A 5 minute watch. 

Rob Gleeson is head of research of Financial Express, and in the latest of our Octo Blast series, sits down with Gary Shepherd to chat about why fees are under pressure across the industry, where the threat of disruption looms as new tech encroaches, and what consolidation across groups might look like. 

Rob begins by explaining the three cost centres that structure the industry, and why even now, let alone in ten years, “the market can’t support that”.

He says that from this “we’re seeing some really interesting bits of innovation and shake-out”, and how developments will be interesting to follow as “fintechs play-out, and bits become dominant”.

He then reveals where across the industry consolidation might occur, and new business models that could be created removing layers of cost.

Focusing on asset management, he points to a middle tier under pressure, particularly those who are”good at a lot of things, but great at nothing”, and an industry ending-up likely split between “genuinely low cost providers, with much smaller specialists round the outside”.