Combine the low interest environment with the current digital tsunami, shifting demographics, the move from active to passive and new well-funded players in fintech, and it is clear the asset management industry is witnessing unprecedented levels of change. That’s not to mention rising competition from new players such as robo-advisory firms. That means personalization and customer engagement will be one key to ensure growth in the future. Indeed, Bob Reynolds, President and CEO of Putnam Investments, believes it’s not about active or passive investing but how to make investment goals personal to a client and personalize them for a customer, according to the Roubini Thoughtlab report on Wealth and Asset Management 2021.
Technology has the ability to shape the client experience for the industry as well. With more palatable advisory fees and other cost-effective services across commoditized asset classes, technology can increase the global reach of wealth management firms as wealth is redistributed across global and emerging markets.