Global custody is not broken but it has to adapt to the new industry environment by thinking its way out, according to a panel at NeMa 2014 in Vienna.
When surveyed, a large proportion of the audience (45 percent) felt that problems in the industry are strategic and therefore fixable.
The panel claimed that these strategic problems stem from a lack of innovation, leading markets to become challenging or even financially counterproductive.
A member of the panel claimed that the custody sector should look to other areas, such as investment banking or technology suppliers, for inspiration.
Although mimicking the former's offshoring and outsourcing could be a mistake, a change in model is essential, as far as the panel was concerned.
One of the panellists commented: "We have tried to be all things to all men in all markets and it just doesn't work."
Another of the surveys revealed that collateral management is viewed by network managers as the most lucrative route for global custodians in the future, with 47 percent of the audience choosing it as the best bet for rapid and sustained growth.
Although the panel agreed with this to an extent, a panellist warned: "There is a scarcity … and a lot don't get it right."
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