Now in its 6th edition, Deloitte and ArtTactic’s latest “Art & Finance” report was unveiled Monday in Monte Carlo. Wealth among ultra-high net work individuals associated with art and collectibles is expected to grow beyond the 2018 estimate of $1.7tn.
Among the findings are the way in which technology will impact change in the art market. Already tech startups in the field have raised around $600m over the last 8 years, half of which was aimed at transaction-related businesses. The next generation is expected to focus on what the report calls “peripheral business segments”, be that contracts, legal, education, new artist discovery and so on.
Tech is expected to “profound[ly] impact” aspects such as regulation--appropriately so, given that 54% of wealth managers surveyed thought the market needed more government regulation. Compare this to 46% opting for a “self-regulation” approach (a stark decrease from 2017 when this figure was at 60%).
“The findings reveal that lack of transparency is an ongoing concern for collectors, causing continued distrust in the market,” Adriano Picinati di Torcello, director and global art & finance coordinator at Deloitte, said about the survey. “In addition, a newer challenge derives from next-generation investors whose interests extend beyond financial returns to social impact.”
Indeed, across the board there were also increased calls for business practices in the field to be modernised--76% of wealth managers surveyed felt this way, as did around 80% for both art professionals and collectors (compared to 73%, 74% and 64%, respectively, in 2017). “It is possible that the entry into force of the fifth anti-money laundering directive in January 2020 will act as a driver of this much-needed change,” the report writers add.
Such regulation would also require due diligence on beneficial owners during every transaction.