HSBC Led the Indonesian Custody Banking Business up to May 2022

The trend of customers’ interests in investment shown significant increment as the increased numbers of mutual funds ownership. According to Infovesta’s data, total number of custodian bank management in Indonesia reached up to IDR 550,87 trillion as per May 2022. From 18 custodian banks, the top 5 banks are dominated by foreign banks. HSBC Indonesia has managed IDR 88,77 trillion, followed by Standard Chartered Bank, Citibank, CIMB Niaga Bank, and Deutsche Bank AG. Bankers are optimistic about the custodian bank business will continue to grow despite the global economic uncertainty.

Ali Setiawan, the Managing Director, Head of Global Markets & Securities Services HSBC Indonesia stated that external factors such as inflation, changes in interest rates and other market indicators are highly influential over the trust and decision of domestic and foreign investors. Ali said, “All the said factors subsequently will affect number of transactions, investment pattern, and type of asset which will be administered by the custodian bank. Our strategy is to always focus on the need of customer and capital market investors, predominantly in facing the current market conditions”.

HSBC continuously holds partnership with the relevant authorities and other stakeholders to support the growth of Indonesian capital market. Furthermore, HSBC is very confident towards the growth of managed funds, notwithstanding the adjustment to market condition, investor needs, and other external factors. “HSBC always strives to be at the forefront in serving the customer needs, by providing the best solutions in accordance with the market development and existing laws and regulations. To achieve that, HSBC continues to develop the human resources and infrastructure, in order to support the improvement of capacity, product services, and capital market regulatory development”, Ali added.

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