Industry to be ‘unrecognisable’ in a decade
29 August 2019 London
Image: Shutterstock
The asset servicing industry will be “unrecognisable” in 10 years time, according to Daron Pearce, CEO of global financial institutions within BNY Mellon Asset Servicing.
In a recent interview with Asset Servicing Times, Pearce said that in 10 years time “I don’t think we will compete with one another on the same things we compete on today, such as custody, income collection and deadlines”.
He suggested that data will be that main point of competition, in terms of data management tools, open architecture, and the quality and reliability of the data itself.
According to Pearce, the organisations that can “create that golden copy of data that is relevant to every person in a client organisation will be the winners”.
In terms of the US versus Europe, Pearce explained that the US is always five to 10 years ahead, “especially if you look at what has gone on in the US with the degrees of automation through settlement, the over-the-counter cut off times, and overall commoditisation”.
He commented: “That gets exported from the US to Europe across five years, starting with the UK, then makes its way across another five years to the rest of the continent. That is typically how it goes.”
Pearce said that at BNY Mellon Asset Servicing, they are currently working on expanding its footprint so that it can “provide regional solutions for our clients, rather than it being fragmented, as we have seen the market in recent years”.
He concluded: “We provide services for some countries that are not accessible to our full client base. I think you will see firms like us complete that footprint expansion.”
In a recent interview with Asset Servicing Times, Pearce said that in 10 years time “I don’t think we will compete with one another on the same things we compete on today, such as custody, income collection and deadlines”.
He suggested that data will be that main point of competition, in terms of data management tools, open architecture, and the quality and reliability of the data itself.
According to Pearce, the organisations that can “create that golden copy of data that is relevant to every person in a client organisation will be the winners”.
In terms of the US versus Europe, Pearce explained that the US is always five to 10 years ahead, “especially if you look at what has gone on in the US with the degrees of automation through settlement, the over-the-counter cut off times, and overall commoditisation”.
He commented: “That gets exported from the US to Europe across five years, starting with the UK, then makes its way across another five years to the rest of the continent. That is typically how it goes.”
Pearce said that at BNY Mellon Asset Servicing, they are currently working on expanding its footprint so that it can “provide regional solutions for our clients, rather than it being fragmented, as we have seen the market in recent years”.
He concluded: “We provide services for some countries that are not accessible to our full client base. I think you will see firms like us complete that footprint expansion.”
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