PwC Asset Management Report is “On the Money”
Here at WealthKernel, we pride ourselves in staying on top of industry research and output and we thought you might be interested in this report recently published by PWC. Their findings and views align strongly with the ethos of WealthKernel and we have been inspired by their analysis of the industry.
“The industry is a digital technology laggard. How well firms embrace technology will help to determine which prosper in the years ahead. The race is on …” (p.11)
As you’ll have read in previous posts, we strongly believe that now is the time for the financial industry to take on technology solutions to bring them into the 21st Century, making their products as accessible as films on Netflix or food from Ocado. PWC highlights in their report the significant headwinds and challenges facing the industry over the next ten years and that it is imperative that companies can be proactive to make an opportunity rather than reacting once the boat has sailed.
“The heydays of 30%+ profit margins will not be sustainable in the new world order.” (p. 8)
PWC’s comments build on the tone one could read into the fund management study by the FCA; that firms need to come to terms with operating in an environment where their margins will be lower as a result of either greater competition or investment in distribution. Preparing for the ‘new world’ means adapting and adapting means developing the right tools to deal with future challenges. This has never been more true than it is now in relation to technology.
“Finally, technology can automate the processes of wealth management. For example, new client ‘onboarding’ has typically involved 20 to 30 steps but only takes two to three with some online solutions.” (p. 13)
Clients expect simple, transparent, easy to use solutions for all their daily needs and yet wealth management for the most part still relies on old, slow, confusing technology with reams of paperwork and poor online facilities. The good news is, WealthKernel exists to ease the transition, share expertise and take on a portion of the technological burden.