U.S. Bank has been a leading force in the corporate trust business for decades – its tireless commitment to clients, attention to product development and investment in cutting-edge technology have created a global powerhouse. This year the bank once again took home US CLO Trustee of the Year, while its rapidly growing European business won Securitization Trustee of the Year.
U.S. Bank has a century of corporate trust expertise in the American market and has been a cornerstone of the investment servicing business in Europe for more than a decade. Stellar growth and unrivalled market share characterise its experience in both regions. “We have a business that spans the globe, providing trustee and agency services to the asset and mortgage-backed markets, CLO markets and corporate and municipal markets,” says Joe Nardi, co-head of Global Corporate Trust and Custody at U.S. Bank. “Across the US and Europe, we maintain a market leadership position in all the product sets we manage.”
The firm’s European operations – initially focused on securitization – have extended into corporate and loan formats to support global clients expanding into the EU. Rising demand for U.S. Bank services has seen its hubs in Ireland and London expand. In the US, there has been rapid growth in the firm’s structured and CLO products, where it enjoys a peerless market position. In 2023, U.S. Bank had more than 40% of the global CLO trustee market, and more than 30% of the US ABS/MBS market – well clear of its nearest competitor.
U.S. Bank has built its leading franchise through diligence, hard work and strategic investment. Throughout years of exponential growth and evolution in the capital markets, U.S. Bank has adapted to provide clients with a one-stop-shop solution across the US and European corporate trust landscape. Technology is key to the trustee business, and across every product and process the firm has made sure that its digital platforms are second to none – managing data on a real-time basis, providing transparency and creating single points of accountability.
Client relationships at the core
“Smart investment and a commitment to improve and enhance across the product set is definitely something that we pride ourselves on,” says Tom Cubitt, head of U.S. Bank Global Corporate Trust Europe. “But the most important area where we differentiate ourselves is in our dedication to superior client service.”
“This is still, above all, a people business,” adds Cubitt. “Providing excellent trustee service is critical but, we want to be seen as trusted partner to our clients. That involves daily interaction to really understand what clients need, and we design our relationship strategies to match those needs.” U.S. Bank’s league table dominance is a clear reflection of its success. But the volume of repeat business the firm receives is an equally important metric.
For Nardi, it is the focus on client retention that leads to market share and league table position, not the other way around. The trustee business is, after all, a competitive market with multiple providers. Clients have freedom of choice from transaction to transaction. “For us it’s not just about the volume of mandates throughout the year, it’s the volume of repeat clients who are coming back to us with their second, third and fourth transaction based on how well we’ve delivered,” says Nardi. “When you see clients return again and again, that’s a strong affirmation of the quality of your operation.”
The way that U.S. Bank’s pool of clients continues to grow reflects both exceptional levels of customer retention and the array of services the firm provides. Banking, lending, custody, fund administration, treasury management, foreign exchange – U.S. Bank’s customers enjoy solutions tailored across products, regions and regulatory regimes. Its model is best described as locally oriented and globally integrated, combining specific, in-depth expertise with worldwide scale. “U.S. Bank has one of the broadest product suites in the industry. Our existing corporate clients can take advantage of trust services for debt capital market issuance,” says Cubitt. “Or we might win mandates from clients who really appreciate that we can provide all those banking support services through other parts of the firm – it’s a holistic approach to finding ways to add value for clients.”
Looking ahead
The same priorities that have served U.S. Bank so well throughout the years ensure a bright future. The firm will continue directing capital toward key technology investments that improve its operations and the experience of its clients. “Reporting and the transfer of data between us and our clients is such a crucial part of the business,” says Nardi. “The faster and more accurate these processes are, the better off we are going to be.” Analytics and artificial intelligence capabilities will be scaled-up and innovation will anticipate changing customer needs. The firm also continues to develop and invest in products that help its clients grow and thrive. “But even more importantly we’re going to keep investing in our people,” he notes.
U.S. Bank prides itself on the quality of its staff, ensuring its development programs and collaborative culture build a global workforce more than equal to the task of adapting to a fast-changing market. “We can advance our tech platforms and introduce new products, but that’s not enough if you don’t have the right people sitting in the right chairs. That’s how we build and develop the partnerships that allow the bank to thrive,” Cubitt says.