Custody Service Global Market Report 2023
Major players in the custody services market are Bank of New York Mellon, Citigroup, JP Morgan Chase, State Street Bank and Trust, BNP Paribas, Northern Trust Corporation, HSBC, Societe Generale Securities Services, Brown Brothers Harriman & Co.
New York, Feb. 24, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Custody Service Global Market Report 2023" - https://www.reportlinker.com/p06277938/?utm_source=GNW
, and Caisse d’Epargne Investor Services.
The global custody services market is expected to grow from $35.1 billion in 2021 to $38.17 billion in 2022 at a compound annual growth rate (CAGR) of 8.7%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions affecting many markets across the globe. The custody services market is expected to grow to $53.27 billion in 2026 at a CAGR of 8.7%.
The custody service market consists of revenues earned by entities by providing services such as settlement, safekeeping, and reporting of customers’ marketable securities and cash.Securities lending can allow a customer to make additional income on custody assets by loaning securities to approved borrowers on a short-term 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.
A custody services typically include the settlement, safekeeping, and reporting of marketable securities and cash held by customers. By lending securities to approved borrowers on a short-term basis, a customer can earn additional income on custody assets.
North America was the largest region in the custody services market in 2022.Western Europe was the second largest market in the custody services market.
The regions covered in the custody services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The main services of custody services are core custody services, ancillary services, core depository services, and other administrative services.Core custody service providers settle trades, invest cash balances as requested, collect income, execute corporate activities, price securities positions, and assist with record keeping and reporting.
The services are available as equity, fixed income, alternative assets, and other types.
Automation and standardization are key factors driving the growth of the custody services market.The custody services industry is focusing on using technology to improve efficiency.
The automation and standardization of core custody services and operations result in higher visibility, enhanced productivity due to operational efficiency, and cost reductions for customers; they improve quality of service and allow the custodian to react quickly to future needs.Due to the automation and standardization of custody services in the coming years, the asset-centric model is expected to be augmented by a more data-centric, open platform method where the custodian will have access to a variety of available services.
For instance, an automated reporting system provides daily reports of exceptions, securities available for loan, securities on loan, valuation of cash collateral, daily mark-to-market information, and margin calls. Therefore, such automation and standardization features are expected to drive the growth of the custody services market.
Increased competition is a key factor hampering the growth of the custody services market.The market for custody services is highly competitive, with numerous banks that provide custody services in addition to other banking services on a global, regional, or local scale.
The price competition, in particular, is causing enormous pressure on the banks in the global market.Many custodians find it challenging to keep up with high volumes and offer competitive prices.
Traditional players in securities services such as multinational custodians, local custodians, and specialists in fund management are experiencing increasing competition from central securities depositories (CSD), central counterparty clearing houses (CCP), and outsourced service providers.Fund services professionals are increasing their competitiveness by significantly developing new and targeted offerings.
Therefore, increasing competition from various areas is expected to hinder the growth of the custody services market.
In January 2021, U.S. Bank, a US-based financial institution, acquired Debt Servicing and Securities Custody Services client portfolio of MUFG Union Bank, N.A. for an undisclosed amount. The acquisition complements the bank’s portfolio and would help it better serve the customers. MUFG Union Bank is a US-based full-service bank.
The countries covered in the custody services market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless otherwise specified).
The revenues for specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.
The custody services research report is one of a series of new reports that provides custody services statistics, including global market size, regional shares, competitors with custody services share, detailed custody services segments, market trends and opportunities, and any further data you may need to thrive in the custody services industry. This custody services research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
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