Innovation in Technology & Operations: A Virtual Back-Office. March 2010

Transcription

1 Innovation in Technology & Operations: A Virtual Back-Office March 2010

2 Business / Technology / Operations alignment Alignment of Business, Technology and Operations Business Vision Business Vision - Scalable infrastructure of choice for our clients with a boutique client experience - Leading service provider to the Wealth management industry Business Architecture - Simplified model, leverage network and partner products, processing a transaction once Business Architecture - Consistency in product offering across geographies and client segments - Focus on core, better packaging and presentation Technology Architecture - Single global platforms and consistent processing wherever possible - Responsive technology architecture based on business needs Application Architecture - Multi phased to unlock economic value early and help manage complex interdependencies Operations Infrastructure - Align the operations model with the technology and business architecture - Centers of excellence, Optimized location strategy - Process reengineering/lean inculcated as a discipline to deliver continuous improvement 2 3 Operations Infrastructure

3 Commonware Customware Solution Architecture Balancing scale, flexibility and responsiveness Common at the Core, Custom where it matters Investor Solutions Architecture INVESTMENT SERVICES PORTAL Attributes Front-Office Integration ( Messaging, Connectivity) Trade Processing Information Delivery (Data Warehouse) Portfolio/Fund CLIENT SERVICE Best-of Breed Capabilities (Performance Measurement, Risk) CORE SERVICES Asset Servicing Vendor (3 rd Party Providers) Compliance Monitoring Responsiveness High-Touch Expertise-Rich Philosophy of Citi as extension of client Flexibility Tailored Solutions Integration-Focused Best-of-Breed / Value Capabilities Reconciliation Data Management Scale Commodity Utilities Scale-based Processing Global Platforms Scale Flexibility Responsiveness 3

4 Transformation Reengineering goals and objectives it must enhance client experience and service It must enhance the controls environment It must establish a lower cost structure and unit cost basis It must enhance what is great about our culture Primary Characteristics of the process a client centric view process starts with the client and ends with the client must be a end to end look at the process no silo look leveraging technologies to automate activities and eliminate redundancies rationalize roles and responsibilities controls imbedded in the process closer to capture / early in the process manual intervention only on a exception basis establishment of roles as it relates to front, middle and back office no exception is repeated twice a truly rule driven environment flexibility and be able to dynamically alter work processes Result: Sustained reengineering will generate low cost capital for reinvestment into high growth opportunities 4

5 Executives s Global Operating Model Commonware Configurable Customware Value delivered to clients through functional, business and client SMEs 1 Infrastructure / Transformation Governance PMO BRD Utility UAT Utility Lean COE Compliance, Risk & Control Vendor Mgmt Communication Reconciliation Income Mandatory Corporate Voluntary Corporate Tax Reclamation Data Conversion & Set Up Security Pricing Security Other Static Data Reporting Transaction Capture and Processing Billing Onboarding Issuer Record Keeping Debt & DR Transfer Agency Record Keeping Valuation and NAV Process Pre Matching Valuation Review Fund Administration Expense Management Performance Calculation Global and DCC Data Mgmt & Servicing Loan Middle Office Portfolio Compliance Call Center Cash & Securities Movement and Accounts Inquiries & Investigations Asset Servicing Cash Forecasting Manual Transaction Capture NAV Calculation Process Board Packaging and Interface FX SLA Mgmt & Reporting Inquiries and Investigations 3 Way Reconciliation Review & Tolerance Check Review & Tolerance Check Fails Coverage Review of Delivery & Reporting Corporate Service & Investigation Striking NAV and Sign Off Market Information Interface Inquiries, Claims and Investigations Regulatory Interface External Reporting of NAV Local Market Management Service & Investigation Service Regulatory Interface 5 5 Metrics

6 Transaction Capture Enterprise Workflow Transaction ID Reporting s Product Capture Edit Identify / Account and Information Centric Architecture Commonware Configurable Customware / Leverage IT To achieve SFS goals we need to transition from a product centric approach to an information and client centric processing model 6 6 SWIFT FIX DATA FEEDS DMS FAX OTHERS Fund Acct Expense Mgmt Valuation Tolerance check Forecasting Regulatory Rpt Middle office Portfolio Acct Cash Forecasting SOD Positions 3 Way Recon Compliance Corporate Security Books & records Transaction Safekeeping Books and Records Generation Securities Movement Asset SVC Entitlements Events Processing Data Scrubbing Event Mgmt Data Vendors & External Feeds Internally Generated Data GOLDEN Pricing Information Warehouse Service Processors A&T Debt Record Keeping Escrow Structure Financing Loan TA Record Keeping Servicing Forecasting COPY Benchmarks Product General ledger ADR DR Recordkeepin g Escrow services Asset Servicing Cash Record Keeping Servicing Forecasting Corporate Events Golden Copies Security Pricing Corporate Events Perf./ Anal. Calculation Attribution Analysis to Benchmarks Risk Analytics Collateral Mark to Market Calculation Movement Billing Billing Rule Calculation Bill Generation Lending Mark to Market Cash Movement Markets and Messaging: CSD / SWIFT; CLS; etc 5 Enterprise Data Management 3 6 STD Reports Feeds On Demand Reports Centric Information Delivery

7 Research Portfolio Management Trade / Execution Order Management Pricing Investment Reconciliation Performance Investor Reporting Collateral Management Fund Admin / TA / Shareholder Securities Lending Plug & Play: Deconstructing the Investment Value Chain Front Office Middle Office Back Office DATA Investment in plug and play of best of breed commercial tools in conjunction with our value add proprietary systems Integration architecture leverages mature Data Architecture and Middleware capabilities to link value added products and services Enables shared consistent use of data, allowing rapid replacement or upgrade of value chain components Improved quality of service to our s by increasing stability, resilience and capacity across the GTS global application portfolio 7

8 Research Portfolio Management Trade / Execution Order Management Pricing Investment Reconciliation Performance Investor Reporting Collateral Management Fund Admin / TA / Shareholder Securities Lending Plug & Play Example: Investment Performance Measurement Front Office Middle Office Back Office 8 Use of integration technologies to modularize each functional capability while improving data integrity and consistency of end to end solution Improved time to market implementing new product capabilities as well as on-boarding of new clients; enabling increased growth opportunities and enhanced frontline capabilities Example : XAMIN implementation prior to these capabilities- 18 months StatPro implementation incorporating these capabilities - 4 months

9 Information Delivery Technology Architecture SFS Interface Architecture Hedge Fund Institutional AMS Retail SMA Mutual Fund Sec Lending OpenWealth Front Office Charles River CCS Other OMS Vestmark Open Prime Web bid LIst FX ALL Bloomberg File Manual / FAX Communication Layer MQ Internet & Extranet SFTP SWIFT Format XML, CSV, Pipe Delimited, ISO 15022, Fixed width Trade Order Generation Single Point of Entry Data Transformation Layer Ab Initio MOTO MOM Vestmark Utilities Data Imaging Workflow Tech Infrastructure Multifonds Invest One Geneva Citi 3 rd Party Prime Broker Market Data & Pricing Corporate Performance Reporting Print & Mail Billing OFAC Data Warehouse Citi Global Information Warehouse Frameworks CDF Framework ( Reporting) CDS Framework (Securities Reporting) Extract Framework Transfer Mechanism Reporting and extracts Web Based Internal Reports Internet (Secured & Encrypted) Web Based Investor Reports Extranet (Dedicated T-1 Lines) Back Office via Internet & Extranet 9