Fifty-three per cent of asset managers identify technological disruption, including the rise of AI, and increased competition as the most pressing threats facing the profession.
According to research from FE Fundinfo these issues have overtaken regulatory changes as the main concerns raised by asset managers in a similar survey last year.
Based on insights from 100 senior asset management professionals across the UK, the report presents a market in flux.
Firms are grappling with fast-paced innovation, increasing margin pressure and rapidly evolving client expectations with 46% viewing fee compression as one of the main challenges over the next three years, limiting profitability and necessitating innovation from asset managers to drive a more efficient operating model.
This year, regulatory compliance concerns dropped to 37%, highlighting how firms are adapting to shifting policy landscapes while turning their attention toward the existential challenges of innovation and market saturation.
Firms are re-aligning their strategic priorities to adapt. When asked how they are tackling operational and growth challenges, the top-cited methods were:
Liam Healy, CEO at FE Fundinfo, said, “Asset managers are operating in a new reality. One defined not only by ever-present compliance requirements but also by the speed and scale of technological transformation. Driving positive and sustainable outcomes now hinges on a firm’s ability to reimagine their operations, respond to competition and build technology-driven foundations.”
