According to our new report ‘Change in motion: The European asset management distribution landscape’, the role of social media in asset management distribution is nearing a tipping point beyond which it will become the dominant tool to establish brand identity, create product differentiation and challenge the threat of commodification.
In line with EY’s recent global regulated funds survey, Driving growth and aligning interests, two in three managers believe that social media will have a significant influence on product and distribution strategies over the next five years.
Even those not as upbeat about the growing ability of social media to materially impact distribution results do at least recognize the benefits in simply building brand identity.
European firms are catching up quickly on their US counterparts due to not only the seamless globalization of the industry, but also rapid regulatory initiatives that are restructuring the pricing and distribution model throughout the EU.
By 2020, Generations X and Y will hold the majority of buying power in most European markets. By 2025, this segment will dominate the investor base for the European asset management industry. We are moving to a place where the vast adoption by the industry and investors alike will use social media as a primary means of education, communication and decision-making for distribution.