Fund Managers Struggle with Compelling Digital Offers for Institutional and Advisors
Oct. 06, 2016
The global leaders in fund and asset management have a lot of catching up to do with regard to their digital strategies targeting institutional investors and intermediaries. Right now the majority of websites targeted at institutional and intermediary clients are no more than rudimentary hubs for delivering disorganized information to their users. When looking at mobile strategies, the gap is even larger, as most fund managers’ mobile capabilities are non-existent or very limited, leaving the fund management industry far behind other industries.
This is the key finding of the report “Fund Managers’ Digital Presences for Institutionals and Advisors 2016 - Leveraging the power of online channels to build and maintain a professional client base” for which we analyzed and ranked the digital presences of the 20 leading fund and asset managers worldwide. Overall, the report evaluates 75 websites and more than 40 social media presences that offered information specifically for institutional investors, financial intermediaries and advisors.
Desktop and mobile websites targeted at institutional investors lack interaction, client focus, or simply do not exist at all
The majority of fund and asset managers are not responding adequately to their institutional clients’ digital expectations, which are driven by and changing due to the strong trends detailed in the report. On average, the top 20 fund and asset managers in MyPrivateBanking’s benchmarking achieved only 68% of the maximum achievable points. The research reveals an overall lack of an up-to-date digital strategy to target prospective and existing clients in the institutional and intermediary space. Among others, the report identifies the following overall weaknesses of the surveyed fund and asset managers’ digital presences:
- Only eight of the 20 surveyed fund and asset managers’ websites offer truly sophisticated tools to support advisors and intermediaries.
- Only half of the fund and asset managers’ websites use client-centric communication that MyPrivateBanking believes matters to clients and is truly about the needs and challenges of the client rather than about the firm itself.
- Many fund managers still do not offer any interactive or automated tools to support institutional clients in their financial decision-making, or intermediaries in their client relationships online; the average score here is only 52%.
- Only nine of the 20 benchmarked fund and asset managers offer a mobile app targeted at the institutional investor or intermediary use case.
Top performers reveal excellent website offerings for institutional clients and intermediaries
However, as the competitive environment of the fund management industry is getting tougher, MyPrivateBanking found it somewhat reassuring that a few leading institutions already have satisfactory or even good digital touch points.
The overall winner of MyPrivateBankings’s ranking is Invesco with 93 points (out of a maximum of 110 points), followed by Vanguard Asset Management with 90 points and Fidelity with 85 points. BlackRock ranks fourth with 84 points and Allianz Global Investors reached the fifth rank with 83 points.
The full rankings of the 20 fund managers’ digital presences targeted at institutional investors and advisors and their performance for each of the 65 evaluation criteria are detailed in the report and in a comprehensive data appendix. In addition, the results for each fund manager are summarized in individual profiles, including specific recommendations for improving their digital offerings.
Fund managers need to react fast to fend off new competitors targeting their institutional clients
The fund industry is being challenged by new competitors, price pressures, demographic changes and regulatory demands, therefore a breakthrough in their digital strategy is becoming a matter of increasing urgency for fund managers. New players such as the so-called robo-advisors and other FinTech companies pose a significant threat to established fund institutions and are eager to exploit these established institutions’ digital shortcomings. These new competitors have the advantage of being digitally native players with a strong technology DNA that enables them to acquire and serve customers faster and better in the ever more important digital marketplace.
The report details how fund managers can take take swift and comprehensive steps in order to prepare themselves for changing client needs and digitally native competitors. It recommends, among others, that fund managers should offer a seamless user journey to every website visitor and provide relevant and enabling content. In times of information overflow, content has to stand out—only relevant and targeted content that is easily accessible will help the brand. In addition, fund and asset managers should work on an omni-presence strategy and tap into the mobile and social media space to create brand awareness.
About the report: The report “Fund Managers’ Digital Presences for Institutionals and Advisors 2016 - Leveraging the power of online channels to build and maintain a professional client base” analyzes in detail the strengths and weaknesses of the digital media presences targeted at institutional investors and intermediaries of 20 leading fund and asset management companies worldwide. In total, the report evaluates 75 websites and more than 40 social media presences that offered information specifically for institutional investors, financial intermediaries. The digital presences are assessed according to a total of 65 criteria and grouped into the seven categories of evaluation. In addition, the report presents 17 best practices and in-depth recommendations on how to develop winning digital presences to target institutional clients and advisors.
Analyzed Fund Managers: Allianz Global Investors, Amundi, Axa Investment Managers, BlackRock, BNP Paribas Investment Partners, BNY Mellon, Capital Group, Deutsche Asset & Wealth Management, Fidelity, Franklin Templeton, Goldman Sachs, Invesco, JP Morgan, Legal & General, Natixis, PIMCO, State Street Global Advisors, TIAA, UBS, Vanguard.