The head of
National Financial had $330 billion of custodied assets at Dec. 31, up 41.4% from the year earlier. Malo said the company had $18.8 billion of net inflows, added $40 billion in its July purchase of Correspondent Services Corp. from UBS Financial Services, and realized another $37.8 billion in market appreciation.
Malo predicts the firms market share in outsourced clearing services will jump from 9% to 16% in the next three years, after gaining 2% last year. New technology is expected to help National Financial develop its position in this competitive marketplace. On Thursday, the company announced that it would strengthen its Streetscape platform through a series of enhancements of its browser-based broker workstation. National Financial also announced it will launch a desktop workstation this year.
"Pershing [owned by Bank of New York Co.] is still the leader in terms of the number of clients it has," he said, "and Bear Stearns is a strong full-service shop. Fidelity has always been more service-oriented, traditionally. Customers would indicate that Fidelity offers a high level of service. ... Fidelity is well-positioned to grow."
Malo said his company will consider deals but is excited by the potential for organic growth.