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.
Plug and Play, a global accelerator platform and one of the most active early-stage investors globally, has announced a strategic partnership with Gujarat International Finance Tec-City (GIFT City). Through the partnership, Plug and Play will establish and run the International Fintech Innovation Hub (IFIH), GIFT City’s FinTech Incubator and Accelerator, which aims to foster research and innovation in financial technology, reinforcing GIFT City’s role as a premier global fintech hub.
GIFT City’s MD and Group CEO, Mr. Tapan Ray, said, “Our vision at GIFT City is to drive fintech innovation by creating a climate-resilient, inclusive ecosystem that empowers diverse entrepreneurs and builds workforce competitiveness in emerging technologies. With the support of prominent partners in fintech education and incubation, we are committed to nurturing a new generation of talent that will be well-equipped to meet the needs of an evolving global economy.”
Manav Narang, Head of Financial Services for Plug and Play APAC and Program Lead for the GIFT Incubator and Accelerator added, “We are thrilled to bring Plug and Play’s global expertise to GIFT City. Our vision is to create India’s largest industry-wide fintech program – a collaborative platform where banks, payments corporations, venture capital and corporate venture capital firms, accelerators, and ecosystem partners unite. Together, we aim to catalyze transformative fintech solutions and nurture fintech unicorns that will shape the future of finance in India.”
The program will support fintech startups with resources, mentorship, capital, and networking to navigate and excel globally in the dynamic fintech landscape. The first batch of startups will be unveiled in January 2025.
The post Plug and Play and GIFT City Launch “IFIH,” a Global Fintech Incubator and Accelerator appeared first on .
Doo Group’s brokerage brand, Doo Financial is thrilled to announce its expansion into Indonesia by acquiring a reputable Indonesian broker to expand the business. This move brings its global investment services to local investors. Backed by the strength of Doo Group’s extensive international presence, cutting-edge technology, and 10 years of expertise, Doo Financial is well positioned to support investors at every level.
As a brand encompassing investment services offered by various legal entities within the Doo Group, Doo Financial provides a comprehensive range of global brokerage services. This wide range of products empowers investors to pursue their financial goals.
With a diversified portfolio, Doo Financial empowers investors to navigate various market conditions effectively, manage risks, and focus on long-term growth. This entry into the Indonesian market reflects Doo Financial’s commitment to supporting investors with flexible, high-quality investment options tailored to today’s dynamic financial landscape.
Supervision by International Regulatory Institutions to Ensure Top-Tier Safety
As a global leading finance group, Doo Group has licensed entities regulated by top regulatory authorities worldwide, ensuring a secure and reliable trading environment.
Our global credentials include licenses from the U.S. Securities and Exchange Commission (US SEC), the Financial Industry Regulatory Authority (US FINRA) in the U.S., the Financial Conduct Authority (UK FCA) in the UK, the Australian Securities and Investments Commission (ASIC), the Hong Kong Securities and Futures Commission (HK SFC), Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI) in Indonesia. These licenses enable us to provide secure and reliable financial services globally.
Dedication to Shape the Industry with Innovative Solutions
Doo Financial’s expansion into Indonesia brings advanced technology and a global perspective to empower local investors. As an international investment firm committed to secure and seamless trading, Doo Financial offers a diverse range of products and services to help diversify portfolios and open up new opportunities.
This growth elevates opportunities for Indonesian investors by offering seamless access to global markets and advanced trading platforms within a secure and regulated environment. It broadens investment choices and enhances the trading experience, aligning it with international standards and empowering local investors with comprehensive tools and resources for success.
Driven by unwavering commitment, this growth marks a significant milestone in Indonesia’s investment landscape, equipping our clients with the tools to navigate global markets. We remain dedicated to delivering exceptional service, exploring new opportunities, and driving future breakthroughs. With continued support from the FinTech community, we are excited to innovate and shape the future of finance.
Stay updated with the latest insights from Doo Financial. Join our community of empowered investors and let us be your trusted partner!
E-mail: [email protected]
The post Doo Financial Now in Indonesia: Offering Local Investors A Gateway to Global Markets appeared first on .
