BNY Mellon and Microsoft jointly sell data management platform

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new york mellon bank is taking the next step in its software and data management business.

of New York City Custodian Bank announced in February that they would jointly enhance the tools they offer to clients, including asset managers and asset managers. with Microsoft. Akash Shah, BNY Mellon’s chief growth officer, said BNY will be able to “help customers connect to their data, store and analyze it, and provide insights to make better trading, risk and operational decisions. It is important to be a place where people can trust their customers. .

BNY’s data and analytics division has been around for more than 20 years and serves more than 800 clients, including asset managers, sovereign wealth funds, insurance companies, broker-dealers and registered investment advisors. They connect to third-party data sources, provide application programming interfaces, data feeds, and analytical tools accessible through portals, and can be stored on-premises, in the public cloud, or in a private cloud through Microsoft Azure.

The relationship with Microsoft goes back many years, but the companies announced several features in 2020, including the ability for investment managers to customize portfolios for environmental, social, and governance factors. , the February announcement marks the first joint marketing effort by the two companies. A company sells software to customers. BNY provides its Microsoft advanced analytics software to data management clients. This allows customers to process their own data, combine it with external data already provided by BNY to create one comprehensive view, and use Microsoft’s latest publicly available version to create near real-time You can analyze it with And a private cloud.

This also represents the early stages of a trend in custody banks. JP Morgan launched fusionwill launch a cloud-native data management platform for institutional investors in 2022, leveraging Amazon Web Services as part of its technology stack. State Street Corporation acquired Charles River Development, a provider of investment management front office tools, in 2018.

“Data management is a competitive space and we’re seeing it expand,” said Adler Smith, capital markets advisor at Datos Insights, adding that custody banks are competing with traditional data management players such as Simcorp and GoldenSource. He pointed out that there was.

“While we have worked closely with Microsoft on our core data management platform for some time, it is appropriate for us to announce that we are taking steps to move beyond that and provide the latest technology, cloud, and analytics to enterprises. “We thought it was a good time,” Shah said, to help with data management. “Microsoft typically doesn’t do this and brings it to market with clients as a joint solution.”

This latest version of BNY’s data and analytics platform allows customers to track portfolio performance and analyze investments according to benchmarks and indexes. For example, the dashboard shows a breakdown of a company’s market value and book value, unrealized P&L on positions, and creates pie charts showing positions in different currencies.

“Part of what makes us special is helping clients connect and analyze all kinds of data so they can understand what their absolute returns are,” Shah said. Ta.

Microsoft also partners London Stock Exchange Group and Moody’s have jointly developed new data and analytics products in recent years.

“Our partnership framework allows BNY Mellon to leverage multiple Microsoft technologies to develop next-generation data management and software products tailored to the unique needs of capital markets firms.” said Karen Del Vescovo, head of U.S. Financial Services. on mail. “We are also actively collaborating on some artificial intelligence capabilities that can be incorporated for increased productivity and better-informed decision-making.”

Smith said partnering with a name like Microsoft could give BNY a competitive edge.

“Clients don’t tend to easily change the users they use for data management solutions,” he said.

Capco partner Glenn Karvan agrees.

“We’re seeing more and more of these purchasing patterns and behaviors among customers,” he said. “Even if there was better competitive technology available, they would say no, we’re a Microsoft shop or a Google shop.”

Shah also expressed a similar opinion.

“Working with Microsoft makes it easier for clients to say, ‘BNY Mellon has both the data knowledge and the best technology.’ [so] Through you, we have access to the entire ecosystem,” Shah said.