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Research Reports » Calastone Sep 2019

Transforming distribution through technology

The application of new technology is important in helping the investment funds industry to win new business and to deliver secure, efficient services. But where does the industry sit in its technology journey? How good is it at applying innovation? And in which areas can it improve?

Funds Europe, in association with Calastone, surveyed the industry to provide answers to these questions. Among its main findings:

  • 53% of respondents say that direct-to-customer channels will be the dominant distribution channel in the UK market in five years’ time.
  • 47% say the cost of managing information on fund sales across their distribution networks has increased over the past 12 months.
  • 36% say distributed ledger technology (DLT) is the emerging technology that will have the greatest impact on the industry.
  • 70% say that technology adoption has improved across the funds industry in the past three years.
  • 58% say DLT will deliver greater efficiency in fund trading and settlement.
  • 44% say DLT will deliver lower aggregate transaction fees to the investor.
  • 45% says that frontier Asian markets offer asset managers most opportunity to grow their businesses.
  • 33% say the primary source of innovation will be the US, while 28% say it will be Europe.

For the third year, Funds Europe has partnered with Calastone to produce a survey of the dominant trends in the asset management industry in Europe and the United Kingdom.

We developed this survey to evaluate industry views on questions of particular relevance to the region. The latest in a series of research studies sponsored by Calastone, this complements a similar report evaluating dominant trends in Asia’s funds industry published in June . A survey to evaluate trends in the Australian funds market will be published later in 2019.

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