What you need to know: Institutional investors have been continuously pouring in funds in fintech firms in asset management. Venture capital is continuously increasing and playing a large role since 2014. Private equity investors also increase their investments into asset management. Traditional investments in asset management have its shortcomings because active managers are underperforming and fees are continuously going up. Therefore, experts expect that venture capitalist investors will eventually replace traditional investments.
Why it is important: The growth of fintech in asset management can produce innovative software tools and products that cater to the tech savvy and/or younger generation as one of their sources of income. Eventually, this will encourage more retail investors to invest.
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