Asset managers face a defining period in the wake of COVID-19. In a market that was already undergoing significant change, the pandemic has intensified competitive pressures. Low growth and depressed financials, combined with changing customer expectations, increased competition from new digital entrants, regulatory tightening and a need for digital transformation across the enterprise, mean the sector must rapidly react and evolve.

A future-ready, connected asset manager can quickly respond to market signals and pivot to capitalise on opportunities as they arise. Future success means being connected to customers, to market dynamics, to employees, to channel and business partners and aligning across the front, middle and back offices. KPMG Connected Enterprise for Asset Management is our framework and approach for enabling customer-centric, end-to-end digital transformation that can meet the new demands asset managers are facing.

Future of AM - Quote 1

  

Signals of change
Signals of change - Future of AM

  

New operating approach to emerge

To deal with these signals of change, asset managers must develop a business approach which is supported by a connected operating model. The future is about breaking down silos to form a virtuous circle of value creation – from clients and colleagues, to the wider ecosystem of stakeholders, partners and communities. This can only happen if the business creates greater operational interconnectivity and alignment than ever before.

Strategic imperatives and impacts

We believe there are five strategic imperatives for almost any asset manager in the new market landscape forming today:

  • To meet and serve changing client needs and expectations;
  • Drive cost efficiency;
  • Adopt new and more agile ways of working powered by technology;
  • Comply with an increased volume of regulatory change, as well as ongoing geopolitical volatility; and
  • Carve out a clear role within the wider ecosystem.

In order to deliver on these strategic themes, KPMG professionals have identified eight capabilities that, together, align the operating model to focus on delivering value to the customer and the business. These are cross-functional and apply across the operating model. Our recent research conducted by Forrester Consulting found that over half (52 percent) of respondents are investing in at least six customer-centric capabilities (Base: 412 professionals involved with customer strategy decisions at retail banking organisations. Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, September 2020).

Prioritising connected asset management capabilities

The specific profile of the individual asset manager will dictate the relative value and priority of the Connected Capabilities. The eight capabilities are enterprise-wide and are designed to align the operating model to focus on delivering value to the customer and the business.


Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, September 2018
  • 2xImpact

  

Our approach

Each of the eight enabling capabilities are underpinned by a set of sub-capabilities. The first step in defining a winning model is understanding your relative maturity in each against the required maturity to deliver your winning business model. KPMG firms offer three levels of maturity diagnostic depending on the needs of your business.

With the customer at the core, there are five critical questions asset managers should ask themselves:

  1. Are you connecting your customers with compelling and personalised value propositions, opportunities and interactions?

  2. Are you connecting and empowering your employees to deliver on the customer promise?

  3. Are you connecting your front, middle and back offices to execute the customer growth agenda?

  4. Are you connecting your ecosystem of business partners to jointly deliver on commitments to customers?

  5. Are you connecting to market dynamics and digital signals?

  

Future of AM - Quote 2

   

Asset management insights