The asset management industry is going through a profound transformation, driven by technological advancements, shifting investor preferences, and evolving regulatory landscapes.
But as we approach 2025, the competitive landscape is changing even more dramatically, pushing organizations to rethink their business models, processes, and strategies to adapt to changing client expectations, technological advancements, and competitive pressures.
Asset managers who proactively embrace these emerging trends are focusing more on customization, leveraging AI technologies, innovating product offerings, and building a strong brand. This is because industry leaders strongly believe that this will position them to thrive in the evolving landscape.
Let’s discuss why organizations must move beyond traditional practices and adopt a forward-thinking approach to remain competitive in an increasingly complex market.
The Future of Asset Management (and strategies by Industry Leaders)
We’ve explored how the asset management landscape has changed in past years and the strategies businesses should implement. Now it’s time to look ahead, as these are the changes industry leaders believe will disrupt the industry.
Analysts from the cybersecurity firm Siemba have conducted research and share their insights and thoughts in this article on what the future of asset management may look like, expositing on four primary features of the changing landscape.
1/ Brand Strategy and Employee Engagement
Having a clear brand identity is essential for standing out and building trust with clients. It’s not just about logos or slogans; it’s about how well an organization’s mission and values connect with client expectations. And when they communicate these effectively, they can build stronger relationships that go beyond transactions.
But a brand is only as strong as the employees behind it. For a company’s brand to truly resonate, its employees must embody the values and culture the organization promotes. And ensuring more intentionally that employees are engaged and aligned with the brand’s mission isn’t just a nice-to-have; it’s a critical factor for long-term success.
2/ Innovation and New Product Development
Organizations are increasingly expanding beyond traditional investment products into advisory services and other financial solutions. This includes a rising focus on environmental, social, and governance (ESG) investing, with 79% of asset managers anticipating growth in purpose-driven investments.
Accenture’s research on the future of asset management predicts the democratization of alternative investments, making them more accessible to retail investors through innovations like asset tokenization. And these developments highlight the ongoing innovation and product diversification within the asset management industry. Organizations that embrace these changes will be well-positioned to meet the evolving demands of a more diverse investor base.
3/ Technology Adoption and Digital Transformation
Asset managers are increasingly recognizing the importance of leveraging advanced technologies like artificial intelligence (AI), automation, and analytics. But according to Accenture research, while 95% of executives see technology as a differentiator, many organizations are still lagging in digital maturity.
To remain competitive, asset managers must spur their digital transformation and restructure their investment operations to be more client-centric. Because by focusing on delivering value through data-driven insights and streamlined processes, organizations can increase operational efficiency, improve risk management, and produce better outcomes for their clients.
4/ Mass Customization
Successful asset managers will focus on personalizing products and services to meet individual client needs. A recent industry study found that 80% of asset managers believe that “customization for the masses” will be crucial for growth, as clients increasingly seek tailored investment solutions rather than generic offerings.
But to achieve this, organizations must strengthen their client interactions and build trust through improved communication and personalized experiences. And the focus on client experience will be more imperative for differentiating asset managers in a competitive landscape and attracting and retaining a loyal client base.
How Siemba Can Help
As technology continues to advance, asset managers will become even more reliant on third-party services and tools for tasks such as data analysis, risk management, and client communication. However, this can increase the risk of security vulnerabilities, as each dependency represents a potential attack vector for hackers.
Asset management platforms can help you gain granular visibility into system vulnerabilities, data flows, and user access points, and they can be of great help to your internal security teams or external vendors for conducting penetration testing and identifying potential threats before threat actors would.
Many organizations take security a step further by integrating Penetration Testing as a Service (PTaaS). Because it allows for continuous, active monitoring of emerging threats, ensuring that your defenses stay ahead of potential exploits.
Asset management also enhances human-led offensive security exercises by providing up-to-date information on all your IT assets and resources which data can be used to automate threat detection by security engineers. Get in touch with Siemba engineers for offensive security solutions to improve your security posture.