Celent Reports 'Global Custody Operations - Real Service or Lip Service?'.Business/Technology Editors BOSTON--(BUSINESS WIRE)--Dec. 18, 2001 Celent estimates global custodians will invest US$12 billion through 2005 in order to finalize straight through processing In financial technology, the ability to process a stock transaction by computer from beginning to end without manual intervention at any of the stages. initiatives, bolster their sub-custodian networks, and augment outsourcing capabilities. In a new report "Global Custody Operations - Real Service or Lip Service lip service n. Verbal expression of agreement or allegiance, unsupported by real conviction or action; hypocritical respect: ?" Celent Communications examines the technology and operational initiatives undertaken by leading global custodians in order to position themselves as world-class contenders in the US$41 trillion global custody marketplace. Topics covered include: preparation for straight through processing, platform integration, workflow solutions, and Internet capabilities. In addition, the report looks at organizational changes being made to improve customer service and reduce staff turnover. "By and large clients are pleased with the steps being taken by their custodians," says Pamela Brewster, Celent analyst and author of the report. "In fact, asset managers have been so impressed by the upgrades in their custodians' reporting and processing systems that they are increasingly outsourcing activities such as fund accounting and reporting. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the report, outsourcing represent a US$25 billion revenue opportunity. However, internal resource constraints and client control issues may dampen prospects. Europe will be a major playing field for global custodians during the decade driven by a projected (Euro)5 trillion increase in European-based assets due to pension privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned efforts. Pan-European firms such as HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) , BNP Paribas BNP Paribas (Euronext: BNP, TYO: 8665 ) is one of the main banks in Europe and France. It was created on 23 May 2000 through the merger of Banque Nationale de Paris (BNP) and Paribas. , and Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank are well positioned to capture some of these flows. However, they will likely face competition from US-based custodians who will either acquire or form partnerships with smaller European custodians. "With so many initiatives before them, perhaps the greatest challenge for global custodians will be the realization that they can't be all things to all people," adds Pamela Brewster. "To that end, we believe the leading custodians will make strategic decisions about the mix of services and products they offer and the clients they serve." NOTE: FULL COLOR CHARTS AVAILABLE AT: http://www.celent.com/PressReleases/20011210/GlobalCustody.htm |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion