As the pace of change accelerates across financial services, Joseph Pinto, CEO of M&G Investments, offered a clear-eyed assessment of the opportunities and challenges facing asset managers in an era defined by technological disruption and evolving client expectations.
Speaking at FundsTech Forum 2025, Pinto — who took the helm at M&G in March 2023 after senior leadership roles at Natixis and AXA Investment Managers — emphasized that technology is not merely an operational tool but a strategic necessity for survival.
“Our industry has long been pressured by declining fees, the shift from active to passive investing, and heightened client expectations,” Pinto said. “Technology offers a real opportunity: to lower our cost base, to create efficiency, and ultimately, to better serve our clients.”
Pinto outlined a three-pronged approach to transformation at M&G: enhancing investment processes, improving client engagement, and optimizing internal operations. From deploying AI tools in research and portfolio management, to reimagining client communications in a digital-first world, and streamlining back-office functions to cut costs, Pinto’s vision is comprehensive and pragmatic.
“We need to preserve profitability while preparing for the future,” he stressed. “It’s about finding synergies across investments, client relations, and our internal ‘factory’ to ensure we’re operating at the highest level of efficiency.”
Embracing a Generational Shift
Pinto also discussed the implications of the ongoing generational transfer of wealth, recognizing that future clients will expect a very different investment experience. Today’s younger investors demand digital access, transparent reporting, and seamless execution—far removed from the traditional face-to-face meetings of the past.
“You have to prepare for tomorrow’s clients without forgetting today’s,” he noted. “While the majority of assets remain with older generations, we are laying the foundations to serve digital natives who will expect technology to be embedded into every aspect of their investment journey.”
From active ETFs to tokenized assets, Pinto said M&G is developing products and channels aligned with future client preferences. However, he warned against over-investment without a clear economic case, highlighting the importance of balancing innovation with financial discipline.
Tech as a Resilience Tool
Reflecting on market shocks from the global financial crisis to more recent geopolitical disruptions, Pinto observed that technology has dramatically improved firms’ ability to respond to crises.
“In 2008, it could take two weeks to accurately answer a client’s exposure to a failing institution,” he said. “Today, thanks to cloud computing and platforms like Aladdin, we can deliver precise information within hours. Technology has made us faster, more resilient, and better equipped to support clients in times of stress.”
Yet, he cautioned, private markets still lag behind public markets in technological sophistication. “In private markets, we still have too much reliance on manual processes like Excel spreadsheets. The next big leap will come when tokenization and blockchain make these assets more accessible, liquid, and transparent.”
Confronting Legacy Systems
Asked about the often-cited issue of legacy technology, Pinto acknowledged that while public markets have made significant strides in system modernization, private markets remain a patchwork of outdated platforms.
“We are moving toward API-based solutions and integration layers rather than full system replacements,” he explained. “The goal is to simplify operations without massive upheaval, but in private markets especially, we need more innovation to bring the same efficiencies we’ve seen in public markets.”
Pinto highlighted the importance of balancing continuity with change, noting that sometimes it makes sense to leapfrog generations of technology — for instance, moving directly to tokenization rather than building intermediate systems.
Building an Ecosystem – carefully
Pinto also spoke about the evolving ecosystem of asset management technology, where firms increasingly rely on a few core providers like BlackRock’s Aladdin and custodians such as Citi and State Street. While he praised the integration and scale benefits of such ecosystems, he also warned that they can stifle innovation.
“If you bring something truly new to the table, sometimes these big providers can’t adapt quickly enough,” he said. “We need to ensure there’s still room for innovation, otherwise we risk stagnating.”
In addition, Pinto commented on the proliferation of fintech providers. While he welcomed the fresh ideas they bring, he urged greater consolidation to simplify oversight and integration for asset managers. “We have way too many third-party providers. We would love broader, more comprehensive solutions that can reduce operational complexity.”
Unlike some traditional finance executives, Pinto is personally passionate about technology. “I enjoy it, I understand it — and frankly, I have to. My kids expect me to,” he joked.
Under his leadership, M&G is investing heavily in AI use cases, from research to client engagement, and exploring automation opportunities across marketing, reporting, and RFP generation. Importantly, he has made technology education a priority at the board level, ensuring that directors understand both the opportunities and risks presented by new innovations.
Ultimately, Pinto sees technology as central to the future of asset management — not just in terms of investment performance, but in delivering superior client service. “Tomorrow’s winners will be those who combine great investment returns with seamless client experiences,” he concluded.
