Asset Servicing Market

Asset Servicing Market Highlights

The global asset servicing market is expected to cross a market size of USD 271.3 Billion by the end of 2033. The market size was valued at USD 84.3 Billion in 2023 and is expected to expand at a CAGR of 12.9% between 2024-2033.

• Over the mid-term, the growing usage of alternative investment is the primary factor anticipated to drive the global asset servicing market.
• Stern regulatory challenges is a major factor to challenge the market growth.
• The North America asset servicing market is projected to dominate the global market.

Asset Servicing Market Outlook

Asset servicing describes a set of task and activities provided by a custodian to its client which majorly includes pension funds, asset managers, and insurance companies among others, around the assets under its custody. Asset servicing includes new issues services, Income and redemption payments, tax services: relief at source and reclaims, corporate action notifications and processing, Proxy voting service and others.

For high net worth individuals and ultra-high net worth individuals the asset servicing plays a role as alternative source of investment. These alternative investments are the financial assets such as stocks, bonds and cash. The alternative assets provide several benefits such as diversification, reduction in the portfolio, risk, availability in private market. Low correlation with other asset, less regulation, relatively higher returns. These increasing popularity and usage of alternative investment is expected to boost the growth of asset servicing marketing future. Deutsche Bank AG, Northern Trust Corporation, and UBS are some of the significant parties in the global market for asset servicing.

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Asset Servicing Market Drivers – Analyst’s Observation

According to the analysts at KD Market Insights, some key growth drivers for the global asset servicing market are:

• Increasing retiree population: The rising retired population is anticipated to gear the market growth of the asset servicing market.  The retired population or senior citizens, who are 65 years and above can get help from the asset service providers to manage their assets and investments to ensure that they have enough income to support their retirement. For instance, according to the United States Census Bureau, a US-based government agency, the population of people aged 65 and over will reach 80.8 million by 2040 and 94.7 million by 2060. Thus, the increasing retiree population is driving the growth of the asset servicing market.
• Expanding globalization worldwide: For the asset servicing industry globalization acts as a major driver. According to a study on global asset servicing, nearly 60% of asset services in Assets Under Administration (AUA) and Assets Under Contract (AUC) predict that globalization is likely to be a strong driver for the asset servicing market’s growth over the forecast period. The players dealing in the asset servicing industry are majorly focusing on the APAC markets and other growing economies. Thus, globalization creates a large avenue for the expansion and growth of the asset servicing market over the forecast period.

Which Probable Factors Could Hamper the Growing Asset Servicing Market Trend?

As per our KD Market Insights analysis, some of the challenges expected to limit the global market growth of asset servicing are:

• Stern regulatory challenges: Repeated changes and updates in the rules and regulations across different regions create uncertainty and compliance challenges, making it difficult for asset servicing firms to standardise their processes, furthermore the increasing demand for detailed and timely reporting to relators and clients adds to the operational burden and requires sophisticated systems and expertise which hinders the growth of the market.
• Security concerns: The asset and servicing industry is becoming more digitalized and faces more heightened risks from cyberattacks and data breaches leading to significant losses and reputational challenges. Additionally rapid technological changes mean that asset servicing firms must constantly upgrade their systems which proves to be costly and complex to manage.

How is the Global Asset Servicing Market Segmented?

Our experts at KD Market Insights have segmented the global asset servicing market research report as:

What are the Probable Factors Influencing the North America Asset Servicing Market Forecast?

The North America asset servicing market is majorly driven by the developments in Financial Technology (FinTech) in the region. The widespread adoption of artificial intelligence and automation technologies is improving operational efficiency, reducing costs, and enhancing service offerings in the asset servicing sector among the players operating in the region. Moreover, the Blockchain technology is also increasingly being used by the local market players, especially in the United States, to improve transparency, security, and efficiency in transactions and record-keeping, making asset servicing more reliable and cost-effective.

As per our analysts at KD Market Insights, the following five players lead the North America asset servicing market growth:

• State Street Corporation
• The Bank of New York Mellon Corporation (BNY Mellon)
• J.P. Morgan Chase & Co.
• Northern Trust Corporation
• Citibank, N.A.

Which Key Players Top the Global Asset Servicing Market Share?

As per our analysts at KD Market Insights, the competitive landscape of global asset servicing market facilitates our readers in identifying their closest competitors. The manufacturers who are associated with asset servicing market are raising their focus on expanding their presence, as well as their market share. The market has also been witnessing an upward movement in the number of collaborations between research institutions and key players, aimed at introducing advanced technologies and innovation of new products. Here is a list of the key players who top the global asset servicing market share:

• Deutsche Bank AG
• Northern Trust Corporation
• UBS
• HSBC Group
• The Bank of New York Mellon Corporation
• CIBC Mellon
• Credit Agricole
• J.P. Morgan Chase and Co.
• Broadridge Financial Solutions, Inc.
• Fenergo

What are the Recent Developments Observed in the Asset Servicing Market?

Over the years, the experts at KD Market Insights have been observing the recent developments associated with global asset servicing market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

• For instance, Northern Trust stated that it has launched a new machine-learning powered document capture capability. This new launch is aimed at digitizing the alternative asset servicing capabilities of the company.
• Further, the company also stated that it has been selected by the New Zealand Superannuation Fund for providing data warehouse solutions.

1. Executive Summary
   1. Market Overview
   2. Key Findings
   3. Market Trends
   4. Market Outlook
2. Introduction
   1. Scope of the Report
   2. Research Methodology
   3. Definitions and Assumptions
   4. Acronyms and Abbreviations
3. Market Dynamics
   1. Drivers
   2. Restraints
   3. Opportunities
   4. Challenges
4. Global Asset Servicing Market
   1. Market Overview
   2. Market Size and Forecast
   3. Market Segmentation
      1. By Service
      2. By Enterprise Size
      3. By End User
      4. By Region
5. Market Segmentation by Service
   1. Fund Services
   2. Custody & Accounting
   3. Outsourcing Services
   4. Securities Lending
   5. Others
6. Market Segmentation by Enterprise Size
   1. Large Enterprises
   2. Small & Medium-Sized Enterprises
7. Market Segmentation by End User
   1. Capital Markets
   2. Wealth Management Firms
   3. Others
8. Regional Analysis
   1. North America
      1. United States
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      2. Canada
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      3. Mexico
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
   2. Europe
      1. United Kingdom
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      2. Germany
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      3. France
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      4. Italy
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      5. Spain
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      6. Rest of Europe
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
   3. Asia Pacific
      1. China
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      2. Japan
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      3. India
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      4. Australia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      5. South Korea
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      6. Rest of Asia Pacific
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
   4. Latin America
      1. Brazil
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      2. Argentina
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      3. Colombia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      4. Rest of Latin America
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
   5. Middle East & Africa
      1. South Africa
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      2. Saudi Arabia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      3. UAE
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
      4. Rest of Middle East & Africa
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Service, Enterprise Size, and by End User
9. Competitive Landscape
   1. Market Share Analysis
   2. Company Profiles
      1. Deutsche Bank AG
      2. Northern Trust Corporation
      3. UBS
      4. HSBC Group
      5. The Bank of New York Mellon Corporation
      6. CIBC Mellon
      7. Credit Agricole
      8. J.P. Morgan Chase and Co.
      9. Broadridge Financial Solutions, Inc.
      10. Fenergo
10. Strategic Recommendations
11. Appendix
    1. List of Tables
    2. List of Figures
12. References