PwC's 2024 Asset & Wealth Management Report highlights the significant role disruptive technologies, particularly AI, are playing in transforming the asset and wealth management sector. With 80% of firms predicting significant revenue growth driven by these innovations, CFOs should consider how adopting ‘tech-as-a-service’ models could contribute to potential a 12% increase in revenues by 2028. The report, based on responses from 264 asset managers and 257 institutional investors across 28 countries, emphasizes that AI is viewed as the most transformative technology, with 73% of respondents identifying it as key over the next two to three years. Despite the potential, 68% of organizations allocate less than one-sixth of their capital to innovative technologies, indicating an opportunity for CFOs to lead change in technology investment.
Asset managers are increasingly exploring strategic partnerships, consolidations, and mergers to enhance technological capabilities and expand their market reach. The report projects that global assets under management will reach $171 trillion by 2028, with alternatives growing at 6.7% annually. Tokenized investment funds, expected to surge at a 51% compound annual growth rate, represent a significant growth opportunity. PwC underscores the importance of investing in technological transformation and workforce upskilling—critical for CFOs as they adapt to a digital-first market and evolving investor expectations.
