BNY Mellon Asset Servicing Research on Nordic Institutions Highlights Operational Challenges and Opportunities

London (ots/PRNewswire) -

New research published BNY Mellon Asset Servicing, the global
leader in securities servicing, has found that many institutions are
ill-prepared for the increase in complexity and transactional volumes
that can be expected in the next few years.

The research -- published today as 'Inside the Engine Room', the
latest in The Bank of New York Mellon's 'Innovation Series' of
industry White Papers and studies -- also highlights the mitigation
of operational risk, the emergence of new products and instruments,
and the retention of talent as key priorities for Nordic firms going
forward.

BNY Mellon's goal was to capture and crystallise the views of
leading Nordic institutions on the operational issues they face in
today's fast evolving marketplace.

In early 2008, BNY Mellon conducted a research effort aimed at
assessing the challenges and opportunities in middle and back offices
of leading Nordic institutions. As part of this effort, BNY Mellon
commissioned McKinsey & Company to interview 25 asset management arms
of leading pension funds and insurers.

These individual firms typically hold EUR20-25 billion in assets;
collectively they account for over EUR560 billion in assets.

The White Paper's six key findings are as follows:
-- The reduction of operational risk and support for new products and/or
instruments are key priorities for the middle and back office. Cost
reduction, improved client service and generating additional revenues
are seen as less pressing concerns
-- The biggest challenges for the middle and back office are attracting
and retaining talent and managing the technology landscape
-- To date, the focus in operations has been predominantly on building
rather than 'optimising' middle and back office processes.
Consequently many institutions are ill prepared for the simultaneous
increase in complexity and volumes that can be expected in the next
few years
-- Despite the focus on addressing the technology challenge through
automation, many companies have not achieved 'best practice', and
underestimate the opportunity for improvement in this area
-- Across technology and operations, most institutions are still learning
how to use and manage third-party partners effectively; this limits
the extent to which they can leverage external resources to address
the challenges in the middle and back office
-- The middle and back office is often quite well integrated with the
front office, enabling the two sides to work well together

The White Paper states that Nordic institutions should look to
leverage their existing strengths by reinforcing close linkages with
the front office, and by coordinating more closely with peers to
address the key challenges surrounding technology, for instance via
more effective user groups for key technology suppliers.

In addition to developing strategies for handling complex
instruments, they must continue to remain nimble and flexible though
the use of automation and selective outsourcing, and take a more
systematic approach to address the war for talent.

The White Paper also offers suggestions for 'automation
excellence' that will serve as a best-practice blueprint for
organisations looking to benchmark existing capabilities and
processes.

Sid Newby, Head of Nordic Business Development at BNY Mellon
Asset Servicing, said: "Our research validates the prevailing view
that in general Nordic institutions are efficient in many back and
middle office areas, managing high asset values and transactional
volumes with relatively low staff numbers.

"That said, it also suggests that the next evolutionary phase
will entail a keener focus on operational risk, as they balance front
office innovation with robust risk management controls within the
back and middle office. There will also be a demand for greater
transparency across a broader investment and collateral universe,
coupled with a push towards higher levels of automation and a daily
environment in terms of accounting, risk and performance, which will
collectively drive new product development and industry initiatives."

Nadine Chakar, Head of EMEA at BNY Mellon Asset Servicing, said:
"In conducting this research we have worked with leading institutions
to provide fresh insights into current industry thinking in the
region, enabling us to step up our efforts to influence the evolution
of industry standards and best practice for the benefit of underlying
investors.

"The Nordics has always been a key region for BNY Mellon, and we
remain committed to enhancing our understanding of the priorities and
pressures that are shaping our clients' needs, and so ensure that we
are in the strongest possible position to assist them in what is an
increasingly complex and competitive business environment."

A copy of the White Paper can be found at www.bnymellon.com.

Notes to editors

BNY Mellon Asset Servicing offers clients worldwide a broad
spectrum of specialised asset servicing capabilities, including
custody and fund services, securities lending, performance and
analytics, and execution services. BNY Mellon Asset Servicing
provides services through The Bank of New York, Mellon Bank, N.A. and
other related companies.

The Bank of New York Mellon Corporation is a global financial
services company focused on helping clients manage and service their
financial assets, operating in 34 countries and serving more than 100
markets. The company is a leading provider of financial services for
institutions, corporations and high-net-worth individuals, providing
superior asset management and wealth management, asset servicing,
issuer services, clearing services and treasury services through a
worldwide client-focused team. It has more than US$23 trillion in
assets under custody and administration, more than US$1.1 trillion in
assets under management and services US$12 trillion in outstanding
debt. Additional information is available at bnymellon.com.

Web site: http://www.bnymellon.com

ots Originaltext: BNY Mellon Asset Servicing
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Tim Steele, +44-20-7163-5850, tim.steele@bnymellon.com, for BNY
Mellon Asset Servicing