Today, the funds industry is confronted with the fast rise and growth of new technologies, such as RPA, AI, Blockchain, etc. The FIF research shows that this trend is regarded as a potential threat. For the front office, digitisation will substantially change the sales and distribution channels (digital platforms, apps). But equally for the back office, new technology will reshuffle the business model. For example, robo-advisors are already being used as a supporting tool for portfolio management.

Threat versus opportunity

The research also shows that the preparations to tackle that threat are in full swing. Data management, digitisation and new technologies are of key importance in this. The next challenge is to also truly become a digital leader, and to implement new technologies in the organisation efficiently. The industry is ware of the technological threat but also sees it as an opportunity. 70% of the respondents is planning investments in new technology or FinTech in the next two years.

81.5% of all respondents has not invested in blockchain technology over the past two years.

On the road to better customer service

In addition, we notice that the asset manager sector evaluates its digital maturity as modest/average. 59.3% is actively involved in it. 22.2% is advanced. But no one calls themselves a digital leader. Because the road to a digitally mature organisation can be bumpy: IT legacy problems, data quality… At this moment, the entire financial sector is struggling with this. As soon as digital maturity is achieved in the funds industry, a lot more technology will become available to improve the services to customers.