Depositary Banking
ABBL/KPMG new industry report: sectorial study on depositary and custodian banking activities
Published on 11 March 2025
We are pleased to announce the release of our highly anticipated study on depositary and custodian banking activities. This joint survey, conducted with over 40 banks in Luxembourg, in collaboration with the CSSF and KPMG, provides a comprehensive analysis of current market dynamics, highlighting key trends, challenges, and the latest developments in the industry. Although UCITS funds remain the market leaders, with their assets consistently increasing, alternative funds (for which banks serve as depositaries) are rapidly gaining popularity. However, this positive trend also presents new challenges. Unlike UCITS funds, which benefit from more streamlined and automated processing, alternative funds require a more customised and flexible approach, presenting new opportunities and added complexities.
Summary
To sustain this momentum, we must strike a delicate balance between advancing digitalisation and enhancing value-added services.
David Claus
Chairman of the Depositary Banking Cluster, ABBL
As part of the DBCL’s priorities, David Claus also confirmed: “To address these challenges, we will pursue our advocacy and promotion work to enhance Luxembourg’s attractiveness and continue our ongoing dialogue with the CSSF to align prudential supervision with market realities.”
Access the full report
Download the KPMG–ABBL report to explore key highlights:
• Market evolution: An overview of recent trends in depositary and custodian services, driven by regulatory shifts and evolving client needs.
• Trends and challenges: An exploration of factors influencing sector growth, including increasing demand for alternative assets, technology adoption and internalisation of staff.
This study is a valuable resource for financial professionals, institutional investors and anyone seeking to better understand the current landscape of depositary and custodian banking in Luxembourg.
We thank all ABBL members for their participation in this initiative. Together, we are building a stronger, more agile, and better-informed depositary and custodian banking industry in Luxembourg.
Hélène Lange
Head of Business Coordination, ABBL
Download the survey
Anda Asaftei
Adviser - Banking and Business Intelligence, ABBL
Published on 11 March 2025