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The Role of Technology in Shaping Asset Management

A recent survey conducted by Wipfli, one of the nation’s leading advisory and accounting firms, has uncovered vital insights regarding the asset management sector. The survey, which engaged 134 executives, emphasizes the pivotal role technology plays in driving growth and addressing complex issues such as ownership transitions and cybersecurity risks.

Optimism for Revenue Growth

The findings exhibit a general optimism among asset management executives, with an impressive 92% anticipating at least a 5% growth in their firm's revenue by 2025. This optimism is coupled with a strong focus on making strategic technological investments. Around 56% of the executives acknowledge that advancements in technology will significantly influence changes in ownership structures in the foreseeable future.

As Wipfli Partner Ronald Niemaszyk explains, "Survey respondents clearly understand that leveraging technology is essential for the success in today's competitive landscape." This underlines a shift in the asset management industry, which is gradually embracing technology not merely as an operational tool but as a core element that drives success.

Technology's Impact on Ownership Changes

One of the most pressing issues tackled in the survey is how technology is reshaping ownership transitions within firms. While a notable 82% of executives express a preference for internal ownership transfers—passing down the reins to employees, shareholders, or family—many still resort to external sales, indicating potential misalignments between their strategic goals and execution.

Wipfli manager Rusty Planert emphasizes that firms need to prepare early for these transitions. "By starting the conversation about ownership changes soon, executives can align their succession plans with their overarching vision for the firm," he remarks. This foresight allows organizations to make informed decisions that can enhance long-term sustainability and governance.

Leveraging Innovative Tools

The survey also highlights how innovative tools like data analytics, automation, and AI are gradually transforming the asset management landscape. Yet, the adoption of AI technologies remains in its infancy, with only 18% of the executives currently running active pilot projects involving AI. Most are still exploring its potential applications, indicating a measured yet optimistic approach towards integrating AI into their business models.

Conclusion

Wipfli’s asset management survey sheds light on the significant technological transformations occurring within the industry. As firms tackle the dual challenges of revenue growth and ownership transitions, technology emerges as a cornerstone of their strategies. To delve deeper into these insights and access a full breakdown of the trends in asset management, industry leaders can refer to Wipfli’s comprehensive research report.