Achieving operational maturity

Transcription

1 INTELLIMATCH Operational Control Achieving operational maturity

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3 Operational Maturity SunGard s IntelliMatch Operational Control solution suite helps financial institutions deploy enterprise matching and reconciliation solutions to achieve operational maturity. By enabling business growth through rapid on-boarding of new reconciliations, consolidation of infrastructure and processes for lower total cost of ownership, and optimization of processes for greater efficiency, organizations will reduce operational risk and minimize costs. Business overview The operational maturity of an organization determines its ability to effectively process the accounting, cash flows, trading and transactional activity that support its core business with the least associated cost and minimum risk. Reconciliation and system validation now constitute a larger part of core-, middle- and back-office processes and it is critical that these functions be managed effectively and efficiently in order to achieve operational maturity. Reconciliation and system validation now constitute a larger part of core-, middle- and back-office processes and it is critical that these functions be managed effectively and efficiently in order to achieve operational maturity. This greater focus on reconciliation is being driven by three primary factors. Firstly, a demand for more robust internal system validation is needed to comply with new regulations. This is in addition to more traditional ledger or accounting reconciliations against external statements. Secondly, a greater level of reconciliation is needed to achieve transparency of end-to-end business processes to clearly identify compliance issues and market and operational risk. Thirdly, lower performance and profitability of the financial sector, from banks through to hedge funds, has resulted in greater cost pressures leading to a focus on operational cost reduction. By deploying an enterprise reconciliation strategy, organizations can benefit from greater process transparency, reduced process cost, lower total cost of ownership and eased administrative burden, while achieving an increase in internal and external customer service levels. [email protected] 3

4 SunGard can help GROWTH SunGard s IntelliMatch Operational Control solution suite helps financial institutions deploy enterprise matching and reconciliation solutions to achieve operational maturity. By enabling business growth through rapid on boarding of new reconciliations, consolidation of infrastructure and processes for lower total cost of ownership, and optimization of processes for greater efficiency, organizations will reduce operational risk and minimize costs. IntelliMatch Operational Control solution suite helps organizations achieve operational best practice through the three key building blocks of operational maturity: CONSOLIDATION 1. Growth Rapid on-boarding of new business processes into an automated environment, expansion of existing processes, and change management controls that facilitate simple and risk free promotion of test environments into production. 2. Consolidation Management of end-to-end reconciliation processes and high transaction volumes across multiple departments and regions from a centrally administrated platform. OPTIMIZATION 3. Optimization Deployment of business process analytics for tracking the effectiveness of rules, resources, and processes, to identify opportunities for rule refinement and enhanced levels of automation. 4

5 Solution components SunGard s IntelliMatch Operational Control solution suite consists of the following solution components: IntelliMatch Enterprise Reconciliation supports end-to-end real-time and end-of-day reconciliation management for all types of operational environments including cash, securities, derivatives, and system-to-system; delivering lower operational costs and reduced operational risk. IntelliMatch Trending & Analysis provides comprehensive reporting to evaluate staff, system rules and business process effectiveness and enables accurate preparation for business events such as transactional growth and system upgrades. IntelliMatch Business Flow Manager reduces the time-consuming and repetitive manual tasks associated with account and transactional exception handling via simple web designed workflow automation. IntelliMatch Payment Investigation automates the payment investigations process and enables the establishment of, and strict adherence to, best practice processes that ensure the values and standards of the bank are maintained consistently. IntelliMatch Nostro Reconciliation gathers intra-day and end-of-day information to provide accurate account balance information for treasury and cash managers. Rules logic determines discrepancies, escalates cases for automated resolution, and flags end-of-day proof and compliance issues for review, repair and approval. IntelliMatch Confirmation Matching enables full automation of the confirmation matching and discrepancy resolution process that ensures trade accuracy, reduces risk, and lowers operational costs. IntelliMatch ATM Reconciliation automates the daily balancing of the ATM network by ensuring all ATM transactions including cash replenishment, withdrawals, deposits and transfers are accurately represented in the bank s accounts and cash balances are validated. IntelliMatch Cash & Liquidity Monitor provides cash flow management, nostro account limit management and real-time balance tracking, in addition to cash sweeping and forward looking nostro projections. Did you know: According to McKinsey, back-office costs represent around 20% of banking operating expenditure. This can be reduced by up to 12% through simple tactical improvements such as automation and consolidation, in areas including trade confirmation and reconciliation. 1 In a recent TowerGroup survey, 70% of banks stated they are seeking to achieve a centralized reconciliation environment, however only 48% have currently managed this. 2 Source 1: McKinsey - Rethinking Wholesale Banking Operations. Source 2: TowerGroup - Enterprise Reconciliations at Tier 1 Banks: Meeting the Operations and Technology Challenges. [email protected] 5

