What are you looking for?
Treasury transformation: Design drives deep differentiation
Client Overview:
The client is one of the top five G-SIBs (Globally Systemically Important Banks).
The Challenge:
- Disparate systems and different versions across 17+ countries in EMEA, Japan, US and Canada resulting in higher TCO and increased operational complexity
- Absence of a consolidated Risk Sheet across multi-currencies and branches
- Manual transfer positions across branches was potentially error-prone and
- time-consuming
- Lack of a centralised system impeded generation of consolidated regulatory reports
- Time-consuming Manual Reconciliation of positions across branches
- An unreasonably high position consolidation time of 8 hours
- Manual intervention for squaring of positions
- Inability to respond to changing market / client and regulatory demands
Solution:
- Front & mid office components for FIS and MM with rich functionalities
- Deep domain expertise
- Program management experience in large banks
- Implementation certainty with matured tools and methodologies
- Support excellence catering to a global business
Key Achievements:
- A non-disruptive centralisation approach
- Phased delivery approach ensuring early delivery and testing
- 15 months delivery across 4 phases with zero incidents
- Gradual on-boarding of products and branches ensuring no impact to BAU
- Optimised resource management ensuring no cost or schedule overrun
- Strong project governance with early warning mechanisms
Business Benefits:
A. Improved Trade Productivity
- Over 96% reduction in position consolidation time
- Real time risk exposures
- Accelerated deal booking in less than a second
- Rules based auto-squaring to auto execute and close out positions
- Bulk booking of deals including bulk amendments
- Auto refresh of Risk Blotter results in time saving and facilitates timely decision making
- Simulation on Accruals, MTM and Factor of sensitivity one day prior enabling business to see the delta and theta figures more accurately
- Pre Termination without splitting of Trades
- Templetised deal booking to book trades in 2 clicks
- Instantaneous transfer of positions across desks
B. Increased accuracy of funding decisions:
- Real-time online visibility of global positions and risk improved the funding desk accuracy
- Historical cash flow analysis and liquidity stress testing are supported leading to more accurate forecasting
C. Improved Risk Management
- Simulation of Risk and P&L measures for defined market conditions
- Transaction by transaction monitoring by real time risk monitors
- Call Notice Feature to manage the customer Call accounts better, facilitating better liquidity and interest on Call accounts
- Combined Risk Sheet helps better compliance to the regulatory and cash flow limits
D. Other benefits
- Faster time to market with easy addition of new products and integration with bank’s internal global Risk and Reporting systems
- Improved operational efficiency, compliance with on-line limits monitoring and profitability across branches
- Reduced TCO and operational complexity with a single integrated risk and treasury solution
- EOD processing time which used to be an overnight affair with legacy system, drastically reduced to few hours