Rebooting the global asset management industry

50 Rebooting the global asset management industry Business Leaders Are Challenging the Status Quo Whether the great wealth transfer is a unique opportunity to re-engineer the asset management industry will likely depend on how effectively it is woven into each asset manager’s unique value proposition and service delivery. That requires business leaders to challenge the status quo in a way that inspires and empowers others to embrace change. What remains challenging is getting the adoption right as GenAI moves from novelty to mainstream. Reportedly, there is no long enough track record when it comes to scaling with reliable impact measures. Hence, the adoption process is likely to be incremental. Many asset managers have made a start with activities that are a precursor to substantive adoption (Figure 5.1, upper panel). They mark leadership reflexivity and a continuous improvement mindset (see Insights on the next page). Notably, leaders in 64% of survey respondents have set or are likely to set a credible vision of a digital future with a realistic action plan. It rests on the belief that the asset management industry is at an inflection point. However, such a point does not say how the future will unfold. It merely implies that one can only invent the future, not predict it. Their vision embraces a shift in client base towards DC plans and mass affluent clients. As a result, 60% have put client interests at the heart of the vision by seeking improvements in investment returns, client experience and interest alignment. To ensure the credibility of the vision, leaders have sought to secure buy-in from all the stakeholders in their businesses, especially staff (50%). They have also sought to set clear KPIs, timelines and accountabilities to underpin the credibility of the vision (43%). The vision is driven by the desire to survive and thrive in a landscape where technology will help deliver leaner and fitter operating models. That, in turn, requires a parallel shift in business culture: from entitlements to performance, putting more emphasis on outcomes than inputs, and clients rather than self. Thus, a blueprint for change is coming into view. To convert it into reality, a number of incremental steps are, or are likely to be, in progress (Figure 5.1, lower panel). What remains challenging is getting the adoption right as GenAI moves from novelty to mainstream. Figure 5.1 In light of the newly emerging businessmodels, what actions are your top leaders currently implementing or are likely to implement over the next three years? Source: Citi/CREATE-Research Survey 2025 % of respondents Action Acting as rolemodels by setting the tone at the top Ensuring leaders have the skills toachieve the vision Doing regular competitor benchmarking Engaging regularly in staff communication Doing a regular 360-degree appraisal for the leaders Vision Setting a credible vision of a digital future Putting clients at the heart of the vision Ensuring the visionhas buy-in fromall stakeholders Setting KPIs, timelines & accountabilities Linking staff incentives to targeted outcomes 60 64 50 43 37 41 36 32 29 13 “Business excellence is not something that CEOs canwhipup in time for the next quarterly report. It could take years tounlock latent talent.” “Our staff know that they are not going to lose their jobs to GenAI, but they might lose them to someone who knows how to use GenAI.” Interview Quotes