These
trends are creating new opportunities for securities
processing intermediaries, and will also create numerous
potential pitfalls. If intermediaries fail to adapt
to the new realities of the securities business and
do not solve their customers' problems, their own
disintermediation will be hastened, not postponed.
TSG has helped numerous firms interpret these trends
in terms of their specific businesses.
Process
Optimization
Changes in the industry and in the available technology
have not always been adequately transformed into improvements
in each business's process flow. We believe that the
constant evolution of the available technology and
the industry infrastructure provide outstanding opportunities.
Through Continuous Process Reengineering, we review
the current business and process flow, add our industry
and technology knowledge, and reengineer the process
to make fundamental and radical changes in the way
that work is done or in the way that a product is
delivered, or how a business relates to its environment.
We go far beyond the simple automation of existing
functions and seek an entirely different approach
that can significantly increase revenues, improve
the service levels, and reduce expenses.
Our process is based upon four major activities, each
of which is supported by a set of distinctive implementation
techniques. These techniques can be used by our staff,
taught to the client's staff, or a combination of
both.
Through the application of this practical process,
we have identified numerous fundamental process changes
where the use of technology has created or amplified
a business's competitive advantage.
Total
Process Management
TSG's Total Process Management tm
approach helps our clients select the best approach
for controlling costs through rightsizing, outsourcing,
consolidation, and redesign, etc. And, when we implement
any one approach, we consider the entire picture.
For instance, we believe that rightsizing without
some process redesign is dangerous, and that outsourcing
without additional standards and controls could be
very expensive in the long run.
Every
management function needs to be considered whenever
any one cost reduction technique is employed. By using
Total Process Management we establish standards, methodologies,
and tools to improve the process quality, controls,
and MIS, while reducing our client's expenses.
Strategy
Development
Constant changes in the business climate, competition,
and client needs require firms to adapt quickly to
capitalize on dynamic conditions and opportunities.
The Summit Group can help businesses respond effectively
in this environment, identify and develop new revenue
opportunities, and significantly reduce their cost
structure. And, we have the experienced professionals,
the tools, and the methodologies to support our clients
in the very complex task of systems integration.
Straight
Through Processing
The
concepts behind Straight Through Processing (STP)
are the same as those that have been used by operations
and technology managers to improve their processes
for years; however, STP can be used as a rallying
point for firms to work together to improve integration
between firms.
STP
requires an understanding of the business, the technology
and the industry trends, and an ability to identify
and implement practical solutions to complex problems.
TSG has written on this topic and has actively supported
many clients identify opportunities and to help them
achieve their goals.
TSG
believes that for the industry to effectively have
Straight Through Processing, both internal and external
connectivity will have to be established, from the
initiation of the transaction by the customer all
the way to reporting the completed transaction to
the customer. We regard STP to be 'Customer to Customer
Automation'.
Outsourcing
TSG has written articles on the process of outsourcing and has supported clients in comparing on-shore and off-shore alternatives. Our comparison process is based upon our understanding of the industry processes and trends, as well as our combined experience in managing operations and technology activities in a variety of securities-related businesses.
TSG has been a provider of outsourcing services for several clients. Recent activities have included providing the full support for a large global Private Bank’s legacy applications while the client moved the fundamental processes to new technologies. This support continued for three years, and involved using staff locally and in India.
TSG also supported a comprehensive testing of a complex global custody processing and accounting application for a major bank by providing the testing resources, managing the process and coordinating the repairs with the vendor. This eighteen month process allowed the business to focus on converting clients and maintaining client satisfaction during the transition period.
Application Selection
TSG has supported numerous clients in the selection of applications to support new businesses or to replace existing applications.
In both situations, TSG’s process involves the documentation of the key requirements for the new application in terms of technology, functionality and volumes. Based upon our industry experience and input from the client, we develop a short list of vendors who are asked to respond to a detailed questionnaire that we prepare. The results are evaluated in a rank score analysis and two or three vendors are invited to provide a complete demonstration of their capabilities. TSG experts participate in all phases of the selection process and are available to support the implementation and testing of the new application.
REPRESENTATIVE
ASSIGNMENTS:
SWIFT
Analyzed
existing workflows and assisted our client select
which SWIFT 15022 messages should be implemented and
in what order. Developed new workflows for the messages,
defined the requirements for application changes,
tested all enhancements and coordinated with all interfacing
organizations. Assisted the client move the project
and other activities from the World Trade Center and
re-establish it in a new location after September
11. See Case
Study.
Assisted
a global investment manager implement new 15022 messages
and establish interfaces with other firms to support
GSTPA and Omgeo.
Business
Evaluation (Outsourcing)
Assisted several firms identify segments of their
processing that were candidates for outsourcing, conducted
outsourcing searches, and recommended outsourcing
vendors when appropriate. Assisted the firms in negotiating
outsourcing contracts and in implementing the agreed
upon approach.
Profitability
Analysis
Evaluated the existing profitability characteristics
of a mid-size trust company and identified the reasons
for its very limited return on investment. Recommended
specific product and processing modifications that
significantly increased profitability.
User
Acceptance Testing
Supported numerous clients who wished to establish
a thorough UAT process that could also be used to
simulate a new working environment. This new environments,
and the test transactions we developed, were used
to thoroughly test the functionality of the new systems
and to train the staff.
See Testing.
Technology
Strategy
Assisted several firms identify their strengths and
weaknesses versus their business strategies, and used
this information to create a complete technology strategy
that identified the target architecture and the steps
that would be needed to implement this strategy. Assisted
firms in certain aspects of implementing their strategy
including maintaining legacy systems, data centers
and supporting operational processes during the transition.
Product
Evaluation
Conducted market research to identify customer requirements
and competitive strengths, weaknesses and direction.
Used the results of the research to evaluate the current
perception and future potential of products and services
in the securities industry. Recommendations included
modifications, new product development and divestiture,
as appropriate.
Departmental
Reengineering
Assisted a major firm in the securities processing
industry establish a complete global custody function
that integrated several independent units into an
efficient entity. This assignment involved workflow
analysis, capacity planning, creativity training,
and systems enhancements. As a result of this work,
our client was able to increase their productivity
and quality to become volume insensitive in several
processing areas that were previously bottlenecks
to growth.
Statement
Design
Re-designed and consolidated several customer reports
into a single client statement package that integrated
banking and brokerage information and presented it
in an easy-to-understand format for the private banking
business of a major international bank. TSG designed
the statement, built the data repository, and produced
statements within a six month period of time.
Designed
a consolidated multi-currency statement for a new
central asset account offered by an insurance company
in Asia that combines banking, mutual fund activity
and brokerage.
Requirements
Definition
Defined
requirements and implemented the liabilities booking
engine (BASYS, a product of Catapult Technology, UK)
to handle products such as Commercial and Consumer
Loans, Lines of Credit, Credit Cards, etc. for a Private
Banking processing service.
Defined
data requirements and data acquisition procedures
for basic aggregation and consolidation. Conducted
business analysis and mapping of data feeds for a
Private Banking processing service.
Project
Management
Project
Manager of a General Ledger implementation team. Conducted
requirement analysis, defined implementation tasks
and managed the project team of employees and consultants.
Instrumental in successfully completing the pilot
within extremely tight deadlines.
