Mitsubishi UFJ Trust and Banking has created a FinTech division for its MUFG Investor Services business after acquiring post-trade start-up Point Nine.
Following competition of the acquisition, Point Nine will be rebranded as MUFG Investor Services FinTech Limited.
The Cyprus-based FinTech firm provides outsourced operations, processing and post-trade reporting for both buy- and sell-side firms.
“The Asset Management & Investor Services Divisions of the Trust Bank, aim to become an “unparalleled industry leader in Japan as well as a global player boasting significant presence overseas,” Mitsubishi UFJ said in a statement.
“In order to achieve this goal, MUFG has been pursuing growth, centred around the Trust Bank, through inorganic investment, as well as enhancing its investor services capabilities and competitiveness.
The acquisition is an extension of MUFG Investor Services’ partnership it signed with Point Nine last year where it expanded its middle-office and business process outsourcing (BPO) technology.
Middle-office services have 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.