6 1. MANAGE GROWTH: ON-boarding new reconciliations The quickest route to reducing operational cost and risk is to eliminate or reduce manual activity. Reconciliation and matching processes are critical operational areas that typically involve excessive manual processing and may result in high costs and elevated operational risk. Refinement of system and statement reconciliation and matching processes must fulfill the following primary objectives: Rapid time-to-market - Delays in establishing the operational process may impact wider corporate initiatives or prevent the go-live of revenue generating services. Packaged templates, and lower dependency on internal IT or consultancy resources, can minimize project implementation timelines in order to rapidly deliver a production-ready automated solution. Comprehensive automation - Higher automation leads to lower costs however, in order to deliver on such automation, solutions must be able to map complex processes and offer a wide range of rules to accommodate specific process and corporate policies. Operative simplicity - New processes must be easy to adopt by existing or new resources in order to adapt to the realities of staff turnover and training levels, and ensure low administrative costs. The satisfaction of these criteria is often fulfilled through tactical or departmental solutions, leading to multiple reconciliation platforms being leveraged across different departments within the same organization; raising total infrastructure costs and adding administrative burden to the wider organization. Using my reconciliation workspaces and alerts, I can respond quickly to resolve critical issues. Mary Peters, 52 operations analyst 6

7 SunGard can help SunGard s IntelliMatch Operational Control solution suite provides out of the box support for common reconciliation types including nostro reconciliation, payment investigations and confirmation matching to deliver rapid time-to-market for industry standard processes. New reconciliations can be created within a fraction of typical timeframes through the use of simple wizard based configuration tools that guide business users through the entire reconciliation process, from data import template creation through to match rules and dashboard alerts. Risk-free promotion of test and development environments into production is assured using the proprietary Data Transfer Manager (DTM) utility. With support for automated capture and transportation of configurations into production, and additional features such as full audit trail and four-eyes approval, organizations can meet internal compliance guidelines without creating additional administrative overhead. Did you know: Firms purchasing reconciliation solutions cite ease-of-use as a key requirement. This is deceptively simple sounding. 3 According to SWIFT, between 2 to 5% of all payments result in an inquiry and each inquiry, on average, costs 50 times more to complete than a typical transaction cost. 4 Source 3: Aite - Reconciliation Solutions Market Overview: Supply and Demand Evolves. Source 4: SWIFT - SWIFT for Exceptions and Investigations in a Nutshell. Easy to use workspaces that can be simply tailored for individual users, or rolled out across user communities, ensure that staff can complete daily tasks with minimal on-going training and lower startup times. Use of in-line prompts can guide users to their next tasks, helping to reduce the risk of manual errors. Automation can be delivered as a tactical departmental solution or, where organizations have multiple reconciliation or matching requirements, as a centralized enterprise platform. Automation and control of business processes [email protected] 7

8 2. CONSOLIDATE: Lower Total Cost of Ownership Through consolidation of operational environments, organizations can achieve economies of scale, greater visibility across processes and regions, and simplify administrative burden. This helps to achieve cost reductions along with greater risk and process control. Three considerations when looking to achieve operational consolidation are: Infrastructure consolidation - Pooling resources, hardware, software and services will deliver economies of scale for a lower total cost of ownership. Reconciliation best practice - Establishing best practice reconciliation standards provides greater visibility into process and reconciliation status across regions and departments, and helps enhance risk management and control. Administrative simplicity - The ability to create and manage complex rules and workflows without complex code or scripts reduces overall administrative burden, simplifies oversight and control, and assures greater long-term system effectiveness. Monitoring end-to-end reconciliation automation 8

9 SunGard can help SunGard s IntelliMatch Operational Control solution suite can be deployed as an in-house installation and configuration, or alternatively as a hosted or fully managed services solution. A managed service deployment supports simple infrastructure scaling to accommodate changing business needs, while ensuring low up-front capital expenditure and reduced project risk. Through highly configurable pivot tables and chart-based reporting, organizations can monitor and track all business processes and transaction flows in real-time from a single central dashboard and deliver accurate and timely risk oversight. Web based configuration of best practice workflows across reconciliations and transactions allows organizations to automate escalation, assignment and notification to stakeholders; ensuring compliance and enabling the satisfaction of internal or external Service Levels Agreements (SLAs). With built-in task scheduling and data file mapping tools, in addition to support for integration with enterprise scheduling and Extract, Transform and Load (ETL) utilities, organizations can select a system administration strategy that is most appropriate to their existing expertise; lowering administrative overhead, and simplifying the technical architecture. I like that I can now easily track the status of every reconciliation from one central dashboard. Satish Patel, 32 IT systems administrator Did you know: In a recent TowerGroup survey 70% of banks are planning to centralize their reconciliation technology tools up from 47% today. More than half of survey respondents believe that centralization of processes will provide savings of 15% and over one-quarter expect savings in excess of 20% from such an effort. 5 Source 5: TowerGroup - Enterprise Reconciliations at Tier 1 Banks - Meeting the Operations and Technology Challenges. [email protected] 9

