The evolving relationship between asset servicers and FinTechs : Unlocking efficiency and collaboration

Abstract

Significant transformations are underway as asset servicers and FinTech companies forge new alliances. As asset servicers refocus their operations on value added services, they constantly seek adaptation. Innovative technologies, refined methodologies and data-driven insights hold immense potential for boosting operational efficiency. FinTech companies have emerged as valuable partners to asset servicers, enhancing efficiency, fostering operational excellence and driving customer-centric new solutions. This paper explores the exciting opportunities and novel strategies shaping the asset servicing landscape, shedding light on evolving custody services. Legacy processes, burdensome paperwork and obsolete technology have prompted asset servicers to pursue smoother interactions and more satisfying client experiences. Fortunately, the realm of FinTech offers a fresh avenue to address these persistent challenges. A central theme here is that evolving client expectations have spurred an imperative for asset servicers to embrace technology in order to maintain their competitive edge. Clients now demand greater flexibility and comprehensive services, driving a shift towards automation, streamlined workflows and data-driven insights to lower costs, manage risks and provide tailored client solutions. Nevertheless, various hurdles stand in the way of successful collaboration. Effective communication, transparent partnerships and proactive engagement emerge as critical elements for maximising the benefits of this relationship.