Over the past decade, wealth and asset management has undergone more structural change than perhaps any other period in its modern history. Client expectations have shifted, fee pressure has intensified, and the competitive landscape now includes fintechs, digital banks, retail players, and technology companies that were not part of the conversation twenty years ago. At the same time, traditional levers for growth have become more constrained. Markets have been volatile, organic flows are harder to capture, and M&A is costly.
This environment is pushing firms to rethink how they grow. One of the most promising approaches is a partnership strategy. Rather than building everything in-house or buying entire businesses, wealth and asset managers can unlock growth by partnering with a network of specialized firms. Done well, a partnership model allows organizations to deepen relationships, expand reach, enhance client experience, strengthen brand, and build capabilities while keeping the balance sheet light and the focus sharp.
Working in partnerships every day, I see firsthand how powerful this model can be. It is not simply an operational tactic. It is a strategic shift that redefines how an asset manager shows up in the market and how it meets client needs in a world where expectations continue to rise.
Why partnerships matter now
The industry is shaped by forces that reward collaboration. Investor preferences have become more sophisticated. Clients expect intuitive digital experiences, transparent reporting, real-time access, and holistic support that goes far beyond the product. They also expect this experience at a competitive price. Firms that cannot evolve risk losing relevance.
At the same time, the economics of the industry continue to tighten. Scale is essential, but scale does not need to come from acquisition. Partnerships allow firms to leverage the infrastructure, technology, distribution, and client insight capabilities of partners rather than owning everything themselves. This creates optionality. It allows a firm to experiment, access new segments, and respond to market changes more quickly.
In addition, partnerships help firms stay focused on what truly differentiates them. A partnership-driven strategy strengthens those advantages because it allows firms to extend reach and impact without diluting what makes the organization unique.
How partnerships unlock growth and capability
1. Expanding distribution through partner networks
One of the most significant benefits of a partnership is the ability to reach investors where they already are. Whether through banks, online brokerages, fintech apps, workplace providers, credit unions, or advice platforms, partnerships help firms connect with clients outside traditional channels.
In Canada, this matters. We have a concentrated market, a younger generation of digital-first investors, and a growing segment of DIY clients who want low-cost, high-quality investment access. Partnerships with platforms that already serve these segments create meaningful momentum. They reduce friction for the investor, broaden product accessibility, and deepen brand trust.
Partnership distribution also introduces scalability. Instead of building and maintaining direct channels in isolation, firms can lean on partners that already have the audience, technology, and engagement loops in place. This improves client acquisition, lowers distribution cost, and supports long-term asset growth.
2. Accelerating innovation through collaboration
Wealth and asset managers face constant pressure to modernize technology. Digital onboarding, data infrastructure, personalization tools, Gen AI, and portfolio construction capabilities all require sustained investment. Building everything internally is not only expensive but slow.
Partnerships make innovation more practical. Firms can collaborate with specialists that bring modern technology, advanced analytics, and proven solutions. This helps managers launch new experiences, add new capabilities, or streamline operations much more quickly than through internal build alone.
The result is a client experience that feels modern and intuitive. It also frees internal teams to focus on what drives differentiation rather than chasing every emerging requirement of a rapidly changing industry.
3. Strengthening cost efficiency & operational resilience
Margins remain tight across the industry. Regulatory expectations increase each year, market conditions change quickly, and global operations have become more complex.
Partnerships allow firms to outsource non-core processes such as reporting, compliance support, or certain middle and back-office functions. This improves cost efficiency while also increasing resilience. Specialist partners are often better positioned to maintain scale, keep technology current, and manage peaks in operational demand.
Rather than treating these areas as fixed cost centers, partnerships convert them into flexible capabilities that evolve with the business.
What successful partnership strategies require
Although the benefits are compelling, a partnership strategy works only when executed with discipline. Without a clear approach, partnerships become scattered, tactical, and disconnected from the broader strategy.
Three elements matter most.
1. Clarity on the firm’s strategic identity
Every partnership should reinforce what the organization stands for, the segments it prioritizes, and the long-term value it aims to deliver. This prevents unnecessary complexity and keeps the partnership aligned with the firm’s core mission.
2. Prioritization of high-value use cases
Not every partnership deserves equal attention. The strongest partnerships focus on a small number of high-impact plays where external capabilities create real leverage. Examples include digital distribution, financial literacy, workplace solutions, or improved advice experiences.
3. Strong governance and integration
Partnerships fail when responsibilities are unclear or when internal teams treat them as side projects. Successful partnerships have well-defined ownership, consistent performance tracking, shared strategic objectives, and disciplined partner management.
When these foundations are in place, partnerships evolve from a collection of relationships into a competitive advantage.
What this means for the future of the industry
The next decade of wealth and asset management will reward firms that are flexible, client aligned, and operationally efficient. Partnerships support all three. They create growth pathways without requiring significant capital, they help firms serve clients with more relevance and convenience, and they bring agility into organizations that otherwise operate as large, complex institutions.
Most importantly, partnerships shift the industry mindset. Instead of viewing other players as competitors or acquisition targets, firms begin to see them as collaborators (or “co-opetition”) in a broader network that ultimately benefits the investor.
Jason Oh leads strategy and partnerships at Vanguard Canada, focused on identifying new growth opportunities and strengthening how we serve investors. His career has spanned strategy consulting and corporate strategy, advising leading financial institutions on growth, transformation, and execution of strategic priorities.
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