Asset management divisions within big banks have always been a solid revenue source but recently they have taken on greater...
JPMorgan Chase has partnered with iCapital Network to allow for alternative investments once reserved for institutions and the ultra rich;...
According to the WSJ, SoFi is pulling back on its expansion to foreign markets and asset management; two executives, Peter Early and Arkadi Kuhlmann are leaving the firm as part of the shift in focus; they led asset management and banking respectively at SoFi; despite some of the challenges the company extended $3.52 billion in loans in the third quarter, up almost 80% from the same period last year. Source
The UK’s Financial Conduct Authority has told asset managers that they need to focus more on customer interests and stop the bad behavior; the rules come after a more than 2 year investigation into the sector; Christopher Woolard, executive director of strategy and competition at the FCA, tells the FT, “Today’s announcements are an important part of a package of measures that, combined, aim to achieve a fair, transparent, open and accountable market.”; some of the new rules include hiring independent directors, profits from moving money from one fund to another will be mostly banned and they will need to switch investors to the cheapest version of their funds. Source.
BNP Paribas Asset Management was able to complete a fund distribution test using blockchain technology; the test used BNP Paribas Securities Services’ blockchain programme, Fund Link and FundsDLT; as AltFi reports the test was able to show Fund Link connecting to other blockchains and the transaction completed each part of the fund trade process, from order delivery to trade processing; this continues a trend from BNP Paribas Asset Management as they have also launched a specialist fund for fintech investment and began updating their legacy technology. Source.
Not only has Ping An been investing in technology but has also started selling technology in areas of online banking, facial recognition, asset management and more; according to Deputy Chief Executive Officer Jessica Tan in an interview with Bloomberg the company wants to get half their earnings from technology; while competition from Tencent and Alibaba is stiff the company believes the combination of data and offline resources can give their products an edge; after seeing presentations in recent months analysts have started raising price targets on the company. Source.
The UK’s Financial Conduct Authority (FCA) has set up an asset management startup hub to help companies as they move between pre-authorization and authorization; the hub will help new entrants to better understand regulations, increase engagement and help to increase the quality of companies. Source.