The opportunity ahead
18 Mar 2026
As regulation tightens, settlement cycles shorten, and volumes rise, custodians are rethinking how they engage with asset managers. Diederik Geeraerts, CEO of Taskize, considers how technology and proactive exception management are now central to strengthening and scaling the custodian-buy side relationship
Image: mongkolchon/stock.adobe.com
This year, events such as InvestOps, ISITC, and TradeTech will bring together operations leaders from across the industry, so it feels like an important moment for post-trade services.
For global custodians and fund servicers, recent financial results have been encouraging. Securities services revenues have been strong, assets under custody continue to grow, and the long-term outlook for global assets under management remains positive.
At the same time, the environment in which custodians operate is becoming more demanding: competition is intensifying, clients expect more, regulation continues to evolve, and settlement cycles are shortening across key markets. In this context, success will depend not just on scale or brand strength, but on how effectively custodians work with their clients and invest in the operational foundations that support them.
The opportunity ahead is significant. Global assets under management are projected to reach US$147.3 trillion by 2027. Institutional investors are expanding into private markets, digital assets and increasingly complex cross-border strategies. Each development creates new responsibilities for custodians.
It is my belief that those who approach innovation in client service and post-trade technology as a strategic priority, rather than a side project, will be best placed to support their clients, realise growth and scale.
Rising expectations in a more complex landscape
Custodians sit at the centre of an increasingly intricate regulatory and operational framework. The compliance burden alone is substantial. From Sustainable Finance Disclosure Regulation (SFDR) and Alternative Investment Fund Managers Directive (AIFMD) to consolidated audit trail (CAT) reporting and, most importantly, the move to T+1 settlement, firms must continually adjust systems and processes across multiple jurisdictions. Each regulatory change introduces new reporting obligations and new coordination requirements.
At the same time, larger custody books naturally bring higher operational volumes. There are more corporate actions to be processed, more queries must be resolved, and a greater number of collateral disputes and settlement breaks require investigation.
Many of the processes that support this activity have historically relied on established, largely manual methods of coordination. Email chains, spreadsheet trackers and informal follow-ups have often been sufficient to keep activity moving.
For a long time, this approach worked. But as volumes increase, timelines tighten and regulatory compliance comes to the forefront, the ad-hoc communication process will struggle to keep pace.
Asset managers today operate in an environment shaped by real-time data, automation and analytics. When they engage with their custodians, they expect the same level of transparency and responsiveness. Modern interfaces and streamlined communications are not competitive advantages; they are now part of the standard service package.
At the same time, trust remains central to the custody relationship. It is strengthened when issues are handled efficiently, and information is clear. It can weaken when communication feels fragmented or slow. In a competitive market with growth opportunities being fought for, that distinction matters.
From service provider to strategic partner
One of the most promising areas for custodians is the way post-trade data is delivered and used. Asset managers have long focused on extracting value from front office data. Increasingly, they are also examining post-trade information for insight that can improve performance and manage risk.
Data on settlement efficiency, failed trades, counterparty behaviour, and timelines can inform execution strategies. In an environment where margins are tight and volatility persists, even incremental improvements in operational performance can have a meaningful impact.
However, turning post-trade data into actionable insight requires coordination. Asset managers must organise and distribute data internally in a way that supports decision-making.
Custodians, given their central role in the operational lifecycle, are well positioned to help.
There is a clear link between satisfaction with a custodian and the extent to which firms use post-trade data in front office decision-making. Where custodians provide timely, structured and accessible information, clients are more likely to incorporate operational insight into investment processes.
Many client service models, however, are still largely reactive. For example, queries are answered when they are raised and breaks are investigated only once they have been identified. While this support remains essential, there is scope to be more forward-looking and proactive. The custodian and fund servicer can play a more active role, becoming a problem mitigator over just being a problem solver.
At Taskize, we see this shift happening in real time. Custodians are increasingly recognising that exception handling — whether settlement fails, reconciliation breaks, corporate action queries or collateral disputes — cannot remain buried in email inboxes.
The Taskize platform was built to address this challenge. It provides a secure, structured environment for custodians and their buy side clients to manage post-trade exceptions collaboratively. Instead of fragmented email chains, firms gain full visibility over ownership, status, response times, and root causes, across counterparties and markets.
By standardising how exceptions and breaks are handled, custodians are improving resolution times and generating valuable operational data that can be shared with clients as part of a more proactive service model.
T+1 as a practical test
The transition to T+1 settlement illustrates why this evolution is so important. Regulators have made it clear that firms need to take readiness seriously. Shorter settlement cycles leave far less room for delay.
Large global custodians have drawn on experience from the US transition and are investing accordingly.
This is incredibly important as these firms will shoulder much of the workload to enable a smooth transition for the whole industry, given the role they play on behalf of so many firms. So this is certainly a positive. For smaller and mid-sized asset managers, there is still important work to do and they cannot rely on their post-trade partners to handle the move to a T+1 world for them.
