Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

16497

Digital revolution threatening to disrupt financial firms, says TABB Group research

RELATED TOPICS​

The 21st century’s digital revolution is now threatening to disrupt the businesses and influence operating strategies of traditional financial firms. 

In new research issued today, TABB Group says the first wave of this disruption is well underway, affecting firms with the most retail-oriented business activities, where the adoption of new devices and digital functionality has been the greatest, a migration showing no signs of stopping.
 
As adoption of and comfort with new workflows and analytical capabilities grow, says Paul Rowady, a TABB principal and director of data and analytics (DnA) research who wrote “The Digital Advisor: Successful Transformation for a New Era” – which offers specific strategies for how to compete in this evolving landscape – consumers around the world are demanding greater functionality, smarter, more personalised solutions and cheaper, faster and easier to use mobility-first components in a broader range of their financial activities. TABB believes there will be a spillover effect into the institutional segment as these capabilities grow and mature and a subset of consumers begin to demand more digital capabilities in their professional financial activities.
 
“We believe there’s a second wave of disruption already occurring, impacting self-directed investment advisory, wealth management and related investment services,” says Rowady. But a critical challenge in this transformation is the need for incumbents to innovate along with digital-era upstarts, simultaneously right-sizing their often bloated cost structures. It turns out, he adds, incumbents do have some advantages, among them the value and richness of their data. “However, with analytics being a key element of digital offerings, along with omni-channel consistency and enhanced user-experience designs, the main question now is whether the incumbents can change fast enough with a growing field of innovative, digital-era upstarts eyeballing their lunch.”
 
To banks focused on online brokerage, wealth management and other investment advisory processes, TABB advises they be supported and armed with better data, analytics and user-centric tools. To financial advisory firms and related businesses, Rowady says, “Realise the value of your data and the depth of history of that data. Find a partner with deep expertise in foundational data management services and solutions and consider more closely what they have available in cloud offerings.”

Latest News

Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according..
Octopus Investments (Octopus) has announced it has launched a Natural Capital Strategy...
Research firm focused on Alternative UCITS funds, Kepler Absolute Hedge, has published its Market Intelligence..

Related Articles

Trends
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100 million deals announced this month alone...
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100..
Different flavours
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led, multi-boutique global asset manager with over USD20 billion under management, recently undertook a survey with 204 UK investment professionals, seeking insights into their perceptions and attitudes towards boutique asset managers...
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led,..
UK map
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be worth billions of pounds in the coming years...
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be..
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a possible buyout of EY’s Italian consulting branch...
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by