Retail Brokerage and Distribution Report—Canada Summer 2020

New Links in the Chain: The Emergence of Model Marketplaces and Platform-based Business Models in the United States

Amidst a fast changing macroenvironment and shifting technological priorities, new platform-based businesses are emerging as a force in the U.S. financial services value chain, creating new points of connection between advisors, dealers and asset managers. These third-party platforms—centered around turnkey asset management platforms (TAMPs) and model marketplaces—represent a new layer in the financial services value chain, one that will be increasingly important to understand for asset managers and distributors alike.

Focusing exclusively on the U.S. market, this research feature outlines the macroenvironmental backdrop that set the stage for third-party platform business models to emerge, explores the timeline and development of a standardized infrastructure solution for model delivery and execution, and examines how platforms will likely become an increasingly powerful layer and competitor in the financial services industry in the years ahead. This feature is important reading for all asset managers and distributors in Canada who are looking to the U.S. for clues on the future shape of investment management distribution here in Canada.