KPMG Nunwood finds that asset management firms see client experience as the area with most potential for market differentiation yet opinion is split on what good looks like.
In a survey of global asset management firms, KPMG Nunwood finds that the industry has fallen behind other sectors when it comes to client experience yet most see significant opportunity from becoming truly client centric.
Asset managers are running out of areas to compete. Fees cannot continue to race to the bottom, innovation can be rapidly replicated and as passive investing becomes increasingly popular, even performance can be universal. Therefore, firms have to turn their attention to experience if they want to survive.
David Conway, Director at KPMG Nunwood, comments:
“It’s clear that all firms now recognise the need to improve their customer experience, however many are struggling to make that goal a reality. Many industries have been quicker off the mark than asset management but they are out of the starting blocks. Most have a customer experience agenda and are beginning to build a view of what good might look like.
“However, firms are divided on how quickly and with what level of effort they need to act in order to catch-up. There also needs to be further debate about who qualifies as a client, for example in B2B2C relationships, are platform providers partners or customers? This demonstrates just one example of the complexities the sector faces in customer relations.”
Tom Brown, Global Head of Asset Management, KPMG added:
“Whilst for active management firms, competition revolves unequivocally around performance, those offering passive strategies put more emphasis on service. In truth, firms need to focus on the entire client experience – irrespective of strategy – from an outside-in perspective through the eyes of their clients.
“Regardless of how complex a distribution model is, the relationship between asset managers and their investors is critical to commercial success. For over 100 years the nature of that relationship has barely changed but technology and regulation is now shaking things up.”
See the full report by following this link: https://home.kpmg.com/uk/en/home/insights/2017/06/spotlight-on-the-asset-management-industry.html
Notes to editors:
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About the KPMG Nunwood Spotlight on the Asset Management Industry report:
Following the release of KPMG Nunwood’s B2B Customer Experience: Winning in the Moments that Matter published in January 2017, the firm held face-to-face interviews with senior executives at 16 asset management companies across the industry, representing approximately one third of the global industry.
About KPMG Nunwood Customer Experience Excellence Centre:
The KPMG Nunwood Customer Experience Excellence Centre is the world’s largest customer experience think tank.Through an ongoing research programme across three continents over eight year, over 1.7 million B2B and B2C evaluations have been gathered.