Pursuing a direct-to-customer offering for the digitally savvy mass market throughout Asia-Pacific.
Why is it important for our clients?
Traditional active managers are facing increasingly challenging times. Assets are flowing from active funds into passive options as retail investors take an increasingly automated approach to asset allocation. Lower cost index strategies and ETFs are increasingly being offered by asset managers, paving the way for new direct digital distribution channel offerings emerging.
As business models and distribution dynamics change throughout the region, how do you effectively tap into the potential of a digital-native, disintermediated client base?
- When pursuing a digital strategy, our view is that it should very much fold into the overall product and distribution strategy of the firm, and specifically whether you are a wealth manager or asset manager.
- If asset manager, the emphasis should be on distributing investment products to a broad range of distribution channels on an agnostic and reward for effort basis. Product profitability will be the ultimate measure and the need to own the end-client relationship is less of a concern. Most asset managers in developed markets have evolved to this strategy given the cost, distraction and operational implications associated with servicing retail investors.
- If wealth manager, the emphasis should be on building the relationship with the end customer and ultimately offering a range of investment products to meet their wealth generation and protection needs. Client profitability will be the ultimate measure and investment products may be substituted with alternate options where they deliver a better outcome to the client.
How can Shoreline help?
- Product & Distribution Strategy: We help asset managers deliver new business models, by enhancing your product ranges to deliver investment insights through lower cost index strategies and ETFs, responding to ever-changing client demands and technical innovations which open up new distribution channels.
- Target Operating Model Design: We will analyse your technology landscape and supporting infrastructure along with aligning to your strategic business intent to identify the best possible platform to meet your needs.
- Digital Strategy & Roadmap: We will perform a market positioning assessment, develop an offer design/digital solution definition and a business case/digital roadmap. We also have the expertise and experience to guide you in deciphering your needs along the spectrum of a wealth vs asset manager; acting as an important input into a digital strategy. If the strategy is wealth management, the main incentive is to build a trusted relationship with clients with the long term client ROI being paramount. If asset management, the strategy is product penetration at lowest cost. Generally, developing a D2C (Direct-to-Customer) offering; relationships should be avoided and partnerships with organisations with D2C models in place should be favoured.
- Digital automated advice / robo-advice: Our team is made up of industry experts who have worked at leading wealth management firms. We have built and launched Robo-advice platforms and have first-hand experience of accelerated delivery with robust risk mitigation.