WEALTH AND ASSET MANAGEMENT 2022:

The Path to Digital Leadership

A global thought leadership project produced in conjunction with:

Appway, Broadridge, Cisco, eToro, J.P. Morgan Asset Management, Oracle, Protiviti, Sapient Consulting, and Vauban Group

Ground-breaking research into the future of the industry

Survey of 1,503 C-leveland direct reports in nine

industry sectors

Worldwide survey of 15+ countries: Australia, Canada, China, Dubai, France, Germany, India, Japan, Nordics, Saudi Arabia, Singapore, South Korea, Switzerland, United Kingdom, and the United States

Rigorous performance benchmarking and ROI analysis conducted by Roubini ThoughtLab’s team of senior economists

Advisory meetings, plus 42 interviews with

executives and experts

Appway, BBVA, Berenberg, Blackstone, Broadridge, Carlyle Group, Charles Schwab, Cisco, Cognitive Finance, Credit Suisse, Danske Bank, Digi.me, eToro, Fidelity, HSBC, iValley, J.P. Morgan Asset Management, John Hancock, Johnson Bank, LPL Financial, Mitsubishi UFG, MRA Associates, Oracle, Pictet, Protiviti, Putnam, RBC, Robo-Investing, Sapient, Schlitz & Schlitz, ShoreBridge, State of Wisconsin Investment Board, UBS, Union Bank, Vanguard, Vauban Group, and Wealthfront

Digital innovators are already seeing major performance gains.

Laggardspay a high financial penalty, and run the risk of falling out of the race altogether.

The digital storm in consumer markets has touched down in the investment industry.

The digital imperative

The convergence of digitization, globalization, and consumerization will reshape the investment industry by 2022.

First movers will drive performance Laggards will pay a penalty

Foregoing $79 million per billion dollars of

revenue a year—and risk of falling out of the race altogether.

96% of CEOs now see digital transformation as central to their businesses

“Technology is the future of our industry.“Bob Reynolds, CEO of Putnam Investments

“If you don’t master technology, you won’t survive.” Francisco Gonzales, Chairman, BBVA

“We need to revolutionize our business.” John Cryan, CEO of Deutsche Bank

Firms are struggling to keep up with the speed of change

…and raising investor expectations faster than many firms can respond

Silicon Valley is setting the pace…

“Look at what Jeff Bezos has done at Amazon. It is that level of client-centricity, that frictionless ease of doing business, and the lowering of prices that follows, which investors will come to expect.” John Marcante CIO, Vanguard

Providers are not fully preparedProduct simplicity and transparency 49%

Anytime, anywhere, any device access 45%

Robust cybersecurity 43%

Innovative and customized services 32%

Investments across asset classes 31%

Socially responsible investment options 27%

Lower fees or special incentives 24%

Fintech 23%

The digital race is on

3%

29%

47%

20%

23%

47%

26%

2%

Now 2022

99% of investment providers are in the process of digital transformation

70% of firms are in early digital stages. By 2022 about the same number

will be advanced.Digital leader

Maturing

Transitioning

Beginner

Firms are gearing up for the future

Over the next three years, BNPplans to double its investment to $3.2 billion to create the digital “bank of the future.”

Germany’s biggest bank, Deutsche Bank, has committed over $750 million to digitalization over that same time period.

J.P. Morgan, the largest US bank, spent $9.5 billion on technology in 2016 alone.

Seven hallmarks of a digital leader

Digital leaders are advanced in the use of fintech: 44% now integrate fintech into their core products and processes.

1

2

3

4

A digital vision and business case

A clear path to digital transformation

A customer-centric mindset

5

6

7

An agile product development process

A culture of innovation A digital team to drive change

Early adoption of digital technology

Three out of four digital leaders use the cloud to enable agile product innovation. And 59% are replacing their legacy systems with a cloud platform.

The cloud is essential for sustaining digital leadership

Support customer-centricity

45% now, 59% in 2022Reduce operating costs

40% now, 56% in 2022%Facilitate

internal collaboration 40% now, 55% in 2022

Accelerate time to market

39% now, 56% in 2022

Driveinnovation

37% now, 54% in 2022

Support advanced

tech solutions37% now, 56% in 2022

Replace end-to-end systems

36% now, 53% in 2022

“Right now, you need to be in the cloud to even be in the game.”Tyrone Canaday, Managing Director, Protiviti

Now Future Growth

Blockchain 15% 31% 110%

Artificial intelligence 17% 36% 108%

Robotics 10% 18% 84%

Web collaboration 19% 34% 76%

Geospatial technology 15% 23% 52%

Telematics 18% 28% 52%

Contextual marketing 19% 28% 47%

Web analytics 20% 30% 46%

Collaborative investing 16% 23% 45%

Staying ahead of technology over the next five yearsThe SMAC stack (social media, mobile, analytics, and cloud) will become table stakes for the investment industry. Digital leaders will drive performance by staying ahead of the technology curve.

Steps for building a seamless customer experience

Digital onboarding will become the norm: 43% of firms now offer digital onboarding, and the number will rise to 69% by 2022.

Putting the client at the center (43%)

12

3

45

6

7

Understanding the investor journey (44%)

Leveraging data to understand client needs (35%)

Rethinking the use of physical offices vs virtual (39%)

Setting up cross-functional teams to service customers (40%)

Analyzing the impact of client servicing on channels (41%)

Providing anywhere, anytime, any-device access

(40%)

The bottom line: impact of technology on performance

Over the past year, firms across the industry have boosted their performance through technology

Lessons learned from Silicon Valley

Lesson 1: Make it easy for your customers to do business with you– John Marcante, CIO Vanguard

Lesson 2: Consider the impact of digital on your physical footprint– Vinod Ramon, VP digital advice solutions, Fidelity

Lesson 3: Be digital first, but not digital only– Neesha Hathi, chief digital officer, Charles Schwab

Lesson 4: Get control of customer data– Yoni Assia, founder and CEO, eToro

Lesson 5: Think audaciously– Chris Peretta, chief information and operations officer, Bank of Tokyo-MFUG

Lesson 6: Explore platform as a business model– Wiwi Gutmannsbauer, global head of omnichannel management, UBS Wealth Management

Lesson 7: If investment providers don’t step up, Amazon will step in– Mark Smedley, VP, financial services, global industry lead, Oracle

D R I V I N G B U S I N E S S T H R O U G H D EC I S I O N S U P P O R T

R O U B I N I T H O U G H T L A B . C O M

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