Insights
TRUST AND CORPORATE SERVICES: NAVIGATING AN EVOLVING LANDSCAPE
Victus Search, Multi-jurisdictional Recruitment Partner for Financial Services 310 310Read it in 3 minutes
Insights
Read it in 3 minutes
The global trust and corporate services market has shown remarkable resilience and growth potential, despite the challenges posed by an ever-changing financial landscape. In 2023, the trust and corporate services market was valued at US$13.3 billion, and projections indicate a surge to US$19.2 billion by 2032. This growth, at a CAGR of 4.2%, underscores the sector’s ability to adapt and thrive amidst regulatory shifts, technological advancements, and changing client demands.
As a Director at Victus Search, leading our specialist recruitment services in this sector, Christopher Costi has witnessed the market’s evolution firsthand — and the trends shaping its future. In this article, he shares his outlook for 2024 and beyond.
In the past few years, we have seen a wave of mergers and acquisitions as firms seek to expand capabilities and share compliance costs in an increasingly complex regulatory environment. Between 2019 and 2021, an estimated $4 billion was invested in M&A activities related to trust and corporate services, highlighting the sector’s vibrancy. This trend is likely to continue, with smaller boutique firms either specialising or merging with larger entities to remain competitive.
Regulatory changes, particularly the emphasis on transparency and anti-money laundering provisions, have been a significant driver of the market’s evolution. The adoption of the Common Reporting Standard by over 100 jurisdictions highlights this shift. In our experience, while compliance has increased operational costs, it has also created opportunities for organisations specialising in regulatory consultancy.
Technology has emerged as another key trend, with digitisation and tech-driven solutions becoming crucial differentiators. Trust and corporate services clients, ranging from high-net-worth individuals to family offices to corporations, increasingly prioritise digital interfaces and secure online access. A 2021 survey indicated that around 72% of clients emphasised the importance of these factors in their selection criteria — a trend that is set to continue. Firms that have integrated advanced tech solutions, such as AI-driven risk assessment tools, have reported significant efficiency gains.
Looking ahead, the market’s future appears promising, albeit with challenges. The ongoing push for transparency might impact traditional offshore hubs, but we expect it will also unveil opportunities in onshore and mid-shore jurisdictions. The growing importance of ESG (Environmental, Social, Governance) considerations is shaping client preferences — and ESG-linked assets under management in trusts and corporate structures are projected to grow at a CAGR of 15% through 2030.
To capitalise on these opportunities, trust and corporate services providers need to stay abreast of regulatory changes, invest in technological advancements, and address the evolving needs of a diverse clientele. By doing so, they can ensure continued growth and relevance in a dynamic market.
As the trust and corporate service market continues to evolve, we believe that the firms that prioritise regulatory compliance, embrace digitization, and align with clients’ changing preferences will be best positioned for long-term success.
At Victus Search, we understand the importance of having the right talent to navigate this evolving landscape. We’re committed to helping our clients build teams that can adapt to the changing regulatory environment, leverage technological innovations, and meet the growing demand for ESG-compliant services.
Our recruitment expertise and robust global network allow us to connect trust and corporate service providers with professionals who have the skills and experience to drive success in this developing and challenging market. Contact us for an initial consultation to learn more.
Whether you’re looking to fill a specialist role, or seeking the right position to deploy your unique skills and experience, the first step is to get in touch with one of our expert consultants.
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