State Street Bank Review 2024

State Street Bank & Trust company, one of the oldest and most well known accounting and mutual fund management firms in the United States, falls into the category of a custodian bank, managing huge pension plans and institutional assets for large scale corporations.

The Company

State Street Bank can trace their roots all the way back to 1792, and they have spent the last 200+ years building up a financial services empire. With their primary headquarters located in Boston, Massachusetts, State Street Bank & Trust is one branch of the larger State Street family that includes State Street Global Advisors (SSgA) as well as investment solutions services. Customers of State Street Bank range from mutual funds, collective investment funds, and insurance companies to non-profit organizations, operating companies, and public and corporate pension funds.

Description and Features

Throughout the years, State Street Bank has offered a really wide and diverse range of financial services, changing their focus of ideal clients as they evolved and grew. In fact, the company has changed significantly over the last 25 years to completely eliminate nearly all of their regional retail and commercial banking services in order to specialize in large scale fund accounts.

Of the few banking locations still in business, customers appreciate that rates are kept relatively competitive and minimum deposits have remained at $100 for basic free checking accounts. The biggest drawback to State Street Bank, it seems, is that the corporations focus is not on the retail banking department, which means that less money and development goes into ensuring that customers have the best services.

Investment research & management
Trading services
Investment servicing
Asset custody and management services
Mutual fund & pension processing

Advantages & Benefits (Pros)

Many people believe that if an institution has the ability to withstand the test of time, then they must be doing things right. One of the key benefits that State Street Bank has to offer clients is a reputation for endurance. Being the second oldest financial institution in the United States really says a lot, and State Street has obviously learned how to do a good business over the years. Even through major company changes, which have included acquisitions, mergers, and court battles, State Street Bank is still standing firmly in place as a well-known name in the financial services industry.

Secondly, State Street Bank truly has a widespread and global presence, making international transactions and trades possible for their customers. With employees and offices operating out of nearly 30 countries all across the world, it seems that State Street Bank makes a great choice for those corporations and individuals who require oversees holdings and transaction availability.

Problems and Complaints (Cons)

The first negative of State Street Bank is the limited number of retail branch locations and options. Because the retail banking division of the State Street family is really not a priority, customers seem to receive the raw end of things when it comes to getting new features and expanding locations. On the other hand, those seeking to use other services that State Street offers receive excellent features but have to meet high minimum requirements for becoming a customer. Because their primary market is extremely large scale investors, corporations, and organizations with huge mutual and pension funds, it is nearly impossible for small to medium sized business owners to get their foot in the door.

Secondly, over the last decade, State Street Bank has made major moves to outsource many of their jobs to India, and other oversees locations. While this may help to keep State Street’s labor costs low, it seems to have negatively impacted their customers. From the language and communication barriers that exist to the much more complicated process of transferring among departments, State Street has lost some of its appeal.

Final Opinion

Overall, State Street Bank seems to be a company that is well suited to service the largest of pension accounts extremely well and has a decent retail banking system if you live in the select areas where there are branch locations. Due to their strong international presence, their massive workforce availability, and a large amount of assets at their disposal, State Street Bank really is a great choice for mega clients who need accounting and asset management services. On the other hand, State Street Bank seems to be inconvenient for retail banking customer who travel and need multiple branch locations as well as asset managers who wish to employ someone to oversee their small to medium sized mutual fund and pension accounts.