The wealth and asset management industry has been in growth mode, with assets under management (AUM) on the rise and even margins back on the mend. Yet behind surging AUM and rising revenues, a sound majority recognizes simultaneous undercurrents of profound change, heated competition and margin pressures, according to a new report by Forbes Insights, EY And SEI.
The study report titled "Seeing Beyond: Unlocking the Long-Term Opportunities in Wealth and Asset Management" said that 83% of respondents agreed or strongly agreed that they are facing significant competitive pressure, indicating that the industry is experiencing considerable stress.
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Nearly half (49%) of the executives who participated in the survey said that they believe their segment is undergoing significant change.
According to Forbes Insights chief insights officer Bruce Rogers this report depicts an industry trying hard to anticipate change and stay ahead of the curve.
The study found that the larger the firm, the more likely that it senses competitive pressure.
Nearly one-third (34%) of the companies said their strategies are either in continuous evaluation, refinement and adjustment (and thus are up to date) or fully defined and implemented.
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By GlobalDataWhile, 56% of the executives said their firms are in hot pursuit of greater operating efficiency and cost reductions.
The report added that a vast majority of executives opined that technology can help them improve client experience, expand reach to new clients and markets, and enhance products and services.
SEI chief marketing officer Mark Samuels said: "The wealth management industry is facing rapid changes in terms of resources, risk, client relationships, growth, and profitability. We believe now is the time for industry members to examine their business models in order to better prepare for the future. SEI’s goal has always been to help our clients create long-term, sustainable growth, and crucial to this is our focus on innovation. Studies, like this one, support that goal.
"These report findings are further evidence of the transformation that is happening in our industry, and we are pleased to share this perspective to our clients and the broader wealth management space."
