How Can Fintech Support the Asset Management Value Chain?
The asset management industry is undergoing substantial technological evolution. Digitalization presents both challenges and opportunities, with technology meaningfully improving middle and back-office operations across the value chain.
AI Across the Value Chain
AI has spread to all levels of Asset Management: investment, support functions, reporting, compliance and beyond. Fintech tools, including deep learning, robo-advisors, algorithms, and mobile applications, enhance manager capabilities while reducing operational costs and expanding service accessibility.
Key Focus Areas
The transformation touches several critical domains:
- Regulatory Compliance - KYC, MiFID2, and evolving regulatory requirements
- Asset Allocation - Data-driven portfolio construction and optimization
- Security Selection - Enhanced analysis and decision support
- Process Improvements - Human-machine collaboration for operational efficiency
Industry Collaboration
The French asset management sector has been particularly proactive in addressing these challenges. Through the AFG Innovation Committee, the industry has fostered meaningful partnerships between traditional asset managers and fintech companies, creating pathways for innovation while maintaining operational excellence.
As Muriel Faure, Head of the AFG Innovation Committee, has noted, these collaborations are essential for navigating the digital transformation while preserving the core values of the asset management profession.
Looking Forward
The integration of fintech into asset management is not about replacing human expertise, it's about augmenting it. By combining technological innovation with deep industry knowledge, firms can deliver better outcomes for investors while operating more efficiently.