Reference Data Management Tech Mahindra s Managed Data Service Instruments Data Management platform for the Financial Services

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2 Reference Data Management Tech Mahindra s Managed Data Service Instruments Data Management platform for the Financial Services 2

3 Reference Data Management Focus Areas PAIN POINTS Data Quality Cost Regulatory pressure & Risk management New Product Customization Manual maintenance subject to error Multiple data sources & disparate databases Data feed quality concern Data duplication and redundancy Most firms unaware of their data TCO. Cost of data management higher than data cost Higher cost due to manual intervention Lack of knowledge & incomplete datasets Challenge to adapt with regulatory change and manage risks Exponentially increasing number of new financial instruments Need to configure instruments swiftly Top 3 Industry Priorities Key Challenges Exception Management 27% 22% 51% 16% 20% 17% 24% 23% 40% 60% Regulatory Compliance Improving Operational Efficiency Immature Data Governance model Timeliness Bad Data Quality Manual Intervention Automation Improving Data Quality Duplicate Data Others Source: FIMA & Tower Group 25% higher data cost due to data wastage and duplication % on data management cost can be saved by choosing a sophisticated platform & apt business model 3

4 Comprehensive Solution for Reference Data Management Platform driven framework Reference Data Management Data Quality Standardization Cost TCO analysis identifying cost reduction opportunities Level of automation - STP rate of 96% Reduce manual intervention, achieve 99% quality data % reduction in total data management cost 4

5 Consulting Services DATA VENDOR FEEDS CONSULTING Data usage analysis Data audit & rationalization Produce data TCO model Evaluation of data governance model Identify potential costs savings Re-design vendor feed strategy Reference Data Management APPLICATION CONSULTING Technology & architecture analysis Technical evaluation of data feeds management, data mapping, processing and distribution methodology Business rules configuration study Scalability and performance analysis Evaluate regulatory readiness OUR ADVISORS EXPECTED OUTCOME TCO analysis identifying cost reduction avenues Clear graphical metrics for data rationalization and operations Design for technology roadmap 5

6 Data Operations Service BAU DATA OPERATIONS Data Management New security set-up & maintenance Pricing Services Processing of Corporate Actions & Tax data SLA, MI and adhoc reporting Risk Management Standard Operating procedures - reviewed with client regularly Checklists & controls Complete before and after audit trail Proven governance and risk management framework Query Management Day to day client query management, tracking & reporting Change Management Support new initiatives and process improvements New CR implementation Process re-engineering & automation EXPECTED OUTCOME Reference Data Management 20-30% reduction on operations costs Streamlined process and better data quality PRODUCT EXPERTISE 6

7 Instruments Data Management Platform Data Feeds Client Downstream Systems Internal Data Sources Reference Data Management Data Acquisition Data Processing Business Rules Engine Data Distribution Asset/Wealth Managers Fund Administrators & TPAs Investment Bankers Prime Broker/Dealers Custodians Risk & Compliance Managers Reference Data Management Compliance & Risk Corporate Actions Tax data Transform complex regulations in powerful workflow tools for Price Validation Enable investment restrictions, portfolio valuation, tax reporting and compliance Legal Entity Holistic view on Legal Entities X-Reference capabilities matching to industry standards such as LEI Workflow tool available to monitor CA lifecycle. Configurable output formats incl. ISO15022* Pricing Valuation services Complete transparency on pricing rules (e-g IAS39). Complete audit trail available. Exception handling through workstation Process country specific tax data Calendar Security Ref data Instrument reference data, setup across all asset classes Issue ratings Client Specific Business rules Configurable Output formats Internal ID schemes (Xref) EXPECTED OUTCOME Higher level of automation (96%) for increased quality and lesser cost (30-40% savings) Faster on-boarding and instruments set up * On our Product Roadmap 7

8 Coverage & Scale Across all time zones, markets and asset types Over 20 Market Data Sources, all major stock exchanges 3.1M Issuers & Financial Institutions 20 K+ Corporate actions, 52+ Corporate action types 1.4M Instrument Prices 730+ attributes with ability to scale up to K active reference instruments with ability to scale up to 2M+ 8

9 Managed Data Service (MDS) Highlights Client Enquiry INTERNET PORTAL INTERFACE ACCESS CONTROL & ELIGIBILITY MANAGEMENT DATA GOVERNANCE Policies, processes and oversight & MIS reporting Tech Mahindra Data Operations Centre 24X7 Support, Help Desk, Issue Escalation Re- running feeds, adding and enhancing new feeds and data items VENDOR FEEDS Data Vendors Client Specific Custodian Specific Interface & Connectors DATA MANAGEMENT SERVICES Data scrubbing, validation, reconciling, new instrument set-up, validation rules, golden copy production & distribution, exception management, client communications & monitoring dashboards Maintenance & upkeep of platform, File checking, vendor format changes Software monitoring and operations include database administration Interface & Connectors DATA DISTRIBUTION Asset Management Wealth Management Post Trade Downstream Systems MDS TECHNOLOGY PLATFORM Hosted, fully secure services Tech Mahindra can also provide a co-managed service offering (hosting platform at client site) based on customer requirements 9

10 MDS Key Benefits and Outcome Cost 30-40% Reduction Quality 99% Cost effective business model Sophisticated platform, proven data model Platform intelligence for data rationalization Transaction Based Pricing Model In built rules & high level of automation for increased quality Track record achieving 96% STP Operational Intelligence for early warning Standard Operating procedures and streamlined model Regulations & Risk Regulatory preparedness New Product Customization Time to Market Experts track regulatory changes specific to markets as part of our product roadmap. Assist our customers to meet the regulatory timeline Dynamic data model allows our platform to accommodate changes swiftly Faster time to market when building and on-boarding new data requirement/processing solutions 10

11 Cost Engagement Value Curve Identify cost saving avenues 20-30% Ops Cost Saving 30-40% Total Cost Saving 40+% Total Cost Saving Low Vendor Ownership High Consulting Data Operation Services Managed Data Service Data as a Service* App Consulting, Data feeds consulting & Audit Data Operations Service Platform + Infra + Data Ops service Data + Platform + Infra + Data Ops Service Data ownership Client specific liability transfer or shared data (Multi-tenanted) Metrics for Data Rationalization, operational efficiency and data quality Understanding of TCO and cost saving venues High quality operations at a cost effective location Domain expert pool provide best in class service Standard operating procedures High quality data Automation reducing manual intervention Data rationalization capabilities Ease from regulatory pressure All benefits of our KPO service Data Cost + Data Management cost integrated to reduce vendor management burden. Ownership and liability on data transferred Better operational efficiencies and data quality All benefits of a managed data service offering *Data as a Service is Tech Mahindra s upcoming reference data management offering 11

12 Case Study Tier 1 Financial Institution SCENARIO Challenge Transform reference data management operations in Fund Services and Asset Management division to reduce operational costs. Key Engagement Highlights Fully owned Data Operations by TechM Reduction in Operations costs Capex to Opex conversion of Infra costs adding more cash for the client Uninterrupted business activities through effective transition methodology Skilled client resource pool rebadged to TechM Price Data Monthly Volumes o Basic data < 20 seconds o Best quality data < 30 minutes New Instrument Setup Request Files Vendor Files Processed Key Outcome 30% reduction in cost STP Rate 94% 96% 98% Security data Corporate Action Pricing 12

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