Doug Morgan, SunGard
"This is a natural extension of SunGard's current transfer agency capabilities."
New York - SunGard is expanding its transfer agency capabilities by adding a full-service industry utility offering to its managed services suite. The key catalyst for this expansion is SunGard's acquisition of the US long funds transfer agency business from Citibank, N.A.
Since the financial crisis, sub-accounting and new regulatory requirements have driven a number of financial institutions to rationalize their transfer agency functions, increasing their focus on, and investments in, such capabilities as fund accounting, administration and custody. Through its dedicated transfer agency utility, SunGard can provide asset managers, third-party administrators (TPAs) and custodians with an independent service that does not compete with their own core competencies while offering the scale advantages of a large, global service provider.
"The ramifications of the financial crisis have asset managers and TPAs 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," said Frank Strauss, Principal, Beacon Consulting Group. "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."
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."