A study from PwC shows that many asset and wealth manager are not considering FinTechs in their strategic decisions. However, neglecting innovative start-ups could lead to the loss of market shares.
The disruptive potential of FinTechs is neglected by many asset management companies, shows a survey of 150 asset managers around the world. Only every second corporation fears to lose market shares to FinTechs, for example Robo Advisors, within the foreseeable future. 17 percent even state that there is no threat to their business model at all.
Just 45 percent are concerning the rise of FinTechs in their strategic decision making. Therefore, only few asset managers seek to cooperate with the innovative start-ups (34%) or provide customers with their own solution such as a smartphone application (31%).
According to Markus Hammer, Heading the German Asset & Wealth Management unit at PwC, the asset management industry is likely to be the next segment of the financial market that will be disrupted by technology-oriented companies. Traditional asset manager could suffer the loss of a significant market share if FinTechs disrupt the industry just like they did in the payment and retail-banking segment.