Front-to-Back-Office Systems and Custody Partnerships: Who Benefits?

Aite Group has identified two approaches to front-office systems: the data exchange approach and the full-service model.

London, 26 January 2021 – Providers of both technology and services have looked to benefit from their scalability and improve not only the breadth of their services but also the depth of integration between asset management’s IT and data architectures and those of third-party providers. This has led to the new trend of front-office or front-to-back portfolio management systems announcing “closer” partnerships with the major asset servicing players. But what do these new partnerships and the various outsourcing models mean for buy-side institutions?

This report highlights the various models available for outsourcing and compares the current and future state for these models, including how technology providers and asset servicers are making their integrations, which operating models are most viable for the buy-side, and what asset managers’ operating models could look like in 10 years. It is based on Aite Group interviews conducted with the vendor community, the asset servicing community, and buy-side institutions globally between August and December 2020, and it profiles BlackRock’s Aladdin Provider, BBH’s Infomediary, Bloomberg’s Asset and Investment Manager, Societe Generale Securities Services’ CrossWise, and State Street’s Alpha.

This 27-page Impact Report contains eight figures and two tables. Clients of Aite Group’s Institutional Securities & Investments service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions: BlackRock Aladdin, Bloomberg, BNP Paribas Securities Services, BNY Mellon, Brown Brothers Harriman, Citigroup, HSBC, JP Morgan, MSCI, PIMCO, Qontigo, Schroders, SimCorp, Société Générale Securities Services, SWIFT

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