In light of growing client needs for real-time reporting, data feeds and third party vendor interface, it's the agile and tailored technological solutions on offer that underpin a best-in-class service.
The age of Custody 4.0 is well and truly here. Investors and portfolio managers not only want, but fully expect front-end reporting excellence and real-time data on the go, as well as solutions to facilitate ways of capturing and pricing portfolios in tune with increased trading complexity and volumes within the asset base.
Across the global custody sphere, risk, treasury and collateral tools to support additional middle and back office services are getting more and more advanced. Data services and market analytics are here to meet increasing requirements from clients to support their reporting needs.
Put it all together, and what you have is a bespoke experience for those seeking market leading custody services that we as custodians take a lot of pride in. However, given the myriad products on offer, ultra-high net worth individuals and family offices need to assess their reporting requirements and operating needs before evaluating what a custodian can offer.
For example, while some clients may be content with accessing basic reports at the end of reporting periods via a simple portal, those with complex portfolios spanning multiple providers, regions and currencies may require access to live information and tailored reporting capabilities.
In the latter case, custodians with real-time reporting allow their clients to view and access detailed information on their wealth in one place wherever and whenever they need it. This provides an overview of all holdings, recent transactions, and functionality to group accounts by currency, region, and asset class, as well as assess weightings, which enables clearer and better decisions.
Bespoke technology solutions
Automated data feeds are also vital tools that enhance the service experience in the eyes of many.
Custodians who provide automated ways to send and receive trade data, and portfolio holding information can help reduce the risk of manual intervention and help convert and process trades electronically.
The overriding theme remains one of customization, with some custodians offering their clients the flexibility to tailor even the most basic reports to specific parameters. This can help clients analyze performance with benchmarks of their choice, including, but not limited to, assessments by account, asset class or size of holding.
Having connectivity to portfolio management systems and data aggregators, and a flexible data structure to work with new vendors are also key capabilities to look out for if individuals and families have more complex needs.
Ultimately, what tools those seeking custody services opt for depend on a number of considerations from the range and frequency of the need to access reports to reporting requirement standards, from cost implications of enhanced reporting to the need, or otherwise, of real-time, intraday information.
To examine what technology and reporting solutions you should look for, please read our recently published whitepaper.