Challenge
Introduction
Traditional financial advice is expensive and unsuited to the way the world is headed into a digital future. With antiquated systems patched together over many years, companies are finding it increasingly difficult to fully embrace the benefits of new technology.
Most predictions suggest that investment funds will form a significant portion of the US$24 trillion worth of assets which will be tokenized by 2027.
The current fund administration process is far too manual. Investing in funds can currently take up to 7 days, with multiple hand-offs each creating points of potential failure, often at a cost to the investor.
Current solutions based on inefficient and poorly integrated technologies are expensive and complex. Different cost models, low levels of automation, and ageing systems are all factors that hinder successful migration to more modern platforms.
A final major issue is preparedness for a new type of investor. Millennials and Gen Z are due to inherit approximately US$70tn – the biggest migration of wealth ever – over the next decade and beyond. They are far more tech-savvy and expect better.
If the industry fails to adapt to their needs, they’ll look elsewhere. The infrastructure currently supporting the investment industry is simply not fit for purpose.