Impact of Emerging Technologies on the Asset Management Industry

Impact of Emerging Technologies on the Asset Management Industry

By Capital Markets CIO Outlook | Monday, July 16, 2018

Asset ManagementAccording to the results of Linedata’s 8th global asset management survey, robo-advisors are estimated to be the key game-changers in the next five years. While 37 percent of the respondents of Linedata’s survey considered regulation as a major concern, 14 percent less than 2017, 20 percent of them were positive about the growth of cryptocurrencies over the upcoming year. These results show a shift in focus from regulation to the opportunities provided by emerging technologies, with asset managers now laying more emphasis on managing data, controlling risks, cutting costs, and attracting new clients.

Furthermore, according to 22 percent of the respondents, advanced models of financial intermediation, including robo-advisors, are estimated to be the next groundbreaking trend in the asset management industry. This number rose by 10 percent in comparison to last year. As many as 20 percent of the participants predicted exchange-traded funds (ETFs) to be one of the major disruptors in addition to 16 percent voting for blockchain technology and 12 percent for machine learning and artificial intelligence (AI).

With asset managers inclining more towards diversification, the boundaries between traditional and alternative managers are gradually fading. As a result, private equity investment and smart beta are being forecasted to witness a considerable growth. Also, as conceptual testing has now been resulting in utilization of robotic process automation and AI tools, the asset management industry looks forward to an evolution. Arnaud Allmang, Co-head of asset management at Linedata, points how the implementation of big data and analytics will boost the efficiency and decision-making of asset management firms, thus providing remarkable products and effective service to clients.

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