EUROPE – Dutch bank ING has launched its previously announced European global custody services alliance with Bank of New York.
They said that ING/BNY Securities Services would be an independent brand, headed by Eric Orlans, a former member of the management committee of ING Investment Management Europe.
“This alliance will focus on sales, marketing and delivery of global custody and related services, such as compliance monitoring, investment accounting, performance measurement and portfolio analytics to institutional clients in the Benelux, Germany and Central and Eastern Europe,” the two companies said in a statement.
In Germany the alliance will offer depot-banking services via ING's BHF Bank subsidiary.
Richard Hogsflesh, managing director of custody consultants R& M Consultants, says the move is a logical one and is similar to ING rival ABN Amro’s 50-50 securities services alliance with US-based Mellon Financial.
He said such an alliance was an effective way for US banks to break into the European market. “The marketplace is still pretty dynamic at the moment,” he added.
The two banks announced their intention to form the alliance in October last year. BoNY makes no secret of its growth ambitions, and has targeted Europe for “strategic growth opportunities”.
They said the alliance, ING/BNY Securities Services, would combine ING’s local presence with BoNY’s product expertise.
The alliance will be staffed by ING and BoNY executives. Its first client will be ING Investment Management in the Benelux. ING is to channel most of its custody requirements to BoNY.