WEALTH AND ASSET MANAGEMENT 2022:
The Path to Digital Leadership
A global thought leadership project produced in conjunction with:
Appway, Broadridge, Cisco, eToro, J.P. Morgan Asset Management, Oracle, Protiviti, Sapient Consulting, and Vauban Group
Ground-breaking research into the future of the industry
Survey of 1,503 C-leveland direct reports in nine
industry sectors
Worldwide survey of 15+ countries: Australia, Canada, China, Dubai, France, Germany, India, Japan, Nordics, Saudi Arabia, Singapore, South Korea, Switzerland, United Kingdom, and the United States
Rigorous performance benchmarking and ROI analysis conducted by Roubini ThoughtLab’s team of senior economists
Advisory meetings, plus 42 interviews with
executives and experts
Appway, BBVA, Berenberg, Blackstone, Broadridge, Carlyle Group, Charles Schwab, Cisco, Cognitive Finance, Credit Suisse, Danske Bank, Digi.me, eToro, Fidelity, HSBC, iValley, J.P. Morgan Asset Management, John Hancock, Johnson Bank, LPL Financial, Mitsubishi UFG, MRA Associates, Oracle, Pictet, Protiviti, Putnam, RBC, Robo-Investing, Sapient, Schlitz & Schlitz, ShoreBridge, State of Wisconsin Investment Board, UBS, Union Bank, Vanguard, Vauban Group, and Wealthfront
Digital innovators are already seeing major performance gains.
Laggardspay a high financial penalty, and run the risk of falling out of the race altogether.
The digital storm in consumer markets has touched down in the investment industry.
The digital imperative
The convergence of digitization, globalization, and consumerization will reshape the investment industry by 2022.
First movers will drive performance Laggards will pay a penalty
Foregoing $79 million per billion dollars of
revenue a year—and risk of falling out of the race altogether.
96% of CEOs now see digital transformation as central to their businesses
“Technology is the future of our industry.“Bob Reynolds, CEO of Putnam Investments
“If you don’t master technology, you won’t survive.” Francisco Gonzales, Chairman, BBVA
“We need to revolutionize our business.” John Cryan, CEO of Deutsche Bank
Firms are struggling to keep up with the speed of change
…and raising investor expectations faster than many firms can respond
Silicon Valley is setting the pace…
“Look at what Jeff Bezos has done at Amazon. It is that level of client-centricity, that frictionless ease of doing business, and the lowering of prices that follows, which investors will come to expect.” John Marcante CIO, Vanguard
Providers are not fully preparedProduct simplicity and transparency 49%
Anytime, anywhere, any device access 45%
Robust cybersecurity 43%
Innovative and customized services 32%
Investments across asset classes 31%
Socially responsible investment options 27%
Lower fees or special incentives 24%
Fintech 23%
The digital race is on
3%
29%
47%
20%
23%
47%
26%
2%
Now 2022
99% of investment providers are in the process of digital transformation
70% of firms are in early digital stages. By 2022 about the same number
will be advanced.Digital leader
Maturing
Transitioning
Beginner
Firms are gearing up for the future
Over the next three years, BNPplans to double its investment to $3.2 billion to create the digital “bank of the future.”
Germany’s biggest bank, Deutsche Bank, has committed over $750 million to digitalization over that same time period.
J.P. Morgan, the largest US bank, spent $9.5 billion on technology in 2016 alone.
Seven hallmarks of a digital leader
Digital leaders are advanced in the use of fintech: 44% now integrate fintech into their core products and processes.
1
2
3
4
A digital vision and business case
A clear path to digital transformation
A customer-centric mindset
5
6
7
An agile product development process
A culture of innovation A digital team to drive change
Early adoption of digital technology
Three out of four digital leaders use the cloud to enable agile product innovation. And 59% are replacing their legacy systems with a cloud platform.
The cloud is essential for sustaining digital leadership
Support customer-centricity
45% now, 59% in 2022Reduce operating costs
40% now, 56% in 2022%Facilitate
internal collaboration 40% now, 55% in 2022
Accelerate time to market
39% now, 56% in 2022
Driveinnovation
37% now, 54% in 2022
Support advanced
tech solutions37% now, 56% in 2022
Replace end-to-end systems
36% now, 53% in 2022
“Right now, you need to be in the cloud to even be in the game.”Tyrone Canaday, Managing Director, Protiviti
Now Future Growth
Blockchain 15% 31% 110%
Artificial intelligence 17% 36% 108%
Robotics 10% 18% 84%
Web collaboration 19% 34% 76%
Geospatial technology 15% 23% 52%
Telematics 18% 28% 52%
Contextual marketing 19% 28% 47%
Web analytics 20% 30% 46%
Collaborative investing 16% 23% 45%
Staying ahead of technology over the next five yearsThe SMAC stack (social media, mobile, analytics, and cloud) will become table stakes for the investment industry. Digital leaders will drive performance by staying ahead of the technology curve.
Steps for building a seamless customer experience
Digital onboarding will become the norm: 43% of firms now offer digital onboarding, and the number will rise to 69% by 2022.
Putting the client at the center (43%)
12
3
45
6
7
Understanding the investor journey (44%)
Leveraging data to understand client needs (35%)
Rethinking the use of physical offices vs virtual (39%)
Setting up cross-functional teams to service customers (40%)
Analyzing the impact of client servicing on channels (41%)
Providing anywhere, anytime, any-device access
(40%)
The bottom line: impact of technology on performance
Over the past year, firms across the industry have boosted their performance through technology
Lessons learned from Silicon Valley
Lesson 1: Make it easy for your customers to do business with you– John Marcante, CIO Vanguard
Lesson 2: Consider the impact of digital on your physical footprint– Vinod Ramon, VP digital advice solutions, Fidelity
Lesson 3: Be digital first, but not digital only– Neesha Hathi, chief digital officer, Charles Schwab
Lesson 4: Get control of customer data– Yoni Assia, founder and CEO, eToro
Lesson 5: Think audaciously– Chris Peretta, chief information and operations officer, Bank of Tokyo-MFUG
Lesson 6: Explore platform as a business model– Wiwi Gutmannsbauer, global head of omnichannel management, UBS Wealth Management
Lesson 7: If investment providers don’t step up, Amazon will step in– Mark Smedley, VP, financial services, global industry lead, Oracle
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