SunGard has added a new transfer agency utility to its suite of managed services in the US, offering independent support to asset managers, third-party administrators and custodians.
The technology offers firms the scale of a global service provider without imposing on their own core competencies, and allows SunGard to deliver additional efficiency that smaller service providers can struggle to achieve.
The service is supported by new technology, including same-day processing, and is designed to meet the specific operational requirements of various investment products.
SunGard is also investing in hardware, infrastructure and software upgrades in order to support future products and to further expand transfer agency offerings around the world.
The new utility comes as a response to the changing dynamics of the service industry, and partly as a result of SunGard’s acquisition of US long funds transfer agency business from CitiBank.
According to a statement from SunGard, in the years following the 2008 financial crisis, sub-accounting and new regulatory requirements have driven many top-tier financial institutions to rationalise their transfer agency functions. Consequently, firms are focusing more time and investment on capabilities like fund accounting, administration and custody.
This launch comes only weeks after SunGard released its industry utility for derivatives processing, a service that helps global capital markets firms to adapt to new market challenges and cost pressures.
Barclays was the first customer for the utility, migrating some futures, OTC derivatives clearing operation and technology processes to the utility.
The transfer agency solution reflects the next step in SunGard’s plans to provide a full spectrum of capabilities to the financial services industry.
Doug Morgan, president of SunGard’s institutional asset management business, said: “This is a natural extension of SunGard’s current transfer agency capabilities and will help reinforce our position as a leading provider of managed services to financial institutions.”
“We continue to invest in new and enhanced technologies while helping to ensure a seamless customer experience, and believe this new business model will result in improved services and features for our current and future customers.”
Frank Strauss, principal of Beacon Consulting Group, added: “The ramifications of the financial crisis have asset managers and third-party administrators reviewing their service models. Increased expense pressure, a focus on institutional assets, industry factors and antiquated platforms have resulted in a re-evaluation of whether the transfer agency function is still a viable offering for them.”
“All the while, market dynamics are driving an explosion in new products and jurisdictions, so a neutral transfer agency utility could be well received by the market at this time.”
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