Asset servicing volumes have climbed by more than 25% in 2025, compared to a year earlier, but business growth is constrained by legacy technology, increased risk, and escalating data costs, according to a new report.

Industry leaders continue to grapple with challenges stemming from antiquated processes and multiple data sources, with up to 67% of asset servicing errors linked to poor data quality. Legacy technology remains the single biggest obstacle to asset servicing automation, New York-listed fintech firm Broadridge Financial Solutions says in Broadening Asset Servicing 2025.

The global study, prepared in partnership with the International Securities Services Association and The ValueExchange, draws insights from over 270 industry leaders on the innovation, priorities, and challenges that are shaping the future of asset servicing.

Outsourcing has emerged as a critical strategy to manage rising complexity, particularly in tax reporting, event capture, tax reclaims, proxy voting, and class actions. Firms that outsource report significantly lower error rates and reduced costs compared to those maintaining in-house processes.

Nearly 60% of total servicing resources were reported to be consumed by income and voluntary corporate actions, creating significant operational strain. Meanwhile, over 60% of brokers reported a decline in automation levels, directly contributing to rising error rates and higher costs. Issuers aim to deliver accuracy and timeliness, but 53% know that they are not enabling automation.    

Critical enablers

To further accelerate modernization across the industry, over half ( 57% ) of respondents view tech companies as critical enablers of golden source data, underscoring their essential role in enabling asset servicing providers to grow and scale effectively and cost-effectively.

Client expectations remain the single largest driver of investment in asset servicing ( 38% ), followed by efforts to reduce errors ( 33% ) and meeting regulatory requirements ( 9% ). While some firms expect to reduce asset servicing costs over the next five years – brokers ( 13% ), exchange/technology providers ( 9% ), custodians ( 8% ) and investors ( 7% ) – most firms are prioritizing technology investments that enhance efficiency and profitability.

As firms seek to boost asset servicing profitability, they are decisively shifting investment towards technology, with many citing process re-engineering as the most effective area of change over the last five years and a critical driver of automation.

Mike Alexander, president of Broadridge Wealth Management, comments: “As firms, traders and investors demand increased real-time digital automation, and enhanced risk management, we see immense opportunity for firms to reimagine asset servicing through a single platform encompassing the entire asset service life cycle, leveraging AI, common data and strategic outsourcing.

“The future of asset servicing depends on the industry’s ability to increase real-time straight-through processing, capture tax rules and efficiency upstream, and leverage common data with the client at the center.”