IA launches guidance for investment managers working with FinTechs

Tuesday 15 September 2020

For investment managers to successfully adopt cutting-edge technology, there must be a clear, specific business problem to solve, and an organisational culture and multi-level senior sponsorship supportive of innovation, a new guide published today by the Investment Association (IA) has concluded.

In light of growing margin pressure on firms, as well as demand for operational efficiency and improved consumer outcomes, FinTech adoption is increasingly seen as offering investment managers solutions to pressing business needs. The new guidance, ‘Best Practice for FinTech Engagement’, instigated by Graham Kellen, Chief Technology Officer at Schroders Personal Wealth and former Engine Advisory Panel Chair, and written by the Engine Advisory Panel of industry tech and digital experts from the IA’s Engine FinTech hub, provides investment managers comprehensive advice for understanding, on-boarding and implementing FinTech within investment and wealth management.

The guide follows the process of considering FinTech engagement from the establishment of a clear ‘problem statement’ or business need through to the implementation of new technologies within firms, and provides operational advice and checklists for both investment managers and FinTechs. The guide also provides recommendations on the following areas:

  • Organisational readiness for being able to consider engagement with FinTech firms;
  • Scouting out and assessing FinTech solutions;
  • Common pitfalls to avoid when working with FinTechs
  • Mutual intellectual property considerations;
  • Ensuring tech solutions are fit for investment management; and
  • Being a responsible client of a start-up.

Gillian Painter, Head of Membership and the Engine at the Investment Association, said:

“For too long the investment management industry has been a laggard at adopting the new technologies of tomorrow. But in the face of consistent margin pressure, increasingly sophisticated client expectations and rapid digitalisation in response to COVID-19, it is now more important than ever that we identify hot spots for automation and develop effective processes to ensure the latest technologies are utilised to their full potential.

“That is why our new guidance recommends collaboration and communication as central to a strong business partnership between investment managers and FinTechs and ultimately to ensure we better serve savers and investors.”

The guidance also offers advice specifically for FinTechs on how to reduce friction in large client engagements, and follows the launch of The Engine’s taxonomy tool earlier this year, outlining the investment management industry’s value chain in an effort to more easily match up FinTech solutions with investment management business needs.


For further information, please contact:

Katie Martin, Head of Communications: [email protected]

T: +44 (0)20 7269 4655

Helen Ayres, Communications Manager: [email protected] 

T: +44 (0)20 7269 4620

David Parton, Communications Executive: [email protected]

T: +44 (0)20 7269 4625

IA press office: [email protected]

T: 020 7269 4696

About the Investment Association (IA):

  • The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £7.7 trillion of assets and the investment management industry supports 115,000 jobs across the UK.
  • Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
  • Our purpose is to ensure investment managers are in the best possible position to:
    • Build people’s resilience to financial adversity
    • Help people achieve their financial aspirations
    • Enable people to maintain a decent standard of living as they grow older
    • Contribute to economic growth through the efficient allocation of capital.
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
  • The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.