The asset and wealth management industry is undergoing significant change. How can you stay relevant?
November 20, 2017
The asset and wealth management industry is undergoing exponential change. Scale alone isn’t enough to sustain long-term growth as the market becomes increasingly disrupted and demanding. That’s why deal horizons are expanding. What are the new realities and new rationales driving the upturn in M&A? How can you use M&A to boost competitive relevance in this fast shifting marketplace?
Customer expectations, relative purchasing power and regulatory change have set off a period of rapid upheaval in the asset and wealth management (AWM) industry. How can M&A help your business to keep pace?
Four key drivers that are reshaping the AWM market
Our latest report focuses on four key drivers that are significantly reshaping the asset and wealth management landscape and are set to make 2018 a record year for M&A. These four drivers are:
Driver 1
Investors increasingly have the power
Against a backdrop of regulatory change and investor choice, fees and margins are declining across the asset and wealth management industry (AWM ). Asset and wealth managers are under increasing pressure to respond to these changing market realities as cost cutting alone can only go so far in sustaining revenues and bolstering margins.
Driver 2
Demand for passive and alternative strategies is growing
Nowhere is the pressure to justify fees being felt more intensely than among active fund managers – what can they offer above and beyond what’s available from a passive fund and is it worth the charges?
Driver 3
Technology is set to disrupt all areas of the AWM industry
Asset and wealth management (AWM ) is less insulated from the disruptive impact of technology than many industry leaders assume. Developments present some threats, but also huge opportunities for innovation and differentiation.
Driver 4
New opportunities are emerging
New opportunities for profitable growth are emerging. Asset and wealth managers are filling financing gaps that have emerged since the global financial crisis. They’ll continue to provide capital for new types of real assets and new forms of corporate financing, learning new skills as they do so. They’ll also play a vital part in bridging the retirement savings gap.
Our report explores how these four drivers are transforming the asset and wealth management market and shaping the M&A marketplace. M&A can help you to sustain competitive relevance in this new and unfamiliar landscape, not just in the short-term, but also in laying the foundations for long-term profitability and growth. Find out more and download our full report.
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We hope you enjoy reading the perspectives and insights shared.
