At what point do you stop referring to someone as a ‘rising star’? In the case of Mostapha Tahiri, probably at the point of being credited with transforming multiple business units, holding numerous C-level securities services titles and landing the COO role at one of the world’s largest custodians. Shall we just say ‘rising star’?
Once named as one of 30 people by Global Custodian who would shape the future of the industry, Tahiri has delivered on that promise. He was widely praised for his work for BNP Paribas Securities Services in Asia, transforming the unit before landing a similar role at State Street in the region. Just a few years later he was named chief operating officer of State Street by CEO Ron O’Hanley.
The rationale was clear, Tahiri had amassed the knowledge, the client experience, the international exposure, and the product development from his vast experience to become perfectly suited to the role.
“The reason I came in was to align tech and ops under a client-centric view, accelerate the transformation of operational technology, and reposition tech and ops as the heart of this company. Because, at the end of the day, that’s what we do and what we sell.”
Tahiri’s career started in the tech and operations world, which when merged with his career path which has wound through fund services, outsourcing, digital transformation, product and running regional units, made him an ideal candidate for the COO role and O’Hanley’s vision of alignment.
If you’re an avid listener of O’Hanley’s earnings calls – like I am – you’ll have heard him wax lyrical about the changes to the operating model in recent quarters, emphasising the focus on this part of the business.
Enterprise transformation
State Street is well known for both its technology and operations, but for Tahiri it was all about the alignment and creating a fusion between the two and supporting client outcomes and deliverables. Not in a client versus provider mindset, but as joint teams working together.
“We had an existing transformation program of work, and the team was already delivering on that,” he explains. “The focus was on how we could accelerate and crystallise around the client, and make sure we lead with our operating model as a differentiator and competitive advantage. How do we bring the end-to-end client experience into that design? And how do we move from a reactive mindset to one that designs and leapfrogs market needs?
“I knew we had a very competent team and a very client-centric culture, but when you step into the role, you realise the potential is even higher.”
Tahiri helped extend the existing transformation endeavours into what the organisation now calls “Enterprise Transformation,” which he now leads, looking at a holistic transformation of the firm’s operating model.
“You’ve got the client operating model, and now we’re building the State Street operating model – because to be a high-performing organisation, all your engines must fire together, including corporate functions like finance, marketing and HR,” says Tahiri. “We’ve moved from verticals to horizontals.”
It’s a fascinating time for Tahiri to be stepping into the role. There are pressures on the largest custodians to continuously invest and evolve in order to keep winning in an industry that requires scale.
The technological revolution
The enormous technological transformation occurring before our eyes is requiring firms to embrace automation, AI and other new technologies to future proof the business. It’s not cheap, it’s not easy, but it is essential.
Having someone like Tahiri at the helm of this transformation having ‘risen’ through the ranks via operational roles is a huge boost to State Street and undoubtedly part of Hanley’s thinking in plugging him into the role.
“We’re still exploring AI, DLT, and how to use them. But we’re not starting from scratch,” explains Tahiri. “We’ve had a multi-year simplification program, dealing with the legacy of our business – things like acquisitions, lift-outs, and multilocal growth. Technology now allows global platforms and processes, but many of us are still sitting on legacy systems.
“People outside the industry sometimes think it’s just a matter of plugging in AI and it works. It doesn’t. You need to prepare your infrastructure and operating model to host AI. The good news is we’ve been doing that for the past three years.”
State Street has two bodies of work going on simultaneously – one is the tech modernisation program which includes investments into cloud, reducing data centres, reengineering custody systems, and integrating across the value chain.
The other is the servicing side – integrating global operations and driving automation. Tahiri highlights that State Street has been able to reduce reconciliation work by 40% and manual processes by 60% using AI.
“What’s changed now is that we’re moving to an integrated end-to-end operating model focused on the client experience. We no longer think in silos like ‘reconciliation’ or ‘transactions’ but focus on outcomes like delivering a NAV. We ask: ‘How integrated and frictionless is that model? What kind of data are we sharing with clients?’.
“It’s not just about cost reduction – it’s about product superiority, timing, risk, and delivery.”
AI everything, everywhere, all at once
The next phase involves State Street’s flagship Alpha, again using AI and integrated tech to remove friction. By doing this the custodian aims to offer real-time cash forecasts, front-office transaction statuses, and data integration.
