Global Asset Servicing Market Report 2020-2030: Market is Set to Decline by $61 Billion in 2020 Before Recovering to Reach $729.5 Billion in 2023
DUBLIN, Oct. 15, 2020 /PRNewswire/ -- The "Asset Servicing Global Market Report 2020-30: COVID-19 Growth and Change" report has been added to ResearchAndMarkets.com's offering.
The global asset servicing market is expected to decline from $612.42 billion in 2019 and to $551.02 billion in 2020 at a compounded annual growth rate (CAGR) of -10.03%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and reach $729.50 billion in 2023 at a CAGR of 9.8%.
This report focuses on asset servicing market which is experiencing strong growth. The report gives a guide to the asset servicing market which will be shaping and changing our lives over the next ten years and beyond, including the markets response to the challenge of the global pandemic.
The asset servicing market consists of services for wealth management companies and capital markets. Asset servicing comprises services such as reorganization and proxy services, safekeeping services for physical securities, dividends, and electronic registration & transfer of securities. The assets servicing industry is a critical component of global financial markets and plays a vital role in the safekeeping of financial assets.
North America was the largest region in the asset servicing market in 2019.
Robotic process automation (RPA)/ automation is a major trend shaping the growth of the asset servicing market. Robotic process automation alone could reduce the headcount by 60-70% in the assets servicing industry while also achieving cost savings of approximately 30-40%. Robotic process automation (RPA) refers to a set of software tools known as bot or robots that are used to perform a repetitive or routine business process which is currently used by transaction processing team or service centers. RPA can replace manual tasks involved in assets servicing such as reconciliation, trade processing, and reporting for regulators and clients, reducing the time required with cost-efficiency.
For instance, the ANZ Banking Group was one of the early ones to adopt RPA aggressively and automated its HR, finance, and technology processes in its Bengaluru hub creating thousands of bots.
The asset servicing market covered in this report is segmented by service into fund services; custody and accounting; outsourcing services; securities lending and by end-user into capital markets; wealth management firms.
The stringent regulatory framework is predicted to limit the growth of the asset servicing industry over the forecast period. According to Funds Europe's asset servicing roundtable, rising global regulation is adding cost and risk to asset servicing, creating a requirement for asset servicers to constantly engage with the client and the regulators. In addition to this, according to EY's new opportunities for asset servicing study, nearly 75% of the companies see the impact of regulations as the greater risk facing the asset servicing industry. Therefore, the increased scrutiny from regulatory agencies is anticipated to hinder the asset service market's growth in the coming years.
In April 2020, JP Morgan has sought to take whole ownership of China International Fund Management (CIFM), a local assets management firm for an amount of $1 billion. This step was taken following China's reforms on the elimination of caps on foreign companies taking full control of local assets management operations. This acquisition is expected to enable JP Morgan's long-term involvement with CIFM and strengthen the company's position in the Chinese market. China International Fund Management (CIFM) was founded in 2004 and offers assets management and related services to China.
Globalization acts as a major driver for the growth of the asset servicing industry. According to a study on global asset servicing, nearly 60% of assets services in Assets Under Administration (AUA)/Assets Under Contract (AUC) predict that globalization is likely to be a strong driver for the asset servicing market's growth over the coming years. The players dealing in assets servicing industry are majorly focusing on APAC markets and other growing economies.
Moreover, according to the BNP Paribas Securities Services article published in January 2020, India was expected to experience impressive growth in assets management and servicing industry owing to the increasing working population, the rising buying power of the populace, and expected growth in the GDP of the country. Thus, globalization creates a large avenue for the expansion and growth of the asset servicing market over the coming years.
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 Borse Group).
Key Topics Covered:
1. Executive Summary
2. Asset Servicing Market Characteristics
3. Asset Servicing Market Size And Growth
3.1. Global Asset Servicing Historic Market, 2015 - 2019, $ Billion
3.1.1. Drivers Of The Market
3.1.2. Restraints On The Market
3.2. Global Asset Servicing Forecast Market, 2019 - 2023F, 2025F, 2030F, $ Billion
3.2.1. Drivers Of The Market
3.2.2. Restraints On the Market
4. Asset Servicing Market Segmentation
4.1. Global Asset Servicing Market, Segmentation By Service, Historic and Forecast, 2015-2019, 2023F, 2025F, 2030F, $ Billion
- Fund Services
- Custody and Accounting
- Outsourcing Services
- Securities Lending
4.2. Global Asset Servicing Market, Segmentation By End User, Historic and Forecast, 2015-2019, 2023F, 2025F, 2030F, $ Billion
- Capital Markets
- Wealth Management Firms
5. Asset Servicing Market Regional And Country Analysis
5.1. Global Asset Servicing Market, Split By Region, Historic and Forecast, 2015-2019, 2023F, 2025F, 2030F, $ Billion
5.2. Global Asset Servicing Market, Split By Country, Historic and Forecast, 2015-2019, 2023F, 2025F, 2030F, $ Billion
Asset Servicing Market Competitive Landscape And Company Profiles
- National Australia Bank Limited
- CACEIS
- BNY Mellon
- HSBC
- JP Morgan
- Citi
- The Bank of New York Mellon Corporation (BNY Mellon)
- State Street Corporation
- UBS
- Clearstream (Deutsche Borse Group)
- Northern Trust Corporation
- BNP Paribas Securities Services
- SimCrop A/S
- Broadridge Financial Solutions, Inc.
- Pictet Group
For more information about this report visit https://www.researchandmarkets.com/r/szv6le
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