Northern Trust predicts rise in crypto funds
02 November 2020 Chicago
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Northern Trust has predicted that 50 percent of asset managers will expect to introduce cryptocurrencies to their funds in the next three years.
However, the majority of those asset managers feel that their service providers are not meeting their expectations in terms of their digital expertise.
As a result, more asset managers are using technology to insource certain activities, Northern Trust explained in its new whitepaper ‘Custody Reimagined: The Outlook for Global Securities Services in 2030'.
To address their concerns, Northern Trust stipulated that custodians will be required to offer new, innovative digital solutions.
It was stressed that the importance of digitalisation cannot be overstated and by 2030, financial services will have moved almost completely from an electronic to a digital world, and that will have a significant impact on asset servicers, according to the bank.
New innovative digital solutions will require better structured data, and better access to data for clients, among other things.
Northern Trust identified they will also require actionable insights that help clients make better investment decisions.
According to the bank, by 2030, it won’t be enough for asset servicers to safeguard assets and provide ancillary services with strong technology at the core.
Instead, global custodians will be using artificial intelligence (AI) and sophisticated algorithms to help their clients in a myriad of ways, Northern Trust stated in its whitepaper.
Additionally, the bank predicted global custodians will be expected to provide individualised experiences at any time, anywhere, and in any way.
Elsewhere, discussing regulation by 2030, Northern Trust suggested regulators will be integrated into the new digital ecosystem as part of their own digital journey.
However, the majority of those asset managers feel that their service providers are not meeting their expectations in terms of their digital expertise.
As a result, more asset managers are using technology to insource certain activities, Northern Trust explained in its new whitepaper ‘Custody Reimagined: The Outlook for Global Securities Services in 2030'.
To address their concerns, Northern Trust stipulated that custodians will be required to offer new, innovative digital solutions.
It was stressed that the importance of digitalisation cannot be overstated and by 2030, financial services will have moved almost completely from an electronic to a digital world, and that will have a significant impact on asset servicers, according to the bank.
New innovative digital solutions will require better structured data, and better access to data for clients, among other things.
Northern Trust identified they will also require actionable insights that help clients make better investment decisions.
According to the bank, by 2030, it won’t be enough for asset servicers to safeguard assets and provide ancillary services with strong technology at the core.
Instead, global custodians will be using artificial intelligence (AI) and sophisticated algorithms to help their clients in a myriad of ways, Northern Trust stated in its whitepaper.
Additionally, the bank predicted global custodians will be expected to provide individualised experiences at any time, anywhere, and in any way.
Elsewhere, discussing regulation by 2030, Northern Trust suggested regulators will be integrated into the new digital ecosystem as part of their own digital journey.
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