Custody services refer to the safekeeping and management of financial assets on behalf of clients. These services are provided by banks and other financial institutions, known as custodians. Custody services usually include the settlement, safekeeping and reporting of customers' marketable securities and cash.
The custody services market consists of revenues earned by entities (organizations, sole traders and partnerships) that hold customers' securities for safekeeping to prevent them from being stolen or lost. The custodian may hold stocks, bonds or other assets in electronic or physical form on behalf of its customers.
The global custody services market was valued at $28,593.4 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 7.0%.
Increase In Income And Personal Savings
The increase in income and savings positively impacted the growth of the custody services market in the historic period. The economic expansion, increase in the money earned from employment, dividends and distributions paid, rents derived from property ownership and businesses attributed to a rise in income. Increased incomes followed by increased investments boosted the demand for custody services providers during the historic period. For example, according to the Singapore Department of Statistics, a national statistical office, Singapore's saving rate rose to 35.2% in the fourth quarter of 2023, up from 32.8% in the third quarter of 2023. This increase was driven by a 4.9% year-on-year growth in personal disposable income, while private consumption expenditure grew at a slower rate of 6.3%. Additionally, the value of personal savings in the USA rose from $623 billion 2022 to $911 billion in 2023. Therefore, an increase in income and savings supported the growth of the custody services market.
Implementing Robotic Process Automation (RPA) To Automate Operations And Improve Efficiency
Companies in the custody services market are focusing on implementing robotic process automation (RPA) to automate operations and improve efficiency. RPA refers to the use of software with artificial intelligence (AI) and machine learning capabilities to handle the high volume of repeatable tasks that previously humans were required to perform. Companies in the custody services market are increasingly investing in digital workflow tools combined with RPA and AI to provide answers to the client's queries quickly and efficiently. For example, custody service providers such as BNY (Bank of New York) Mellon have deployed 300 bots using robotics process automation software from Blue Prism to allow the RPA to take care of the repetitive work while freeing up time and resources to devote their time to more complex policies. Further, in July 2023, Hatton National Bank PLC, a Sri Lanka-based private bank, pioneered the integration of RPA into its Custodial Banking and Trustee Services system in a move that will greatly improve its service and operations capabilities. The RPA automates manual tasks, reducing the risk of human errors and drastically reducing processing time by almost 90%, allowing for trade reports to be given on the same day (T) as opposed to the following day (T+1).
State Street Corporation was the largest competitor with an 8.38% share of the market, followed by Bank of New York Mellon Corporation and JPMorgan Chase & Co.
Custody Services Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global custody services market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for custody services? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The custody services market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider custody services market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by services and by type.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the custody services market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by services and by type in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for custody services providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Services: Core Custody Services; Ancillary Services; Core Depository Services; Other Administrative Services
- 2) By Type: Private Equity; Fixed Income; Alternative Assets; Others
- Companies Mentioned: State Street Corporation; Bank of New York Mellon Corporation; JPMorgan Chase & Co.; Royal Bank of Canada; Citigroup Inc.
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; Italy; Spain; UK; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; custody services indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.