FUNDRAISING NEWS | November 20, 2024
Asset and wealth managers are reconsidering their approach toward partnerships and consolidations as industry players race to improve their technological capabilities amid expectations that artificial intelligence (AI) will be a crucial factor for competition in the future.
According to PricewaterhouseCoopers International's (PwC) newly released 2024 Asset & Wealth Management Report, 81% of surveyed asset and wealth management (AWM) organizations are considering strategic partnerships, consolidations, or mergers and acquisitions to boost technological capabilities.
For the report, the Big Four company surveyed 264 asset managers and 257 institutional investors from 28 countries and territories. Among the respondents, 80% believe disruptive technologies like AI will drive revenue growth, with expectations that these technologies will improve both operational efficiency and employee productivity.
"To emerge as leaders in this new digital-first market, AWM organizations must invest in their technological transformation while also ensuring they are re-skilling and upskilling their workforces with the necessary digital capabilities to remain competitive and innovative," commented PwC UK Global Asset & Wealth Management Leader Albertha Charles.
“Tech as a Service” is also expected to generate additional growth of up to 12% by 2028 for early adopters. These services include platforms for product distribution, portfolio management, and risk and data analytics. Tokenization is also another area anticipated to generate growth. PwC forecasts tokenized products will grow to more than $317B by 2028 from $40B.
"The report highlights an urgent need for AWM organizations to rethink investment strategies. Long-term viability depends on a radical, fundamental and continuous reinvention of how organizations create and deliver value," Charles said.
"Strategic partnerships and consolidation will play a vital role in building tech ecosystems that will facilitate a greater transfer of ideas and expertise. Smaller players will be able to bring their systems up to speed quickly and cost-effectively, while allowing larger players to access talent and insight pivotal to growth, particularly as new and emerging technologies such as AI transform the investment management landscape."
Access the full report here: https://www.pwc.com/gx/en/issues/transformation/asset-and-wealth-management-revolution.html
