Custody is, as Ann Linder Magnusson puts it, a part of the DNA of SEB. The sector has been a part of the bank’s business since 1888. At Sibos 2025, Magnusson, as head of Investor Services at SEB, took to the stage to discuss the firm’s journey in updating its custody services in the session titled “Modernising Nordic custody: SEB’s transformation journey addressing customers in the sub-custody and private and wealth segment”.
Magnusson was joined on stage by Ankush Zutshi, managing director and head of Software, Enterprise Solutions at S&P Global Market Intelligence.
“I think custody has been quite – I shouldn’t say – stale. There are things that haven’t moved that much over the years but I think there are now changes in this space,” says Magnusson. “We see new instruments being invested in that we need to be able to deal with. The speed, transparency, and access to data will bring new opportunities, but also challenges in processing.” Additionally, as part of the larger digital journey the industry is currently on, tokenised assets and stablecoins are on everyone’s mind.
Cloud gazing
In July this year, SEB announced that it is collaborating with S&P Global to adopt the latter’s cloud-based software-as-a-service (SaaS) platform for the bank’s custody operations across the Nordics. The choice, for some, might seem like a controversial one. Magnusson acknowledged the doubts, saying, “There were many discussions about whether cloud means more risk – does it bring more risk than if we have something on-premise in-house?”
Ultimately, the team concluded that cloud is the futureproof option. If dealt with “the right way”, it could be as safe as having everything in-house.
Never alone
Another appeal of the chosen model is that it would force collaboration. “If you build your own system, you are on your own,” Magnusson points out. “What we are hoping for here is collaboration. We are sharing some of the costs we have for entering the market because there will be others using the same system, even if not identically. We will be able to share, and that’s important to us because the markets are linked.”
Because the collaboration requires SEB to be dependent on what S&P has built, Magnusson emphasised the importance of being “very close to the infrastructure”. She shared some of the questions her team has asked to determine if the platform is fit for purpose. “We are really looking at what the system is supposed to support and do – where are we today and what are the gaps we see? If anyone finds something odd or strange, please press it. Don’t just say yes to things; question it.”
Beneath the surface, the custody transformation at SEB has never been simply about the technology. It’s about knowledge sharing; about the team truly understanding the product and clients. “It’s not only a technology project,” says Magnusson. “It has to be very much connected to the business.”
Sibos 2025 plays out in Frankfurt from 29 September to 2 October, with about 12,000 registered delegates. We are there, overview our coverage here.