“We call the next phase AI Everywhere. AI is not just tech it is the way we’re going to drive our business going forward. Every unit will need to develop and own its AI strategy, from marketing to research, to productivity, to operations. Our tech team is becoming more of an advisor, showing what’s possible while the business units own execution.”
Tahiri recognises State Street’s position as a trust bank so insists they are resisting the urge to pursue too many use cases and big on few things with clear ROIs. But the technology is going to stretch to business origination, interactive with clients and, of course, operational excellence.
He adds that State Street will use its own organisation as a testbed, training AI in a safe environment before the firm takes it to clients.
In doing so State Street has created an internal consultancy organisation headed up by Michelle Auchincloss, who is also global head of strategy and M&A.
The consultancy unit will support State Street’s own projects and business units, initially internally focused, but over time could evolve to work end-to-end with clients. This team could then work upstream with clients to help both sides capture value.
“That’s how partnerships are evolving,” says Tahiri. “Our clients are saying, ‘I need you to help me with my AI revolution’ and we’re uniquely positioned because we have their data, we manage their operations, and we’ve done this at scale. So they don’t have to experiment and fail; they can learn from us.
“When clients see that we’re already doing it successfully, they gain confidence. It becomes a key point of credibility.”
A changing dynamic
On the topic of clients, I was interested to ask Tahiri about the changing dynamic between custodian and asset manager. Multiple players have told Global Custodian that conversations which once happened with COOs are now happening more with CEOs and CIOs. For State Street I was especially interested as the conversations around Alpha may also bring different stakeholders to the table.
Tahiri shows his excitement in saying “it’s all of the above – that’s what makes it interesting!”.
“There are two major shifts in our industry,” he highlights. “Initially, it was procurement-driven: sales would select a provider for back-office services, negotiate a fee, and we’d deliver. Then we started engaging with CIOs through risk analytics and front-office tools like CRD. That conversation became more important when we moved into front-office support.
“Next came marketing – especially in areas like transfer agency analytics – because they needed data for investment decisions and client engagement. So, performance and reporting for end-clients brought the CMO into the conversation. As a result, the product offering had to meet marketing standards, not just operations.
“With Alpha, the decision became enterprise-level. Implementing a front-to-back, integrated offering like Alpha is a once-or-twice-in-a-career decision for a CEO. So now we’re engaging at the board level. Boards want to understand risk, partnership models, and long-term implications.”
On top of these Tahiri also speaks to the rise of the CRO [chief risk officer] due to heightened focus on resiliency and cyber risk, another huge point of change for the operations of custodians.
“Fifty percent of the RFPs we see today focus on resiliency and cyber,” Tahiri explains. “Regulators are asking clients to own their third-party risk management. So our ability to articulate our resiliency and cyber frameworks is now a competitive advantage, not just a compliance requirement.
“We’ve invested heavily in our risk, resiliency, and cyber capabilities—not just to meet obligations, but to lead in that space. It’s now a differentiator in client selection. We’re advanced, and that gives us an edge.
“That’s why everyone – from our CRO to our CIO to our COO – is now client-facing. Clients want to hear from the full leadership team because we collectively represent their operating model. We’re part of their risk profile and resiliency framework, and it’s our integrated capabilities that drive confidence.”
One State Street
Tahiri’s rise through the operations ranks and his ensuing roles gives him a unique understanding of the objectives State Street is trying to achieve. He’s a very personable character who has been commended throughout the industry by peers and former colleagues alike.
Taking on the COO role is a big opportunity at a special moment in time where the focus is no longer about cost cutting but driving innovation and working closer than ever with product and coverage teams. As Tahiri puts it, new ideas are coming from the delivery floor, not just client requests.
Next on the agenda for State Street’s executive leadership team—including Tahiri—is the building of the “One State Street” approach across asset servicing, asset management, and capital markets, which he describes as both exciting but a great responsibility.
He understands the task at hand and is ready for the challenge.
“Clients commit for ten years, not three. So they perform deep due diligence. They want to know we’ll still be a winning partner in 10 years. They want alignment. They want to trust our vision. They want confidence that we’ll adapt as needed,” he concludes.
“That long-term commitment – especially in Alpha – was something I hadn’t fully appreciated before joining. It’s intimate and strategic, and it creates enormous opportunity to keep innovating, keep solving, and be the essential partner, not just one of many providers.”