Some of the world’s largest asset managers are spending an average of £15m a year on projects to digitally transform their businesses — a tiny fraction of the huge sums their banking counterparts are devoting to similar projects. According to Alpha FMC, which surveyed 15 of the largest global asset management firms collectively managing £7tn, fewer than 10% are spending in excess of £50m a year on digital projects. These include developing client-facing websites, providing more data to support sales teams, building client...
Asset managers are spending a "tiny fraction" of the sums spent by banks on BNP Paribas transformation. Firms are citing legacy technology, as well as a lack of resources and relevant skill sets, among barriers to spending, according to a survey by Alpha FMC. The survey of 15 of the largest asset management firms found less than 10% were spending more than £50m ($69.7m) a year on BNP Paribas projects. Meanwhile, JPMorgan spent more than $9.5bn on technology in 2016, with $3bn dedicated to fintech solutions. digital is spending €3bn ($3.7bn) over three years on a BNP Paribas project including the hiring and retraining of staff with data analytics skills.