MUFG expands middle-office outsourcing services with tech partnership

Middle-office services has been identified as a key growth target by custodians.
By Joe Parsons

MUFG Investor Services has partnered with Point Nine outsourcing platform, Circle, to enhance its middle-office capabilities. 

The partnership will expand MUFG’s business process outsourcing (BPO) technology offering, in response to increased outsourcing and data demands from fund managers.  

“As our clients navigate new regulations and respond to technological trends, they’re increasingly relying on trustworthy partners that prioritise efficiency without sacrificing intelligence and oversight,” said John Sergides, global head of sales, MUFG Investor Services.

“Our partnership with Point Nine will bolster our BPO capabilities as its platform offers complete transparency into the operational domain.”

MUFG Investor Services first introduced middle-office outsourcing services in 2015, and adopted technology platforms from Omgeo for post-trade transaction management and Advent’s Syncope for margin and collateral management solutions.

Middle-office services has been identified as a key growth target by custodians, as reporting and data pressures on fund and asset managers have encouraged outsourcing partnerships. BNY Mellon and JP Morgan have been among those custodians that have invested heavily into their middle-office services. 

Last year BNY Mellon hired outsourcing veteran Teresa Messina as head of middle-office solutions, joining from Goldman Sachs Asset Management.

Most recently JP Morgan partnered with post-trade technology firm Arcesium to use its middle- and back-office software for its fund administration business. 

However, a recent study by Oliver Wyman and BNP Paribas Securities Services suggested middle-office outsourcing is less likely to be adopted by firms as “some banks find it difficult to segregate tasks from the front-office.”

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