IA Engine, the Investment Association’s FinTech hub, has released its latest whitepaper with the objective of empowering the investment management industry to harness the transformative potential of FinTech.
The UK’s investment management sector stands as a prominent international hub, overseeing £8.8 trillion in assets, ranking second only to the US. Similarly, the UK’s FinTech market is substantial, witnessing a remarkable $12.5 billion investment in 2022. The momentum continues into 2023, highlighted by the launch of the UK’s Centre for Finance, Innovation, and Technology following the Kalifa Review.
The burgeoning digital expectations of clients and investors have underscored the critical role of innovation in shaping the industry’s trajectory. A significant proportion of today’s young adults, with over three-fifths (62%) of 18–24-year-olds already engaged in investing, and more than half (57%) utilizing investment apps, demonstrate the pressing need to adapt to evolving consumer preferences. Additionally, with a projected £5.5 trillion expected to transition between generations in gifts and inheritance over the next 20-30 years, the time to adjust to the evolving UK market demands is now.
Technological advancements such as blockchain, artificial intelligence (AI), and satellite technology present substantial opportunities across the investment value chain. Firms failing to embrace these innovations risk forfeiting their competitive edge and market share to more dynamic and efficient counterparts.
The Blueprint for Fintech Engagement and Onboarding exemplifies the positive impact FinTech can have on efficiency, consumer outcomes, and resilience throughout the industry. It provides guidance for investment managers and FinTech firms to collaborate successfully, encompassing clear engagement strategies, partnership advice, and industry analysis.
Gillian Painter, Head of Membership at IA Engine, emphasized the pivotal role of innovation in maintaining industry leadership, stating, “Collaboration with FinTechs is pivotal for fostering the innovation necessary for thriving in this competitive and evolving landscape.” Engine’s latest Blueprint offers a comprehensive understanding of how investment managers and solution providers can collaborate to uphold the UK’s position as a global hub for innovation and asset management.
Developed in collaboration with 28 investment management firms on Engine’s Advisory Panel, along with firms from Engine’s FinTech Growth Panel, the whitepaper draws on the real-world experiences of industry leaders to provide a holistic overview of effective collaboration and the delivery of tangible benefits across the industry.
Source: marketsmedia.com
