BBH hopes banks open up rather than lose out

In facing competition from fund supermarkets, banks could use a boost, reports Roxane McMeeken. New York-based global custodian Brown Brothers Harriman (BBH) is gambling on banks embracing open architecture in a big way. It has set itself the bold target of signing up 300 banks for its funds distribution software within five years. Eric Macy, assistant vice-president for distributed products at BBH, revealed that the firm has already reached its goal of persuading 25 of its existing private banking clients to start using FundWorldView during 2002. The product helps banks to compete with fund supermarkets by allowing them to sell their clients 500 investment funds and to process sales on an STP basis. BBH specifically recommends 65 of the vehicles, but also provides tools to analyse funds. “The banks we talk to say every week a client walks in and asks for a fund we’ve never heard of,” said Mr Macy. Banks must therefore embrace open architecture or risk losing out to fund supermarkets, he warned. BBH has revamped FX WorldView, its currency execution system to provide real-time streaming BBH rates, two-way pricing and aggregation options.