PwC Report: Asset Manager Margins Face Pressure from Rising Infrastructure Costs
A new report from PwC reveals that asset managers are facing significant margin compression, with profit per Assets under Management (AuM) having dropped 19% since 2018 and projected to decline an additional 9.1% by 2030. This squeeze is driven by the rising costs of technological infrastructure and the need to modernize legacy systems. Data fragmentation remains a primary obstacle to scaling AI, particularly in North America. To combat these pressures, many firms are shifting toward hybrid sourcing models—combining in-house development with third-party partnerships. The report suggests that long-term competitiveness will depend on how effectively managers manage their 'infrastructure layer' rather than simply adopting the latest technology trends.
Topics: AI implementation barriers asset management industry trends cloud computing impact infrastructure technology profit margins