US-based independent banking organisation Northern Trust launched its global operations center in the Philippines on Tuesday. The center will support processing and back-office functions for the company’s clients worldwide.
The center is third such expansion site in Asia-Pacific this year, for the company, which has allocated $2.2 billion budget to scaling up infrastructure in the region. The rolling three-year period investment outlay will cover technology, infrastructure, and training of the resource talent pool, mostly accountants. The country produces over 120,000 accounting graduates every year.
Currently based in the financial district of Bonifacio Global City in Taguig, the new Northern Trust center currently has 160 employees, which will reach the strength of over 500, in the next three to five years. The center shall cater to Northern Trust’s businesses on asset servicing, fund administration, asset management, fiduciary, and banking solutions, among others.Northern Trust chairman and chief executive officer (CEO) Frederick Waddell, said they chose Philippines as an operations hub because it is a “thriving country” with a rich pool of educated and talented individuals.
“We are pleased to establish our office in Manila, expanding our global operating centers of excellence and offering our clients increased support in their timezone,” Waddell said.
The executive cited Asia-Pacific region as Northern Trust’s fastest-growing territory, with assets under custody growing at an annual rate of 25% (2008 to 2013); while assets under management grew more than 15% annually for the same period.
Northern Trust’s other two offices in Asia-Pacific are in Seoul, South Korea, and Kuala Lumpur, Malaysia. “We’re here in Manila not to save on cost but to spend money and invest in people to enable our growth,” Waddell noted.
With headquarters in Chicago, Northern Trust has offices in 19 states in the US and in 20 international locations like Canada, Europe, the Middle East, and the Asia-Pacific region. As of September 30, 2014, Northern Trust’s assets under custody amounted to $5.9 trillion, and assets under investment management were at $923.3 billion.
Waddell said that the Northern Trust, now in its 125th year, is the largest provider of offshore private equity funds in Europe and the third largest institutional index provider in the world.