Katelyn O'Grady is quick to challenge the perception of custodians as commoditized, back-office administrators.

In her over 18 years working in the custody business at BBH, she has seen just how specialized and dynamic the space is when it’s done well.

“People often see custody as a standard back-office process. In fact, it is a complex, ever-changing and unique business where you can face complex client challenges every day,” she says.

O’Grady credits her long tenure at BBH to the fact that each day is different and interesting, along with the people with which she works.

“I didn’t necessarily see financial services as my lifelong dream job,” she says. “Then BBH was my first interview and my first job offer and I’ve worked here ever since. The culture, values, and dedication to clients really resonated with me then and continues to be a huge part of why I stay.”

Learning by doing

After joining BBH, O’Grady found herself on a “huge learning curve” as she started out in corporate actions and moved into custody, areas of finance not typically taught in school.

“I love having the opportunity to learn something new every day.”

O’Grady now channels her passion for learning into teaching and finds managing and mentoring others to be one of the most rewarding parts of her job. “Like me, many of our hires are coming straight from college. They’re learning the company, the industry, custody, and how to be a professional in the workforce all at the same time. Coaching them and watching them achieve their own successes is great to see.”

Industry engagement

Natural curiosity and dedication to the business have led O’Grady to participate in a number of industry forums such as ISITC, SIFMA, and AGC.

“There are a lot of opportunities to work within the firm but also to spread out into the broader market and network which can allow you to influence the way industry standards are shaped in areas such as corporate actions,” she says.

O’Grady notes milestones such as being a part of the BBH team to work with DTCC on the impacts of the 1446(f) tax regulation in corporate actions and other custody areas as an industry impact she’s proud of.

Navigating today’s challenges

This is a time of huge change for both the investment and asset servicing industries. After the shift to T+1 settlement in the US, Canada, and Mexico last year, plans are well underway to replicate this transition in Europe in October 2027.

O’Grady urges investment firms to engage early with industry counterparts and make sure they are prepared for the changes. One important area of concern O’Grady flags within T+1 is inventory management.

“Many cross-border settlements take place across European Union countries and the UK. Under T+1 investment counterparties settling across two different markets will need to be fully aligned in a highly timely manner. In our view, position alignment and inventory management will be important to consider to avoid trade fails under the new T+1 regime,” she says.

Looking forward

Within the wider market, O’Grady believes the twin forces of regulatory impact and technological advancements will continue to be huge drivers of change for the investment and custody businesses.

In a world where many firms still rely on core legacy systems, O’Grady says custodians must now find original ways to keep pace with the speed of change and client demand on those platforms. One of these ways is through the use of emerging technologies such as artificial intelligence (AI).

She recognizes that custodians are often challenged with maintaining and adapting legacy technology. Custody is one of the longest-standing areas of the financial industry and some platforms still in action today are upwards of 30 years old. Figuring out how to maintain and enhance in a cost-effective way, while also exploring new areas can be a challenging intersection for banks.

And for global custodians like BBH, there’s the added component of creating scalability and integration for clients while also helping the firm be efficient internally.

“We are charged with integrating technologies such as machine learning and AI with older systems, which is often far from straightforward. The speed with which clients are making investment decisions means the need to be able to see real-time data upon the completion of those investments is also becoming ever more critical.”

“BBH has been proactive with our internal approach to these challenges,” she says. “For decades now, it's been a constant focus on automation and scalability. Our global focus around providing subject matter expertise where it’s needed, especially in this heightened regulatory landscape, is also a differentiator. It’s not just providing servicing but also providing education. Change is faster paced now. We help our clients through it.”