This upsurge, according to IntellectAI, is the result of an increasing number of these markets' investors and institutions participating in global finance, which calls for professional administration and protection of their expanding assets.

Assets under management (AUM) are expected to rise from $115 trillion to an astounding $147.3 trillion by 2027, according to PwC's Global Asset and Wealth Management Survey from July 2023. This substantial increase emphasizes the critical role custodians play in asset management.

The Head of Global Fund Services EMEA at Northern Trust, Clive Bellows, shares his predictions for custodial services in the future. He states, "Custodian 3.0, the custodian of the future, cannot be all things to all people. Customers will demand that they always have access to the newest technologies, allowing them to benefit from new platforms and tactics that may help them reduce risk and optimize returns. Although these guardians ought to offer services via technology, they shouldn't try to change who they are and become a technology-only business. Instead, they must keep concentrating on upholding the fundamental ideas of safeguarding assets and assisting clients with their financial plans.

Global custodians, who are usually big banks or financial organizations, are responsible for a number of vital tasks, such as managing accounting and reporting throughout the asset's lifespan and preserving correct ownership records and values in addition to safeguarding the assets. Additionally, they manage transaction processing, making sure that the assets that investors buy or sell are precisely monitored, settled, and reconciled. In addition, they oversee asset servicing, which is effectively the worldwide administration of all investment-related operations. This includes upholding the financial advantages of ownership, such as monitoring corporate actions and proxy voting, as well as income collection.

Sub-custodians, also known as agent banks, play a crucial role in facilitating global access to the securities markets. In order to handle duties in overseas markets, such as asset protection, settlement, record-keeping, market access, and lobbying, these banks collaborate with global custodians, making sure that local laws are followed.

Due to the dynamic nature of the custodial market today, custodians throughout the world are proactively building strategic alliances with agent banks. These partnerships are no longer only transactional; instead, they concentrate on long-term plans to create win-win goods and services, utilizing cutting-edge technology and service integration to improve asset safety and service delivery overall.

Clients need custodians that are resilient, have a track record of successfully protecting assets, are transparent in their operations, have quick access to the market and settlements, are attentive to their demands, and have extensive market knowledge via professional advocacy. Effective custodianship also depends on local knowledge, which offers firsthand experience that may be invaluable while navigating developing markets.

The eMACH.ai Custody Platform from Intellect is made to handle the intricate problems that custodians encounter. Its modular architecture facilitates easy integration and modification, allowing for prompt response to changes in the market and in regulatory requirements. With 136 APIs for improved connectivity and consumer experiences, the platform—which is based on the cloud-native iTurmeric framework—is supported by generative AI to improve decision-making and expedite processes. Custodians may improve service delivery and guarantee local and international standards compliance by utilizing these sophisticated capabilities.