Asset servicing is a term that refers to a group of tasks and activities provided by a custodian or a central securities depository (CSD) to its clients around the assets they have under custody or safekeeping. These tasks and activities include processing of corporate events, handling of taxes, or collection of dividends and interest. Asset servicing can also be a contract to service financial assets, which can be either an asset or a liability, depending on the fees paid to the servicer.
One key factor driving the growth of the asset servicing market is the increasing complexity of investment portfolios. Furthermore, governments and regulatory bodies are continuously implementing new rules and guidelines to safeguard the interests of investors and maintain the stability of financial markets. Asset servicing firms play a vital role in helping their clients navigate this regulatory maze. Thus, the growth of the asset servicing market is driven by the ever-evolving landscape of financial regulations. In addition, with globalization continuing to shape the investment landscape, asset servicing providers are in high demand as they facilitate the seamless management of assets across borders. However, one of the key factors restraining the growth of the asset servicing market is high cost of asset servicing. Asset servicing firms provide essential and complex services, which require a significant investment in technology, skilled personnel, and infrastructure. As a result, they charge fees to their clients for these services. Moreover, the growth of the asset servicing market is hampered by the rapid pace of technological change and the accompanying cybersecurity risks. However, increase in popularity of alternative investments is expected to provide lucrative opportunities for the growth of the market.
The asset servicing market is segmented into services, enterprise size, end user, and region. By service, the market is differentiated into fund services, custody and accounting, outsourcing services, securities lending, and others. On the basis of enterprise size, it is segmented into large enterprises and small and medium-sized enterprises. Depending on end user, it is fragmented into capital markets, wealth management firms, and others. Region-wise, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the asset servicing market include Northern Trust Corporation, UBS, The Bank of New York Mellon Corporation, Fenergo, JPMorgan Chase & Co., HSBC Group, Credit Agricole, Deutsche Bank AG, Broadridge Financial Solutions, Inc., and CIBC Mellon. These players have adopted various strategies to increase their market penetration and strengthen their position in the asset servicing industry.
One key factor driving the growth of the asset servicing market is the increasing complexity of investment portfolios. Furthermore, governments and regulatory bodies are continuously implementing new rules and guidelines to safeguard the interests of investors and maintain the stability of financial markets. Asset servicing firms play a vital role in helping their clients navigate this regulatory maze. Thus, the growth of the asset servicing market is driven by the ever-evolving landscape of financial regulations. In addition, with globalization continuing to shape the investment landscape, asset servicing providers are in high demand as they facilitate the seamless management of assets across borders. However, one of the key factors restraining the growth of the asset servicing market is high cost of asset servicing. Asset servicing firms provide essential and complex services, which require a significant investment in technology, skilled personnel, and infrastructure. As a result, they charge fees to their clients for these services. Moreover, the growth of the asset servicing market is hampered by the rapid pace of technological change and the accompanying cybersecurity risks. However, increase in popularity of alternative investments is expected to provide lucrative opportunities for the growth of the market.
The asset servicing market is segmented into services, enterprise size, end user, and region. By service, the market is differentiated into fund services, custody and accounting, outsourcing services, securities lending, and others. On the basis of enterprise size, it is segmented into large enterprises and small and medium-sized enterprises. Depending on end user, it is fragmented into capital markets, wealth management firms, and others. Region-wise, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the asset servicing market include Northern Trust Corporation, UBS, The Bank of New York Mellon Corporation, Fenergo, JPMorgan Chase & Co., HSBC Group, Credit Agricole, Deutsche Bank AG, Broadridge Financial Solutions, Inc., and CIBC Mellon. These players have adopted various strategies to increase their market penetration and strengthen their position in the asset servicing industry.
Key Benefits For Stakeholders
- The study provides in-depth analysis of the asset servicing market along with current trends and future estimations to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the asset servicing market size are provided in the report.
- The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the asset servicing market from 2022 to 2032 is provided to determine the market potential.
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Key Market Segments
By Service
- Fund Services
- Custody and Accounting
- Outsourcing Services
- Securities Lending
- Others
By Enterprise Size
- Large Enterprises
- Small and Medium-sized Enterprises
By End User
- Capital Markets
- Wealth Management Firms
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- Northern Trust Corporation
- The Bank of New York Mellon Corporation
- Fenergo
- Deutsche Bank AG
- Broadridge Financial Solutions, Inc.
