Asset Servicing Global Market Report 2023-– by End User (Capital Markets, Wealth Management Firms), Service (Fund Services, Custody And Accounting, Outsourcing Services, Securities Lending), Deployment (Cloud, OnPremise), Enterprise Size (Large Enterprises, Medium And Small Enterprises) – Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits - Forecast 2024 – 2032

The Global Asset Servicing Market is projected to grow from $1159.45 billion in 2022 to $1277.82 billion in 2023, with a compound annual growth rate (CAGR) of 10.2%. However, the Russia-Ukraine war has disrupted global economic recovery from the COVID-19 pandemic, particularly in the short term. Economic sanctions imposed on various countries, increased commodity prices, supply chain disruptions, and resulting inflation across goods and services have impacted multiple markets worldwide. Despite these challenges, the global asset servicing market is expected to reach $1830.69 billion in 2030, growing at a CAGR of 9.4%.

Globalization serves as a significant catalyst for the expansion of the asset servicing industry. A study on global asset servicing indicates that around 60% of asset services in Assets Under Administration (AUA) and Assets Under Contract (AUC) anticipate globalization to be a strong driver of market growth during the forecast period. Market players in the asset servicing industry are predominantly targeting APAC markets and other emerging economies. Furthermore, an article by BNP Paribas Securities Services published in January 2020 projected substantial growth in India's asset management and servicing industry due to factors such as a growing working population, increasing purchasing power, and expected GDP growth. Therefore, globalization presents significant opportunities for the expansion and advancement of the asset servicing market throughout the forecast period.

However, the stringent regulatory framework is expected to impede the growth of the asset servicing industry in the forecast period. According to Funds Europe's asset servicing roundtable, mounting global regulations are increasing costs and risks for asset servicing, necessitating constant engagement between asset servicers, clients, and regulatory bodies. Additionally, a study on new opportunities for asset servicing by EY revealed that approximately 75% of companies view the impact of regulations as the most significant risk facing the asset servicing industry. Consequently, heightened scrutiny from regulatory agencies is anticipated to hinder the growth of the asset servicing market in the forecast period.

Robotic process automation (RPA) or automation emerges as a prominent trend shaping the growth of the asset servicing market. RPA alone has the potential to reduce the workforce by 60-70% in the asset servicing industry, resulting in cost savings of approximately 30-40%. RPA refers to a collection of software tools, often called bots or robots, used to automate repetitive or routine business processes currently performed by transaction processing teams or service centers. By implementing RPA, manual tasks involved in asset servicing, such as reconciliation, trade processing, and regulatory and client reporting, can be replaced, leading to time and cost efficiency. For example, ANZ Banking Group was an early adopter of RPA, aggressively automating HR, finance, and technology processes in its Bengaluru hub through the creation of thousands of bots.

In April 2020, JP Morgan announced its intention to acquire full ownership of China International Fund Management (CIFM), a local asset management firm, for $1 billion. This move followed China's reforms to remove caps on foreign companies' ability to take full control of local asset management operations. The acquisition is expected to solidify JP Morgan's long-term involvement with CIFM and enhance its position in the Chinese market. CIFM, founded in 2004, provides asset management and related services in China.

Major players in the asset servicing market are National Australia Bank Limited, CACEIS, BNY Mellon, HSBC, JP Morgan, Citi, The Bank of New York Mellon Corporation (BNY Mellon), State Street Corporation, UBS, and Clearstream (Deutsche Börse Group).

In 2022, North America emerged as the largest region in the asset servicing market, while Western Europe secured the second position in the global asset management market. The regions covered in the comprehensive global asset servicing market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The asset servicing market report encompasses various countries, namely Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the United Kingdom, and the United States.

The asset servicing market refers to the revenues generated by entities that offer administration services through a central securities depository (CSD) or custodian, pertaining to the custody and/or safekeeping of financial instruments. These services may include the processing of corporate events or the handling of taxes, provided on a fee or commission basis. The market value comprises the value of associated goods sold by the service provider or included within the service offering. It encompasses goods and services traded between entities or sold directly to end consumers.

Market value is defined as the revenue earned by enterprises from the sale of goods and/or services within a specific market and geographical area, obtained through sales, grants, or donations, denominated in USD unless stated otherwise.

The revenues for a specified geography represent consumption values, indicating the revenue generated by organizations within that particular geography and market, regardless of their production location. The calculation excludes revenues from resales at various stages of the supply chain or as part of other products.

The global asset servicing market is segmented based on the following criteria:

By Service:

• Fund Services
• Custody and Accounting
• Outsourcing Services
• Securities Lending

By End User:

• Capital Markets
• Wealth Management Firms

By Enterprise Size:

• Large Enterprises
• Medium and Small Enterprises