Monday, April 21, 2008
kasina: Fund Firms Should Craft E-Biz Strategy
News summary by MFWire's editors
A new report out from kasina explores the growing role that e-business will play for fund firms in the future. The New York consulting firm found that currently 43 percent of the group of fund distribution executives surveyed thought that e-business was somewhat unimportant to very unimportant. However, 57 percent of the same group of executives thinks that distribution through the web will become very important in the next three years. kasina concurs with the second viewpoint, pointing out the fact that as advisor's become younger they will certainly expect more from websites.
"Firm CEOs must lead the charge by both defining and communicating the importance of e-business throughout the organization," said kasina CEO Steve Miyao
kasina interviewed senior distribution executives from 19 fund firms.
Company Press Release
New York, (April 21, 2008) – The mounting importance of the Web requires a larger,
more comprehensive role for e-Business, according to a new study by kasina, a leading
asset management consultancy. Though distribution executives acknowledge the
importance of the Web in the near future, most don’t have a clear idea of the exact role it
will play. The study, “Elevating the Role of e-Business,” shows ways e-Business can
build upon future opportunities to expand its role within distribution.
When kasina interviewed senior distribution executives from 19 firms representing $4.3
trillion in assets under management, 43% indicated that e-Business was “somewhat
unimportant” or “very unimportant” to overall distribution efforts.
Though the Web is currently viewed as a lower-level service function, the executives
surveyed also foresee an expansion of the Web’s role, with 57% indicating that they
expect the Web to become “very important” in the next three years. However, few have
fully envisioned how the Web will fill that role. “Firm CEOs must lead the charge by
both defining and communicating the importance of e-Business throughout the
organization,” said Steven Miyao, kasina CEO.
However, kasina’s research shows that a growing number of advisors are becoming Web-
savvy, with 15% believing they could manage their asset manager relationships through
their Web sites. Not only will current Web-savvy advisors demand more from the Web—
Generation Y has begun to enter the work force as well. In fact, Gen Y already represents
10% of financial advisors, a figure projected to reach more than 20% by 2012.
“As the advisor base grows younger, heads of e-Business must prepare for the Web’s
expanded role by making more strategic, higher-level decisions,” stated Sean Carroll, a
manager at kasina.
Unlike previous generations, Gen Y grew up with the Web and will consequently expect
far more out of their online services. To better meet the needs of a new generation of
Web-centric advisors, e-Business must assume a greater role within distribution, working
in tandem with other distribution functions, such as Sales, to make strategic decisions.
According to kasina, firms can prepare the Web for a more integrated role in company-
wide operations by:
• Investing Today For Tomorrow – In the past, most firms have waited for a critical
mass of competitors to make Web innovations available before quickly scrambling to
follow suit. However, Web innovations in the future, such as data tagging and
improved organization, cannot be completed overnight.
• Making Room for the Web – Heads of e-Business must move away from tactical
responsibilities and act more like internal CEOs. This includes engaging peers
throughout distribution, communicating a mission and vision, and becoming a visible
leader within the organization.
To sustain sales margins of the past, firms must anticipate the next wave of Gen Y
advisors and incorporate e-Business into every aspect of their distribution efforts. For
firms, the time to invest in the future of the Web is now.
For more information on the full report, “Elevating the Role of e-Business,” visit
kasina's commitment to innovating distribution in the financial services industry has
made it one of the most influential strategy consulting firms in its sector. kasina works
with a wide variety of clients from five continents, including firms representing 90% of
the U.S.'s total assets under management. An overview of services offered by kasina is
available at www.kasina.com.
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