Asset Servicing Global Market Report 2024

The asset servicing market size has grown strongly in recent years. It will grow from $1303.24 billion in 2023 to $1397.61 billion in 2024 at a compound annual growth rate (CAGR) of 7.2%. The growth observed in the historical period can be attributed to factors such as the provision of client-centric solutions, market volatility, economic shifts, and the increasing demand for specialized services. Additionally, the globalization of markets has played a role in influencing growth during this period.

The asset servicing market size is expected to see strong growth in the next few years. It will grow to $1859.64 billion in 2028 at a compound annual growth rate (CAGR) of 7.4%. The anticipated growth in the forecast period can be attributed to factors such as the ability to adapt to market volatility, the continued focus on client-centric solutions, emphasis on risk management and cybersecurity, awareness of global economic trends, and the integration of ESG (Environmental, Social, Governance) considerations. Major trends expected in the forecast period include a transition to digital services, regulatory changes, globalization and market expansion efforts, increased demand for ESG integration, as well as a focus on cost efficiency and operational streamlining.

The asset servicing market is poised for growth, primarily driven by the increasing retiree population. With a focus on individuals aged 65 and over, asset servicing providers play a crucial role in helping retirees manage their assets and investments, ensuring sufficient income for retirement. According to the United States Census Bureau, the retiree population is projected to reach 80.8 million by 2040 and 94.7 million by 2060, signaling a significant driver for the asset servicing market's expansion.

Globalization emerges as a key factor propelling the asset servicing industry's growth. A study on global asset servicing reveals that approximately 60% of asset services in Assets Under Administration (AUA) and Assets Under Contract (AUC) anticipate globalization as a robust driver for market growth. Industry players are strategically focusing on APAC markets and other emerging economies, creating substantial opportunities for expanding the asset servicing market globally.

A stringent regulatory framework poses a potential limitation to the asset servicing industry's growth. The impact of rising global regulations is noted in Funds Europe's asset servicing roundtable, adding costs and risks to asset servicing. Engaging with clients and regulators becomes essential for asset servicers due to increased regulatory scrutiny. Nearly 75% of companies, according to EY's study on new opportunities for asset servicing, identify regulations as the major risk facing the industry. Consequently, the heightened regulatory environment is expected to hinder the asset servicing market's growth in the forecast period.

Major companies in the asset servicing market are at the forefront of innovation, introducing advanced technologies such as autonomous asset management to enhance customer satisfaction and loyalty. Autonomous asset management utilizes artificial intelligence (AI) and machine learning (ML) to automate investment decision-making and portfolio management. Arabesque AI, a UK-based investment advisory and technology company, launched AutoCIO in September 2021 - a scalable, cost-effective, and customizable autonomous asset management solution driven by AI technology. AutoCIO enables the creation and execution of millions of active equity strategies, offering highly tailored and sustainable investment strategies.

Robotic process automation (RPA) or automation emerges as a significant trend shaping the asset servicing market's growth. RPA can potentially reduce headcount by 60–70% in asset servicing, leading to cost savings of approximately 30–40%. ANZ Banking Group serves as an early adopter, leveraging RPA to automate HR, finance, and technology processes, creating thousands of bots for increased efficiency.

In August 2023, Lansdowne Partners, a UK-based asset management company, acquired CRUX Asset Management for $1.1 billion. This acquisition enhances Lansdowne's UCITS capabilities and market positioning, offering CRUX access to Lansdowne's operational infrastructure and equity expertise. CRUX Asset Management, based in the UK, is an active equity investment manager catering to institutional and retail clients.

Major companies operating in the asset servicing market report are JPMorgan Chase & Co., Wells Fargo Asset Management, Citigroup Inc., HSBC Holdings PLC, Morgan Stanley Wealth Management, The Goldman Sachs Group Inc., UBS Group AG, Fidelity Personal and Workplace Advisors LLC, PNC Financial Services Group Inc., Charles Schwab Corporation, National Australia Bank Limited, BlackRock Inc., Mellon Investments Corporation, The Bank of New York Mellon Corporation, Ameriprise Financial Inc., State Street Corporation, Raymond James Financial Inc., Franklin Resources Inc., Northern Trust Corporation, Invesco Ltd., TD Ameritrade Investment Management LLC, Broadridge Financial Solutions Inc., CACEIS Bank S.A., Pictet Group, T. Rowe Price Investment Services Inc., BNP Paribas Securities Services, SimCrop A/S, Clearstream Banking S.A., United States National Bank. North America was the largest region in the asset servicing market in 2023. Western Europe was the second largest region in the global asset management market share. The regions covered in the asset servicing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The primary services provided in asset servicing include fund services, custody and accounting, outsourcing services, and securities lending. Securities lending is a process where shares of stock, commodities, derivative contracts, or other securities are lent to other investors or firms. Borrowers typically provide collateral in the form of cash, other assets, or a letter of credit when seeking a security loan. These services are extended to large enterprises, medium-sized and small enterprises, capital markets, as well as wealth management firms.

The asset servicing research report is one of a series of new reports that provides asset servicing statistics, including asset servicing industry global market size, regional shares, competitors with asset servicing shares, detailed asset servicing segments, market trends and opportunities, and any further data you may need to thrive in the asset servicing industry. This asset servicing research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The countries covered in the asset servicing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The asset servicing market consists of revenues earned by entities by providing administration services through a central securities depository (CSD) or custodian in connection with the custody and/or safekeeping of financial instruments (e.g., the processing of corporate events or the handling of taxes) on a fee or commission basis. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.