TNF: Consolidation of custodians is ‘unlikely to happen’
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TNF: Consolidation of custodians is ‘unlikely to happen’ 14 June 2019Athens Reporter: Maddie Saghir
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Only 5 percent of those surveyed at The Network Forum in Athens could see the consolidation of custodians as inevitable within the next 12 months.
Some 12 percent of the audience at the conference said they thought that the consolidation of custodians was unlikely to happen.
However, 39 percent said that within the next 12 months to five years that there would be consolidation, while 44 percent said that it would happen within the next five years to 10 years.
One speaker suggested that the word ‘consolidation’ is “fearful” and the industry should use words such as collaboration and partnership to see a greater change.
Additionally, the audience was asked where they would like to see more consolidation. Over half of those were surveyed wanted to see more collaboration in market infrastructure.
Other areas included custodians (9 percent) and vendors (8 percent), while 17 percent said no more consolidation was needed.
Commenting on the results, one panellist said: “Last year we saw that consolidation was ongoing. This is because we are constantly talking about topics like regional providers, choosing a new provider, risk management, know your customer, etc.”
The speaker continued: “There are so many things that need to be considered, which is why consolidation is ongoing. Banks try not to have too many relationships as it is getting more complicated all around.”
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