Much like Apple swooped in and shook the music industry with introduction of ITunes, four fifths of senior assets management staff predict the same will happen in their industry, a recent article in the Financial Times explains.
Recent polls conducted by the State Street bank show that 79 percent of staff fear the threat of a non-traditional competitor entering the market and upheaving their way of life.
According to the article in the Financial Times, the fund market has been heavily criticised for its failure to ‘keep up’ with technological advances, which is now “leaving it vulnerable to the likes of Amazon and Google” who are “stepping in and wrestling market share from them” .
Martin Gilbert, CEO and co-founder of Aberdeen Asset Management, said “I am the CEO and am paid to be paranoid, and I am paranoid about this. The big danger for companies like ours is we become complacent and believe our business is safe forever. It’s not.”
It seems like asset managers need to get up to digital speed in order to match up to the competitors that are in hot pursuit in their industry.