Financial News
Sophie Baker looks at the recent trend of falling FX revenues at the custodian banks and looks at the factors affecting types of services custodian banks can offer.
The article looks at how with flattened market conditions, custodians are looking for alternative sources of revenue. Frederic Ponzo, GreySpark, adds that increasing pressure to source alternative revenue streams has come from their clients, who were unhappy with the heavy foreign exchange transaction fees the custodians were charging, and have now pushed the custodians to lower their fees. This has created a pricing war with the custodian banks.
The article goes on to speculate on the projected outlook for the custodian banks and explores other ways they can look to offer value-add services, in order to retain clients.
