At the Calastone Connect Forum 2024 in London, industry leaders gathered to explore the forces that will shape the future of asset management, with a central question in mind: how will digitalisation and innovation redefine the industry by 2030? Throughout the event, it became clear that the next few years will be pivotal, as asset managers navigate emerging technologies like tokenisation, AI, and the growing demands of a new generation of investors.
Ross Fox, Head of UK & Europe at Calastone, kicked off the day by reflecting on how quickly the landscape has shifted since Calastone began hosting these events in 2016. The topics of innovation, efficiency, and disruption are still central to industry discussions today, but with a sharper focus on how tokenisation, AI, and digitalisation will drive the next wave of transformation.
2030 Vision: Unlocking New Opportunities
Framing the theme of the day, Brian Godins, Chief Commercial Officer at Calastone, emphasised that 2030 is not as distant as it seems, and the changes happening now will profoundly shape the future of asset management. He challenged the audience to rethink existing operating models, noting that while legacy systems have been a part of the industry’s DNA for decades, the opportunity for digital disruption has never been more real.
The shift in asset management, according to Brian, isn’t just about technological advancement, but about how these tools can unlock new growth, improve operational efficiencies, and create better investor experiences. Generative AI, distributed ledger technology (DLT), and tokenisation are no longer future possibilities—they are key drivers of today’s innovation.
AI and the Future of Asset Management
AI was a dominant theme across several sessions, with panellists agreeing that by 2030, AI will play a pivotal role in retail investment advice and asset management processes. According to Mark Wightman, Partner at EY, AI’s transformative power is already reshaping the industry, but the journey has just begun. He pointed out that intelligent automation (IA), rather than full-scale AI, is currently driving many back-office improvements.
He also noted that while AI and machine learning are seen as key enablers of future growth, the industry needs to focus on clean, timely data to unlock AI’s true potential. For asset managers, the value of AI lies not only in efficiency but in providing better insights and services to end-investors.
The Rise of Tokenisation: Revolutionising Fund Structures
Tokenisation, the process of converting assets into digital tokens, was another major focus. Simon Keefe, Head of Digital Solutions at Calastone, underscored that tokenisation is already happening, and it will revolutionise the entire fund lifecycle—from creation to settlement. The benefits, Simon explained, are profound: real-time fund pricing, improved liquidity, and increased transparency. But the industry needs to move beyond small-scale pilots and embrace full-scale adoption.
Simon shared insights from Calastone’s work with global asset managers and platforms. He explained that tokenising funds at the asset level, rather than at the unit level, will enable more personalised investment vehicles and lower operating costs. The ambition is to build a future where investors have direct access to tokenised assets via digital channels, offering a seamless experience that caters to their specific needs.
Sean Mullins, Head of Digital Assets Execution at Northern Trust, echoed these points, stressing that real-time data and tokenised funds will make the industry more agile and responsive to investor demands. He remarked:
“We are seeing tokenisation making waves already. The ability to move collateral in real-time and eliminate friction in settlement processes is a game changer, especially in areas like money market funds and collateral management.”
New Investor Expectations and Wealth Transfer
Another central theme was the ongoing generational wealth transfer, which is expected to reshape investment preferences. By 2030, $68 trillion USD[1] is expected to change hands, shifting from baby boomers to millennials. As Alex Cowan of Platform One pointed out:
“This next generation of investors expects seamless, digital-first services. They want to manage everything in one place, from crypto to traditional assets, and they will not tolerate poor digital experiences.”
This generational shift is driving demand for more personalised investment solutions, and tokenised vehicles are expected to fill that gap. Daniel Andemeskel, CEO of Enlyte, emphasised the need for platforms to cater to this digitally savvy audience:
“Millennials and Gen Z investors are looking for products that align with their values, like ESG-driven investments, and tokenisation offers them access to alternative assets that weren’t previously available.”
Challenges and Opportunities Ahead
Despite the optimism, panellists also recognised the challenges facing the industry. Legacy infrastructure remains a significant hurdle, particularly when it comes to operational inefficiencies and the costs associated with maintaining outdated systems. The consensus was that collaboration between traditional players and fintechs will be critical to overcoming these barriers.
Looking ahead, there’s still work to be done in broadening investment access and simplifying the investor experience. AI and automation are seen as crucial enablers in making sophisticated investment products more accessible, although regulatory and operational challenges remain. The sentiment was clear: investor access to advanced products should be straightforward and cost-effective, avoiding the high costs and complexity that can currently hinder the market.
The Road to 2030: Regulatory and Technological Alignment
The forum highlighted that global regulatory cooperation will be essential for unlocking the full potential of tokenisation and digital investments. Project Guardian in Singapore was cited as an example of how forward-thinking regulation can drive progress. The UK’s Financial Conduct Authority (FCA) and European regulators were also seen as playing crucial roles in establishing frameworks for tokenised funds.
As the day closed, Ross Fox reflected on the overwhelming sentiment from the audience:
“The future is clearly digital. AI, tokenisation, and next-generation platforms will be the cornerstone of the industry by 2030. But, as we’ve heard today, success will depend on how well we navigate these challenges and embrace the opportunities in front of us.”
The Calastone Connect Forum ended on a hopeful note, with participants recognising that while the road to 2030 will be complex, the tools and technology are already here to shape a more efficient, transparent, and investor-centric industry.
[1] WealthEngine, “The 2019 Millennial Wealth Report.”
