Global Custody Service Market Report 2022: Increasing Competition Hampering Growth - Forecast to 2026 & 2031

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Dublin, June 27, 2022 (GLOBE NEWSWIRE) -- The "Custody Service Global Market Report 2022" report has been added to ResearchAndMarkets.com's offering.

The global custody services market is expected to grow from $35.1 billion in 2021 to $38.17 billion in 2022 at a compound annual growth rate (CAGR) of 8.7%. The market is expected to grow to $53.27 billion in 2026 at a compound annual growth rate (CAGR) of 8.7%.

Major players in the custody services market are Bank of New York Mellon, Citigroup, JP Morgan Chase, State Street Bank and Trust, BNP Paribas, Northern Trust Corporation, HSBC, Societe Generale Securities Services, Brown Brothers Harriman & Co., and Caisse d'Epargne Investor Services.

The custody services market consists of revenue generated by services provided by a custodian to investors. Custody service is broadly characterized as the safekeeping and servicing of an investor's assets. The services rendered by a bank custodian include the transaction and settlement, safekeeping, and recording of marketable assets and cash to customers. A relationship of custody is legal, and the facilities rendered for a client varies.

The main services of custody services are core custody services, ancillary services, core depository services, and other administrative services. Core custody service providers settle trades, invest cash balances as requested, collect income, execute corporate activities, prices securities positions, and assist with record keeping and reporting. The services are available as equity, fixed income, alternative assets, and other types.

North America was the largest region in the custody services market in 2021. Western Europe was the second largest market in custody services market. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

Automation and standardization are key factors driving the growth of the custody services market. The custody services industry is focusing on using technology to improve efficiency. The automation and standardization of core custody services and operations result in higher visibility, enhanced productivity due to operational efficiency, and cost reductions for customers, improve quality of service, and allow the custodian to react quickly to future needs.

Due to the automation and standardization of custody services, in the coming years, the asset-centric model is expected to be augmented by a more data-centric, open platform method where the custodian will have access to a variety of available services.

For instance, an automated reporting system provides daily reports of exceptions, securities available for loan, securities on loan, valuation of cash collateral, daily mark-to-market information, and margin calls. Therefore, such automation and standardization features are expected to drive the growth of the custody services market.

The increasing competition is a key factor hampering the growth of the custody services market. The market for custody services is highly competitive with numerous banks that provide custody services in addition to other banking services, on a global, regional, or local scale. The price competition, especially, is causing enormous pressure on the banks in the global market. Many custodians find it challenging to keep up with high volumes and offer competitive prices.

Traditional players in securities services such as multinational custodians, local custodians, and specialists in fund management are experiencing increasing competition from Central Securities Depositories (CSD), Central Counterparty Clearing Houses (CCP), and outsourced service providers. Fund services professionals are increasing competitiveness by considerably building new and aimed offers. Therefore, increasing competition from various areas is expected to hinder the growth of the custody services market.

Companies Mentioned

  • Bank of New York Mellon

  • Citigroup

  • JP Morgan Chase

  • State Street Bank and Trust

  • BNP Paribas

  • Northern Trust Corporation

  • HSBC

  • Societe Generale Securities Services

  • Brown Brothers Harriman & Co.

  • Caisse d'epargne investor services

  • RBC Dexia Investor Services

  • Society Generale

  • Axis Bank Ltd.

  • DBS Bank Ltd.

  • Deutsche Bank A.G.

  • Edelweiss Custodial Services Ltd.

  • HDFC Bank Ltd.

  • Hong Kong & Shanghai Banking Corporation Ltd.

  • ICICI Bank Ltd.

  • Infrastructure Leasing & Financial Services Ltd.

  • Kotak Mahindra Bank

  • Orbis Financial Corporation Ltd.

  • Standard Chartered Bank

  • State Bank of India

  • Stock Holding Corporation of India Ltd.

  • SHRTLSBI-SG GLOBAL SECURITIES SERVICES LTD.

  • Yes Bank LTD.

Key Topics Covered:

1. Executive Summary

2. Custody Services Market Characteristics

3. Custody Services Market Trends And Strategies

4. Impact Of COVID-19 On Custody Services

5. Custody Services Market Size And Growth
5.1. Global Custody Services Historic Market, 2016-2021, $ Billion
5.1.1. Drivers Of The Market
5.1.2. Restraints On The Market
5.2. Global Custody Services Forecast Market, 2021-2026F, 2031F, $ Billion
5.2.1. Drivers Of The Market
5.2.2. Restraints On the Market

6. Custody Services Market Segmentation
6.1. Global Custody Services Market, Segmentation By Service, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

  • Core custody services

  • Ancillary services

  • Core depository services

  • Other administrative services

6.2. Global Custody Services Market, Segmentation By Type, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

  • Equity

  • Fixed Income

  • Alternative Assets and Other

7. Custody Services Market Regional And Country Analysis
7.1. Global Custody Services Market, Split By Region, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
7.2. Global Custody Services Market, Split By Country, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

For more information about this report visit https://www.researchandmarkets.com/r/2xyhxp

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