• Almost three-fourths (73%) of asset and wealth management (AWM) organisations say AI is seen as the most transformational technology over the next 2-3 years
• 81% are contemplating strategic partnerships, consolidations, or mergers and acquisitions (M&A) to enhance technological capabilities and build an ‘extended tech ecosystem’
• Global assets under management (AUM) projected by PwC to hit US$171 trillion by 2028 at a 5.9% compound annual growth rate (CAGR), with alternatives to grow quicker – at 6.7% CAGR, to reach $27.6 trillion by 2028
• AWM organisations look to tokenisation to democratise finance: PwC expects tokenised investment funds to surge to over $317 billion in 2028, at a 51% CAGR
• Skills in high demand: 73% of asset managers considering M&A see access to skilled expertise as the number one driver of deal-making over next 2-3 years, yet 30% say they lack relevant skills and talent

LONDON, Nov. 19, 2024 /PRNewswire/ — Four-fifths (80%) of asset and wealth management (AWM) organisations say disruptive technologies such as AI will fuel revenue growth, with those moving quickly to adopt ‘tech-as-a-service’ potentially seeing a 12% boost to revenues by 2028, according to PwC analysis.

PwC’s 2024 Asset & Wealth Management Report, released today, surveyed 264 asset managers and 257 institutional investors from across 28 countries and territories, and also finds that four-fifths (81%) are contemplating strategic partnerships, consolidations, or mergers and acquisitions in order to enhance technological capabilities and build an ‘extended tech ecosystem’ to innovate, expand into new markets, and democratise access to investment products ahead of a great wealth transfer.

The report also finds that global AUM held by AWM organisations around the world is projected by PwC to hit US$171 trillion by 2028, with tokenised investment funds to surge at a CAGR of 51%.

Albertha Charles, Global Asset & Wealth Management Leader, PwC UK, said:

“Disruptive technologies such as AI are transforming the asset and wealth management industry and fuelling revenue growth, productivity and efficiency. Market players are subsequently looking to strategic consolidation and partnerships to build tech-driven ecosystems, break down silos in data management, and transform their service offerings ahead of a great wealth transfer that will see mass affluents and younger audiences play a greater role in shaping service demands. To emerge as leaders in this new digital-first market, AWM organisations must invest in their technological transformation while also ensuring they are re-skilling and upskilling their workforces with the necessary digital capabilities to remain competitive and innovative.”

Disruptive technologies will fuel AWM revenue growth

AWM organisations broadly see disruptive technologies such as AI as transformational, with almost three-fourths (73%) viewing it as the most transformative technology over the next two to three years. 80% say such technologies will fuel revenue growth, with 84% noting it will improve operational efficiency and 72% noting it will improve employee productivity. The provision of tech-as-a-service¹ by AMW organisations could deliver a 12% boost to revenues by 2028, according to PwC analysis.

While such technologies represent an opportunity to turbo-charge operations and access new markets, more than three-fifths (68%) say that they allocate less than one-sixth of their capital to innovative and potentially transformative technologies, with more than half (59%) of institutional investors noting such technologies could reduce their reliance on asset managers. This comes as only 20% of AWM organisations are currently using disruptive tech to enhance personalised investment advisory.

Global AUM to hit US$171 trillion by 2028, with alternatives leading the way

Under baseline projections, PwC research estimates global assets under management (AUM) held by asset and wealth managers (AWMs) is expected to hit US$171 trillion by 2028, reflecting a 5.9% CAGR, and up from 5% last year. Alternatives are projected to grow much faster – at a CAGR of 6.7%, to reach $27.6 trillion by 2028.

As AWM organisations look to new growth opportunities, tokenisation stands out, with tokenised investment funds expected by PwC to increase from $40 billion to over $317 billion in 2028, representing a 51% CAGR. Tokenisation, or fractional ownership,² could expand market offerings by democratising finance and lowering premiums, with tokenisation planned to be offered notably by asset managers in private equity (53%), equity (46%), and hedge funds (44%). While alternatives represent a significant growth opportunity, less than one-fifth (18%) currently offer emerging asset classes such as digital assets as part of their offering – even as eight in ten that do offer such assets report a rise in inflows.

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AWM looks to consolidation and tech ecosystems as talent remains top priority

Against this backdrop, 30% of asset managers say they are currently facing a lack of relevant skills and talent, while 73% of AWM organisations who are exploring M&A see access to skilled expertise as the number one driver for deal-making over the next 2-3 years. As AWM organisations contend with digital disruption and expanding their talent and product pools, more than four-fifths (81%) are contemplating strategic partnerships, consolidations, or mergers and acquisitions to build an extended tech ecosystem to drive growth.

