When you think asset management, you may conjure up thoughts of Blackrock, Fidelity or Pimco. Your kids, on the other hand, are likely to consider other names: Apple, Google and maybe even Wal-Mart.
A new report from KPMG suggests that the asset management industry will be flipped on its head over the next decade as technology and younger-minded investors grow in prominence. Roughly half of all asset managers will be out of business come 2030, according to the report.
“We are on the verge of the biggest shake-up the industry has experienced; and the message to asset managers is clear—Adapt to change or your business won’t survive,” said Tom Brown, global head of investment management at KPMG.
Those that don’t embrace online platforms and even social media will get swallowed up by larger emerging competitors, or they will simply become obsolete and die off, the authors note.
Younger, more diverse clients, particularly those in developing nations, will gravitate toward more familiar names, namely those with a technology focus. “We could see the Apples, Googles or large retailers of the world becoming the next big powerhouses in investment management,” Brown said.
A sea change of some sort is inevitable, but it’s still a bit of a scary thought. On the plus side, Google knows everything about us anyway. And wouldn’t it be great if Wal-Mart could package a high-yield bond with a 12-pack of paper towels and some toys for the kids?
Hiring Roundup (eFinancialCareers)
In the latest hiring roundup, London banks appear desperate for healthcare bankers, UBS adds to its investment bank in the Americas and and Deloitte goes on a consulting hiring spree.
What Banking Does to Your Health (eFinancialCareers)
When you’ve been in banking for long enough it becomes ingrained that you put work first. Even when you’re no longer a banker, it’s second nature to prioritize work… unfortunately.
So It’s Not That Hard (Business Insider)
Goldman Sachs accepts just 4% of its applicants. Starbucks accepts less than 2%. Crazy.
U.S. Banks Remain Weak (Bloomberg)
Just one U.S. firm made Bloomberg’s list of the world’s 20 safest banks, which looks at capital, risk-weighted assets and cost-to-revenue ratios. If you want to work for a strong bank, try Asia or Canada.
J.P. Morgan Chief Executive Jamie Dimon raised some eyebrows earlier this year when he put Wells Fargo in the same class as Goldman Sachs when it comes to the bank’s biggest competition. It makes sense now. Up 14% this year, Wells Fargo is on the verge of becoming the most valuable U.S. bank of all time.
The SEC has fined Paradigm Capital Management for retaliating against an employee who blew the whistle on the firm for improper trading. James Nordgaard was stripped of his title and place in an “isolated location” in the office to do low-level compliance work. He was formerly their head trader.
Sit on a Fat Kid and Relax (BBW)
Wall Street author Michael Lewis has some advice for all those rich millionaire bankers and hedge fund managers who complain obsessively about stress: go sit on a fat kid. If heavy sarcasm isn’t your thing, this article isn’t for you.
Buzz Around the Office
A tattoo junky named Josh videotaped his dad’s reaction to all his new ink. The responses were very fatherly.
Quote of the Day: I don’t know the key to success, but the key to failure is trying to please everybody. – Bill Cosby