10 3. Optimize: Ensure Resource, Rules and Business Process Efficiency I will invest in new technology if it is proven to create greater efficiencies and tangible value. Andrew Jackson, 43 operations manager Organizations must ensure that the efficiencies obtained through initial automation of processes continue to be achieved over time while also striving to find opportunities for further gains through system and process analysis. Without intervention or monitoring, typical business process automation rates will degrade over time causing an increase in operating costs and a delay in process completion. This natural reduction in efficiency can occur through changes or upgrades to internal systems, stale account and cross reference data, new counterparties or business partners, changes to external data feeds, new services or products or changes to regulation and compliance. Institutions that put in place a process of optimization that includes an iterative review and refine strategy can expect higher automation and lower operational costs. This requires: Quality management information - Detailed metrics are critical to track and trend the effectiveness of resources, business rules, counterparties, systems and end-to-end processes and help resource business growth, target inefficiencies and provide management reporting. Flexible business rule configuration - The empowerment of line of business owners to create and manage their own business rules and workflows is critical to reduce the dependencies on internal IT departments, consultancy projects or third party engagements. Alerts and notification - To ensure transparency and communication of performance and SLA levels and enable proactive or corrective measures to be taken, stakeholders must be made aware when breaches occur. Thus, tablets and mobile dashboards or online alert capabilities are preferred to traditional . Track business process efficiency 10

11 SunGard can help SunGard s IntelliMatch Operational Control solution suite provides comprehensive trending and analysis to enable organizations to determine the effectiveness of staff, system rules and business processes. Configurable charting and tabular summaries ensure that users can quickly determine opportunities for process improvement through rules enhancement or workflow, and can access detailed information to determine the nature of such changes. By trending observations over time, operational managers can accurately forecast for business events such as increases in trade or transaction volumes, departmental mergers and system updates, and ensure appropriate resourcing is budgeted. Did you know: According to Aite reducing complexity and process reengineering are ranked in the top 10 investments for 2011 and Business agility and operational efficiency were the top ranked business objectives in order of priority related to IT spending. 6 Source 6: Aite - Capital Markets Technology Spending - Risk, Compliance, and Uncertainty Abound. Business flow management enables line of business owners to create and update their own specific workflow logic that will automate time consuming tasks and allow for rapid response to analytics without IT or external project delays. The combination of quality management information and nimble business-owned workflow supports an iterative review and refine approach to system automation that ensures long-term optimization. Alerts and notifications will trigger in real-time as SLAs are breached or approached, ensuring that stakeholders are informed in advance of issues and providing much needed warning to remediate problems before they become critical. For more information: [email protected] visit: [email protected] 11

12 About IntelliMatch Operational Control Solution Suite SunGard s IntelliMatch Operational Control solution suite helps financial institutions deploy enterprise matching and reconciliation solutions to achieve operational maturity. By enabling business growth through rapid on-boarding of new reconciliations, consolidation of infrastructure and processes for lower total cost of ownership, and optimization of processes for greater efficiency, organizations will reduce operational risk and minimize costs. ABOUT SUNGARD SunGard is one of the world s leading software and technology services companies. SunGard has more than 17,000 employees and serves approximately 25,000 customers in more than 70 countries. SunGard provides software and processing solutions for financial services, education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue of about $4.5 billion, SunGard is the largest privately held software and services company and was ranked 434 on the Fortune 500 in Look for us wherever the mission is critical. For more information, please visit For more information: [email protected] visit: Americas BOSTON, MA NEW YORK, NY PARSIPPANY, NJ WAYNE, PA SAO PAULO, BRAZIL Australia/New Zealand MELBOURNE, AUSTRALIA PERTH, AUSTRALIA SYDNEY, AUSTRALIA CHRISTCHURCH, NEW ZEALAND Western Europe GENEVA, SWITZERLAND LONDON, UK WINTERTHUR, SWITZERLAND ZURICH, SWITZERLAND Asia BEIJING, CHINA HONG KONG, HONG KONG SAR JAKARTA, INDONESIA KARACHI, PAKISTAN KUALA LUMPUR, MALAYSIA MANILA, PHILIPPINES SHANGHAI, CHINA SINGAPORE Eastern Europe BELGRADE, SERBIA BRATISLAVA, SLOVAKIA North Africa TUNIS, TUNISIA 2012 SunGard. Trademark information: SunGard, the SunGard logo and Intellimatch are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.