Asset servicers are evolving

With client expectations, cost pressures and regulatory requirements climbing, asset servicers are rising to the challenge by investing in emerging technologies and streamlining their core activities. Discover the findings in our 2023 report by Deloitte.

15 asset servicers with combined assets under administration (AuA) of more than $176 trillion headquartered in six different countries across EMEA (60%) and the US (40%) contributed to the 2023 Deloitte Asset Servicers Survey

The respondents are a representative sample of the industry covering a range of organizations, including those servicing traditional and alternatives or pure alternative players

75% - The 15 participants represent 75% of the global market's combined AuA

Our analysis uncovered five key trends impacting the asset servicing industry: data and digitalization, innovation, operating models, alternative investments, and sustainability and ESG.

Data and digitalization

74% of respondents view client expectations for more insights/data as a priority.

• Client expectations for further data and insights underlines need for digitalization of current operating models.
• Popular digitalization efforts include developing real-time self-service reporting models and live dashboarding capabilities.

Innovation

• 28% of asset servicers think they are front-runners in digital innovation and 36% of respondents believing they are laggards.
• Cloud projects are paramount, but often slowed down by regulations or group-driven directives.

Do you see your self as a front-runner, up to speed or laggard in digital innovation?

Operating models

53% of respondents plan to review their operating models by outsourcing some non-core operations

• Asset Servicers look at their Operating model and identify non-core activities and move further up the value chain by offering front-to-back solutions.
• 53% of respondents plan to review their operating model by outsourcing some operations.

Alternative investments

• A major revenue and margin contributor.
• 73% of respondents expect PE, RE and Debt products to drive the growth of their activities.
• Retail investors’ appetite for these assets continues to be strong and translates in the rise of demands for Hybrid funds.

From which asset class do you see the best growth opportunities?

Sustainability and ESG

• ESG requires significant and ongoing budget allocation by asset servicers. Reporting and data sourcing being the main areas of investment.
• There is clear room for improvement in the sector’s ESG reporting capabilities, with only 62% of respondents covering principle adverse impacts (PAI). 

Contacts

Deloitte United States