A\u00a0recent report from KPMG claims the next 15 years could produce something of a revolution.<\/p>\n
In the paper, titled \u201cInvesting in the Future\u201d, KPMG describes how\u00a0the world of investment management is likely to change by 2030.<\/p>\n
The investment management industry is still in its infancy\u00a0compared to other financial services sectors.<\/p>\n
It has grown on the back of the baby boomers over the last 30 years. But healthy margins often breed complacency, and because of the growth story, there has generally been a lack of innovation.<\/p>\n
The KPMG report highlights four megatrends that it believes will shape the sector over the next decade and a half \u2013 demographics, environment, technology and social values, and behaviour and ethics.<\/p>\n
The\u00a0younger client base wants immediate and personalised information and\u00a0traditional models have become obsolete.<\/p>\n
KPMG also believes that investors will \u201cincreasingly value outcomes and certainty over returns\u201d. This could extend to retirement products offering more than just cash-based payouts.<\/p>\n
\u201cFor most, retirement planning is about securing lifestyle expectations rather than simply cash accumulation,\u201d the report states. \u201cOn that basis, options to secure holidays, cars and healthcare during retirement may be as attractive as putting aside cash.\u201d<\/p>\n
Technology has increased competition and\u00a0investment managers will not only have to manage their products accordingly but how clients engage with them.<\/p>\n
“Personalised information and education about the choices available will become as important \u2013 if not more so \u2013 than the underlying product,\u201d the report argues.<\/p>\n
Part of this will be the desire for investment managers to have a more direct relationship with their clients.<\/p>\n
\u201cWe also believe that investment managers can play a much broader, deeper role in clients\u2019 lives and the industry value chain,\u201d KPMG states.<\/p>\n
\u201cHowever, it will require a very different business model; one which requires providers to be much more engaging and relevant to a broader range of customers. This will mean understanding clients far better than today and creating a new value proposition based around education, outcomes (not just returns), flexibility and personalised solutions.<\/p>\n
\u201cWhile relatively small in both number and scale at this stage, there are emerging models leveraging a combination of technology, data and social networks to bring fresh propositions to market which play to the evolving megatrends,\u201d it says. \u201cThese could have the potential to cause waves in the industry.\u201d<\/p>\n
The biggest challenge is establishing a trusted brand, something that is critical in any financial services business. But while this is a short-term concern, it is also potentially a longer term opportunity.<\/p>\n
Companies might look to form strategic partnerships with established providers. Already there are examples in China of social network brands linking up with asset managers to distribute their products.<\/p>\n
\u201cThis potentially provides opportunities for non-traditional new entrants,\u201d the report argues. \u201cIt may seem a little clich\u00e9d but could the likes of Amazon, Google and Apple be the next powerhouses in investment management? After all, they are the top three in the Fortune World\u2019s Most Admired Companies list in 2014.\u201d<\/p>\n
These companies already have ubiquitous brands, business models designed around understanding personal needs, huge existing client bases, and the proven ability to use the data that they capture to deliver personalised services. This could be exactly what the industry needs.<\/p>\n","protected":false},"excerpt":{"rendered":"
A\u00a0recent report from KPMG claims the next 15 years could produce something of a revolution. In the paper, titled \u201cInvesting in the Future\u201d, KPMG describes how\u00a0the world of investment management is likely to change by 2030. The investment management industry is still in its infancy\u00a0compared to other financial services sectors. It has grown on the … Continue reading “Asset management faces a revolution”<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[782,1295],"tags":[9266,9268,9269,9267,9095],"class_list":["post-14396","post","type-post","status-publish","format-standard","hentry","category-features","category-in-depth-coverage","tag-asset-management","tag-financial-services","tag-investment-management-industry","tag-kpmg","tag-retirement-planning"],"cc_featured_image_caption":{"caption_text":false,"source_text":false,"source_url":false},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/14396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14396"}],"version-history":[{"count":1,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/14396\/revisions"}],"predecessor-version":[{"id":14397,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/14396\/revisions\/14397"}],"wp:attachment":[{"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}