Asset management companies will halve by 2030

20/05/2014

Study points to technological changes and the profile of buyers

 
The number of asset management companies in the world is expected to halve by 2030, according to the report “Investing in the future” by KPMG International. The study points out that the industry will undergo a radical transformation over the next 15 years due to huge advances in technology and changes in demographics, social values and customer behavior. 
 
“There is a huge opportunity for non-traditional players that can thrive as they move quickly to implement more relevant digital and data strategies. Trusted brands that resonate and attract a more diverse customer base as well as the younger generation, can quickly gain scale”, analyzes the partner of KPMG's financial services area in Brazil, Oliver Cunningham.
 
The report predicts that by 2030, the client base of an average asset manager will be completely different as Gen Xers approach retirement, Gen Y matures and the middle class expands into emerging markets. According to the publication, the current business models will not be adequate for the intended purpose. "We are about to experience the biggest restructuring in the industry. The two biggest issues that need to be addressed are technology and the customer base, which are undergoing transformations, and asset managers need to focus their efforts in these areas", analyzes Cunningham. “You have to be aware that the profile of buyers will become different and more diversified than today, which includes much younger investors. Furthermore, it is undeniable that women are controlling an increasing share of family wealth.”
 
The report also highlights the importance of technological investments in new focuses. The study points out that asset managers still have a long way to go in terms of recognizing and exploiting big data and data analytics. While IT is already attracting a significant amount of investment, there is very little emphasis on developing the architecture to meet future business needs.
 
Finally, the publication predicts that most people will buy investment products online rather than buying them directly from an advisor. “The growing relevance of online communities and social networks is also changing attitudes and behaviors. Consumers are increasingly seeking the opinions of others rather than seeking advice, guidance and guidance from professionals,” concludes Cunningham.
 
For the full study, go to http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/investing-in-the-future/Pages/report-fs.aspx.