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Asset Managers Have New Rules to Play By: BNY Mellon

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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.

Digital Capabilities

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. 

More on this topic

Seventy-two percent of respondents in the study said they use or will use these techniques to help develop approaches to manage product demand using scenario analysis.

Sixty-five percent said that with such approaches, they can optimize resource allocations that drive sales and asset retention.

Asset managers may need to find ways to concentrate their focus onto their core competencies. To accomplish this, they may need access to non-core capabilities through providers that specialize in these areas.

Survey respondents reported that they are looking to service providers to help them play by these new distribution rules. Seventy-one percent said they most need expertise in distribution channels, while 64% cited distribution support services from third-party service providers.

The research is being released in chapters, with Chapter 4 discussing how new expectations around technology and digital experiences are shifting the way asset managers are distributing their products.

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