A recent benchmarking study for Swiss and German asset managers conducted by PWC outlined the challenging market conditions alongside declines in assets under management, revenues, and profits for asset managers. In light of these challenges, strategic cost considerations become imperative for maintaining profitability.
The study suggests several cost reduction strategies such as IT optimisation, downsizing, and streamlining the portfolio of offerings which could help in navigating through the financial pressure induced by the market downturn.
Moreover, technological innovation emerges as a notable cost-containment strategy. The study posits that the adoption of generative AI could play a pivotal role in reducing operational costs. By leveraging generative AI, asset managers could potentially cut down costs by up to 15% in the medium term.
This not only showcases the crucial role of technological advancements in enhancing operational efficiencies but also in fostering a cost-effective operational framework amidst adverse market conditions. Through strategic cost management and technological adoption, asset managers could better position themselves to weather the financial adversities presented by the challenging market landscape.
https://www.strategyand.pwc.com/de/en/asset-management.html