Fintech
Fierce Competition Ahead as Less Than 100 Asset Managers Secure Two-Thirds of Industry Asset Flows
Organic growth across the global asset management industry, measured on a total net asset flows basis, is expected to slow from a compound annual growth rate (CAGR) of 3.9% over the last decade to 1.7% from 2021 to 2031 as competition heats up between both challengers and incumbents alike, according to a newly released whitepaper, The New Competitive Calculus: Winning with Data-Driven Strategy by global Fintech and asset management advisory leader Broadridge Financial Solutions, Inc. (NYSE:BR).
Despite this, Broadridge forecasts that net asset inflows will still expand by a healthy US$18T over the next decade, helping to push total assets under management (AUM) to a record of more than USD$170T– unlocking exciting new avenues for growth and challenges to overcome for those that can adapt to change.
Competition, however, will be more fierce as growth slows. Broadridge’s research reveals three increasingly distinct classes of industry competitors, two of which – expanding incumbents and innovative challengers – dominate the industry’s organic growth. Already less than 100 asset management firms globally accounted for nearly 64% of the industry’s $14.4 trillion-plus in net new flows gathered since 2016, according to Broadridge’s research.
“Opportunities will be driven by different capabilities and clients – from institutions to individuals, and from the US and Europe towards Asia, especially China,” said Ben Phillips, head of Asset Management Global Advisory Services, Broadridge. “While secular changes manifest in different ways, there are still primary drivers that asset managers need to look out for to maximize their growth. The reality is that these changes are creating unmet needs, all of which are opportunities to innovate and reposition themselves for growth.”
Broadridge expects significant opportunities to be had aligning business strategies to meet shifting secular trends, many of which, if missed, will increasingly bifurcate the market between winners and losers.
The study predicts that individual investors will drive 69% of net flows in the coming decade significantly overtaking institutional investors, while private markets will shift from driving 16% of net flows between 2011 to 2021 to 32% of net flows between 2021 to 2031. In terms of regions, The New Competitive Calculus outlines net investment flows shifting from the US and Europe toward Asia Pacific, especially China. APAC will drive 42% of net flows between 2022 to 2031, from just 26% between 2012 to 2021.
As individual investors seek to use their portfolios to address a wider array of financial and non-financial objectives, thematic investing is expected to rise. One example is the momentum in ESG and impact-oriented investing, which will account for 27% of net flows during the next decade.
The above trends are dramatically changing the competitive forces facing asset managers today. Strong investment performance has long been regarded by the industry as the primary differentiator to win market share. However, with the shifts in opportunities identified in the whitepaper, performance is not enough to stand out. Today, competitive differentiation is being defined across four major dimensions:
Faster product innovation – Quick and effective innovation is key. Successful asset managers have adopted an innovation- and product-focused strategy where product development is a central role supported by data and propelled by a flexible distribution network.
Stronger distribution – Successful asset managers are set apart by their ability to scale. This means multiplying points of influence, strengthening relationships beyond value intermediaries, and building exclusive distribution relationships as a protected channel against rivals. A data-driven approach to segmentation helps maximize resource efficiencies and create leverage to better monetize distribution advantages.
More flexible delivery – Competitive asset managers have recognised the need to customise access for end-investors, becoming increasingly flexible with delivery models, especially for priority products and markets where such changes contribute to divisive market leadership. In determining which delivery models are worth pursuing, successful asset managers are focused on implementation cost, technologies that allow customization and portfolio personalization, and delivery capabilities that allow operational efficiency.
Better brand building – A competitive brand will set asset managers apart against the noise of new product capabilities and products, striking a balance between regional norms and global positioning. Strategic decisions include linking brand attributes to clear competitive advantages and embedding innovation and change as brand attributes.
Learn more about these trends shaping the global asset management industry from Broadridge’s whitepaper. Click here to access The New Competitive Calculus: Winning with Data-Driven Strategy.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
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Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
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The Ever-Evolving Landscape of Fintech: Top Stories Today
The fintech world continues to thrive with new developments shaping its future. Today’s highlights cover Revolut’s enhanced crypto fraud protections, Bestow’s recognition as a leading fintech company, Advyzon’s CEO receiving a prestigious award, Tyme Group’s global expansion supported by Nubank, and the rise of Israeli fintech startups. Let’s dive into the details and explore the broader implications.
Revolut Steps Up Crypto Fraud Protection
In a significant move to fortify customer trust, Revolut has announced enhancements to its crypto fraud protection systems. Leveraging advanced security risk scores, the company aims to shield users from the growing menace of crypto-related scams. The platform’s new measures will involve deeper scrutiny of transactions, sophisticated algorithms to flag potential fraud, and proactive alerts for unusual activities.
