A survey of 272 respondents reveals 25% asset servicing volume growth (YOY), albeit with a limited methodological disclosure and sample size.
Based on a survey of 272 respondents from asset managers, custodians, brokers, and other financial institutions worldwide, conducted via structured online questionnaires by a global financial technology (fintech) and solutions provider, some findings on trends, challenges, and priorities in asset servicing were shared with the media.
First, survey data showed a 25% year-over-year growth in asset servicing volumes among respondents, with those from the Asia Pacific region citing volumes increasing at a faster rate than that of other regions’ respondents*.
Second, 67% of asset servicing errors were linked by respondents to poor data quality, while legacy technology was cited as the single biggest obstacle to automation.
Other findings
Third, 33% of respondents indicated that outsourcing had contributed to significantly lower error rates and reduced costs, particularly in tax reporting, event capture, proxy voting, and class actions. Also:
- 60% of servicing resources were cited as consumed by income and voluntary corporate actions, leading to operational strain.
- 60% of brokers in the survey indicated declining automation levels contributing to higher error rates and costs.
- 38% of respondents indicated client demand as the largest investment driver in asset servicing, followed by error reduction at 33%, and regulatory compliance at 9%.
- Respondents in the survey had collectively indicated prioritizing technology investments to enhance profitability and efficiency.
- 35% of respondents cited process re-engineering as the most effective area of change, and a critical driver of automation over the past five years.
- 58% cited data-related issues as a blockage to automation, while 42% cited technology-related blockages.
According to Mike Alexander, President, Broadridge Wealth Management, the firm that commissioned the survey, the future of asset servicing depends on industry-wide improvements in real-time processing, capturing tax rules early, and using common data that is centered on clients.
*Respondent distribution is defined in percentages (Asia Pacific 25%, Europe 45%, North America 25%, Others around 5%) but no further methodological disclosure specifies how many countries or the exact countries surveyed for each region.
