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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.

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straight through processing
Straight Through Processing

Jeffrey Ball, CIO - ProEquities

Steve Krameisen, CTO – Advanced Equities Financial Corp

agenda
AGENDA
  • Financial Services Technology Trends
  • Straight Through Processing – Defined
  • Challenges
  • Solutions / Applications
  • Approach
  • Budget
  • Future of STP
  • Q & A
financial services industry trends
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
slide4

Channel Optimization

Emerging Business Segments

Security Threats

Distribution Management

Risk Mitigation

Industry Trends are Driving New

Business Priorities at Financial Firms

straight through processing stp traditional meaning
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
straight through processing stp broader meaning
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
slide7

Straight Through Processing

has become

“Process Improvement”

straight through processing stp benefits
Straight Through Processing (STP) – Benefits
  • Reduce Costs
  • Improved Business Processes
  • Improve ease of doing Business
  • Remain Competitive
stp example new account opening fund direct
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
stp challenges
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
stp process improvement ideas
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
stp approach
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
stp budget components
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
stp budget examples
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
stp budget examples17
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
stp budget examples18
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
the future of stp
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