Adapting custody services for modern asset managers and asset owners

Bruce Russell, Harry Coombes and Jaibeer Singh
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Bruce Russell: Alpha FMC, Australia
Harry Coombes: Alpha FMC, Australia
Jaibeer Singh: Alpha FMC, Australia

Journal of Securities Operations & Custody, 2024, vol. 17, issue 1, 6-13

Abstract: Custodian banks have long been the unsung supporters of the investment industry, ensuring the smooth operation of transactions, servicing large institutions and infrastructure to support significant amounts of money management. As modern asset managers and asset owners continue to grow, however, they will demand more from their custodian- partners. The demand for services will come from more sophisticated, technology-reliant functions, and as such, the role of custodians will undergo a profound transformation. What has helped custodians be successful so far — reliance on people and process to deliver services — will not continue to help them in the future. This paper explores considerations for custodians and the adaptations required in their service models to meet contemporary challenges. We conclude that a fundamental shift is required away from traditional mindsets to ensure custodians remain central to supporting the needs of asset managers and asset owners.

Keywords: custodian; investment data; operating model transformation; data-as-a-service (search for similar items in EconPapers)
JEL-codes: E5 G2 K22 (search for similar items in EconPapers)
Date: 2024
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