* Driven by technology, demographic, behaviour shifts
* New entrants to steal a march, fuel M&A
* Clients to be younger, more diverse, save more
LONDON, June 16 Half of the firms in the global
asset management industry will be gone by 2030 as new
technology, demographic shifts and changing social habits
transform the industry, consultants KPMG said in a report.
KPMG, which advises fund firms on a range of issues from
technology to staffing, taxes and regulation, said many firms
were outdated and at danger of being swallowed up by peers and
new entrants including tech companies and retailers.
"We are on the verge of the biggest shake-up the industry
has experienced; and the message to asset managers is clear -
Adapt to change or your business won't survive," said Tom Brown,
global head of investment management at KPMG.
That will come amid a greater focus on saving in the
developed world and a growing ability to invest on the part of
the middle classes in China, Mexico, India, Nigeria and other
The younger and more diverse client base would require new
platforms and a greater focus in online and social media
networks. As a result, there was a opportunity for new,
tech-savvy companies to enter the industry.
"Trusted brands that resonate and appeal to a more diverse
client base, as well as the younger generation, may be able to
build scale quickly," said Brown. "We could see the Apples
, Googles or large retailers of the world
becoming the next big powerhouses in investment management.
"As such, we expect to see mass consolidation in the
industry and predict that within 15 years there will be half the
number of players currently in the market."
(Reporting by Simon Jessop; editing by Tom Pfeiffer)