Asset servicing: trends for 2025

Even though the Swiss financial centre has a reputation for stability and reliability, making it a partner of choice, recent trends towards consolidation and cost-cutting in asset servicing are transforming the sector. Against this backdrop, industry players are called upon to focus less on day-to-day operations and more on creating value for clients, by prioritising quality service.

Trend towards standardised services

In today's uncertain economic and political environment, pressure on margins is driving asset servicing players to look for ways to reduce costs. Many are abandoning a personalised approach in favour of standardised models. While the latter offer benefits of scale — reduced costs and increased operational efficiency —  they often fail to meet clients' specific needs.

This homogenisation of the offering can lead to a mismatch between the services offered and the specific needs of asset managers. Asset managers stand to gain from solutions that both simplify their operations and maximise their efficiency. Processes such as reporting and compliance lend themselves to automation, as this reduces errors, speeds up processing and lowers costs.

Integrated digital platforms are another good example. Portfolio management systems (PMS), for example, are advanced data management tools that enable more efficient fund administration. These solutions give fund managers, pension funds and family offices access to competitive products while preserving their margins.

High concentration in the sector

The increasing concentration in the sector, as evidenced by merger activity, has led to domination by a handful of large firms that now account for more than 60% of the worldwide market according to some studies. These giants impose standardised models that are often misaligned with the specific requirements of sophisticated clients.

Meanwhile, the personalised approach adopted by some asset servicing providers enables services to be tailored more closely to the specific needs of each client, taking into account their risk profile, return expectations and regulatory constraints. 

This presupposes an in-depth understanding of clients' needs and the ability to adapt quickly to changes in the market. It is an approach which enables managers to better meet their clients' expectations, in particular by integrating advanced technologies for performance monitoring and risk management.

A Swiss pension fund, for instance, recently adopted a specialised technology to enhance its reporting on global custody and fund structuring. This solution offers fund managers greater oversight and provides fund members with increased transparency. 

An opportunity for Switzerland 

In the current geopolitical context, marked by international tensions, Switzerland is able to position itself as a trusted partner known for its enduring stability. The rivalry between major powers, particularly the US and China, highlights the strategic importance of using Swiss service providers who are able to navigate global dynamics while being attentive to regulatory changes and international developments.

The asset servicing industry has reached a strategic crossroads. Market concentration and economic pressures are forcing a comprehensive reassessment of traditional models. As consolidation continues to reshape the landscape, it is crucial for service providers to stand out by offering personalised solutions and continually innovating.

In this uncertain environment, Switzerland's geopolitical stability and reputation for reliability ensure it remains a beacon of trust. To grow, industry players need to adopt a holistic approach that integrates technology, local expertise and bespoke services — all of which are key to ensuring stability and prosperity for all stakeholders.