LONDON – According to The Business Research Company’s research report on the asset servicing market, the adoption of blockchain technology is gaining popularity in the asset servicing industry trends. Blockchain can significantly reduce the volume of paperwork involved in asset servicing and make the trading process more efficient and cost-effective for the business, as well as for the client. Blockchain addresses several challenges in the asset services industry, particularly by overcoming inefficiencies caused by mismanaged data. Capturing data at inception and managing that data through the value chain is a benefit that will result in a continuous cycle of innovation and disruption. The blockchain technology helps to capture high-quality, accurate data, applies data management to correct the errors of mismanagement, and ultimately deploys technology as a tool to disrupt the entire data chain. For instance, in July 2022, Britain’s Investment Association called for the government and regulators to give the green light to tokenized funds using blockchain technology that could make it easier for retail investors to buy illiquid assets. Tokenized funds split their assets under management into fractions, enabling a reduced minimum investment, making them more affordable for small investors. The use of blockchain technology, which underpins cryptocurrencies, to support tokenized funds can also reduce operational costs.
The global asset servicing market size is expected to grow from $712.8 billion in 2021 to $784.03 billion in 2022 at a compound annual growth rate (CAGR) of 10%. The global asset servicing market size is then expected to grow to $1,149.92 billion in 2026 at a CAGR of 10%.
Increasing demand for alternative investments is expected to drive the market for asset servicing. There has been an increasing preference for alternative investments among high-net-worth individuals and ultra-high-net-worth individuals. Alternative investments are financial assets that do not fall into the category of conventional financial assets, such as stocks, bonds, and cash. Examples of alternative investments include hedge funds, private equity, commodities, mineral rights, real estate investment trusts (REITs), art and antiquities, intellectual property, and derivatives (futures, options, and swaps), among others. Investors are increasingly becoming interested in alternative investments owing to several benefits offered, such as diversification, reduction in portfolio risk, availability in private markets, low correlation with other assets, less regulation and relatively higher returns. For example, infrastructure assets are expected to increase from $0.8 trillion in 2017 to $3.4 trillion by 2025. Private equity is expected to increase from $5.3 trillion in 2017 to $10.2 trillion in 2025. Investors are increasingly seeking asset management services to invest in alternative assets. This will drive the asset management market in the forecast period.
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 Börse Group).
The global asset servicing industry is segmented by service into fund services, custody and accounting, outsourcing services, securities lending; by end-user into capital markets, wealth management firms; by enterprise size into large enterprises, medium and small enterprises.
North America was the largest region in the asset servicing industry in 2021. Western Europe was the second largest region in the global asset servicing industry . The regions covered in the global asset servicing market outlook are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
Asset Servicing Global Market Report 2022 – Market Size, Trends, And Global Forecast 2022-2026 is one of a series of new reports from The Business Research Company that provide asset servicing industry overviews, asset servicing market analyze and forecast market size and growth for the whole market, asset servicing industry segments and geographies, asset servicing market trends, asset servicing mindustry arket drivers, asset servicing industry restraints, asset servicing industry leading competitors’ revenues, profiles and market shares in over 1,000 industry reports, covering over 2,500 market segments and 60 geographies.
The report also gives in-depth analysis of the impact of COVID-19 on the market. The reports draw on 150,000 datasets, extensive secondary research, and exclusive insights from interviews with industry leaders. A highly experienced and expert team of analysts and modelers provides market analysis and forecasts. The reports identify top countries and segments for opportunities and strategies based on market trends and leading competitors’ approaches.
Source: TBRC Business Research PVT LTD
