Restructuring the business model of global custodians has been compared to changing a jet engine in mid-flight.
Whilst the cost pressure on the capital markets industry has been well publicised, less has been spoken about how the custody business needs to evolve in the face of this changing dynamic. Reliance upon the traditional value proposition of ‘bricks and mortar custody’ will no longer suffice in a world where clients are looking to service providers for more innovative, cost effective and value-added solutions in support of their own objectives. How should custodians position themselves to maximise opportunities to progress further up the post-trade value chain? Custodians have safeguarded traditional financial assets but how should they prepare themselves for the new world of protecting digital assets or security tokens?
In this Financial Markets Insights report, Ali Rutherford and Rick Seaberg of Ascendant Strategy; Rob Scott of Commerzbank; Mark John of BNY Mellon; Matt Ruoss at Scorpeo and Virginie O’Shea of Aite Group talk to The Realization Group’s Mike O’Hara & Shanny Basar about the challenges that global custodians face and how they can get the most value from their investments to gain a competitive edge.