The challenge here is that the operational adjustment can be more challenging for these firms. Under a two-day cycle, manual processes were often manageable. With only one day to settle, those same processes can quickly become strained.
Heavy reliance on email, spreadsheets, and informal coordination creates bottlenecks. Regulatory guidance has encouraged asset managers to engage closely with their settlement agents on confirmation timing and instruction processes. Custodians can support these discussions by offering practical, technology-enabled solutions that make compliance achievable in day-to-day operations.
This is precisely why many firms are turning to purpose-built post-trade collaboration platforms. Taskize, for example, is already being used by global custodians with their asset managers to collaborate, communicate and manage settlement-related exceptions in a structured, auditable way.
As settlement timelines compress, the ability to track breaks in real time, escalate automatically and measure response performance across counterparties becomes critical.
T+1 should therefore be seen not only as a regulatory deadline, but as an opportunity to modernise interaction models across the ecosystem, supporting overall improvements in the way custodians interact with their clients and the way clients address exceptions and breaks.
Competing through experience
The financial strength of leading custodians demonstrates that demand for securities services remains robust. But strong results do not eliminate competition. As capabilities converge across providers and the challenges — such as shorter settlement times — intensify, the quality of client experience becomes increasingly important.
Differentiation today is less about headline functionality and more about delivery of service day-after-day. That includes the clarity of data, the ease of communication and the speed with which issues are resolved.
It is also worth remembering that technology is ultimately about enabling people. On both sides of the relationship, teams are often lean and under pressure. Reducing manual tasks and simplifying workflows allows professionals to focus on analysis, oversight and client engagement rather than administrative follow-up.
As asset managers navigate volatile markets and explore new opportunities, they rely heavily on their custodians. Meeting that responsibility requires operational reliability, but an ability to evolve.
At Taskize, we believe the next phase of growth for custodians will not be defined by scale alone, but by collaboration. The custodians that modernise how they manage exceptions and engage with their clients will be the ones that strengthen trust and differentiate in an increasingly competitive market.
The technology to achieve this already exists. The question is how quickly the industry can adopt it.
Looking ahead
The relationship between custodians and asset managers has always been foundational to the functioning of capital markets. What is changing is the pace and complexity of the environment in which that relationship operates.
Information moves quickly, regulatory expectations shift and market structures evolve. In this setting, standing still is not a viable strategy.
There is, however, considerable reason for confidence. The custody sector has demonstrated resilience and adaptability over many cycles of change. By continuing to invest in technology, strengthening communication frameworks and proactively delivering meaningful data to clients, custodians can deepen trust and create long-term value for their clients.
The focus should not only be on managing the pressures of today, but on shaping a service model that is fit for the years ahead. Custodians that approach this moment with openness and ambition will not only remain competitive, they will reinforce their position as enablers and essential partners to the buy side.
For global custodians and fund servicers, recent financial results have been encouraging. Securities services revenues have been strong, assets under custody continue to grow, and the long-term outlook for global assets under management remains positive.
At the same time, the environment in which custodians operate is becoming more demanding: competition is intensifying, clients expect more, regulation continues to evolve, and settlement cycles are shortening across key markets. In this context, success will depend not just on scale or brand strength, but on how effectively custodians work with their clients and invest in the operational foundations that support them.
The opportunity ahead is significant. Global assets under management are projected to reach US$147.3 trillion by 2027. Institutional investors are expanding into private markets, digital assets and increasingly complex cross-border strategies. Each development creates new responsibilities for custodians.
It is my belief that those who approach innovation in client service and post-trade technology as a strategic priority, rather than a side project, will be best placed to support their clients, realise growth and scale.
Rising expectations in a more complex landscape
Custodians sit at the centre of an increasingly intricate regulatory and operational framework. The compliance burden alone is substantial. From Sustainable Finance Disclosure Regulation (SFDR) and Alternative Investment Fund Managers Directive (AIFMD) to consolidated audit trail (CAT) reporting and, most importantly, the move to T+1 settlement, firms must continually adjust systems and processes across multiple jurisdictions. Each regulatory change introduces new reporting obligations and new coordination requirements.
At the same time, larger custody books naturally bring higher operational volumes. There are more corporate actions to be processed, more queries must be resolved, and a greater number of collateral disputes and settlement breaks require investigation.
Many of the processes that support this activity have historically relied on established, largely manual methods of coordination. Email chains, spreadsheet trackers and informal follow-ups have often been sufficient to keep activity moving.
For a long time, this approach worked. But as volumes increase, timelines tighten and regulatory compliance comes to the forefront, the ad-hoc communication process will struggle to keep pace.
Asset managers today operate in an environment shaped by real-time data, automation and analytics. When they engage with their custodians, they expect the same level of transparency and responsiveness. Modern interfaces and streamlined communications are not competitive advantages; they are now part of the standard service package.
At the same time, trust remains central to the custody relationship. It is strengthened when issues are handled efficiently, and information is clear. It can weaken when communication feels fragmented or slow. In a competitive market with growth opportunities being fought for, that distinction matters.
