BNY Mellon connects custody capabilities with SimCorp to improve data transparency

Written by Ruby Hinchliffe
9th December 2019

The Bank of New York Mellon Corporation (BNY Mellon) has connected its custody capabilities with SimCorp Dimension.

The global investment firm’s settlement, safekeeping, and cash and securities services will all undergo operational efficiency changes and see “greater data transparency”.

BNY Mellon and SimCorp expect mutual global clients out of the partnership

Expecting mutual global clients out of the partnership, the two companies say they will pursue a shared roadmap to deliver the open architecture to all their customers, who will now benefit from “streamlined system-to-system data flows” and “optimised data sets”.

BNY Mellon and SimCorp aim to automate as much of the investment lifecycle as they can so to reach higher reconciliation match rates. This means buy-side clients can see “sharper” insights into the deployment of cash and securities, according to a joint company statement.

SimCorps’ senior VP of strategy and Corporate Development Johan Rosengreen-Kringel says the investment management system “enhances the timeliness and accuracy of information”.

“We firmly believe that this flexibility, combined with our highly automated front-to-back investment lifecycle and open integration with service providers, will greatly benefit clients,” he adds.

The companies also expect better transparency and availability of corporate actions and tax reclaim data will drive “more informed investment decision-making”.

“Our collaboration with SimCorp offers significant opportunities for clients around the globe to improve their performance through enhanced data flows and to eliminate inefficiencies,” says BNY Mellon CEO of EMEA Asset Servicing Daron Pearce.

He adds: “It further demonstrates BNY Mellon’s open and cooperative approach to navigating the digital future of the investment industry, working alongside clients and together with other service providers to develop flexible, insightful and effective solutions.”

BNY Mellon leads quite a few of its technology initiatives out of India, where the investment firm is doing more end-to-end work with 7,000 employees spread across Pune and Chennai. A number of change and transformation programs in asset servicing operations across custody and accounting, which include a heavy amount of automation, according to The Economic Times.