US Tech Firms May Disrupt Asset Management Industry.

The recent expansion by the leading Internet firms into financial services has created fears among asset managers that the future of investment companies could be under threat if these major technology firms decide to offer fund management services. The failure of asset management companies to keep abreast of new technological developments has made them highly vulnerable to disruption. The data-rich Internet firms, with their wide networks of existing customers, have the capability to use their technology platforms to provide a cheaper and more convenient asset management service tailored to individual consumer needs. A number of technology firms have already begun to offer fund management services in both Europe and China with startling results.