From service provider to strategic partner
One of the most promising areas for custodians is the way post-trade data is delivered and used. Asset managers have long focused on extracting value from front office data. Increasingly, they are also examining post-trade information for insight that can improve performance and manage risk.
Data on settlement efficiency, failed trades, counterparty behaviour, and timelines can inform execution strategies. In an environment where margins are tight and volatility persists, even incremental improvements in operational performance can have a meaningful impact.
However, turning post-trade data into actionable insight requires coordination. Asset managers must organise and distribute data internally in a way that supports decision-making.
Custodians, given their central role in the operational lifecycle, are well positioned to help.
There is a clear link between satisfaction with a custodian and the extent to which firms use post-trade data in front office decision-making. Where custodians provide timely, structured and accessible information, clients are more likely to incorporate operational insight into investment processes.
Many client service models, however, are still largely reactive. For example, queries are answered when they are raised and breaks are investigated only once they have been identified. While this support remains essential, there is scope to be more forward-looking and proactive. The custodian and fund servicer can play a more active role, becoming a problem mitigator over just being a problem solver.
At Taskize, we see this shift happening in real time. Custodians are increasingly recognising that exception handling — whether settlement fails, reconciliation breaks, corporate action queries or collateral disputes — cannot remain buried in email inboxes.
The Taskize platform was built to address this challenge. It provides a secure, structured environment for custodians and their buy side clients to manage post-trade exceptions collaboratively. Instead of fragmented email chains, firms gain full visibility over ownership, status, response times, and root causes, across counterparties and markets.
By standardising how exceptions and breaks are handled, custodians are improving resolution times and generating valuable operational data that can be shared with clients as part of a more proactive service model.
T+1 as a practical test
The transition to T+1 settlement illustrates why this evolution is so important. Regulators have made it clear that firms need to take readiness seriously. Shorter settlement cycles leave far less room for delay.
Large global custodians have drawn on experience from the US transition and are investing accordingly.
This is incredibly important as these firms will shoulder much of the workload to enable a smooth transition for the whole industry, given the role they play on behalf of so many firms. So this is certainly a positive. For smaller and mid-sized asset managers, there is still important work to do and they cannot rely on their post-trade partners to handle the move to a T+1 world for them.
The challenge here is that the operational adjustment can be more challenging for these firms. Under a two-day cycle, manual processes were often manageable. With only one day to settle, those same processes can quickly become strained.
Heavy reliance on email, spreadsheets, and informal coordination creates bottlenecks. Regulatory guidance has encouraged asset managers to engage closely with their settlement agents on confirmation timing and instruction processes. Custodians can support these discussions by offering practical, technology-enabled solutions that make compliance achievable in day-to-day operations.
This is precisely why many firms are turning to purpose-built post-trade collaboration platforms. Taskize, for example, is already being used by global custodians with their asset managers to collaborate, communicate and manage settlement-related exceptions in a structured, auditable way.
As settlement timelines compress, the ability to track breaks in real time, escalate automatically and measure response performance across counterparties becomes critical.
T+1 should therefore be seen not only as a regulatory deadline, but as an opportunity to modernise interaction models across the ecosystem, supporting overall improvements in the way custodians interact with their clients and the way clients address exceptions and breaks.
Competing through experience
The financial strength of leading custodians demonstrates that demand for securities services remains robust. But strong results do not eliminate competition. As capabilities converge across providers and the challenges — such as shorter settlement times — intensify, the quality of client experience becomes increasingly important.
Differentiation today is less about headline functionality and more about delivery of service day-after-day. That includes the clarity of data, the ease of communication and the speed with which issues are resolved.
It is also worth remembering that technology is ultimately about enabling people. On both sides of the relationship, teams are often lean and under pressure. Reducing manual tasks and simplifying workflows allows professionals to focus on analysis, oversight and client engagement rather than administrative follow-up.
As asset managers navigate volatile markets and explore new opportunities, they rely heavily on their custodians. Meeting that responsibility requires operational reliability, but an ability to evolve.
At Taskize, we believe the next phase of growth for custodians will not be defined by scale alone, but by collaboration. The custodians that modernise how they manage exceptions and engage with their clients will be the ones that strengthen trust and differentiate in an increasingly competitive market.
The technology to achieve this already exists. The question is how quickly the industry can adopt it.
Looking ahead
The relationship between custodians and asset managers has always been foundational to the functioning of capital markets. What is changing is the pace and complexity of the environment in which that relationship operates.
Information moves quickly, regulatory expectations shift and market structures evolve. In this setting, standing still is not a viable strategy.
There is, however, considerable reason for confidence. The custody sector has demonstrated resilience and adaptability over many cycles of change. By continuing to invest in technology, strengthening communication frameworks and proactively delivering meaningful data to clients, custodians can deepen trust and create long-term value for their clients.
The focus should not only be on managing the pressures of today, but on shaping a service model that is fit for the years ahead. Custodians that approach this moment with openness and ambition will not only remain competitive, they will reinforce their position as enablers and essential partners to the buy side.
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