needs to be done to solidify both technology, dashboards and data solutions.
5. Asset Management – Emergence of Robo-Advisors..
You might find something about Robo-advisors in our recent blogs, where we talk about what a truly disruptive force it is to the asset management industry. Nutmeg in the UK and Wealthfront in the US are on their way to get the lion’s share of the Y generation. That is the ultimate gold for an investment industry.
Electronic platforms are achieving notable AUM growth in the past few years. Featuring data online tools and virtual advice fueled by algorithms, these low-cost platforms (offered by both established firms and technology start-ups) very effectively target lower- to middle-income market segments are making this exclusive industry open to more and more investors and making pressure in the industry to adapt and be more agile and scalable.
Sustained AUM growth is on its way with Wealthfront and Betterment becoming big global players, but these automated advisory platforms face an existential challenge and a lot of regulatory challenges. It is still unclear whether rock-bottom pricing can eventually lead to positive and growing operating cash flow, profitability and long-term viability.
6. User Experience, UI, UE, Big data and the IOE touching the Asset Management industry.
The growing importance of user and customer experience, especially on the web and via tablets and smartphones is shifting the industry towards a route focused in data and devices information that the Internet of Everything is driving. Asset Management firms that are not following this will simple disappear as sophisticated investors want the best experience for the assets and real time data with the best user experience and interfaces UI and UE.
7. Cyber Security and Asset Management.
Cyber security touches all the areas of human life nowadays but in asset management is of upmost importance due to the amounts in question and all the both security and privacy subjects it affects. Just look at the Panama Papers to see we are in the inception of a new world where transparency and cyber security will have to work side by side and the asset management industry needs to be in the forefront of this!
Dinis Guarda is an author, speaker, serial entrepreneur, advisor and experienced CEO.
He creates and helps build ventures focused on global growth, 360 digital strategies, sustainable innovation, Blockchain, Fintech, AI and new emerging business models such as ICOs / tokenomics.
Dinis is the founder/CEO of ztudium that manages blocksdna / lifesdna. These products and platforms offer multiple AI P2P, fintech, blockchain, search engine and PaaS solutions in consumer wellness healthcare and life style with a global team of experts and universities.
He is the founder of coinsdna a new swiss regulated, Swiss based, institutional grade token and cryptocurrencies blockchain exchange. He is founder of DragonBloc a blockchain, AI, Fintech fund and co-founder of Freedomee project.
Dinis has created various companies namely Ztudium, a tech, digital and AI blockchain startup that builds cutting edge software, big data insights, publishes intelligenthq.com, hedgethink.com, tokensdna.com and tradersdna.com among others.
Dinis is the author of various books. His upcoming books “How Businesses and Governments can Prosper with Fintech, Blockchain and AI?”, also the bigger case study and book (400 pages) “Blockchain, AI and Crypto Economics – The Next Tsunami?” last the “Tokenomics and ICOs – How to be good at the new digital world of finance / Crypto” will be launched in 2018.
Some of the companies Dinis created or has been involved have reached over 1 USD billions in valuation. Dinis has advised and was responsible for some top financial organisations, 100 cryptocurrencies worldwide and Fortune 500 companies.
Dinis is involved as a strategist, board member and advisor with the payments, lifestyle, blockchain reward community app Glance technologies, for whom he built the blockchain messaging / payment / loyalty software Blockimpact, the seminal Hyperloop Transportations project, Kora, and blockchain cybersecurity Privus.
He is listed in various global fintech, blockchain, AI, social media industry top lists as an influencer in position top 10/20 within 100 rankings: such as Top People In Blockchain | Cointelegraph https://top.cointelegraph.com/ and https://cryptoweekly.co/100/ .
He has been a lecturer at Copenhagen Business School, Groupe INSEEC/Monaco University and other leading world universities.
He is a shareholder of the fintech social money transfer app Moneymailme and math edutech gamification children’s app Gozoa.
Between 2014 and 2015 he was involved in creating a fabbanking.com a digital bank between Asia and Africa as Chief Commercial Officer and Marketing Officer responsible for all legal, tech and business development. Between 2009 and 2010 he was the founder of one of the world first fintech, social trading platforms tradingfloor.com for Saxo Bank. In 2011 he created the B2B platforms socialmediacouncil.org and openbusinesscouncil.org with Jamie Burke.