FNZ and State Street collaborate on wealth management servicing venture
FNZ, a New-Zealand founded platform-as-a-service provider, is collaborating with State Street on a new wealth management servicing venture.
FNZ will acquire a majority stake in State Street’s Wealth Manager Services business, with State Street retaining a minority interest. Terms of the transaction, which is expected to close in Q4 2020, are not being disclosed.
Upon full implementation, the new venture will combine the custody expertise of State Street with the international platform operated by FNZ.
It services around 8,000 wealth management and financial advice firms across the UK, Europe and the Asia-Pacific regions.
State Street will serve as sub custodian to the custody assets belonging to Wealth Manager Services clients.
“We are excited to be partnering with State Street and believe that the combination of our digital wealth platform and their custody expertise will be an attractive proposition for clients,” says Adrian Durham, FNZ Group CEO.
Durham sees this as the first step in a long-term strategy to expand its platform into the North American market. In the US, we see similar long-term drivers in relation to cost, transparency, digitisation and personalisation in asset and wealth management as other markets in which we operate.”
“We are delighted to be working with FNZ Group to meet the growing demand for personalised wealth servicing solutions while also maintaining continuity with State Street’s strong custody capabilities,” says Steve Nazzaro, executive vice president of State Street.
Closing of the transaction is subject to regulatory approvals and other closing conditions.