Evaluation of new market participants and improvement of cooperation potential as criteria for success of the KVG
The factors of digitization, artificial intelligence and the platform economy have also led to the market entry of technically oriented start-ups (FinTechs) in the asset management industry, which are attempting to gain market share with new approaches. As a result, the business models of Kapitalverwaltungsgesellschaften (= KVG, engl.capital management companies) are under attack, particularly in product development and asset/portfolio management, as well as in the sales model. Particularly in the emerging ETF segment, it is about 12% market share that the FinTechs are contesting with the capital managers. Consileon’s newly developed FinTech radar can be used to evaluate the new market players in order to identify emerging players within asset management at an early stage.
FinTechs and providers of wealth management services and social trading platforms often differ only slightly, are highly competitive with each other, and exhibit a high degree of dynamism in their corporate development. On the part of the KVG, it is crucial to expand the potential for cooperation (this applies to infrastructure and organization) in order to leverage the innovative strength of FinTechs within the value chain in a spirit of partnership instead of merely classifying them as competitors.
Our thesis is that the KVGs will continue to specialize and at the same time build up the flexibility to network in cooperations and platforms.
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