How FinTech is shaping asset and wealth management

Listen to PwC's Julien Courbe and Michael Raneri discuss how FinTech is shaping the asset and wealth management industry, and what new industry trends asset managers need to consider. 

Too lax about the FinTech disruption

All financial sector survey participants viewed asset and wealth management as the third most likely sector to be disrupted. From a wider perspective, customer banking and fund transfer & payments industries offer palpable examples of how FinTechs are changing the financial sector with new offerings. They rank top among sectors most prone to the FinTech disruption, and are already visibly disturbed. Asset and wealth managers are next in line to experience the game-changing impact that start-ups will have on the financial industry.

Not yet ready to address changing needs

A vast majority of asset and wealth managers (75%) view the impact of FinTech predominantly as the need to adapt to changing customer needs, while 50% (more than any other financial sector) think new entrants can enhance interactions and help build trusted relationships (figure 3). Firms do not, however, prioritise these types of investments, preferring instead to focus on investments around analytics and automatic asset allocation.

Focusing on data analytics and automation

While sceptical, asset and wealth managers are still investing in new technologies. They believe that FinTechs have the biggest potential to improve customer experience, but most of their actual interest is focused on data analytics and automation of asset allocation, areas typically associated with “robo-advisors”.

The FinTech mind-set is still in its infancy

Only 45% of AWMs agree that they place FinTech at the heart of their strategy, while the majority admit that their FinTech-focused strategy is being only partially adopted. This makes it difficult for incumbents to understand and take advantage of trending FinTech developments that are reshaping the market.

Contact us

Manoj Kashyap
Global FinTech leader
Tel: +91 226 669 1888
Email

Steve Davies
EMEA FinTech Leader
Tel: +44 (0) 131 260 4129
Email

John Shipman
APAC FinTech Leader
Tel: +61 (2) 8266 0198
Email

Julien Courbe
Asset and wealth management advisory leader
Tel: + 1 646 471 4771
Email

Michael Raneri
US FinTech Leader
Tel: + 1 (415) 519 4906
Email

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