Disruptive technology is shaping nearly every aspect of the global asset management industry, from growth and competition to innovation and acquisitions, according to PWC’s Asset and Wealth Management Survey 2024. The consultancy surveyed 264 asset managers and 257 institutional investors across 28 countries, with half of the respondents managing more than 10 billion dollars.
The findings, described as “largely representative,” focus on the transformative impact of data management, analytics, and artificial intelligence. “The largest asset and wealth management organisations are becoming technology and data companies,” the report notes, highlighting that technology and data services offered to other asset managers (“tech-as-a-service”) could drive up to 12 percent revenue growth over time.
Scale as the game-changer
According to PWC, scale is critical for leveraging the potential of disruptive technology. Larger firms are better positioned to capitalise on new applications, thanks to greater investment power and access to expertise. Yet, 30 percent of asset managers admit to lacking the necessary skills and talent to harness this technology effectively. Acquisitions are becoming a key strategy to fill this gap: 73 percent of asset managers considering acquisitions in the next 12 to 24 months cite talent and expertise as the main motivators.
59 percent of asset owners expect technology to make them less dependent on asset managers
Asset owners seek independence through tech
Technology is also reshaping relationships between asset managers and asset owners. PWC predicts a surge in mergers and acquisitions as asset managers strive to build technology ecosystems. Some 81 percent of respondents are exploring strategic partnerships, mergers, or acquisitions to strengthen their tech capabilities.
Asset owners, meanwhile, are equally focused on tech. Sixty percent regularly discuss technology’s role in investment strategies with their asset managers, aiming to gain deeper insights, customisation, and agility. Many are already deploying technology for real-time risk monitoring, portfolio rebalancing, and market trend forecasting. Notably, 59 percent of asset owners believe technology will make them less reliant on asset managers, enabling them to directly access a broader range of investments.
Disruption driving strategic priorities
The report underscores that disruptive technology is not just an operational tool but a strategic imperative for both asset managers and owners. As the industry evolves, the race to integrate innovation into investment strategies will define the winners in an increasingly competitive landscape.