GLOBAL - BNY Mellon Asset Servicing, the investor services and custody provider, is extending the use of its technology to create a dedicated outsourcing business alongside its growing data delivery and information management.
Officials said the recent market turmoil has "accelerated the appetite for outsourcing" as firms, institutional investors and pension funds are keen to focus more on core competencies and outsource the functions which might not be best-suited to their skillset, especially if it could bring cost savings through external management.
BNY's outsourcing service is expecting to combine back office functions such as administration and recordkeeping with the transactional and settlement division of the middle office through a single platform, which can also handle several books of business.
The firm already owns a technology company for data management which it bought in 2001, known as Eagle Investment Systems LLC, so it is adapting the roles of its key people to take on the additional business, product design, architecture and implementation.
Lou Mariuri is giving up his role as chief executive of Eagle in January but will continue as chairman and become global head of outsourcing at the parent group, answering to Jim Palermo and Tim Keaney.
John Lehner, currently Eagle's president, will take over as CEO from 1 January.
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