DUBLIN, March 6, 2024 /PRNewswire/ — The “Custody Service Market – Global Industry Size, Share, Trends, Opportunity, & Forecast 2019-2029” report has been added to ResearchAndMarkets.com’s offering.
The Global Custody Service Market was valued at USD 35.6 billion in 2023 and is anticipated to grow during the forecast period with a CAGR of 9.4% through 2029, reaching USD 61.2 billion
The market for custody services is made up of the money that companies get paid to settle, store, and report on the cash and marketable securities that their clients own. Lending securities to qualified borrowers on a short-term basis might enable a client to earn additional revenue on custody assets. The value of associated goods that the service provider sells or incorporates into the service offering is included in the market value. Only products and services that are sold to final customers or exchanged between businesses are covered.
Marketable securities and customer cash are usually settled, kept safe, and reported as part of a custody service. An extra revenue stream on custodial assets can be obtained by a client through short-term securities loans to qualified borrowers. 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. Core custody services and operations are automated and standardised, which improves quality of service and enables the custodian to respond promptly to future needs. Higher visibility, increased productivity as a result of operational efficiency, and lower customer costs are the outcomes.
The asset-centric model is anticipated to be supplemented by a more data-centric, open platform approach where the custodian will have access to a range of available services in the upcoming years due to the automation and standardisation of custody services. An automated reporting system, for example, offers daily reports on exceptions, securities that are loanable, securities that are lent, cash collateral valuation, daily mark-to-market data, and margin calls. Thus, it is anticipated that the market for custody services will expand due to these automation and standardisation aspects.
Type Insights
On the basis of type, equity assets remain dominant in the custody service market due to their global popularity, liquidity, and foundational role in investment portfolios. While fixed income and alternative assets are significant, their dominance may be more sector-specific, catering to investors with specific risk and return objectives. The dynamics, however, may evolve with changing market conditions and investor preferences.
Fixed income instruments, while substantial in their own right, may not dominate the custody service market to the same extent as equities. Fixed income securities, including bonds, are valued for their income generation and diversification benefits. However, their liquidity and market dynamics differ from equities, leading to a distinct role in custody services. Alternatives assets, encompassing a wide range of investments such as private equity, hedge funds, and real estate, contribute to portfolio diversification but may not dominate the custody market due to their specialized nature and varying liquidity profiles.
Regional Insights
North America has asserted dominance in the custody service market for several compelling reasons. The region’s financial infrastructure, characterized by well-established regulatory frameworks, advanced technological capabilities, and a robust legal environment, positions it as a global leader in custody services. The United States, in particular, boasts a mature and sophisticated financial system, home to major financial institutions and custodians that play pivotal roles in safeguarding and managing assets for institutional investors and high-net-worth individuals.
Moreover, North America’s dominance is propelled by its status as a key hub for global finance. The concentration of major financial centers, such as New York and Toronto, facilitates efficient cross-border transactions and fosters a conducive environment for custody services that cater to diverse and complex investment portfolios.
Additionally, the region’s commitment to innovation and technological advancements has enabled North American custodians to stay ahead in adapting to evolving market trends, including the integration of blockchain technology for digital assets and the implementation of sophisticated data analytics for enhanced reporting capabilities. Overall, North America’s leadership in the custody service market is a result of its financial prowess, regulatory stability, global connectivity, and a proactive approach to adopting cutting-edge technologies, making it a preferred destination for institutions seeking secure and efficient custody solutions.
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Custody Service Market.
- Axis Bank Ltd.
- DBS Bank Ltd.
- Deutsche Bank A.G.
- Edelweiss Custodial Services Ltd.
- HDFC Bank Ltd.
- Hong Kong & Shanghai Banking Corporation Ltd.
- ICICI Bank Ltd.
- Infrastructure Leasing & Financial Services Ltd.
- Kotak Mahindra Bank
- Orbis Financial Corporation Ltd.
Report Scope
Custody Service Market, By Type:
- Equity
- Fixed Income
- Alternative Assets
- Others
Custody Service Market, By Service:
- Core Custody Services
- Ancillary Services
- Core Depository Services
- Others
Custody Service Market, By Region:
- North America
- United States
- Canada
- Mexico
- Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
- Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
- South America
- Brazil
- Argentina
- Colombia
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Turkey
- Egypt
For more information about this report visit https://www.researchandmarkets.com/r/fv8mlq
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SOURCE Research and Markets
