Asset and wealth managers are taking a cautious approach to digitisation, but expect partial to full disruption in the industry within the next decade, according to a new report.

Findings of the Dassault Systèmes report, which surveyed 450 senior executives, revealed that 54 per cent of asset managers have adopted social media tools, while 56 per cent of wealth managers have adopted new digital platforms. Blockchain was the least implemented of eight digital tools cited.

A total of 80 per cent of asset managers and 77 per cent of wealth managers expect digitisation to partially or fully disrupt their industry within the next 10 years.

Growing cost pressures, the rising importance of fees and charges as differentiators, the rise of low-cost passive funds, the market entry of FinTech and internet giants, and a new generation of digitally-savvy investors are accelerating digitisation, the report suggests.

Amin Rajan, CEO of CREATE-Research, the outfit which conducted the research on behalf of Dassault Systèmes, said: “The key driver of digitisation in the years to come will be changing client behaviors, under which financial services will evolve from being supply-led to demand-led.

“This means that wealth management is at the dawn of a new transformation, more far reaching than anything experienced before. Digitisation is not the first choice or the last choice; it is the only choice. The future belongs to those with a clear vision for their business in the digital age.”

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