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The Situation Today

The custody business has undergone a radical change over the past ten years. Here are a couple of reasons:

  • Today,  just 4 banks directly or indirectly control 3 out of every 4 dollars in global custody
  • The average number of agent banks offering services in the top markets have declined by more than 50% over the past decade
  • Growing competition from Central State Depositories (CSDs) - the lowest cost provider - has commoditized core services around custody management such as safekeeping and local market access. This situation has driven custodians up the value chain into new security custody services  which require different skill sets and have different risk profiles
  • While technology continues to be critical to the business, standardization and consolidation of custody management have not brought the kinds of benefits that custodians and their clients were anticipating

Industry Challenges

  • There are innumerable large and small players  still recovering from the century’s biggest financial crises that resulted in rapidly reducing AUM, significantly curtailing securities lending revenues, and increasing risks to established business models
  • Banks are going for new product/ service/asset class extensions
  • There is a desire to provide value added services (e.g., reporting, valuation) to offset declining margins in core services like safekeeping
  • There is a need for a holistic approach to custody management encompassing IT, operations, and product feature functions

What We Can Do For You

HCL understands these challenges and can assist customers in becoming more competitive and responsive in the dynamic custody services industry. HCL has set up a dedicated business practice to address the requirements of security and custody services players and is in different stages of discussions with multiple players to gain assets as well as to service their requirements through a platform based model.

Our credentials:

  • Over 1200 person years of experience in security and custody services
  • Over 400 personnel providing technology and operations support,  handling real-time, high risk,  complex security and custody services
  • Proactively investing in the custody space with a dedicated practice  - viewing organic and inorganic manners of addressing a state-of- the-art technology custody suite that can address Tier 1, Tier 2 and Tier 3 requirements in emerging markets
  • Extensive knowledge on the securities market across the globe; cross border settlement experience gained through carrying out back office operations for a leading investment bank and custodian
  • Process consultancy for corporate actions through technology and process re-engineering
  • Experienced in handling corporate action events such as exchange agency, calculation agency, early redemptions (call and put options), repurchases, restructures and manifest errors, conversions, warrant exercises
  • Operational experience in managing back office trust agency functions for a global bank
  • Experienced in providing platform based services on fund accounting and administration to UK-based insurers

What We’ve Done For Others

  • Re-engineered the corporate trust application landscape from disparate legacy platforms to the .NET platform based on service oriented architecture (SOA), for a leading Investment Bank
  • Managing the complete back office custody system for a Global Investment Bank for over 10 years across 22 regions
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We will treat any information you submit with us as confidential. Please read our privacy statement for additional information.

We will treat any information you submit with us as confidential. Please read our privacy statement for additional information.

What Customers Say

“This is wonderful stuff, the type of activities that make a big difference to our customer. Truly great work, and please keep it up” – On Successful implementation of WRAP project.

–CIO Large Programs, Leading Bank in Australia and NZ 

The combined efforts of our Asset Finance and Commercial Lending IT Service Delivery team and HCL have resulted in an 80% reduction in P1 and P2 incidents over 2010. This is a great testimony to Applications and Operations’ dedication to embed strong service management disciplines, including incident, problem, change, capacity, availability and service continuity management.

- CIO Retail & Business Banking ES, A Large Australian Bank