Albertha Charles, Global Asset & Wealth Management Leader, PwC UK, concludes:

“The report highlights an urgent need for AWM organisations to rethink investment strategies. Long-term viability depends on a radical, fundamental and continuous reinvention of how organisations create and deliver value. Strategic partnerships and consolidation will play a vital role in building tech ecosystems that will facilitate a greater transfer of ideas and expertise. Smaller players will be able to bring their systems up to speed quickly and cost-effectively, while allowing larger players to access talent and insight pivotal to growth, particularly as new and emerging technologies such as AI transform the investment management landscape.”

About PwC 2024 Asset & Wealth Management Report

PwC’s 2024 Asset & Wealth Management Report is an international survey of 264 asset managers and 257 institutional investors from across 28 countries and territories. Respondents covered a broad spectrum of AUM size, with more than half boasting assets of over US$10 billion. You can read the full report at www.pwc.com

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 149 countries with more than 370,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

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¹ Tech-as-a-service includes ‘platforms for product distribution, portfolio management, risk and data analytics, and more.’ More broadly it is a model that allows third parties to offer financial services by using the technology and regulatory framework of traditional financial institutions.
² Tokenisation is the digitisation of an asset where each unit or token represents ownership of part of that asset. It converts rights to an asset into a form of digital token facilitated by a blockchain platform.

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BAKU, Azerbaijan, Nov. 19, 2024 /PRNewswire/ — On November 14-15, 2024, Dr. Ma Jun, Co-Chair of the IPSF Taxonomy Working Group and Chairman of Capacity-building Alliance of Sustainable Investment (CASI), presented at several sustainable finance sessions during COP29, elaborated on the Multi-Jurisdiction Common Taxonomy (MCGT). He points out that the MCGT launch marks a significant milestone in enhancing the interoperability of taxonomies across jurisdictions and facilitating cross-border green capital flows. 

At the session hosted by the International Platform on Sustainable Finance (IPSF), Dr. Ma elaborated on the key considerations of the international effort to develop a “common language” for identifying and labelling green and sustainable activities, with a view to mitigating the risk of market segmentation and transaction costs due to proliferation of taxonomies by different jurisdictions. During 2020-2022, the IPSF Taxonomy Working Group, Co-chaired by China and the EU, published the Common Ground Taxonomy (CGT) that included 72 climate mitigation activities recognized by both economies. Since its release in 2022, the CGT has been used by issuers in China to label green finance products traded internationally and domestically, which helped reduce costs for cross-border transactions.

In 2023, Singapore joined the CGT exercise, and collaborated with the EU and China to produce the Multi-jurisdiction Common Ground Taxonomy (MCGT), featuring 110 mitigation activities agreed upon by the three jurisdictions. Dr. Ma believes the MCGT represents “an important new milestone for enhancing interoperability of taxonomies across jurisdictions.” The fact that CGT has been used by several jurisdictions as a building block for taxonomy development, suggests that the MCGT could further aid other countries in developing their sustainable finance markets.

In sessions hosted by Spain and Kazakhstan, Dr. Ma discussed the key uses of taxonomies, including labelling green financial products, preventing greenwashing, measuring and reporting green performance, and allocating policy incentives to green performers. He emphasised that the MCGT could serve as reference for more jurisdictions in developing their domestic taxonomies.

During the CASI Sustainability Forum for COP29 co-hosted by the Capacity-building Alliance of Sustainable Investment (CASI) and Azerbaijan University of Economics (UNEC), Dr. Ma stated that to enhance its global role in boosting interoperability of taxonomies, the MCGT plans to “expand its jurisdictional coverage by inviting more countries to join the development of future versions of MCGT.”

View original content:https://www.prnewswire.co.uk/news-releases/dr-ma-jun-elaborates-on-multi-jurisdiction-common-ground-taxonomy-during-cop-302309548.html

• 65% of UK homeowners are significantly impacted by rising energy costs with 34% dipping into their savings to pay for energy bills
• A generation of ‘eco-curious’ consumers are demonstrating a new interest in living more sustainably, yet perceptions of high upfront costs are preventing 57% of people from considering a heat pump
• Heat pumps have already cut CO₂ emissions by 8 million tonnes^[2] with the potential to save households up to 25% on heating costs

LONDON, Nov. 19, 2024 /PRNewswire/ — A new report by clean energy-tech company, Aira reveals that 65% of UK homeowners^[3] are significantly impacted by rising energy costs, proving the critical need to shift towards more sustainable and cost saving heating solutions.