Fintech is on an accelerated trajectory of investment, collaboration, and innovation. This pulse tracks the most significant developments in the sector, from high-profile investments to global platform expansions. Each update in this briefing serves as a key indicator of where the industry is headed.
1. European Fintechs Face Regulatory Pressures Amid New Investment Surge
The European fintech sector finds itself at a crossroads with increasing scrutiny and rising costs due to stringent regulations. While investments continue to flow into the continent’s financial technology companies, challenges in meeting new compliance requirements, especially around data privacy and cybersecurity, create a complex landscape for scaling. This tension between opportunity and operational limitations might affect European fintechs’ growth strategies.
Source: Financial Times
2. Shopify, Slack Founders Join Peter Thiel in Fintech Investment Push
Tobi Lütke of Shopify and Stewart Butterfield of Slack, along with investor Peter Thiel, have co-invested in a new fintech initiative that aims to bolster small business access to capital. By merging technology with a streamlined funding model, this new initiative targets underserved SMBs, highlighting a broader trend of high-profile tech leaders pivoting to fintech investment. The participation of Lütke and Butterfield signals increased cross-sector collaboration in fintech, bringing expertise from e-commerce and communication technology into the financial arena.
Source: Yahoo Finance
3. Lean Technologies Raises $67.5 Million to Drive Fintech Innovation in the Middle East
Riyadh-based fintech platform Lean Technologies recently secured a $67.5 million Series B investment round, aiming to expand its operations across the Middle East. This funding reflects growing investor interest in emerging markets and the potential of Middle Eastern fintech to bridge regional gaps in financial services access. As Lean Technologies broadens its service offerings, the funding will support further technological integration and scalability across financial ecosystems in the region.
Source: Fintech Global
4. Apollo Global Management Invests in Fintech for Private Offerings Support
Apollo Global Management has taken steps to enhance its services for private offerings by investing in specialized fintech solutions. This development signifies a growing trend among private equity firms to adopt fintech as a core component in their service expansion, particularly for personalized client services. Apollo’s strategy of integrating fintech solutions into private offerings marks a strategic shift toward digitalization within traditional financial sectors.
Source: Bloomberg
5. Juniper Research Names 2025’s Future Leaders in Fintech
Juniper Research has revealed its picks for the top future leaders in fintech for 2025. This list emphasizes innovation in fields such as AI, open banking, and decentralized finance, highlighting startups that exhibit potential for reshaping industry standards. As these up-and-coming firms push the boundaries of traditional finance, they exemplify the rising tide of next-generation financial technology poised to become industry mainstays.
Source: Globe Newswire
Conclusion
The convergence of seasoned tech giants with fintech, new funding rounds for region-specific platforms, and the rise of future industry leaders underscore the momentum of the fintech sector. Each of these stories reflects a broader narrative: fintech is not only diversifying in services but also rapidly integrating into traditional finance and tech, paving the way for a transformative era.
The post Fintech Pulse: Evolving Fintech Investments and Partnerships Signal Industry Transformation appeared first on HIPTHER Alerts.
-
Fintech4 days agoFintech Pulse: Industry Innovations and Partnerships Drive Global Fintech Forward
-
Fintech3 days agoFintech Pulse: Evolving Fintech Investments and Partnerships Signal Industry Transformation
-
Fintech PR6 days agoStatement From Universal Music Group N.V.
-
Fintech PR2 days agoCayman Enterprise City Receives Two Prestigious Awards from the Financial Times’ fDi Intelligence Global Free Zones of the Year 2024
-
Fintech PR1 day agoUniversal Consulting Opportunities (UCO), a Stellar MLS Subsidiary, Signs Agreement with NAR India As Advisor to Develop a National MLS
-
Fintech PR1 day agoBlockchain for Good Alliance Hosts Web3 Oscar, Celebrating Innovators Advancing UN’s Sustainable Development Goals
-
Fintech PR1 day agoEY announces alliance with Regnology to drive modernization of regulatory and tax reporting with both a local and global focus
-
Fintech PR1 day agoNoble Corporation plc announces submission of request for removal from trading and official listing on Nasdaq Copenhagen