International Financial Services Company Case Study

• ⇒
  Replaced inefficient manual four-eyes checks and control reports with consistent, automated data checking.
• ⇒
  DCI’s rules-based checks produce audited output and fixes that deliver true data excellence.
• ⇒
  Workflow transparency enhances the firm’s internal processes and staff training to prevent errors.
• ⇒
  Improved data accuracy and fast issue remediation boost client satisfaction.

Financial institutions live in an increasingly fast-paced, data-driven world. Whereas customers used to receive quarterly statements with their investment valuations, they now want daily views, notes the Strategic Projects Lead for one of DCI’s clients, an international financial services company. And customers expect the data to be accurate.

Switching to the DCI Data Analyst system has enabled the institution to meet those demands, while transforming its internal operational efficiencies.

The problem

The international financial services organisation’s long-time portfolio management and reporting system depended on manual data entry. Over time, errors such as mistypes and data omissions inevitably crept in. Manual data input also created inconsistencies, for example in how versions of the same funds were set up.

“Traditionally, the industry has relied on four-eyes checks to spot and rectify problems, requiring dedicated reviews and data clean-ups to be in place at every step of each process,” says the projects lead. “But issues become harder to catch and the work more inefficient the more you do.”

As well as being inefficient and unreliable, four-eyes checks are costly, observes the Strategic Projects Lead. “The checkers are mostly senior people, making it a more expensive process. Managers and senior staff are also then not doing what they should be doing, which is managing workflow and people.”

Fallible four-eyes checks can have a host of consequences, not least incorrect client tax reporting, and flawed FATCA and other regulatory reports. “Often the first time you start seeing the issues surface is when clients contact you about them, which is not optimal,” notes the projects lead. “Instead, from a client perspective, you want everything consistent and right and on time.”

A small one-time issue may be overlooked. Significant and/or persistent problems threaten the client relationship.

A faulty fix

To support its four-eyes checks, the international financial services company ran control reports from its portfolio management system. The reports would look for data anomalies in the deals or transactions created, such as prices being incorrect, or more than 10% out from the previous day’s price.

The report would go out to the relevant team in the morning. The team would print off the document and work through it. Once complete, it was scanned in and signed off as done for the day, then checked by the audit team, the Strategic Projects Lead explains.

“Some reports, if not considered a regulatory risk, weren’t scanned and checked for audit. Which meant there was no clear evidence of whether a data error was picked up or fixed.”

The DCI solution

Amid exploding data volumes, and an ever-growing onus on data accuracy and speed to meet client service expectations and regulatory rules, ensuring data checks are consistent and accurate is vital. So when DCI approached the international financial services company it could see the value the DCI system would bring, says the projects lead.

“Previously, we were relying on our own control reports because there was nothing in existence built to do this for our post-investment platform. The DCI solution was the first in its class that we had seen of a rules-based checker producing audited output and fixes.”

The DCI solution was the first in its class that we had seen of a rules-based checker producing audited output and fixes.

DCI’s software removes the threat of human variability. It continuously monitors user firms’ data using a comprehensive set of rules to quickly identify any integrity and systemic issues, and provide detailed, evidential audit reporting. Integrated workflow tools automatically assign errors to appropriate users or teams, along with detailed solution narratives to proactively address the risks and enable fast resolution. A dashboard details what issues are being investigated, where they stand, what has been resolved and when, keeping management fully informed with core KPIs at all times.

The result is a true golden source of accurate and consistent data at all times, helping avoid the potentially critical failings that poor or missing data cause.

Business benefits

The benefits to the international financial services company are being felt across the enterprise.

“There are far fewer errors being discovered in downstream processes or by clients, and an overall much higher level of data excellence,” says the projects lead. “And if a new error or weakness in a process is found, we can work with DCI to quickly create a new rule that ensures the issue will be picked up should it arise again. The result is a smoother process flow, less manual checking, greater efficiency and an improved reputation with clients.”

There are far fewer errors being discovered in downstream processes or by clients, and an overall much higher level of data excellence.

Diagnosis and remediation are now highly targeted. “When we implement a rule, the DCI platform looks at the history of the errors that come up,” the projects lead explains. “We can examine how an error came about, what’s going wrong, whether they are old or recent, and then tackle them with an appropriate fix.”

• Was the error caused by a fat finger? If that happens frequently, what can the firm do to stop it?
• Is the process flawed in some way, and can it be amended to be more systematised and standardised?
• Is it a training aspect, with the person doing something wrong, or skipping or rushing steps?

“We’ve discovered how some processes were split between departments, depending upon client type for example, prompting us to move that back together,” notes the projects lead. “Or someone may not have been following the procedure notes. We’ve now instituted sign-offs in staff training to confirm they’ve been through those notes. So it’s not just data excellence and cleaning up data, it’s checking our processes and training to ensure we get to the right actions.”

Using DCI has also spurred a culture shift by prompting a greater focus on, and engagement with, data.

“Having DCI’s automated checking system is helping to move people’s mindset,” observes the projects lead. “It’s no longer about just typing details on a screen according to some boxes and notes, or how many transactions you’ve processed through the day. The platform has made them extra client centric. Staff now concentrate more on whether those transactions have been processed correctly. They are focused on doing a good job for a client and delivering the best service.”

Next steps

The financial services organisation is currently migrating from its legacy portfolio management platform onto a new system. Cleaning up the last few years of data is a particular focus to avoid migrating poor quality data across, says the projects lead. In addition, the firm is working with DCI to introduce more monitoring rules and increase their scope to ensure the solution covers all areas.

“Overall, working with the DCI solution has led to a better knowledge of our processes and fostered staff engagement to further improve those,” concludes the projects lead. “It has reduced the incidence and cost incurred by errors and amendments. And it is helping us increase client satisfaction.”

It has reduced the incidence and cost incurred by errors and amendments. And it is helping us increase client satisfaction.