Transforming asset servicing : Strategies to drive transformation in 2025 and beyond

Abstract

This paper critically examines the persistent challenges within the asset servicing landscape and articulates a forward-looking strategy for meaningful industry transformation. Drawing upon insights from landmark initiatives, such as the Giovannini Barriers, the Draghi Report and recent regulatory developments — including Shareholder Rights Directive II (SRDII) and the European Capital Markets Union — the paper traces the evolution of asset servicing, highlighting both achievements and enduring pain points, notably in automation, data standardisation and regulatory harmonisation. A comprehensive analysis of a 2024 industry survey, led by Broadridge in collaboration with Depository Trust & Clearing Corporation (DTCC) and International Security Services Association (ISSA), forms the empirical cornerstone of this discussion. The survey reveals the acute operational inefficiencies, high error rates and escalating costs resulting from lack of standardisation from the data source, fragmented processes and legacy systems, particularly in the management of voluntary corporate actions. The paper synthesises these findings to underscore the imperative for standardised, digital-first data at source, and advocates for the creation of ‘golden operational records’ to enable true end-to-end automation. Intended for asset servicing professionals, technology leaders, regulatory bodies and capital markets strategists, this paper equips readers with strategic insights into current pain points, regulatory catalysts and emerging technologies — including AI and blockchain — that are poised to reshape the sector. Readers will gain a nuanced understanding of the root causes of industry inertia, the business case for cross-industry utilities and practical pathways to achieving harmonisation. This piece delivers unique value through its integration of quantitative data, regulatory analysi, and real-world case studies, culminating in actionable recommendations that blend market advocacy with innovation. It is essential reading for those seeking to future-proof their asset servicing operations and drive sustainable transformation across the global capital markets ecosystem. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.