Asset managers see FinTech as key future growth driver

FinTechAsset managers are cautiously optimistic about their prospects in 2016, and believe FinTech will play a significant role in helping volumes of business and income from fees, commissions and investments rise.

Asset managers are also focused on investments that will enable growth, and see the rise of FinTech firms as an important positive influence on their growth over the next five years.

Nevertheless, despite the moderately upbeat tone, PwC warned that FinTech firms are “hampered” by regulatory constrictions, and asset managers must work out how they can best utilise the opportunity these new companies offer.

PwC carried out its research among nine UK asset management firms.

“It’s still early days for asset management firms and their interaction with start-up disruptive companies but we are seeing asset managers beginning to put aside money for investment in innovation and FinTech,” said Mark Pugh, UK asset management leader at PwC.

“However, they remain at the exploration stage and are still getting to grips with how this mountain of start-ups could add value to product offerings, distribution channels and customer engagement.”

©2016 funds europe