ASSET MANAGEMENT MOVES INTO THE SPOTLIGHT

ENTERING THE DIGITAL ERA

The rise of the digital era during the past decade has led to wide utilisation of digital technologies in everyday individual and corporate life. Access to the internet, a privilege of few in the past, has become a mainstream commodity for the masses today.

But the asset management industry still lags behind in efficient usage of digital technologies across the value chain in comparison to a large number of other industries. That said, the strong growth of digital solutions, which is nowpermeating the investing arena, offers asset managers an opportunity to disintermediate banks and other distributors by engaging directly with clients. It also provides an opportunity to enhance data analytics for improved investment decisions, risk management, product development and client targeting. The successful implementation of these strategies would improve investment performance as well as introduce a new level of trust in client-investor relationships. Within the retail investor segment, elevated trust could be a building block for the asset management industry to increase its share of financial assets held by households (which has seen a decline in the past 10 years in Europe).

Figure 20 INterNet Users by regIoN

2000

2012

2000

2012

1,200,000,000

1,200,000,000

1,000,000,000

1,000,000,000

800,000,000

800,000,000

600,000,000

600,000,000

400,000,000

400,000,000

200,000,000

200,000,000

0

0

Africa

Asia

Europe Middle East

North America

South America

Oceania

Africa

Asia

Europe Middle East

North America

South America

Oceania

CAGR:

35%

21%

14% 32% 8% 25% 10% 14% 32% 8% 25% 10%

CAGR:

35%

21%

Source: InternetWorld Stats, 2012

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