What You Need to Know
- Eighty percent of asset managers expect self-service and digital platforms to keep replacing meetings with advisors over the next three years.
- Using data insights can help asset managers target products and solutions across channels effectively, efficiently and less expensively.
- Seventy-one percent of respondents say they most need expertise in distribution channels, while 64% cite distribution support services from third-party service providers.
In order to attract new clients, asset managers are increasingly expected to incorporate seamless, user-friendly interfaces and social media/messaging capabilities into their platforms and strategies, according to research recently released by BNY Mellon.
The research comes from “Asset Management: Transformation Is Already Here,” a wide-ranging study that BNY Mellon is releasing in chapters. The study is based on a survey of some 200 asset managers around the world in the third quarter of 2020.
BNY Mellon found that shifts in distribution channels were already underway before the onset of the pandemic, but the coronavirus has hastened the demise of more traditional models.
The research shows that 80% of asset managers expect self-service and digital platforms to continue to replace in-person meetings with financial advisors over the next three years, even as the pandemic’s effects ease. And 76% expect new entrants to increase over the same period.
BNY Mellon said it is imperative that asset managers hone their digital capabilities at every level. Beyond the investor experience, use of data insights can ensure that asset managers can target products and solutions across channels effectively, efficiently and at lower cost.
Eight in 10 respondents said they are looking to deploy digital capabilities for product distribution, and two-thirds are doing the same for data analysis and insights.
According to the research findings, data science techniques help asset managers create more innovative, customizable solutions for clients.