National Australia Bank Asset Servicing is in the process of switching its global custodian partnership from BNY Mellon to Citi.
The move follows a period of disruption at Australia’s largest local custodian that have seen management changes, an aborted sale of the business and the loss of many major clients including Cbus and Unisuper.
Former NAB Asset Servicing clients have cited the lure of advanced technology as the logic for switching. The need for higher regulatory compliance and a more granular analysis of their portfolios are driving the move towards better technology in the custody space.
In a short statement from NAB, Antony Cahill, group executive product and markets at the bank, said the deal would combine the bank’s local expertise and its $793 billion in assets under custody, with Citi’s “superior global network”.
“Citi has direct access to more than 60 markets around the world. This will provide NAB clients with richer market information and easier access to subject matter experts for complex issues,” he said.
Matt Brown, executive general manager asset servicing at NAB, said: “We are committed to delivering the best service in the market and look forward to working with our clients over the coming months to allow them to benefit from Citi’s extensive market coverage and expertise.”
Citi’s appointment will take effect following a period of transitional work. In the meantime, NAB will continue to provide custody services to its clients using its current global custodian.