STP then and now

Initial discussions around Straight-Through-Processing (STP) centered mainly around increased automation. Since then, financial institutions have come to view improvement to their STP rates as bringing larger enterprise-wide benefits.

Most organizations recognize that they need to improve the management of securities and payments reference data. In particular, issues with Standard Settlement Instructions (SSIs) and poor data related to broker/dealers, correspondent banks, counterparties, clients and custodians are resulting in millions of dollars still lost because of trade and payments failures.

In the aftermath of the global financial crisis, the necessities of improved risk management and cost reductions are at the forefront of market participants’ preoccupations. Faced with a difficult market environment and an ever stringent regulatory environment, containment of operational risk and greater operational efficiencies are no longer tactical initiatives but have taken center-stage due to their direct impact on financial performance and regulatory compliance.

Organizations face a combination of internal challenges and tough external market conditions:

  • Flat or declining headcounts in middle/back-office
  • Silo-based architecture producing data duplication and inaccuracies
  • Management demand to leverage existing systems and investments
  • Compliance eating (away) the lion share of budgets
  • Fierce competition across the financial sector
  • Downward pressure on margins
  • Increased customer fickleness

 

Not a priority? Think again!

You may say that with so many other priorities, improving entity data is not going to be your focus in the short term. However, can you afford to put this issue on the backburner?

The link between poor data and low rates of STP can no longer be ignored. Data inaccuracies continue to cause failures in trades and payments. Industry estimates show that losses amount to hundreds of millions of dollars every year. As we stated above, with pressure on margins and an overall challenging business environment, the operational and reputational costs must be controlled to maintain profitability.

It is now imperative for organizations to increase operational efficiency and higher STP rates in the areas of securities transactions and payments.

Return On Investment

Joss Technology brings solutions characterized by fast ROI. Our objective is not to work on project plans with deliverables in 2 or 3 years. We work with you to produce positive results on your operational processes in a matter of weeks and months.

We can achieve this because the state-of-the-art technology we offer was designed to be flexible and easy to use. Some of our features include:

  • A non-intrusive platform that can be deployed more easily than traditional “heavy duty” systems
  • We make it easy for IT by using standard technology and providing a scalable architecture
  • We minimize disruption and provide adaptors to quickly integrate with your existing IT architecture.
  • Our solutions can be implemented incrementally
  • With our workflow engine, we can fit in with to your existing business rules
  • Full support during configuration and flexibility to customize the application (through us or through our Java-toolkit)
  • An intuitive interface ensures business users need minimal training; they can be productive quickly
  • We also offer our full suite of capabilities under a SaaS model

 

Will it really make a difference?

Here are some of the benefits you will achieve with our solutions:

  • Increased STP: less outbound payments needing repair due to incorrect entity data
  • Lower costs: direct impact on your bottom-line as you lower costs generated by repair activity
  • Better timeliness: avoid delays for submittal and processing of payments
  • A consolidated “golden copy”: you need it now in light of the industry push towards T+1 settlement
  • Enhanced data capture: effectively capture and validate incoming payment data
  • More automation: limit manual keying
  • Superior customer service: faster clearing & settlement as well as fewer cases of rejection
  • Faster expansion: you will be ready to extend your reach in new markets more quickly
  • Make the regulators happy: you will avoid penalties for non-adherence to various legal requirements