New Year brings a new race in post-trade progress

With the industry’s marathon now a sprint, a new type of thought leadership narrative is needed to stay on track during rapid change

25 years ago, I came to the UK from SA as a keen journalist with a pair of running shoes and a will to write. I honed my craft in corporate stories, but the back-office operations of financial services, particularly custodian banks, which form the backbone of financial markets by settling securities trades and safeguarding assets, intrigued me. The global nature of the business offered me opportunities to travel and interview many interesting people.

At 22 years old, I excitedly prepared for my first business trip to Paris, Amsterdam, and Brussels to meet some of them. The heroes of the capital markets story are custodians who provide the engine room that keeps it all running, I remember my then-editor Jason Conway telling me. Their core values - resilience, innovation, curiosity, connection, and adaptability - are the bedrock of financial sustainability.

Looking back now, it's perhaps no surprise that I would devote part of my career writing about an industry whose values align with mine. I served as editor of Global Custodian magazine and then in-house for Deutsche Bank Securities Services and BBH Investor Services before being called to a new path - a personal narratives content agency called ThoughtTree Lab – to help senior leaders enhance their narratives as thought leaders.

The need for human storytelling

My reasons are simple. The values that have supported the industry over the last 25 years are straining under legacy systems, and market forces such as digitalisation, changing customer demands, regulation, attrition, and the talent challenge mean that AI and traditional corporate narratives are no longer enough to engage audiences.

Why? Because people buy people.

While new rules need new tools (like I frequently need a new pair of running shoes) it’s useful to look at how the industry’s ability to innovate and adapt has prepared it for a year of dynamic change and why people-centered storytelling is needed to differentiate.

The race to adapt: As the post-trade industry picks up speed, new tools become essential to navigate evolving rules and challenges.

2000-2025: A fast-paced recap

Transition from legacy systems: Like running shoes were built for basic performance and durability, back-office systems started with manual processes and material securities, like bearer bonds. The long road to dematerialisation that began in 1960s persisted into the new Millenium until 2010 when most global securities were held electronically. These systems transitioned to electronic formats, with incremental upgrades to legacy infrastructures rather than complete overhauls. Despite advancements, the core function of settling trades and safekeeping assets has stayed the same.

Adoption of incremental technological innovations: Like running footwear’s pivot toward orthotic technologies and AI-gait analysis helped me run my first marathon in 2006, incremental technologies like AI, machine learning, and robotic process automation (RPA) have been bolted onto existing back-office systems to balance innovation with practicality. These innovations optimize speed, efficiency, and accuracy but don’t fully replace the underlying infrastructure established decades ago.

Influence of regulation and standards: In the same way as athletics bodies have addressed barriers to competition, efficiency, and fairness in running,[1] back-office changes have often been spurred by regulatory shifts. This includes the Giovannini barriers report highlighting sub-optimal starting blocks to efficient cross-border settlement. From this, the European Central Bank’s T2S initiative launched in June 2015 to streamline the highly fragmented landscape in Europe.[2] These mandates have driven the harmonization and streamlining of settlement cycles globally, influencing how technology is applied.

Industry outlook: With core functions staying the same, persistent infrastructure challenges present difficulties for firms in standing out. Personalisation, sustainability, and advanced data-driven designs are shaping the future. In the back office, the future includes more robust digital asset adoption, faster settlement cycles, and AI-driven analytics. By 2025, these technologies are expected to drive fundamental transformations while retaining human-centred decision-making.

My outlook: In both running and post-trade, the blend of incremental innovation and legacy infrastructure has defined their evolution, with upcoming technologies promising even greater transformation.

Looking ahead to 2025, its a pivotal year for technological adoption but the importance of authentic, human-centred storytelling is important. Differentiation in the competitive landscape will depend on meaningful narratives that align with an organization’s purpose and mission, helping leaders resonate with their audience and drive industry transformation.

Human-centred storytelling in 2025 is a response to the limitations of traditional corporate narratives and the challenges of differentiation in competitive industries. The market shifts I highlighted earlier require a more personal, people-focused approach to marketing and brand building. This includes:

1. Humanised storytelling: Traditional marketing struggles to differentiate in a saturated market. Engaging audiences will require authentic narratives that highlight the passions, values, and experiences of senior leaders, connecting their personal stories to their professional impact.

2. Thought leadership: Showcasing the purpose and humanity of C-suite leaders can foster familiarity, trust, and engagement, making brands more relatable and differentiated. Content emphasizing authenticity and human connection performs better than purely product-focused material.

3. Post-Trade industry context: In industries like post-trade, where legacy systems dominate and technological evolution is gradual, differentiation is challenging. While innovations like shorter settlement cycles and digital assets are reshaping the space, leaders can demonstrate adaptability and innovation that will truly drive industry transformation.

As legacy infrastructures persist, the focus will be on incremental updates and the people steering change. Leaders should reflect themselves in their content, making their communication relatable and engaging to drive business growth.

In summary people buy from people, and organizations must prioritize storytelling that humanizes their leaders and connects authentically with audiences.

For more insights on humanizing storytelling, email me: janet@thoughttreelab.com

[1]Governing bodies like World Athletics have introduced rules for shoe design, such as limiting midsole thickness and carbon plate configurations, to ensure fairness in competition. This has influenced how brands innovate within constraints.

[2] T2S was launched in June 2015 as an integrated platform for processing securities transactions against central bank money.