Monday, December 21, 2015
  • Technologies, including smartphones, mobile broadband, data analytics, advanced computer algorithms, and social media and crowdfunding platforms, are set to spur a transformation of the asset and wealth management industry.
  • Going forward, traditional firms in the asset and wealth management industry will need to strategically respond to new sources of competition from well-funded software-driven companies that are currently making significant inroads in the market by focusing on unmet client demands, bringing down costs, and providing innovative new services.
  • Disruptors in the industry range from algorithmic portfolio creators to stock trading services to budgeting applications. All have some combination of automated investment features, low prices, and innovative platforms that are user-friendly, efficient, flexible, and rapidly scalable.
  • Technological advances are enabling retail investors to emulate professional and institutional investment strategies, and explore non-traditional financial products that have historically only been available to high-net-worth or commercial investors.
  • Incumbent firms unwilling or unable to adapt to new technologies, learn from new market entrants, and adjust business models will likely face persistent low growth and declining profits resulting from the inability to compete at a high level with tech-savvy incumbents and digital startups. 

IIF Authors

Kristen Silverberg

Kristen Silverberg - IIF
Managing Director

Conan French

Conan French - IIF
Senior Advisor for Innovation and Fintech

Dennis Ferenzy

Dennis Ferenzy - IIF
Associate Economist, Innovation