10:51 AM
Top Banks Teaming Up on Tech Projects
Squeezed by the twin pressures of satisfying both regulators and clients, the world's top banks are starting to work together on technology projects.
More used to fierce competition than friendly collaboration, investment banks vie to offer computer-based trading services to a diverse client base of hedge funds, high-frequency traders, asset managers and other banks - and invest heavily to make sure theirs is the system of choice on the client desktop.
But they also have to spend on adapting internal systems to comply with swathes of new regulation, which means they effectively have less cash to invest in platforms they provide to customers.
"Banks are looking to build things in a way that can be re-used and there is a collective interest in developing applications collaboratively," said Kosta Peric, head of innovation at financial messaging firm SWIFT.
Peric said banks were increasingly happy to spread the cost of developing back office and regulatory compliance systems that they all need to conduct their business.
SWIFT last year built an account management platform in partnership with Bank of New York Mellon, Citibank, JP Morgan Chase, and Royal Bank of Scotland.
The not-for-profit company, owned by 2,500 financial firms, has also developed a messaging service for corporates backed by members including BNP Paribas, Credit Agricole , Societe Generale and UBS.