The Profitability Paradox: Competing for relevance and returns
- jackson9704
- 3 days ago
- 1 min read
PwC. (2025, November 24). The profitability paradox: Competing for relevance and returns. https://www.pwc.com/gx/en/issues/transformation/asset-and-wealth-management-revolution.html
Global assets under management are projected to reach $200 trillion by 2030, yet industry profit as a share of these assets has declined significantly since 2018.
Asset managers face structural profitability pressure driven by high cost-to-income ratios and relentless fee competition across both traditional and alternative asset classes.
Passive investments and private markets are emerging as dominant value pools, with private markets expected to generate over half of total industry revenues by 2030.
Artificial intelligence and tokenization are serving as primary catalysts for business model reinvention by enabling mass personalization and operational efficiency.
Digital transformation is blurring the boundaries between wealth management, fintech, and traditional asset management to provide more integrated client solutions.
A critical shortage of talent in AI, data science, and cybersecurity remains a major strategic constraint for firms attempting to modernize their operations.
Success in the next decade will depend on firms choosing a distinct strategic path, such as becoming a full-scale hypermarket, a specialized niche champion, or a low-cost manufacturer.