Vendor Analysis
published on Aug 01, 2014
Report Overview:
This NelsonHall assessment analyses Broadridge's offerings and capabilities in capital markets BPO. Broadridge is one of a number of capital markets BPO companies analyzed in NelsonHall's comprehensive industry analysis programs.
Who is this Report for:
NelsonHall's Capital Markets BPO Vendor Assessment for Broadridge is a comprehensive assessment of Broadridge's capital markets BPO (CM BPO) offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of capital market process outsourcing and identifying vendor suitability for CM BPO RFPs
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the support services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Broadridge's capital markets BPO offerings, capabilities, and market and financial strength, including:
- Identification of the company's strategy, emphases and new developments
- Analysis of the company's strengths, weaknesses and outlook
- Revenue estimates
- Analysis of the profile of the company's customer base including the company's targeting strategy and examples of current contracts
- Analysis of the company's offerings and key service components
- Analysis of the company's delivery organization including the location of delivery locations.
Key Findings & Highlights:
Broadridge BPO provides all of Broadridge's process based CM BPO services (PB CM BPO); the remainder of Broadridge provides its network and technology based CM BPO services.
Broadridge started its PB CM BPO business in 2004, when it acquired a clearing business from Bank of America to provide white label clearing and broker dealer services to self-clearing brokers. Bank of America needed to exit the business when it had acquired other businesses.
Today Broadridge BPO is focused on mutual fund and retirement fund middle and back office processing services for third party administrators, financial advisors, banks and wealth management professionals.
Broadridge's PB CM BPO revenues are primarily generated from reconciliations, fee billing, collateral management, tax services, global clearance/settlement, and mutual fund administration.
Broadridge's BPO business has been built up since 2011 from engagements with self-clearing brokers, asset managers, and investment banks, providing:
- Securities lending support, corporate actions processing, and reconciliations
- Combined BPO and ITS services
- Support for new geographic market entry
- Acquisition or investment in client operations (e.g., the Penson acquisition).