The Investment Association and Engine are delighted to have partnered with Expand Research and Boston Consulting Group (BCG) on this report looking at innovation in investment management.
The last couple of years have seen the global economy focus on tech and digitisation in order to meet shifting client requirements and business needs. We are proud the UK remains one of the largest and most diverse centres of investment management in the world, second only to the US with total UK assets under management (AUM) reaching £9.4 trillion by the end of 2020, an impressive increase of 11% year-on-year.
The UK is a country of entrepreneurs, innovators and implementers. The UK’s position as a global leader in FinTech is a great strength. Global total capital investment into FinTech was in excess of $102 billion in 2021, a 183% increase from 2020 and indeed last year the UK FinTech sector leapt forward with over 217% year-on-year investment growth reaching $11.6 billion more than the next five European countries combined. There is, however, no room for complacency.
An impressive 2,500 FinTechs have made the UK their home with a growing number seeing investment management as an opportunity to redefine existing processes and business models, benefiting from access to a global market, global talent and global connectivity. We hope this report will provide a useful and accessible overview of the dynamic innovation landscape, areas of focus and priorities as well as key requirements to unlock the transformative opportunities within investment management.