DISINTERMEDIATION AND ACCELERATION
DISINTERMEDIATION AND ACCELERATION
Two of the trends with the largest possible consequences for the investment management industry are disintermediation and acceleration . The two play off of each other , and have the potential to create serious challenges for the market . Disintermediation refers to the growing availability , power and accessibility of digital platforms that allow individuals to invest with a level of ease and accuracy that reduces the requirement for wealth and asset managers to oversee a portfolio . Simply put , if you have an app that lets you easily oversee your own investment portfolio and uses AI and machine learning to provide you with data-driven insights that let you make similar decisions to an investment manager taking 5-10 %, why do you need that investment manager at all ? Accenture ’ s report speaks to this trend , noting that “ Intermediaries will be squeezed as common platforms allow direct access . Individuals can invest by themselves rather than using a wealth manager to manage a portfolio , investing for instance in exchange 35
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