What services does PIVOT Management offer in the realm of asset servicing?
PIVOT Management offers a wide range of specialised advisory and non-advisory services in the realm of custodial advisory, fund administration, foreign portfolio investment (FPI), private equity (PE), private management service (PMS), and alternative investment fund (AIF). We focus on business transformations (including set up), operational efficiency, innovative products and services, as well as risk management, and more. A key ability is to reconstruct an entire custodial set for at least 30-40 per cent growth in emerging or advanced markets.
Could you provide examples of successful projects or clients you have worked with in the Indian asset servicing industry?
PIVOT Management has a strong track record of successful projects and collaborations in the Asset Servicing Industry. Some notable Indian clients and projects include pedigree institutions like ICICI Bank, DBS, Stock Holding, SBI-SG, SS&C, Nuvama, KPMG (Cyprus), and ISSL to name a few.
Besides, PIVOT Management has demonstrated wider capabilities in its engagement with industry-leading Market Infrastructure Institutions (MIIs). Our ability to address the differentiated requirements of our locally and cross-border clients is a strength.
Examples of some of our projects include when PIVOT assisted in developing a first of its kind penalty dashboard for a leading exchange; when we assisted a custodian to grow its assets under custody (AUC) nine-fold in a span of five years; and when PIVOT members were instrumental in developing custody business in advanced markets by a multiple of three, in two years.
What are some current trends or challenges you see in the Indian asset servicing industry?
A fast growing and diversifying Indian asset servicing industry has a potential to add US$1.5 trillion of assets (currently approximately US$3.2 trillion) in the next three years. Several trends and challenges that would provide opportunities, or on the flips side challenges (to those who are not nimble), would be: technology-driven, client-centric customised solutions for segments as FPI, AIF, mutual funds (MFs), PMS, insurance, wealth management, PE; and new asset classes, increased FPI inflows into debt segment. Gujarat International Finance Tec-City (GIFT City) enables expansion of services globally to serve cross border clients.
Integrated solutions, transfer agency (TA), fund administration (FA), strategy re-engineering, use of artificial intelligence (AI), standardisation of processes, greater straight-through processing (STP), and customised value-added reports, will be key asks. Challenges driven from the rapid yet successful transition to T+1 needing cross border providers and clients to adapt, evolve to manage newer complexities.
Asset servicing firms can proactively address industry shifts as above, leverage opportunities for growth, and enhance their capabilities.
How do you tailor your services to meet the specific needs of clients in the Indian market?
We place great emphasis on clients’ requirements and understanding their unique needs, challenges, and aspirations. The Indian market demands a deep understanding of the industry nuances, regulatory environment, and client expectations. Valuing client inputs, the PIVOT team gains insights and devises two or three differentiated value propositions that are practical, scalable, adaptable, and aligned with clients’ objectives. These aim to drive substantial growth in various areas, including business performance, efficiency, client satisfaction, and industry thought leadership.
We have more than 300 years of global experience collectively, with a deep understanding of the local market, giving us a solid foundation to address complex client requirements effectively.
We invest in resources, including cutting-edge systems and technologies, to support the delivery of high-quality services. We ensure that tailored solutions are thoroughly discussed with clients for feedback and alignment.
Over the years, clients have entrusted PIVOT with additional projects, demonstrating a strong level of trust and satisfaction.
What measures does PIVOT Management take to mitigate operational risks associated with asset servicing in India?
It is a thought-provoking question. We employ a structured and proactive approach to mitigate operational risks associated with asset servicing. After understanding clients’ objectives and aspirations a SWOT analysis focused on assessing existing resources, capacity planning, business strategy and operational strategies is initiated. The PIVOT team activates its 140+ lines of risk grid to measure and assess potential exposures to varied risks. Using our expertise and technological capabilities, a comprehensive risk assessment framework that has measurements to identify, quantify, and prioritise risks, is activated. The outcome leads to informed decision making and proactive risk mitigation actions incorporating innovative solutions, automation and value-added training. Training the team is core.
This comprehensive approach enables PIVOT to demonstrate a commitment to risk management excellence and operational resilience. These measures help the client to proactively identify, assess, and address operational risks.
Can you elaborate on any partnerships or collaborations PIVOT Management has in the Indian asset servicing industry?
PIVOT’s pioneering role in custody consulting showcases its adeptness in a niche sector. aim to deliver tailored solutions and insightful strategies. PIVOT’s membership at TSSAG has broadened horizons, connecting it globally, enriching perspectives and unlocking new prospects. By partnering with esteemed firms like Asset Servicing Times and others, plus legal, taxation and secretarial firms, PIVOT integrates diverse expertise to enhance services and cultivate enduring relationships. This blend of global outreach, strategic collaborations, and expansion initiatives solidifies PIVOT’s presence as a leading consulting company in securities services in Asia and the Middle East.
What are some key performance indicators (KPIs) you use to measure the success of your asset servicing solutions?
The four KPIs that drive us can be summarised as:
Are we listening and able to understand client requirements?
Are our disruptive solutions measurable and assist our clients significantly?
