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“ 2020 was another milestone year for securities services with record growth , new product delivery and end-to-end scale and efficiency improvements for both our clients and our business . Our record $ 31 trillion AUC reflects our strong commitment , relentless client focus and ongoing investment in the securities services business ,” Teresa Heitsenrether , executive vice president , global head of securities services , JP Morgan , told Global Custodian . “ Our ability to deliver record growth while supporting our clients in an incredibly challenging year demonstrates the expertise and resilience of our global teams , along with the scale we ’ ve achieved through our continued investments in technology and automation .” Given the Coalition results only cover the biggest 12 custodians , there ’ s still a chance the decline among the tier two players could be more significant . The revenues in the report were taken from BBH , BNP Paribas , BNY Mellon , CACEIS , Citi , Deutsche Bank , HSBC , JP Morgan , Northern Trust , RBC , Societe Generale and State Street . The Coalition results do show opportunities in new asset classes , while outsourcing remains on the rise
" Our record $ 31 trillion AUC reflects our strong commitment , relentless client focus and ongoing investment in the securities services business ."
TERESA HEITSENRETHER , EXECUTIVE VICE PRESIDENT , GLOBAL HEAD OF SECURITIES SERVICES , JP MORGAN
as the impacts of the pandemic have forced clients to focus more on the core competencies . In addition , the front-toback-office evolution among providers is leading to increased mandates from buy-side firms , with many of the largest
custodians pinning their hopes for the future on this strategy . What is also clear , is that the rise in assets under custody and administration ( AuC / A ) is not leading to an increase in revenues , with custodians being asked to do more for less . AuC / A reached record levels during 2020 with BNY Mellon holding the most at $ 41 trillion , followed by State Street with $ 38.8 trillion . The custody industry faces some significant headwinds moving forward in the shape of fee compression , continued low interest rates and the need for automation . The opportunities may lie in front-to-back offerings and the ensuing data provision , new asset classes and a rise in outsourcing , and new technologies . Despite revenues only declining marginally , a number of custodians did announce at the start of the year that there would be future job cuts . State Street disclosed in its fourth quarter results that it will take on an employee severance charge of $ 82 million to eliminate approximately 1,200 positions , while Northern Trust said it would record a $ 55 million severance charge to eliminate 500 positions globally , representing around 2.5 % of its staff . Meanwhile , BNY Mellon is reported to have begun reducing staff but did not state any specifics in its results .
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