The environment they have to deal with is complicated and volatile, but the asset management industry is optimistic about its own growth. However, firms operating in this sector are aware that they must adapt their businesses to the expectations and values of customers, focusing on new products, new distribution channels, the impact of climate and environmental change and on technology.
Going into the detail of the study, the growth expectations of the macroeconomic environment are striking: only 54% of the CEOs of the asset management sector are confident about the evolution of the global economy in the next three years, below the global average (62%). Confidence grows considerably (93%) when asked about their confidence in the evolution of their own firm. It also highlights the fact that 63% of the CEOs of the sector look at emerging markets as a strategic geographical priority for the next three years.
From a strategic point of view, the main threats identified in the study and that must be managed by the CEOs of the fixed asset management companies in India are mainly three: protectionism, the risk of climate and environmental change and the impact on the technology business disruptive
From the operational point of view, from day to day business, the main challenges that can slow the growth of the sector are the recruitment and retention of talent, the innovation and improvement of operational processes and the ability to respond to so-called disruptive forces. The agility in the transformation process is perhaps the aspect in which there is a greater coincidence among executives about their critical nature, not to compete, but to work in the market.
To transform and gain agility, technology is a key lever. In this sense, to respond to the needs of the industry to be more digital and more data driven, reinforcing the customer focus, asset managers must invest in systems that improve their operational efficiency, allow them to gain scale and volume and respect the growing regulatory pressure, which ensures more and more protection for the client.
Given the multiple challenges to which asset management companies are currently exposed, it is essential that CEOs face the transformation of operating models. 83% of the top executives surveyed indicate that they are currently in the process of transforming their leadership teams and their technology strategy, trying to differentiate their front, middle and back office, in short, their way of doing business. Another task that CEOs are addressing is strengthening the resilience of the organization itself. In this sense, 49% say they are in full development of their digital capabilities and, therefore, the incorporation of new skills to their current workforce through the adoption of training plans over the next three years. From the point of view of resilience, one of the aspects that CEOs place most emphasis on is cybersecurity. 67% of managers in the sector consider it inevitable to be the victim of an attack against their computer security. Of these, 20% acknowledge not being prepared to face a contingency of these characteristics.