How is FinTech Reshaping Asset Management & Which Areas Hold the Most Potential for Disruption?

The Rising Role of Fintech

The asset management industry is experiencing a seismic shift, with fintech reshaping everything from client onboarding to portfolio analytics. A few months ago we asked our readers what topic they are most keen to explore, the message was clear - over 50% of participating audience wanted to understand how this technological revolution is transforming investment management.

As someone who's witnessed this transformation first-hand, I've seen traditional firms reinvent themselves through technology while fintech companies continue to challenge the status quo. Let me share some prominent examples of this...

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Asset Management Areas Disrupted by Fintech

1. Advanced Data Analytics: Enabling asset managers to make more informed decisions by uncovering insights from vast datasets and optimising portfolio performance.
2. Regulatory Technology: Helping asset managers comply with regulations more efficiently, automating processes and as such, reducing the risk of errors and cost.
3. ESG Investing: Facilitating the growth of Environmental, Social, and Governance investing by providing tools to measure and report on the sustainability and ethical impact of investments.

As such, fintech’s integration into asset management is creating a more inclusive, efficient, and transparent financial ecosystem. And if you ask me what area holds the most potential for disruption, I think it is...

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The Biggest Industry Disruptor

Big data and analytics. Having high-quality, granular data is crucial in this regard, especially when leveraging AI. The old adage of, ‘garbage in, garbage out’, or GIGO, is never more apt and puts the emphasis on foundational datasets that can be leveraged across multiple use cases.

If you are able to produce and maintain high-quality structured data, ideally globally, this will enable enhanced decision-making, improved risk management, personalised investment strategies, increased efficiency, enhanced transparency and compliance, better client insights, scalability, increase customer satisfaction and so on.

High-quality, granular data is the foundation upon which AI can build more effective, efficient, and personalised asset management solutions. It empowers asset managers to make better decisions, manage risks, and provide superior service to their clients which ultimately will drive profitability and growth.

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Curious about the barriers to analytics adoption in asset management? Read the insights from our Head of Revenue, Greg Glass, where he breaks down the key challenges and solutions: