The evolution of technology is at the core of every discussion nowadays; and, whether we like it or not, we must include it in every discussion. Our experience as humans has changed drastically because of technology, and mainly because of the internet. The financial system is no exception, and it’s currently completely intertwined with technology. This is why, it’s important to discuss the difference between a digital asset manager and a financial asset manager. What are the core differences? And what are the similarities between the two?

What a Digital Asset Manager Is?

A digital asset manager is the role of managing digital assets. Digital asset management, also known as DAM, is basically the process of storing, organizing, and managing digital assets. This helps create a centralized and searchable database; and it specializes in blockchain-based assets. There are many things that are digital assets, like: documents, audio and video files, and images. This article published by IBM ( https://www.ibm.com/think/topics/digital-asset-management ) talks of how a digital asset manager can help with brand management, and brand consistency. It can help repurposes creative assets, which is highly needed if you want to build a strong online presence.

Digital asset can also refer to tokens and digital currency, like Bitcoin, Ethereum, and NFTs. You need a digital asset manager ( https://aerapass.io/ ) especially if you have a fintech company, or something related to the industry of fintech. For those who don’t know, fintech means financial technology; so, basically it’s the technology that improves the world of finances. It’s pretty self-explanatory! So, a digital asset manager will put all of your digital assets in the system, and will then catalog them. The assets are them easily accessible to the owner and other users. This whole thing sounds complicated, especially for someone with no experience when it comes to fintech; but that’s exactly why experts exist!

What a Financial Asset Manager Is?

A financial asset manager is a professional that is responsible for managing the investments of an individual or a company. Their main goal is to build and manage portfolios that include financial instruments, such as: stock, ETFs, and mutual funds. A financial asset manager will analyze the market, and always keep in mind what the client’s goal is; and, based on these elements, they will create strategies that are meant to get the client to their goal. Investing wisely is not an easy thing to do, and most normal people don’t know how to do it.

If you want to actually reach your goal, you need the help of someone that knows how this whole thing works. Financial planning, risk management, and performance reporting is something else that a financial asset manager often does. A financial asset manager will analyze the risks of investing, will create a plan; and you will receive help throughout the whole process. If you are in the situation in which you want to grow your wealth, generate income, and also preserve capital, you definitely need to hire this kind of an asset manager!

The Difference between the Two

The obvious difference between the two types of asset managers is in the fact that they are managing different things. The financial managers focuses on traditional assets, while the digital manager focuses on digital assets. Therefore, the market they need to analyze is different, and so is the methods they must use to achieve the needed results. There is a big difference between traditional assets, and digital ones! As an asset manager, you need to pay attention to totally different things. One must pay attention to new changes to emerging blockchain technologies; while the other one must pay attention to traditional tools and custodians.

The risks of managing is also different, and the skills required are not exactly the same. So, in conclusion, the difference is that they manage different kinds of assets, and use different tools to do so. DAM is usually more speculative and innovation-driven; while FAM is more about adopting a conservative philosophy, focused on long-term results. So, you should choose depending on the type of assets that you have, traditional or digital. Another difference is represented by the people in these markets. Traditional finance is more mature, and you’ll mostly people that have been in the business for many years. While the digital finance market has a lot of young adults that are just now beginning!

What Are the Similarities?

Besides the many differences between DAM and FAM, there are still some similarities. Both roles are about wisely managing the assets of their client. Even if the asset themselves differ, the goal is the same. Helping the client to reach their financial goal, analyzing the risks, and analyzing the market, are some of those tasks that people in both of these roles have to do. It’s like one of them has to take care of a strawberry, and the other one of a photo of an orange. The way they are going to carry the task is going to differ, but the task is the exact one.

Being able to communicate efficiently is another area where these roles overlap. You must be able to understand what the client wants, and what the client needs. Knowing how to offer someone advice, especially financial advice, is not an easy thing to do. The roles are also meeting halfway when talking about technology; the DAM uses tools like blockchain, and the FAM uses tools like robo-advisors. They are, probably, more similar than they are different.

Conclusion

Now that the differences and similarities between a digital and a financial asset manager are settled, you know what to choose! Choosing the wrong manager can destroy everything you have built until now; that’s why it’s important to understand the differences between the two roles. If it seems too complicated to understand, don’t worry, the experts know exactly what they need to do; so, just hire experts!