DWS is set to consolidate its digital fund platform business into a vertically integrated structure, with hopes of growing it from a transaction platform to a scalable digital investment platform.
IKS 2.0 will incorporate DWS's fund management platform IKS - which currently holds €100bn in assets under administration (AUA) - with its digital assets WISE, Edison and DWS Direct, in an effort to bolster the firm's digital distribution proposal.
WISE is the firm's 'B2B2C' white-label robo-adviser solution, Edison is its B2C investment app and DWS Direct is the group's direct distribution platform.
IKS 2.0 will be led by managing directors Kai Bald and Stephan Scholl. Bald has been running DWS's digital business globally as well as the direct business in EMEA since April 2016, while Scholl has been responsible for platform management at DWS since 2013.
Thorsten Michalik, member of the DWS executive board and head of coverage EMEA and APAC, said the move reflects the fact "fund platform business models are one of the key growth areas in asset management in Europe, expected to significantly outgrow traditional asset products".
In November 2017, Bain predicted assets on fund platforms would see annual growth of around 20% in the coming years, outpacing expected overall average assets under management (AUM) or ETF market growth.
Michalik added: "We already have a significant footprint in the market. We look forward to seizing the opportunities of this business."
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