Can we deliver a blend of long-term vision and short-term actions for success?
Are we resourced well to have a good TAT with quality?
Clients entrust us with unique challenges and opportunities. Satisfaction is when our clients experience growth in revenue numbers, follow best practices, asset growth enrichment of resources, global and local recognition. These are the external KPIs.
Can you discuss any recent innovations or developments in your offerings tailored specifically for your clients?
Our core objective is to assist a client achieve at least 30-40 per cent growth. PIVOT’s reliance on innovation, a disruptive model that is implementable, solidifies its role in advancing the industry and driving client prosperity. Some examples include:
Case 1: A leading banking custodian tasked us to assist in growing its custody business. The farsighted management team at the client was willing to initiate a significant change. PIVOT, over the last four years, through a number of consultative recommendations, hundreds of process and strategy changes, strategic training and positioning, enhancing product texture, assisted the client as it registered nine-times growth in four years, to emerge as the third largest custodian in India by assets, besides being the fastest growing. It was globally recognised multiple times.
Case 2: A fast growing custodian retained us to grow and integrate its custody solution with its prime brokerage model. The solutioning involved developing a productoperations mix that would facilitate their unique model. We revitalised the operations model and restructured the business and product segments together with the client’s highly energetic and young team. The combined effect was, it unlocked potential and in a span of three years they grew six-fold on the assets side.
Case 3: A non-bank prominent single country custodian aspired to be in the FPI space, dominated by the global names and single country custodian banks. "Our core objective is to assist a client achieve at least 30-40 per cent growth." The aspirational management adopted the multiple innovative solutions we proposed, including tie-ups with select banks. Soon they were competing with the above class of custodians, also winning global recognition as well as FPI clients.
How does PIVOT Management handle scalability and flexibility requirements for clients with diverse asset servicing needs in India?
We registered an almost 90 per cent growth in business year-over-year (YoY) in the last two years, while handling differentiated requirements from the pedigree institutional clients. As we touch 80-85 per cent capacity, we start looking at build. Quite often clients require urgent TATs, which we deliver. Together with clients, we prioritise rollouts and estimate the timelines. Clear roles and responsibilities, as well as job definition, helps us.
The average tenure of service at PIVOT is five years. That adds consistency. The core of all our actions is — are we thinking and doing enough for the clients? By prioritising scalability planning, resource allocation, and building capacity, PIVOT anticipates and meets clients’ future demands effectively. Timely rollouts, transparent communication, and relentless commitment to client excellence, play pivotal roles and underscore PIVOT’s commitment to delivering exceptional asset servicing solutions.
What are the key factors you consider when assessing the feasibility of asset servicing projects in India?
In my view, deep local market expertise, knowledge of global best practices, thought leadership, market intelligence, depth in tech solutions and team capability, the ability to acknowledge limitations transparently to align client expectations effectively and maintain project integrity, are all core requisites. These factors collectively drive project success, ensuring client satisfaction and adherence to high-quality standards in the dynamic Indian market landscape. PIVOT Management assesses the feasibility of asset servicing projects in India comprehensively, aligns strategies with client objectives, and delivers tailored solutions that drive value and success. Success is in simplifying the complex.
How does PIVOT Management envision the future of the Indian asset servicing industry, and what role do you see your company playing in it?
PIVOT Management’s proactive stance toward the future of the Indian asset servicing industry is rooted in a growth-oriented perspective. The Securities and Exchange Board of India (SEBI) will continue to drive the growth and change. India is tech-savvy, and its capital markets and banks are increasingly digitised. T+1 was a super success, with more than 140 million investors from 61 countries logging in. PIVOT foresees substantial growth, driven by digitisation, political stability, technological advancements, and progressive regulatory initiatives. PIVOT’s role will expand in terms of new asset classes and investors, using newer technologies. Use of AI and DLT will grow.
Positioning as a transformative leader in the consulting space, we will continue reinvesting on multiple fronts including capitalisation, continued focus on innovative products and services, elevate service standards to surpass client expectations, and lead industry evolution effectively. The industry demands skilled and adaptable resources to navigate evolving market dynamics.
PIVOT will shortly rollout in-house developed software solutions for the custody segment. Initially it will be for the business and client servicing segment. We like being on the treadmill of change.
What plans does PIVOT Management have for the future?
We have been building the practice and this will continue. In July 2024, we made two major announcements. Firstly, development of software as a value-add service in the securities service space, through a strategic alliance with Techstalwarts. Secondly, the launch of a new vertical to be headed by an industry veteran.
Additionally, we have a number of areas we are focusing on, including training, in collaboration with leading institutions, active listening and collaboration to enhance service delivery, develop disruptive solutions with cutting-edge technologies, scale, successful innovations for tangible outcomes, and venture into new markets. PIVOT aspires to nurture specialised knowledge and fuel innovation. With a concentrated effort on DLT, AI, software development and securities services training, PIVOT aims to stay at the forefront of change. Together with TSSAG members, we will do more globally. We value the growing thought provoking association we have with Asset Servicing Times.
There is lots to do. Maybe we should have started 20 years ago.
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