The fall in global indices triggered by the COVID-19 pandemic has resulted in asset management firms registering a sharp decline in assets under management (AUM). Other asset management trends in the wake of the crisis include an active-to-passive shift as investors look for lower fees and investment flow into emerging markets for higher returns. Thanks to increased market volatility, asset management risks too are on the rise, underscoring the need for firms to gear up for a period of uncertainty as they adapt to the post COVID investment climate.
Even as firms grapple to overcome the COVID impact on asset management and transition to the post crisis phase, they must focus on building resilience to withstand future shocks. Pointed interventions aimed at infusing resilience and adaptability and building the capabilities needed to move to ecosystem models must be at the top of the digital transformation agenda. To achieve this, firms must take action across specific themes:
Virtual customer engagement
New products and offerings
Data driven operations