As clients and their customers adapt to a new reality due to COVID-19, the sustainability of new operating models and customer interfaces in the asset management sector is vital.
In our COVID-19: A guide to maintaining Enterprise Resilience, KPMG professionals look at how enterprises in Asia Pacific are managing — and working towards alleviating — the impact of the pandemic. We cover the three areas of financial, operational and commercial resilience, setting out practical suggestions for short, medium and long-term considerations.
In Asia Pacific, Assets Under Management (AUM) growth is expected to outpace its American and European counterparts. Although AUM estimates vary, there is a consensus in the region’s positive AUM growth prospects.
Demographics have been a key driver behind this projected growth and will continue to be a growth factor in the industry. Despite significant variances among countries and territories in the region, those with more developed economies — such as Singapore and Japan — are ageing quickly. People planning their retirements are relying on the asset management industry to compensate them for any anticipated shortcomings from their governments’ pension plans. The AM industry therefore plays a crucial role.
The considerations mentioned are fundamental growth drivers, and thus, in the long term, should not be severely affected by the COVID-19 pandemic. But in the short to medium term, some disruptions will be inevitable. To counteract these disruptions, asset management firms should pay close attention to methods that can strengthen resilience from the financial, operational and commercial perspectives.