Simplifying Complexity: The New Differentiator in European Fund Servicing
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Ahead of the Global Fund Summit Luxembourg 2026, we sat down with Karl De Borger, Head of Sales & Relationship Management at KBC Securities Services, the official dinner sponsor of this year’s summit. From accelerating consolidation and the rise of private assets to the operational realities of cross-border expansion and tokenization, Karl shares his perspective on how European fund services are evolving, and what it takes for market participants to scale successfully in an increasingly complex landscape.
Trends Transforming the European Funds Landscape
I believe the European funds industry is going through a big transformation. I would highlight four trends. First, consolidation is continuing as firms look for scale to deal with growing regulatory demands, the investments needed in new products and digitization, and fee pressure. Partnerships and acquisitions are becoming an increasingly logical response.
Second, the shift to passive funds and ETFs continues to accelerate. This is pushing active managers to differentiate themselves more through expertise, innovation and clear added value. The emergence of actively managed ETFs is an additional interesting trend here.
Third, the further digitalization of the value chain, from distribution to reporting and data management, also creates new opportunities for efficiency and a better customer. Tokenization will take that transformation a step further.
Finally, we see a growing interest in private markets and alternative investments, driven by the search for diversification and additional return potential.
Taken together, these trends are changing the rules of the game. Companies that can combine scale, expertise and a strong customer focus will be best positioned to succeed.
Digital Gateways: Redefining Market Relationships
We believe blockchain technology has the potential to significantly transform financial services by enabling assets to be digitally represented, securely held and transferred. As clients increasingly manage these digital assets through digital wallets, those wallets may evolve into a new gateway for investing. This could gradually reshape the relationship between asset managers, distributors and investors.
In the long term, we believe asset managers will not only create investment products, but may also embed expertise such as investor profiling, asset allocation and portfolio rebalancing into digital services. Distributors will remain essential in offering clients a trusted, compliant and user-friendly environment, while connecting them to a broader range of assets and services. Investors can benefit from easier access, greater personalization and more flexible investment solutions. The challenge for the industry will be to combine innovation with trust, security and regulatory compliance.
Cross-Border Growth: Overcoming Operational Complexity
As firms expand internationally, operational complexity often grows faster than anticipated. One of the biggest operational challenges is the lack of standardization across jurisdictions. We see this most clearly in private markets and alternative investments. Different regulatory requirements, local market practices and approval processes make it difficult to automate workflows and inevitably slow down time to market.
At the same time, local legal and regulatory requirements continue to create additional reporting and compliance obligations, even for products operating within a European framework.
The expansion of private markets and alternative investments is increasing the operational burden on depository banks, requiring more sophisticated controls, oversight and ownership verification processes throughout the investment value chain.
The increasing importance of high-quality data is another challenge. As firms collaborate with multiple service providers, ensuring consistency, accuracy and timely access to information becomes essential.
In my view, the ability to simplify complex processes while maintaining strong oversight will be one of the key differentiators for firms looking to scale successfully across markets.
KBC Securities Services at Global Fund Summit 2026
The Global Fund Summit Luxembourg is one of the leading gatherings for the European funds industry, bringing together professionals with different perspectives from across the investment ecosystem. I see it as a valuable opportunity to engage in meaningful conversations about the challenges and developments that are shaping our industry.
What I particularly appreciate about events like this is the chance to step back from day-to-day activities and exchange views on how the market is evolving. The industry is going through a period of significant change, driven by technological innovation, changing investor preferences and the continued development of private market solutions. Hearing how others are addressing these developments often provides valuable insights and helps challenge existing assumptions.
By participating in these discussions, I hope to gain a deeper understanding of where the market is heading and to contribute to an open dialogue on the future of fund services in Europe.