[Video] Asset Management Must Change to Meet Customer Needs

Lately, I’ve been referring to video over text to consume my usual dosage of news and insights. During my daily hunt to find current content on the industry, I came across a gold mine of good content on FundForum TV – a YouTube channel with plenty of valuable discussions, interviews and highlights from the FundForm Global series. As many in asset management know, this global series of conferences brings together CEOs, fund managers, investors and other industry professionals to drive discussion on current events and to answer key questions in the industry.
This interview (watch below) features FundForum Correspondent Emma Walden and customer advocate and Founder of Boring Money, Holly Mackay. The two discuss the changing landscape of the industry, specifically the need to alter the distribution channels to meet a new wave of expectations from direct consumer customers.

The video is short — just over 5 minutes. If you’re pressed for time, here are some of my favorite points made by Mackay on the increasing need to tailor asset management to the customer:

  • Rip up the rulebook — retail distribution has been pushing the same institutional type of marketing material out to investors.
  • Investors want simple language, fee transparency and more engagement with their fund managers.
  • Many investors are digital natives so they are used to the transparency of other industries and want that in the investment management industry.
  • There’s too much lazy thinking out there. Fund managers haven’t embraced the digital program yet. A good number of professionals know the direct consumer market will grow, but for many, it’s not the number one priority right now.
  • Globally, millennials don’t have as much money as the baby boomers, but there are millennials out there with money who want help.
  • Asset managers like BlackRock and Fidelity are getting more engaged with customers.
  • Senior people at firms haven’t taken consumer question seriously. They need to bring people from outside of the industry to market products.
  • The industry isn’t being up front with fees. Try using visual elements to relay information across.

It’s an exciting time for the asset management industry. The tide is changing and it will be interesting to see how the industry will meet the needs and expectation of investors.
Do you agree with Mackay? What are your thoughts on the modification of distribution channels?