KBS - Financial Services and Wealth Management - Market Insight

WHICH FACTORS DRIVE GROWTH IN THE UK WEALTH MANAGEMENT INDUSTRY? + TECHNOLOGY • Three quarters of asset and wealth management firms believe AI will be the most transformational technology over the next two to three years, with predictions of a 12% increase in revenue. • GenAI, distributed ledger technology (DLT), ‘big data’ and cloud computing are some of the innovative tools expanding operational capabilities and transforming revenue models and business frameworks. According to a recent survey, approximately 80% of respondents stated that disruptive technologies have impacted operational efficiency and revenue growth to a large or very large extent.

Technologies driving transformation

Asset and wealth managers

Institutional investors

73%

Artificial Intelligence

65%

71%

Generative AI

63%

71%

Cloud infrastructure and technology

61%

47%

Big data analytics

58%

38%

Blockchain/Distributed ledger technology

53%

Question (all respondents): Which disruptive technologies for operations and analytics do you believe will most significantly shape the future of asset management in the next two to three years? (Choose as many as apply) Source: PwC Global AWM & ESG Research Centre

New technologies are affecting operational efficiency revenue growth and employee productivity

(Showing only ‘to a large extent’ and ‘to a very large extent’ responses)

Operational efficiency Revenue growth Employee productivity Product and service innovation Cybersecurity measures Expansion of advisors’ capacity to serve a greater number of investors Customer satisfaction/Net promoter score

84%

80%

72%

70%

54%

39%

37%

Question (all respondents): How significantly have disruptive technologies impacted these strategic areas in your AWM organisation? Source: PwC Global AWM & ESG Research Centre