In other FinTech news, BNY Mellon gets into the FX prime brokerage business, and Thalēs debuts a digital capital introduction platform.
Finastra Reaches Out to FinTech Newcomers
Finastra is adding Efficiency MC, Conpend and BankBI to its FusionFabric.cloud open architecture, officials announced at the company’s recent regional thought leadership event, Finastra Universe Paris.
The vendor, formed from the combination of Misys and D&H, also announced that Thomson Reuters is joining Finastra’s circle as a data provider. Thomson Reuters is embedding its instrument reference data into FusionFabric.cloud, officials add.
“The FusionFabric.cloud platform is gathering significant pace, signaling growing demand and energy within the industry for open innovation,” says Hugh Cumming, chief technology officer (CTO), platforms, for Finastra, in a statement. “It is a refreshing change in mind-set that offers big benefits in terms of bringing new products to market faster and driving down development costs. The platform is very much part of our collaborative ethos and will ultimately change the way software is developed and deployed.”
The providers are using the FusionFabric.cloud in a variety of ways:
- Paris-based system integrator, Efficiency MC, will exploit the platform to develop an interest rate derivatives pricing model app. “We are also exploring additional apps for Fusion Invest, the Finastra investment management solution, and Finastra’s FusionBanking Trade Innovation, for trade finance,” says Alexandre Arnoux, associate director at Efficiency MC. “The beauty of the platform is that it enables us to work on multiple projects and we’ll be able to deploy the apps at low cost, as they are ready for market.”
- A European financial technology vendor, Conpend, is using FusionFabric.cloud to develop apps for corporate banking. “Interest in AI and machine learning is growing daily in the industry and it’s no surprise given the benefits they can bring,” says Marc Smith, founder and managing director at Conpend. “However, AI needs data and developing in this environment enables us to build powerful solutions for corporate banking quickly and easily since everything on the platform is accessible through open APIs.”
- Another fintech vendor, BankBI, is offering a performance management and analytics application that will complement the Finastra retail banking solutions, including C-suite dashboards, officials say.
“This collaboration is all about making it easy for customers to access the valuable insight our market leading reference data delivers,” says Brennan Carley, global head of enterprise at Thomson Reuters. “Our open, agile Elektron Data Platform means we can integrate rapidly with partners such as Finastra to power the apps on its ecosystem with our trusted data and provide customers with choice in how they consume our content.”
BNY Mellon Set to Launch FX Prime Brokerage Service
The custodial banking side of BNY Mellon is launching a prime brokerage service for institutional clients that are finding it hard to source liquidity or “are facing increased funding costs in a constrained market,” officials say.
The service is slated launch early this year and is intended to enable participants to “more efficiently trade, finance and margin their FX through BNY Mellon,” officials say. “The initiative will add a new FX prime broker into the market, allowing clients to access a significant new source of FX liquidity while helping streamline and reduce operational expenses, including legal and onboarding costs, as well as generating substantial capital and netting gains.”
The service target clients with “an extensive suite of FX products,” pre- and post-trade services and BNY Mellon’s collateral, funding and liquidity capabilities, officials say.
As of Dec. 31, 2017, BNY Mellon had $33.3 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management, BNY Mellon officials say.
Thalēs Debuts a Digital Capital Introduction Platform
Thalēs, a derivatives broker and placement firm servicing the alternative investment industry, has officially launched Agora, a digital platform described as a vast improvement over the “outdated and time-consuming traditional capital introduction approach.”
With Agora, the firm is targeting the institutional investor community “that enhances and streamlines the traditional capital introduction model,” officials say.
The Agora platform will offer institutional investment firms “analytical tools to discover, analyze, compare, monitor, and connect with hedge fund managers interactively,” officials say. “Hedge funds invited to join Agora can efficiently share information about their firms and strategies as well as market commentaries directly with institutional investors.”
Agora launched in private beta in late 2017 and admission is “by invitation-only to verified institutional investors and hedge funds who receive complementary access to the platform,” officials say.
“The traditional capital introduction model offered by prime brokers has barely evolved since hedge funds became mainstream even as digital interactions have revolutionized other mature industries,” says Edouard Robbes, president of Thalēs Capital Partners, in a statement. “With the launch of Agora, we are integrating the latest advancements from the fintech space with our deep expertise in capital raising to deliver an efficient online experience while maintaining our high touch approach.”
The Agora system is “a dynamic ecosystem which elevates the manager sourcing experience, increases visibility for managers, and vastly improves the outdated and time-consuming traditional capital introduction approach, says Marc Cohen, CEO of Thalēs. “By allowing investors to connect directly with managers, Agora also goes beyond traditional hedge fund databases which provide limited if any engagement,” Cohen says.
The Agora platform came about via a collaboration with Edgefolio, a fintech company specializing in simplifying interactions within the hedge fund industry, officials say.
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