The asset management industry is undergoing a massive transformation. Economic uncertainties and geopolitical tensions are changing investor behavior. Emerging technologies, increased regulatory scrutiny and net zero ambitions are reshaping the investment landscape. Indeed, risk and return expectations have dramatically changed, forcing investors to reset their way of thinking.
As investors embrace this new normal, a greater focus on sustainability and resiliency becomes a priority. Data is an important enabler in the asset management space with data driven investing gaining ground. The global race to net zero has expanded the sustainable investment market. The rise of digital assets is ushered by a wave of new technologies and supportive regulatory policies. China and India remain as emerging markets favorites although China’s slow economic recovery could sour investor sentiment.
Meanwhile, evolving regulations, digital ecosystems, changing investor demographics and increasing collaboration between traditional and new players are reshaping the way securities are bought, traded and settled. Indeed, these developments are creating fundamental changes to how asset managers operate. Digital transformation is an urgent priority in response to the need for agility. The power of cloud-based technology can add to a changed future. New operating models – one with a greater focus on interconnectivity - can be a gamechanger while new approaches on partnerships can create more value for stakeholders.
As these trends continue to transform the industry, the role of custodians and securities services providers is clearly evolving. Banks can play a bigger role in supporting investors and market participants in navigating the opportunities and risks these developments bring.
The Asset Events, in association with Deutsche Bank, is pleased to be hosting an in-depth discussion to examine the factors that are disrupting and reshaping the asset management industry.