The risk of ‘energy poverty’ – when a household has to reduce its energy consumption to a degree that it has a negative impact on an individual’s health and wellbeing – has been quietly growing throughout the cost-of-living crisis, with over a third (34%) of UK homeowners having to dip into savings to pay their energy bills.

The physical and emotional impact is being felt across the nation, with 75% of people in Yorkshire and The Humber having restricted their use of heating to reduce energy costs and 13% of Londoners experiencing a lack of sleep.

Aira’s latest report, The Era of the Eco-curious: can I live more sustainably and spend less? reveals that people are already taking small steps to live more sustainably, with 37% of Brits switching to eco-mode on their washing machine, 29% buying second-hand clothes and 25% using appliances out of peak periods. Whilst 57% of people still associate heat pumps with high upfront costs, these small steps highlight the desire to live more sustainably and create new hope for heat pump adoption.

Industry experts argue that despite the challenges of the cost-of-living crisis, the combination of increasing energy costs and lower incomes is encouraging a broader reevaluation of energy usage, driving a new era of eco-curious consumers.

The data, however, shows that there’s room to increase consideration and uptake as 54% of people say they would switch to a heat pump if they perceived them as more affordable, signaling an opportunity for both governments and businesses to help accelerate adoption with education and increase accessibility with financial incentives.

Carolyn Snell, Professor of Social Policy at the University of York, says: “There can be a perception that heat pumps are more expensive to run, they’re difficult, and they’re not going to make things as warm as you want them. There’s a real lack of good information around it, and a lack of trusted information as well. Historically, energy is an area where there’s a lot of mistrust – it goes back to the 1990s.”

By making the simple shift to cleaner, greener heat pumps, people can save £560 on their annual energy bills^[4] and disruptor brands, like Aira, are already working to remove barriers to adoption, with monthly payment plans and extended warranty for peace of mind. 

Pamela Brown, Aira’s Consumer Expert, says: “Our report shows that energy costs are now a critical challenge for households and are creating anxiety as winter approaches. However, a generation of eco-curious individuals are slowly realising that their carbon footprint—and their energy bills—can be drastically reduced by adopting clean energy-tech. At Aira we increase accessibility to these solutions with monthly payment plans and offer complete peace of mind with a 15-year guarantee, enabling people to live sustainably without spending more.”

Notes to editors:

Survey methodology:

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A total of 5,500 homeowners in Germany, Italy and the UK were surveyed for this study. The survey was conducted by the international market research agency OnePoll on behalf of Aira and took place between 7 and 9 October 2024. The survey was conducted in online format as a CAWI (Computer Assisted Web Interviewing) and was aimed at homeowners who use an independent heating system. The sample comprised 2,000 participants from Germany, 2,000 from the UK and 1,500 from Italy, ensuring a representative database for these countries.

About Aira

Aira provides clean energy-tech solutions to consumers and is becoming Europe’s number one direct-to-consumer brand within the industry. Aira accelerates the electrification of residential heating with intelligent clean energy-tech to enable the net zero future we all need. With Aira, consumers across Europe have a go-to-provider for complete home energy saving solutions, with intelligent heat pumps at the heart. Aira’s vertically integrated model, combined with a consumer-centric monthly payment plan that requires zero upfront cost, enables best-in-class consumer economics and cost leadership. Aira’s mission is to take Europe off gas by empowering people to join the clean energy revolution, one home at a time. Founded in Stockholm, Sweden, by Vargas Holding and backed by climate and innovation investors including Altor, the Burda family, Collaborative Fund, Creades, Kinnevik, Lingotto, Nesta Impact Investments, Statkraft Ventures, and Temasek. https://www.company.airahome.com

[1] The UK Fuel Poverty Monitor report from National Energy Action (NEA) and Energy Action Scotland (EAS), 2024

[2] European Heat Pump Association data published in Euronews, 2023

[3] Aira survey conducted of homeowners with an independent heating system – 2000 German respondents, 2000 UK respondents, 1500 Italian respondents

[4] £560 potential cost saving based on switching from fossil fuel boiler to Aira Heat Pump and Aira Zero integrated time of use tariff

View original content:https://www.prnewswire.co.uk/news-releases/3-million1-brits-face-energy-poverty-as-over-a-third-dip-into-savings-to-cover-bills-this-winter-aira-reports-302308983.html