Securities Processing Operations

Domestic Commercial Bank

Situation

The client was a rapidly growing securities business selling through the branches of a national commercial bank. The organization consisted of two entities: the dealer bank in Texas and a NASD broker in Ohio. Operations support existed in both locations and two separate systems were utilized.

With a total lack of automation in the branches and severe service problems, there was a need for a unified system with unified management reports.

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Recommendations

Consolidate all operations.
Bring mutual funds processing in-house.
Establish a Customer Service unit.
Consolidate trading desk.
Utilize single system platform.
Form mutual funds workstation.
Design and conduct procedures training.
Institute production management program.

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Results

A mutual funds workstation was formed to process transactions from start to finish and provide all servicing.
All fund processing was brought in-house.
Fixed income trading was consolidated.

The client was able to double transaction volume and reduce turnaround on customer inquiries by 60%, while significantly reducing error rates and service problems. A “Critical” Audit rating was improved to “Acceptable” in 6 months and “Superior” in 12 months.

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