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Broadridge acquires Kyndryl’s wealth management platform, shifts focus to AI trading solutions

IFM_Wealth Management
With the acquisition of Kyndryl's wealth management platform, Broadridge, which is part of the S&P 500 Index, continues to solidify its position in the industry

Broadridge Financial Solutions, a global fintech leader, has completed the acquisition of Kyndryl’s Securities Industry Services platform. The move will enhance the wealth management and capital markets software solutions offered to Canadian financial services firms.

Integrating Kyndryl’s SIS platform into Broadridge’s suite of services will bring about accelerated innovation and increased investment in products for the Canadian wealth market. Broadridge is known for its commitment to providing advanced solutions that promote simplification and innovation within the financial services industry.

Broadridge offers technology and services that support the financial services sector in various capacities, including investment management, governance, and communications. The company’s platforms are crucial in processing over seven billion communications annually and support the daily trading of securities worth over USD 10 trillion globally.

With the acquisition of Kyndryl’s wealth management platform, Broadridge, which is part of the S&P 500 Index, continues to solidify its position in the industry.

Meanwhile, Broadridge reported its first quarter EPS (Earnings per share) of USD 1.00, USD 0.03, which is better than the analyst estimates of USD 0.97. Revenue for the quarter came in at USD 1.42 billion versus the consensus estimate of USD 1.48 billion.

As the results were announced on November 5, 2024, Broadridge’s stock price closed at USD 209.64, down -2.25% in the last three months and up 18.22% in the last 12 months. The global fintech leader also saw zero positive EPS revisions and six negative EPS revisions in the last 90 days.

The venture has already appointed David Fellah as its vice-president of artificial intelligence (AI) trading solutions based in New York. This newly created role at the New York-headquartered fintech will target financial institutions and corporates.

Fellah will be tasked with leveraging data, AI and analytics to deliver solutions that improve trading strategies and reduce costs for Broadridge’s clients. The newly appointed senior official has nearly 30 years of experience in the field of trading technology, quantitative research and advanced analytics, with his most recent role as head of international quantitative trading strategy at Instinet LLC, a trader broker subsidiary of Nomura Group. He has also worked for ITG and JP Morgan on trading analytics and quantitative research.

In 2023, Broadridge launched its generative AI-powered products, BondGPT for corporate bond traders and OpsGPT for operations teams. Both tools can answer queries, aggregate and analyse transaction data, and provide settlement visibility.

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