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SUCCESS STORY: SYSTEMS, SECURITIES OPERATIONS AND PROCESSING
CLIENT:
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Major Northeastern US Bank |
DIVISION:
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Global Asset Management |
CONTACT:
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Chief Financial Officer
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SITUATION
The client wanted to meet five year business plan growth
projections for investment portfolios and managed assets, as well
as provide a worldwide branch network with remote access to
portfolio data. The current system was inadequate to support
product growth in terms of volume, statement presentation and the
required analysis. Federal Bank regulators cited the lack of
formal operating procedures and compliance standards as
exceptions.
LOBUE RECOMMENDATIONS
- Perform functional analysis of operations and management
support areas to determine appropriate division of labor and
establish clear operational and business performance
accountability
- Evaluate both monetary risk and data quality to ensure
proper management controls
- Rationalize all processes relating to asset management
accounts
- Develop desktop procedures based on rationalized flows
- Design preliminary staffing model to address support issues
- Develop detailed conversion plan to address new system
production problems
- Evaluate processing alternatives and determine the
cost/benefit trade-offs of outsourcing via an outsourcing/private
label study
- Develop a remote branch inquiry pilot
- Institute structured project management methodology
REAL RESULTS
- Completed system implementation bringing new system into
full production
- Produced written procedures to satisfy Federal Bank
regulator exceptions
- Implemented a simplified systems architecture resulting in
increased productivity
- Assisted in outsourcing RFP negotiations resulting in a
lower bid calculation
- $650,000 savings per annum associated with operations
support and portfolio management
Successful implementation of the new system eliminated costly
processing runs. The newly automated environment, combined with
documented procedures and processing standards, presented a
downsizing opportunity and satisfied federal examination
requirements.
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