Citigroup Inc. C recently announced that it has collaborated with BlackRock, Inc. BLK to boost the delivery of securities services to its customers using Aladdin end-to-end investment management platform. Notably, BlackRock’s Aladdin Provider network works with a combination of complex risk analytics and broad portfolio management, trading and operations tools through an integrated platform.
The company will offer direct middle-office services to customers using Aladdin through the Aladdin Provider, so that there is seamless integration from trade confirmation to post settlement reconciliation. Notably, Citi offers custody services to many asset managers on the Aladdin platform. With the Aladdin Provider platform, Citigroup is looking to use technology to make the company's operations more efficient across its custody and services platform.
This agreement further strengthens Citigroup’s relationship with BlackRock. The company had already been providing custody, accounting and/or fiduciary services for certain funds of BlackRock located in Hong Kong, Mexico and Colombia. The company’s use of the Aladdin Provider network will help Citigroup optimize its operating model and provide efficient services to members of the broader Aladdin community.
Sanjiv Sawhney, global head of Custody and Fund Services at Citi said, “Our clients continually look to us to improve operational efficiencies, and BlackRock’s innovative platform will facilitate shared workflows and shared data sources that will reduce manual processes and operating costs while improving service outcomes for our mutual clients.”
Sudhir Nair, head of the Aladdin Business at BlackRock, said “We are pleased to team up with Citi, one of the largest securities services firms, to deliver an integrated Aladdin-based operating model to our mutual clients, this integrated environment will allow for greater automation, data symmetry and streamlined communications between Citi and members of the Aladdin community.”
Citigroup continues to execute its growth strategies, such as bolstering position in the booming digital industry and expanding the global market presence, thus, aiming to diversify revenue sources. Also, the bank’s prudent expense management and inorganic expansion strategies are encouraging.
Shares of Citigroup have slumped 35.7% over the past six months compared with the 33.7% decline recorded by the industry.
The company currently carries a Zacks Rank #3 (Hold).
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Northern Trust Corporation’s NTRS 2020 earnings estimate has been revised 5.7% upward to $5.73 over the past 30 days. This Zacks Rank #2 (Buy) company’s shares have lost 24.5% over the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
State Street Corporation’s STT earnings estimate for the current year has been revised 5.9% upward to $6.26 over the past 30 days. Over the past six months, this Zacks #2 Ranked company’s shares have lost 20.8%.
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