The ongoing evolution of custody

September 12, 2018

As an investment services cornerstone, custody must constantly evolve to meet industry changes and keep pace with technology. In our fast-paced world, it’s important to step back and look at how it’s adapting and what improvements are surfacing along the way.


Custody is a foundational component of nearly everything we do in the investment services industry. Whether you’re an investment manager, corporation, government entity or not-for-profit organization, you depend on the efficient and consistent performance of your custodian. But how is it changing and what factors are driving its progress?


A continuous state of rapid improvement

Although custody has fundamentally done what it has always done, it’s far from static. In fact, custody is subject to virtually the same trends the rest of the industry faces, such as globalization, the need for new technology, increased regulatory burdens and constant threats to cybersecurity.

Custodians are making incremental improvements to always do the right thing for all their stakeholders. The pace of change impacting the custody industry is unprecedented, and improvements that used to take months or years can now be accomplished in days or weeks.


Adapting to technological advancements

A key area of change is in the technology used to meet the needs of the evolving industry. As regulations shift, such as the T+2 settlement requirement, custodians need to be agile and make enhancements to their systems and processes. Custodians are also developing critical processes and technology to meet heightened standards around anti-money laundering and economic sanctions policies.

It’s more important than ever to keep your information safe, and through a dedication to continual technology improvements, custodians are now able to OFAC scan SWIFT messages in real time. As more and more clients use the SWIFT network, custodians will be able to simplify processes, remove manual touchpoints and more aptly manage and reduce risk.


How client service models are keeping up

As the technology framework evolves, it allows client services teams to be more flexible and efficient. Because of this, the client service model is progressing toward a more personalized experience for clients. If service providers can understand the distinct needs of their clients and business models, they’ll be able to work together to identify targeted enhancements to align systems and processes to meet their needs, both in the short and long term.

Moving forward, the investment services industry will continue to evolve, and as it does, custody will adapt along with it. Custodians will carefully watch the market, listen to clients and partners and plan ahead with an eye for innovation and targeted improvement.


With a partner you trust, you can count on the course of progress working toward your advantage long into the future. For more information on custody services at U.S. Bank, visit us online at

Related content

Integrated receivables management solution supports customer focus at MSC Industrial Supply

5 winning strategies for managing liquidity in volatile times

3 questions to ask your equity, quant and CTA fund administrator

The reciprocal benefits of a custodial partnership: A case study

Supply chain analysis: Merging technology and commerce

Delivering powerful results with SWIFT messaging and services

CFO survey: A shifting focus on ESG in business

What corporate treasurers need to know about Virtual Account Management

The secret to successful service provider integration

The ongoing evolution of custody

Hybridization driving demand

Look to your custodian in times of change

Key considerations for online ordering systems

Webinar: CRE technology trends

Private equity and the full-service administrator

Empowering managers with data automation and integration

How iPads can help increase efficiency in your salon

New technology streamlines M&A transactions

The unsung heroes of exchange-traded funds

Custody or safekeeping: What’s the right solution for government investments?

Employee benefit plan management: trustee vs. custodian

Renewing your custody contracts? Negotiate the fees.

Avoiding the pitfalls of warehouse lending

Authenticating cardholder data reduce e-commerce fraud

Insource or outsource? 10 considerations

Middle-market direct lending: Obstacles and opportunities

Case study: U.S. asset manager expands to Europe

Protecting cash balances with sweep vehicles

What is CSDR, and how will you be affected?

How RIAs can embrace technology to enhance personal touch

CFO report: Driving growth via new business models and technology

CFO insights: Leading the recovery for sustainable growth

5 questions you should ask your custodian about outsourcing

How small businesses are growing sales with online ordering

10 ways a global custodian can support your growth

Preparing for your custodian conversion

How to choose the right custodian for your managed assets

Luxembourg's thriving private debt market

Flexibility remains essential for public sector workforces

Easier onboarding: What to look for in an administrator

How to identify what technology is needed for your small business

Planning for restaurant startup costs and when to expect them

Staying organized when taking payments

How does an electronic point of sale help your business keep track of every dime?

Tools that can streamline staffing and employee management

Alternative assets: Advice for advisors

Refining your search for an insurance custodian

The benefits of a full-service warehouse custodian

The future of financial leadership: More strategy, fewer spreadsheets

Tech tools to keep your restaurant operations running smoothly

Webinar: Robotic process automation

Webinar: CRE treasury leader roundtable

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.