Northern Trust is set to roll out a new asset servicing technology architecture that will sit on top of its existing custody and fund administration platforms.
The event-driven architecture, called Matrix, will aim to centralise all of the data captured by underlying custody, fund administration and transfer agency platforms.
Speaking to Global Custodian, Pete Cherecwich, head of corporate and institutional services for Northern Trust, said Matrix will become Northern Trust’s “single point of truth” for all of its data.
“For transfer agency in Europe we have two platforms – Multifonds for offshore and Icon for UK. Matrix sits on top of those platforms. As an event-driven architecture, as a data fabric, all of the data will go through Matrix, becoming our single source of truth and connected to both Multifonds and Icon,” said Cherecwich.
“When a trade comes in, it will come in through Matrix and will then shoot to all of the underlying platforms. It separates the interaction of the data from the underlying fund accounting and other systems.”
The platform, which is set to go live at the end of the year and be fully rolled out at the beginning of 2020, will also help Northern Trust significantly reduce workflow costs and increase productivity through the automation of transfer agency data.
“We see it as a win/win for ourselves and clients, and as competition in the marketplace has evolved from focusing on custody and fund admin base, and now on middle-office and servicing the shareholders, we feel it has become a battleground we are well-positioned for,” adds Cherecwich.
Matrix will be added to the bank’s current product array for its custody and fund administration clients, and Cherecwich explains once the data is completely automated, it can begin adding analytics services and new technologies onto the platform.
“Before you have the capability to do machine learning, you need a structure to put AI on top of it. Part of this transformation is using Matrix to get all the data which can then facilitate AI tools.
“When you have more access to data in real time, you can provide better analytics and tools which can become new products for our clients.”
Last year, Northern Trust signed a multi-year transfer agency deal with Swiss technology vendor Temenos, to help modernise the bank’s transfer agency technology. Northern Trust has also used the Temenos Multifonds Global Investor platform to support the migration of funds it acquired after the purchase of UBS Asset Management’s fund servicing units in Luxembourg.