- CIBC Mellon
- UBS
- HSBC Group
- Credit Agricole
- J.P. Morgan Chase and Co.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: ASSET SERVICING MARKET, BY SERVICE
CHAPTER 5: ASSET SERVICING MARKET, BY ENTERPRISE SIZE
CHAPTER 6: ASSET SERVICING MARKET, BY END USER
CHAPTER 7: ASSET SERVICING MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the asset servicing market was valued at $83.7 billion in 2022, and is estimated to reach $264.6 billion by 2032, growing at a CAGR of 12.5% from 2023 to 2032.The asset servicing market is likely to experience a significant growth rate of 12.5% from 2022-2032, owing to an increase in investment complexity, regulatory compliance requirements, and globalization and market expansion.
Asset servicing refers to administration services provided by a central securities depository (CSD) or custodian in connection with the custody and/or safekeeping of financial instruments. The term describes a group of tasks and activities provided by a custodian to their clients around the assets they have under custody. These activities include the processing of corporate events or the handling of taxes. Asset servicing combines a wide range of infrastructure and portfolio analysis services and provides wealth insight and investment control.
Furthermore, in May 2023, Amundi, the leading European asset manager, and CACEIS, the asset servicing banking group of Credit Agricole and Santander announced the completion of their strategic agreement to accelerate the development of Fund Channel, one of the leading B-2-B fund distribution platforms. This partnership enables Fund Channel to deliver one of the leading platform solutions proposed to asset managers and distributors, through fully-fledged dealing and distribution services capitalizing on the strength and expertise of its two shareholders. Therefore, such strategies drive the growth of the market.
The market also offers growth opportunities to the key players in the market. Key players are adopting strategies to strengthen their market positions in the asset servicing industry, including new technology adoption, product developments, mergers and acquisitions, joint ventures, alliances, and partnerships. For instance, in March 2022, HSBC launched a technology platform to provide private asset administration services to asset owners and managers, as part of the bank’s wider effort to grow its securities services offering in the private asset sector. The new platform, powered by SEI, offers private asset investors digital workflow and reporting solutions, allowing them to oversee all aspects of their operating model via a consolidated data stack. The initiative ensures a much broader, more efficient automated service for both general partners and limited partners of investment firms, across the spectrum of the illiquid alternatives market.
The asset servicing market is segmented into services, enterprise size, end user, and region. By service, the market is differentiated into fund services, custody and accounting, outsourcing services, securities lending, and others. On the basis of enterprise size, it is segmented into large enterprises and small and medium-sized enterprises. Depending on end user, it is fragmented into capital markets, wealth management firms, and others. Region wise, it is analyzed across North America (the U.S., and Canada), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the study are Northern Trust Corporation, UBS, the Bank of New York Mellon Corporation, Fenergo, JPMorgan Chase & Co., HSBC Group, Credit Agricole, Deutsche Bank AG, Broadridge Financial Solutions, Inc., and CIBC Mellon. The players in the market have been actively engaged in the adoption of various strategies such as business expansion, product launch, collaboration, and partnership to remain competitive and gain an advantage over the competitors in the market. For instance, in February 2023, CIBC Mellon announced that Hamilton Capital Partners Inc. (Hamilton ETFs) has extended its use of CIBC Mellon's custody, fund accounting, exchange-traded fund (ETF) servicing, securities lending, foreign exchange processing, and settlement services, as well as investment information data access via the NEXEN investment data platform. Hamilton ETFs is one of Canada's fastest-growing ETF managers with a suite of innovative ETFs that are designed to help Canadian investors and their financial advisors get more from their portfolios.
Key Market Insights
By service, the custody and accounting segment was the highest revenue contributor to the market and is estimated to reach $84.39 billion by 2032, with a CAGR of 9.8%. However, the securities lending segment is estimated to be the fastest-growing segment with a CAGR of 16.5% during the forecast period.By enterprise size, the large enterprises segment was the highest revenue contributor to the market, and is estimated to reach $158.56 billion by 2032, with a CAGR of 11.3%. However, the small and medium-sized enterprises segment is estimated to be the fastest-growing segment with a CAGR of 14.5% during the forecast period.
By end user, the capital markets segment was the highest revenue contributor to the market, and is estimated to reach $171.86 billion by 2032, with a CAGR of 11.3%. However, the wealth management firms segment is estimated to be the fastest-growing segment with a CAGR of 15.4% during the forecast period.
Based on region, North America was the highest revenue contributor, accounting for $34.33 billion in 2022, and is estimated to reach $88.88 billion by 2032, with a CAGR of 10.3%. However, Asia-Pacific is estimated to be the fastest-growing region with a CAGR of 16.4% during the forecast period.
Companies Mentioned
- Northern Trust Corporation
- The Bank of New York Mellon Corporation
- Fenergo
- Deutsche Bank AG
- Broadridge Financial Solutions, Inc.
- CIBC Mellon
- UBS
- HSBC Group
- Credit Agricole
- J.P. Morgan Chase and Co.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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