1 / 20

Straight Through Processing

Straight Through Processing. Jeffrey Ball, CIO - ProEquities Steve Krameisen, CTO – Advanced Equities Financial Corp. AGENDA. Financial Services Technology Trends Straight Through Processing – Defined Challenges Solutions / Applications Approach Budget Future of STP Q & A.

trudy
Download Presentation

Straight Through Processing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Straight Through Processing Jeffrey Ball, CIO - ProEquities Steve Krameisen, CTO – Advanced Equities Financial Corp

  2. AGENDA • Financial Services Technology Trends • Straight Through Processing – Defined • Challenges • Solutions / Applications • Approach • Budget • Future of STP • Q & A

  3. Financial Services Industry Trends • Reduce costs and do more with less • Integrate delivery channels • Improve time to market for new products • Improve efficiency of internal and external regulatory reporting • Provide a single view of the customer • Transform the branch office into a more efficient sales office

  4. Channel Optimization Emerging Business Segments Security Threats Distribution Management Risk Mitigation Industry Trends are Driving New Business Priorities at Financial Firms

  5. Straight Through Processing (STP) – Traditional Meaning • Enables the entire Trade Process cycle electronically • Little to no manual intervention • Eliminates re-keying of information • An efficient use of Computers for transaction processing

  6. Straight Through Processing (STP) – Broader Meaning • Functionally link two or more systems, so that they transparently behave as “one” to the End User • STP Concepts are applied beyond Trade Execution • Improve Efficiencies – shorten processing cycles • Reduce Operational Risk • Minimize Operational Costs

  7. Straight Through Processing has become “Process Improvement”

  8. Straight Through Processing (STP) – Benefits • Reduce Costs • Improved Business Processes • Improve ease of doing Business • Remain Competitive

  9. New Account Opening – Manual Workflow

  10. STP ExampleNew Account Opening

  11. STP Example – New Account Opening / Fund Direct • Branch input of information • Local branch data storage • Back Office data management • STP Request to Fund Company returns Direct Fund Account Information • Back Office establishes Direct Account • Client signs electronically using Click-Wrap agreement in the branch • Order Request routed and executed • Branch receives complete account and order detail • Client sees account and position online

  12. STP Challenges • Requires meaningful review of and updates to existing business processes • Processes must be measurable & controllable • Involves integrating disparate systems • Costs to implement • Keeping it simple – minimizing complexity

  13. STP (Process Improvement) Ideas • Trade Processing • Integrated New Account Opening • New Business Submission • Advisor or Employee On-boarding • Customer Service Requests • IT Help Desk • Sourcing / Procurement • Compliance material submission and review

  14. STP Approach • Assess your existing Processes • Which should be focused in on? • Where are the bottlenecks? • Measure their effectiveness – quantitatively • Are their steps that can be automated? • Improve your Processes • Study key relationships and dependencies • Implement measurements as part of the enhanced Process

  15. STP Budget Components • People Roles • IT Project Manager / Analyst, IT Quality Assurance, IT Developer / Integrator • Business Subject Matter Experts, Process Reengineer • Consultant – may be desirable if you invest in new Technology • Software Licenses • Hardware / Infrastructure

  16. STP Budget Examples • Small Automation Process – 0$ - $100K • No new or small Software Purchase • Leverage existing Technology like E-mail with some basic workflow • Leverage existing Relationships / Tools available • Example – Advisor to Head Office Service Request automation using Service Provider tools

  17. STP Budget Examples • Medium size STP initiative - $100K - $500K • May include new Software and Hardware Purchase • May Automate Process with multiple Business partners • Uses existing “utility” services • Example – Back Office Imaging Integration

  18. STP Budget Examples • Large Scale STP integrations - $500K + • Large new Software and Hardware purchases • Development of complex services not currently offered by the industry or your back office • Example – End to End Advisor Process Flow - Automated account opening, eSignature, integrated Rules Engine, upfront Compliance checks, account funding

  19. The Future of STP • Need to move to a Business Centric module from a Technology Centric Model • Technology is often not the problem, process is • Focus on the core value proposition you’re offering and seek to improve that proposition • Stay in touch with the Industry and leverage what is available to you

  20. Q & A

More Related