Revolut’s focus on fraud protection reflects the escalating challenges faced by fintech firms operating in the crypto space. As digital currencies gain traction, fraudsters continue to exploit vulnerabilities, necessitating robust security mechanisms. Revolut’s initiative could set a precedent for the industry, emphasizing that user safety is as critical as innovation. However, the success of these measures will depend on striking the right balance between security and user experience.
Source: Coindesk
Bestow Earns a Spot Among Top 100 Financial Technology Companies of 2024
Bestow, a digital life insurance innovator, has been named one of the Top 100 Financial Technology Companies of 2024. This recognition highlights Bestow’s transformative approach to life insurance, combining cutting-edge technology with customer-centric solutions. By simplifying the traditionally cumbersome insurance process, Bestow has made life insurance more accessible and affordable.
The accolade underscores the growing importance of insurtech in the broader fintech ecosystem. Bestow’s achievements signal a shift in consumer expectations—convenience, transparency, and technology-driven solutions are becoming non-negotiable. As insurtech continues to disrupt traditional insurance models, the emphasis will likely shift from mere digital transformation to delivering personalized and predictive services.
Source: PR Newswire
Advyzon CEO Hailin Li Wins ThinkAdvisor 2024 Luminaries Award
Hailin Li, CEO of Advyzon, has been honored with the ThinkAdvisor 2024 Luminaries Award for Fintech Executive of the Year. This award recognizes his exceptional leadership and Advyzon’s commitment to empowering financial advisors with innovative tools. Under Li’s stewardship, Advyzon has excelled in providing comprehensive technology solutions, enabling advisors to deliver superior client experiences.
Li’s recognition highlights the pivotal role of leadership in driving fintech innovation. Advyzon’s success is a testament to how visionary leadership can redefine financial advisory services. As advisors increasingly rely on technology to navigate complex markets, platforms like Advyzon are becoming indispensable. The award also serves as a reminder that the human element—inspired leadership—remains crucial even in a tech-driven industry.
Source: Business Wire
Nubank Backs Tyme Group’s International Expansion
In a strategic move, Nubank has announced an investment in Tyme Group, a digital bank with operations in South Africa and the Philippines. This partnership aims to accelerate Tyme’s growth in emerging markets, leveraging Nubank’s expertise in scaling digital banking operations. Tyme’s unique business model focuses on financial inclusion, catering to underserved populations in developing economies.
Nubank’s investment signifies a growing trend among fintech leaders to expand their footprint in emerging markets. The collaboration between Nubank and Tyme underscores the potential of digital banking to bridge financial inclusion gaps. However, challenges such as regulatory complexities and technological infrastructure limitations in these regions must be addressed to ensure sustainable growth.
Source: Business Wire
Israeli Fintech Startups Gaining Global Momentum
Israel’s fintech ecosystem is making waves internationally, with startups leveraging the country’s robust tech culture and innovation-driven mindset. From payment solutions to cybersecurity for financial services, Israeli fintech firms are attracting significant investments and partnerships globally. This trend reflects the country’s position as a hub for technological advancement and entrepreneurial spirit.
The rise of Israeli fintech startups is a testament to the country’s ability to harness innovation for global impact. However, scaling these ventures beyond local markets remains a challenge. Strategic partnerships and a focus on addressing global financial challenges will be crucial for these startups to cement their position on the world stage.
Source: Calcalist Tech
Broader Implications for the Fintech Industry
- Enhanced Security in Crypto: Revolut’s initiative highlights the need for continuous advancements in fraud prevention. The increasing complexity of scams calls for adaptive security measures that can evolve with emerging threats.
- Recognition Drives Innovation: Bestow’s accolade and Hailin Li’s award demonstrate the power of recognition in fostering innovation. Industry acknowledgment not only boosts morale but also sets benchmarks for others to emulate.
- Global Collaborations: Nubank’s partnership with Tyme Group underscores the importance of cross-border collaborations in fintech. As markets globalize, such alliances will play a pivotal role in shaping the future of financial services.
- Emerging Market Opportunities: Investments in developing economies highlight the untapped potential of these regions. Fintech companies must focus on understanding local needs and challenges to create impactful solutions.
- Tech Hubs as Catalysts: The success of Israeli fintech startups emphasizes the role of regional tech hubs in driving industry growth. Policymakers and stakeholders must nurture these ecosystems to sustain innovation.
The post Fintech Pulse: Your Daily Industry Brief (Revolut, Bestow, Advyzon, Tyme Group, Nubank) appeared first on News, Events, Advertising Options.
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