New report lays out best practices roadmap to help financial services companies enhance risk management and reduce costs.
LAKE SUCCESS, N.Y., October 17, 2012 – A new report released today by Broadridge Financial Solutions(NYSE:BR), a leading technology and operations solutions company for the global financial services industry, finds that industry-leading financial firms are outsourcing reconciliation functions (both technology and operations labor) to create standardized risk management processes, increase their ability to enter new markets and comply with more complex regulations, while significantly reducing costs and risks.
In light of ongoing regulatory pressures, financial services firms are recognizing the value of developing an enterprise reconciliation outsourcing strategy to increase transparency of business activity. Basel III in particular, exemplifies a model for a new era in global risk management standards, calling for more stringent reform measures on capital, collateral and liquidity requirements. According to the report, one way firms are handling these stresses is by creating standardized, real-time reconciliation processes to ensure their books and records are fully balanced.
“Centralized reconciliation outsourcing represents a paradigm shift for the industry,” said Mike Alexander, Executive Vice President and Chief Operating Officer, Business Process Outsourcing, Broadridge. “Historically, financial firms spend 30-40% of back office costs gathering and preparing information as part of disconnected reconciliation processes. Firms partnering with an industry reconciliation leader, providing both BPO and technology, can leverage global centers of excellence to create standardized risk management processes.”
As noted in the study, many top firms have already heightened their reconciliation focus, and over the next 18 months the adoption of outsourced reconciliation services is expected to rise by 350%. Four key factors are driving the need for change and causing financial firms to rethink their current reconciliation processes:
As challenges persist, financial firms on both the buy-side and the sell-side should assess their current reconciliation capabilities across the core areas of Technology & Operations, Expertise, Risk, and Cost. Broadridge offers a structured approach to help these firms achieve best in class reconciliations using Broadridge’s technology and outsourcing expertise in four steps:
For additional details or to download Broadridge’s full whitepaper – “Rethinking Reconciliation: How a global center of excellence can enhance risk management and reduce costs” – click here.
Broadridge Financial Solutions, Inc. (NYSE:BR) is the leading provider of investor communications and technology-driven solutions for broker-dealers, banks, mutual funds and other corporations. Broadridge’s investor and customer communications, securities processing and managed services solutions help clients reduce their capital investments in operations infrastructure, allowing them to increase their focus on core business activities. With over 50 years of experience, Broadridge's infrastructure underpins proxy voting services for over 90% of public companies and mutual funds in North America and processes on average $5 trillion in equity and fixed income trades per day. Broadridge employs approximately 10,000 associates in 14 countries.
For more information about Broadridge, please visit www.broadridge.com.