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Corporate actions solution from IBM
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| The value of automation
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Have you lost money or clients due to erroneous corporate actions processing? Between three and ten percent of total operating income can go to cover costs associated with failed corporate actions. Corporate actions processing remains highly manual and is often replicated across a number of different business areas throughout an organization. Announcement data is not always standardized and can be sent on a random basis. Significant potential liability and risks exist for failure to handle the processes effectively and efficiently. The corporate actions solution from IBM can provide automation to help resolve these issues.
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| Take advantage of our experience
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Financial institutions have tremendous flexibility working with IBM. Our integrated solution can help improve your corporate actions processes. We have: -
Industry recognition—IBM won Waters' 2004 award for Best Outsource Provider and remains "the global financial IT outsourcer to beat,” according to Waters.
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Ongoing innovation—IBM launched the world's most powerful privately owned supercomputer, the Watson Blue Gene system (BGW), which can help to develop and run advanced mathematical algorithms for a variety of client problems. For example, BGW provides the power to track and analyze world financial markets in support of global risk measurement and management.
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Consultants dedicated to the financial services industry—more than 7,000 in 160 countries.
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| Enhanced client service
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The corporate actions solution from IBM is designed to help you automate through the whole corporate actions and individual asset life cycle. It can also help you: -
Automate communications between the front and back office to help eliminate discrepancies and miscommunication.
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Minimize the risk of liability for failing to handle your processes efficiently and effectively.
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Leverage increased processing capabilities for instrument coverage.
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Enhance client satisfaction by introducing value-added services.
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Improve the capture of instructions from and the ability to send instructions to multiple parties within or outside your organization.
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More easily disseminate announcement notifications.
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Monitor changes in shareholder positions and entitlements between the date of an initial announcement and the event expiration.
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| Addressing the issue of inefficiency
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It is estimated that 42% of all financial markets transactions remain paper-based, while 40% of firms manually enter data at least twice for the same transaction. In a manual corporate actions environment, it is common industry practice to allocate funds to cover losses associated with corporate action mistakes. Industry sources estimate that 10% of the annual cost of processing corporate actions comes from “write-off” funds reserved for losses. On the operations front, because of the lack of widespread automation, corporate actions staff at some of the larger, global institutions can number in the hundreds, costing upwards of US$20 million per firm. The corporate actions solution from IBM can help other financial markets organizations to break out of this cycle as well.
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| Reduced operational risk and cost
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The corporate action solution from IBM can help you reduce operational and reputational risk. It also provides:
Patented rules-based templates to streamline and automate U.S., European and Asian corporate actions processes—ultimately helping to reduce costs.
Intuitive interfaces that are easy to use and can simplify corporate action tasks.
Workflow and monitoring functions that can help reduce operational risk and enhance client service.
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Questions about this solution? Contact an IBM financial services specialist.
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