Tuesday, October 2, 2018

State Street to Acquire Front Office Systems Firm

Goal is global front-to-back platform for asset managers

On October 1, 2018, State Street closed on the acquisition of Charles River Systems, Inc., for $2.6 billion. State Street, the world’s largest custodian (US$33.9 trillion) and third largest asset manager (US$2.7 trillion AUM), plans to integrate the Charles River front office systems with the bank’s existing back-office technology.

President Ron O’Hanley said, “The ability to assist clients in managing their data needs and extract insights from their data is increasingly the most important differentiator for our industry.”

In its press release, the bank cited a survey of 500+ asset managers, of whom 64 percent were investing in new performance analytics tools and 43 percent were strengthening their risk analytics.

“Our interoperable platform,’ said O’Hanley, “will enable clients to integrate and align their preferred systems utilizing State Street provided data, and access liquidity, insights, data and technology infrastructure.”

According to the bank, the deal will “enable State Street to deliver a global front-to-back platform for asset managers and asset owners that will be unique in the investment servicing industry. This interoperable platform, supported by deep enterprise data management capabilities, will enable investment workflows, provide advanced data aggregation, analytics and compliance tools, and connect and exchange data with other industry platforms and providers.”