Old Sales model – the most preferred channel in Indian Asset Management Industry
Ever since I got into the Asset Management industry in 2005, this question always lingered with me – why isn’t tech not playing an essential role in Investment / Fund management firms?
While I have heard a few AMC CEOs telling me that since an asset manager’s core deliverable is only fund performance, technology isn’t that critical variable.
I humbly beg to differ.
Traditional Sales model Vs Tech.
Having spent sixteen years in the asset management industry, I see an opportunity for leveraging tech.
For instance, why can’t superior tech be used to improve sales efficiency? While there is an attempt to improve operational compliance, risk management, and investor education. In 2015, I switched from my convention distribution role to a Fintech role. As a result, I started tracking the story of Asset Managers and FinTech partnerships globally. I have curated this list with D2C and Adviser-tech deals from 2015
How are Asset Managers looking at Fintechs? Are they open to exploring synergies? I have excluded both Web3 and Crypto products for this story.
Insight
After analysing these 18 partnerships, the crucial takeaway is that AMCs in the developed markets are actively looking to leverage the fintech platforms to improve the adviser/distributor tech and investor experience. For instance, why does BlackRock position itself as helping investors in their financial well-being and a provider of financial technology?
Trends In the Indian AMC Industry
Unlike the global market, Fintechs have acquired Asset Managers and WealthTechs firms in India.
Why did prominent Asset Managers in India choose not to leverage the wealth tech? Is it because they don’t have confidence in FinTechs or choose to ignore this trend? Is there a case for AMCs partnering with FinTechs? Yes, of course, but since AMCs are not moving, FinTechs seem to take the lead in this transition.
