From Processing to Digital Services: How Digital Is Reshaping Securities Services
Securities services are changing quickly. New technology, regulation and rising expectations around digital access are putting pressure on traditional ways of working. Clients increasingly expect more than reliable processing behind the scenes: they also want greater control and easier access to information. Hendrik Van Heuverswyn, Product Manager at KBC Securities Services, explains what that shift means in practice.
Hendrik, what does digital servicing mean in securities services?
“We are a service provider, so an important question is how we make our services available digitally. Our objective is not to push every client towards the same digital model; different clients have different needs. Some clients use tools through a web browser, while larger clients are more likely to integrate their own platforms directly with ours, for example through APIs. An API basically allows systems to exchange information directly. Which model makes most sense often depends on scale. The larger the client and the volumes, the more likely it is that they will use an integration. At a smaller scale, our own digital tooling may be more practical.
We also try to increase straight-through processing: wherever something can be processed directly without manual intervention from our side, digital tooling can help. My role is mainly to look at the strategy behind that. We gather requests from different stakeholders, decide what should receive priority and determine the direction we want to take.”
What is driving the need for more digital services?
“Clients increasingly want more control and more opportunities to handle certain things themselves. They want to understand where a request stands, which data is available, what still requires action and how different services connect. In other words, the conversation is shifting from pure processing to connected servicing. That growing demand for self-service is one of the key drivers behind digital servicing.
At the same time, the infrastructure behind securities processing is changing. Tokenisation and distributed ledger technology could eventually make parts of the process much more automatic. In theory, that could bring the market closer to T+0 settlement. AI is another development we are looking at to simplify processes and improve client experience. In securities services, innovation must go hand in hand with reliability, control and security. Clients trust us with critical transactions, assets and data, so any new technology must meet the high standards required in our industry. That is why we take a pragmatic approach: we focus on innovations that solve real client needs and create value, while ensuring they strengthen the robustness and trust our clients expect from us.”
“A new digital feature may give a client more control while at the same time reducing manual work internally”
Hendrik Van Heuverswyn, Product Manager KBC Securities Services
How do you decide where digitalisation adds value?
“We look at it from two sides. One is the client experience: does a digital solution make it easier to access information, complete a task or gain more control? The other is the operational side: does it reduce manual work, increase scalability or allow our teams to focus on more complex issues? Ideally, we’re able to improve both at the same time.
Of course, there are always trade-offs. Regulation requires a significant part of our investment capacity, and every digital initiative comes with a cost. That is why we prioritise carefully, looking at client impact, operational benefits, scale, investment requirements and strategic fit. Our ambition is to digitalise as much as possible where it adds value, while keeping the human touch.
My role is to help determine where our efforts will have the biggest impact. By weighing client value, business benefits, cost and capacity, we can focus on the initiatives that best support our strategic objectives while continuing to innovate in a sustainable way.”
How does self-service make processes easier?
“There are still processes today that rely on Excel, email or other manual ways of exchanging information. That often means multiple touchpoints, limited visibility and unnecessary delays. While these channels are secure, we want to move towards a more structured and scalable way of working. Self-service does not mean pushing work to the client. It makes routine interactions easier by giving clients direct access to information and actions through a digital environment.
The Digital Inbox for wealth managers and their customers is one example of that thinking. It shows how an interaction can become easier to manage digitally. We are looking at the same philosophy in areas such as user management, case management and corporate actions.
Corporate actions, for example, can still involve quite a lot of manual interaction when shareholders have to communicate a choice. Digital tooling can make those processes more straightforward, traceable and efficient for everyone involved.
The broader principle is simple: automate standard tasks so our specialists can focus on regulation, exceptions and more complex issues. Self-service doesn’t mean we need fewer experts. Human contact remains important. Clients will still be able to reach someone when they need our expertise or support.
We defined a long-term vision for how we want to serve clients in an increasingly digital environment. We call that vision Nexus.”
“Self-service doesn’t mean pushing work to the client. It makes routine interactions easier and gives users more control”
Hendrik Van Heuverswyn, Product Manager KBC Securities Services
What does Nexus entail?
“Operational excellence alone doesn’t cut it anymore. Clients expect real-time information, automation and digital access, but at the same time, they still value human expertise and support. Nexus is our vision for bringing those elements together in one interconnected model that gives clients greater transparency, easier access and continued support when they need it.
Today, clients may still work across different tools, processes and information flows. With Nexus, we want to bring those closer together and create a more consistent digital experience.
Nexus also gives us a foundation to develop our digital products in a more structured way across different propositions and client segments. The evolution will happen step by step.”
“The ambition is to move towards a more connected environment: one access point, one login and more consistency between tools, services and data”
Hendrik Van Heuverswyn, Product Manager KBC Securities Services
