Asset servicing automation in 2024: key findings

Asset servicing is coming under increasing strain. How much longer can firms absorb rising corporate actions costs, low automation levels and growing manual pressure before current operating models become unsustainable? Where are the clearest signs that manual processes are still driving cost and risk? 

These key findings examine the scale of the challenge across corporate actions processing, showing where costs are increasing, where straight-through processing (STP) remains weakest, and why automation is becoming harder to delay.

The research highlights:

• Investors are now carrying direct corporate actions costs of up to US dollar (USD) 14 million, with indirect pass-through costs multiple times higher

• Investors' asset servicing costs are increasing by 23% per annum, pointing to sustained structural pressure

• STP for voluntary events remains below 40%, with manual intervention still dominant

• Instructions remain the point of greatest operational risk, with 72% of related messages still processed manually

• Automation could reduce errors by 87%, while investors could realise annual savings of USD 680,000