Challenger and SimCorp have entered into a strategic partnership to launch Australia’s first cloud-based front-to-back investment operations platform, providing fully integrated investment administration services to Challenger, Fidante Partners and third party clients.

“This strategic partnership allows us to offer customers even greater choice and flexibility by having one core platform,” said Challenger’s current group COO, David McAvoy, who is set to become CEO of the new business.

“I believe the industry is at a key inflection point and is looking for partners to provide a cloud-based business-as-a-service model with front-end, middle-office and back-office components all running from a single data source,” continued Mr. McAvoy.

“In partnership with SimCorp, we have the opportunity to take this pivot and offer the industry a new alternative. Challenger is excited to be a part of this change as we transition our business to this operating model.”

Challenger has a long-standing partnership with SimCorp, having previously used the firm's front-to-back platform to support 17 individual boutique asset managers as well as its life insurance business.

The new company will be powered by SimCorp's full suite of technologies and services, including data management, customer communications and investment accounting services.

"This initiative builds on a 17-year partnership and is another example of the industry's shift to a cloud-based, technology-based services business model," said SimCorp CCO, Oliver Johnson.

"The combination of Challenger's experienced operations team along with SimCorp's technology and service offerings gives clients a unique opportunity to take advantage of the best of both worlds."

With Mr. McAvoy at the helm, Challenger's employees who manage the existing platform will transition to supporting the new business in building a unique customer proposition.

The aim is to have the business established in July 2022.

Just last week, Challenger announced changes to its leadership team to coincide with plans to form a new customer-focused business.

At the time, the company said the new division would "cover all customer functions for the group and leverage the skills currently present in the business".

Maja Garatsa Djurdjevic

Maya's career in journalism spans more than a decade in finance, business and politics. Already an experienced editor and reporter in all elements of the financial services sector, before joining Momentum Media, Maya reported for several established news outlets in South East Europe, looking at key processes in post-conflict societies.