1. Digital disruption is real — but execution is playing catch up
There’s no shortage of ambition. Custodians are exploring everything from AI-powered operations to tokenized assets and digital wallets. The challenge? Execution often lags behind the vision.
Yes, Microsoft Dynamics and similar platforms are being rolled out, but progress often stalls when legal, compliance, and operations teams get involved. (Somewhere, someone is still trying to open a workflow ticket from 2022...)
2. Innovation needs more than an org chart shuffle
Many senior leaders in the sector built their reputations — and rightly so — in an environment that rewarded scale, control, and incremental change. But the AI era flips that model on its head, favouring speed, experimentation, and horizontal collaboration.
We’re beginning to see a new generation of execution-focused, tech-literate leaders come through but the shift is patchy. Bridging the gap doesn’t mean sidelining experience; it means blending it with new capabilities that reflect today’s market demands.
3. The talent exists — but is often misplaced or muzzled
From digital product managers to data scientists, the talent is in the building -but often not in the right room or with the right mandate. Firms are struggling to retain digitally fluent professionals, especially when internal blockers — whether cultural or structural — prevents them from making a real impact.
It's not unusual to hear stories of transformation leads exiting after six months, or innovation labs quietly winding down. The message: Talent needs more than a title; it needs traction.
4. Clients are moving faster than delivery models
Today’s asset managers and institutional clients expect more than custody — they expect connectivity, digital engagement, and seamless integration into their broader ecosystems.
Smaller, more agile custodians are already differentiating with modern service layers and faster onboarding experiences. Larger players will need to follow suit — or risk looking like they’re running a dial-up modem in a 5G world.
Focus on leadership and culture, not just tech
In a world that is constantly being reshaped by latest digital advances, it can be tempting — and even understandable — to think that technology can offer all the answers. But actually, seeking solace in the latest technology is no catch-all solution.
Whether it is global or regional custody provider, an asset servicer or infrastructure firm, what’s also crucial is to realign leadership for digital execution. Not every leadership team is wired for what’s next. They need to be able to actually drive digital transformation at scale, something that will often involve the addition of executives with AI, product, or large-scale change backgrounds.
At the same time, cultural transformation must not be neglected. Success comes when you create the conditions for change — cross-functional teaming, decision rights that allow for experimentation, and clear accountability for delivery. Cultural blockers are harder to spot than operational ones, but they tend to do more damage long-term.
Sometimes, the first step isn’t more tech — it’s better alignment.