Overview
The post-trade business landscape is at an inflection point as newer technologies and cut-throat competition continue to reshape business models.
Legacy applications hindering flexibility for large-scale transformation, silo-ed business processes, shrinking margins, and crunch of right skills for niche technology are some of the many impediments that must be addressed.
While these challenges pose hurdles, they also present an opportunity for firms to provide Post-Trade solutions. Increasing regulatory oversight and the need to be compliant, mitigation of operational risk through stable and predictable operations and cost reduction amidst shrinking margins are some of the factors that drive the market.
HCLTech Novus Post-Trade solutions are a combination of application services and business operations delivered through innovative engagement models. These help both buy and sell-side participants achieve alternate revenue streams and disruptive cost arbitrage while ensuring stability, control, compliance, and improved efficiencies.
Business situation
Cost pressures on IBs leading to the exit of asset classes
Increased investment in risk and cybersecurity
Increased investment in AI and blockchain technologies
Realization of chronic underinvestment in MO & BO
Solutions
Reconciliation as a Service
HCLTech’s Reconciliation-as-a- Service offering delivers operational excellence in the reconciliations space through a combination of AI/ML, SaaS platforms, application services, and business operations. This is delivered through innovative engagement models, which help both buy and sell-side participants achieve disruptive cost arbitrage while ensuring stability and control.
Benefits
- 30%+ reduction in reconciliation- related people, technology, and operations costs
- 50% savings in the cost of servicing
- 20% STP
- 25% increase in the auto-match rate
Clearing and Settlements as a Service
HCLTech’s Clearing and Settlements-as-a-Service offering delivers significant reductions in operating cost, time, and risk through a combination of in-house IP, open-source, and fintech solutions. It also delivers accelerated innovation, leading to a reduction in processing risk, enabling multi-party processes and new revenue sources.
Benefits
- Reduced days for outstanding failed trades
- Improved recovery of fees receivables
- Improved trade reference resolution rate
- Lower latency and operating costs reduced by 20%
Post-trade Transformation
HCLTech provides a wide range of services for post-trade transformation, including COTS system integration, legacy modernization, front-to-back automation, and run optimization. This helps to deliver process and cost efficiencies, leading to improved STP, trade processing, and settlements.
Benefits
- Improved capabilities
- Operational excellence and higher efficiencies
- Cost saving with effort reduction
Data Monetization
HCLTech’s Data Monetization services include data cataloging and dictionary, data as a service, data lineage, and practice analysis for improved data privacy and protection. This facilitates the creation of new and alternate revenue streams, higher margins, and value addition to downstream customers (e.g., trading and collateral management)
Benefits
- Cost reduction using data insights
- Monetized data to create new revenue streams
- Deeper customer understanding and smarter decision making
- Reporting and regulatory compliance by managing unstructured data
Digital Assets – Clearing, Settlements, and Custody
HCLTech’s Digital Assets offering delivers accelerated innovation through a reduction in processing risk, enabling multi-party processes. It offers new revenue sources with significant reductions in operating cost, time, and risk through a combination of in-house IP, open-source, and fintech solutions.
Benefits
- 50% reduction in cost
- 30% legacy application footprint
- Scalable and future-ready application landscape
Solution accelerators
A proven and recognized framework designed to address large, multi-service transitions in a fully automated manner with pre-defined templates and checklists. It enables financial services organizations to identify and minimize transition risk by application profiling, create a comprehensive knowledge base, and carry out complete application portfolio assessment and business process mapping
FENIX2.0 is an industry aligned execution framework that helps organizations rewire their core DNA to realize digital transformation objectives. HCLTech has led multiple Modernization and Transformation projects globally by leveraging the FENIX framework and having the 3 key dimensions of People, Process and Technology at its core.
HCLTech DPrizm is a comprehensive assessment tool for cloud and application modernization. It provides accurate estimates on expense, ROI and cost measurement which enable firms to reduce business and operational risk in their respective business areas.
An AI/Ml based tool that helps in the interpretation, extraction and reading of structured and unstructured text information. It also assists with identifying any missing, unseen and ill–formed data from the handwritten documents, faxes, electronic documents and images. The product is enabled with domain ontology which gets better with every new transaction and unsupervised learning, resulting in a better processing speed and providing close to 100% accuracy.
Offers real-time business flow observability and insight into business-relevant controls by creating meaningful views from both business and technology perspectives. iControl delivers faster impact assessment, Increased resilience and risk minimization.
Key business payoffs
Collaterals
Blogs
Success stories
Client’s requirement
- Client wanted to modernize their legacy system by moving to a cloud-based digital platform
- Significant reduction in cost across applications, infrastructure, and BPO
Solution and benefits
- Modernized 17+ core applications to a single digital cheque processing platform
- Implemented a region-based target operating model
- Delivered real-time data analytics and reporting
- Delivered 40% TCO reduction and transaction-based pricing
- Platform modernization through tech upgradation, APIfication, cloudification, AI/ NLP
Client’s requirement
- Reduction in the total cost of operations
- Simplification of application landscape by consolidation, modernization, and decommission
- Creation of a shared service factory model
Solution and benefits
- Implemented a factory model for 300 applications to handle 40% more volumes
- Consolidated 70 reconciliation applications into a single platform leading to 35% cost reduction
- 75% drop in average daily unallocated breaks
- Increase in auto-matching rate to 86%
- 45% reduction in the total cost of operations