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Aviva appoints BNY Mellon to build new operating platform

BNY Mellon, AvivaAviva Investors has signed a long-term deal with BNY Mellon for the development of a new operating model that will cover front, middle and back office activities.

According to the global custodian, the platform will include traditional asset servicing capabilities such as custody and fund administration, as well as support for a number of front-office functions such as mandate monitoring and performance measurement.

It will also involve the use of BNY Mellon’s Data Vault, a cloud-based data management platform.

The deal reflects two developing trends in the asset servicing world. Firstly, asset servicers are looking to provide more than custody and fund administration, largely commoditised services where margins are low, and are looking to break into the more lucrative front office.

Secondly, asset managers are looking to consolidate the number of vendors and service providers they use in order to simplify their operating model. They are also looking to outsource more, as seen by the number of deals signed with asset servicers involving front, middle and back-office services.

“Outsourcing some of these services to BNY Mellon will allow us to enhance our client proposition and improve operational efficiency”, said Mark Versey, CEO of Aviva Investors.

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