CHARLOTTE, N.C. - Fidelity Investments has teamed up with Broadway & Seymour Inc., Charlotte, a provider of trust accounting software, to market investment capabilities and processing services to trust banks.
The joint venture reunites two former colleagues who worked together at SEI Corp., Wayne, Pa., in the late 1980s: Paul Hondros, president of Fidelity Investments Institutional Services Co. Inc., and James R. Spencer III, senior vice president of Broadway & Seymour.
In fact, a key competitor of the duo will be their former employer, SEI, a vendor of trust systems with a foothold in mutual fund administration.
The venture gives Fidelity access to Broadway & Seymour's client base of 15 of the top 50 trust banks including Bank of America; PNC; NationsBank; Harris Bank; Boatmen's Bank of St. Louis; Keycorp; Comerica; and Chemical.
At the same time, Broadway & Seymour will have access to Fidelity's 250 trust clients.
"Fidelity has a very deep penetration of smaller institutions than we do business with. Our objective was to expand our market segment by another 250 institutions into the top 300 to 400 trust banks," Mr. Spencer said.
Mr. Spencer said no client has signed on yet but he expects the first to be up and running by the first quarter of 1996.
Fidelity will provide back-office services for both the brokerage and trust sides of a bank, as well as offer its Fidelity Advisors mutual funds, which are sold through financial intermediaries, and more than 3,000 mutual funds from other companies available to investors through Fidelity's mutual fund network.
Clients will be able to electronically log on to Fidelity's clearing operations via PC using a customized version of Broadway & Seymour's Amtrust portfolio analysis and reporting software and Fidelity software.
Bank customers will receive a single statement combining a brokerage account with a trust account.
Mr. Spencer said bank clients will be able to access customer account information and decision-support models to aid in the investment process. Banks also might want to sell online services provided by the joint venture to customers.
Fidelity and Broadway & Seymour are targeting the product to bank portfolio managers; trust investment officers and traders as well as administrators.
Fidelity runs $37 billion for about 950 banks (including the 250 trust banks) and with this venture hopes to grow that business to $100 billion.
"No one in this market today offers bank trust institutions the technology and track record of Fidelity combined with the product expertise of Broadway & Seymour through a single source," Mr. Hondros said in a statement.