Success Stories
Operational Risk Containment through timely coupon and brokerage processing for a Global Investment Bank
Business Need
The bank has an active presence in investment and trading of various assets and securities in the global market. Even with most of the processes technologically compatible with the global markets, tracking and maintaining of the positions of all class of securities viz, debt and equity, is very critical for timely processing of the interest (dividends and coupons), settlement and the related payments to the respective parties. The delay/miss in various payments due in the life of the asset attracts the penalty or breach of the contract to the client. The ever increasing trade volume has made it very difficult to maintain all the details at the current cost.
HCL Solution
Client partnered with HCL to move these processes to India so as to control costs, reallocate resources to profit-generating activities, and facilitate new capabilities. HCL adopted the prescriptive model for the interim payment processing and maintenance of books of assets. HCL provided following services as part of the engagement:
- Coupon processing
- Coupon ledger entry/ Conversion
- Cash Dividend
- Bond Brokerage
- F&O Brokerage Processing
- FX Brokerage Processing
- The interim payment due on assets is set for confirmation process, with the parties involved, a fortnight before its due date. This resulted in the steep reduction on the miss out of any interim payment intimation and processing.
- The regular check on the positions of the various securities has positive impact on the risk assessment associated with the securities.
- Timely and accurate payments of the interim interests have reduced the operational risk.
- Payables outstanding reduced from GBP 6.8 million to 2.5 million and Receivables from GBP 3.9 million to 1.6 million in one year.
