Client
A leading global financial firm with a rich history spanning over a century, our client specializes in providing asset servicing, investment management, and wealth management services to institutional investors worldwide. With a strong focus on innovation and client-centric solutions, the client has established itself as a trusted partner in the financial industry.
Business Challenge
The client operates within the liquidity vertical, a critical segment supporting institutional investors. The client distributes funds through intermediary portals, thereby bolstering Assets Under Management (AUM) and fostering strategic partnerships. Central to this operation is the revenue-sharing model, where intermediaries receive compensation based on basis point calculations against AUM. This intricate structure necessitates meticulous management of fee waivers, which are dynamically determined based on various parameters, ensuring optimal benefits for all stakeholders involved.
The client sought a partner to help them address the following business challenges:
- Manual Processes and Excel Dependency
The client grappled with antiquated manual processes and heavily relied on Excel spreadsheets to determine fee waivers associated with contracted funds. This manual approach led to inefficiencies, errors, and operational bottlenecks, hindering agility and scalability. - Onboarding Inefficiencies
Onboarding intermediaries, a vital aspect of expanding operations, was marred by labor-intensive processes reliant on email communications. This cumbersome method led to communication errors, delays, and inefficiencies, impeding growth and agility. - Risk Exposure from NAV Fluctuations
The volatility of Net Asset Values (NAV) and fund data posed significant risks, exposing the client to potential financial losses. With fluctuating NAV and unpredictable fund data volumes, the client faced challenges in accurately assessing financial positions and mitigating risks.
Hexaware’s Approach
Our approach focused on leveraging cutting-edge technology and strategic automation to address the client’s challenges head-on. By streamlining processes, enhancing communication, and implementing robust risk mitigation strategies, we laid the foundation for a future-ready liquidity management framework.
- Identification of Opportunity
Hexaware identified an opportunity for digital transformation in liquidity management, recognizing the potential for automation to streamline processes and mitigate risks. - Liquidity Command Center Portal Development
Leveraging Appian’s LCNC capabilities, Hexaware developed the Liquidity Command Center Portal, a comprehensive solution designed to automate fee calculations and eliminate manual errors.
This portal served as a centralized platform for managing liquidity-related processes, offering enhanced visibility and control. - Automation of Account Feed Systems
Hexaware implemented automated account feed systems and balance files to improve communication with intermediaries, reducing errors and inefficiencies associated with manual processes. - Risk Mitigation Strategies
Automation was applied to manage risks stemming from NAV fluctuations and fund data volatility, ensuring consistent and accurate financial management.
Benefits
The approach streamlined fee calculations, communication with intermediaries, and risk management, ensuring efficiency and accuracy in financial operations.
- 40% Increased Operational Efficiency:
The implementation led to a significant increase in operational efficiency, with manual validation checks for fee waivers minimized. Middle office users were empowered to focus on strategic initiatives, as streamlined workflows and automated processes simplified day-to-day operations. - Improved Monitoring and Control:
The Liquidity Command Center Portal provided a centralized view of projected and actual revenue generated through fee waivers, enabling informed decision-making and enhancing monitoring and control capabilities. - Risk Reduction:
By automating processes and implementing risk mitigation strategies, the client was able to reduce the risks associated with NAV fluctuations and fund data volatility, safeguarding financial stability.
Summary
Hexaware partnered with a global financial firm to transform liquidity management processes, addressing challenges stemming from manual operations and Excel dependency. The client, facing inefficiencies in fee waiver calculations and onboarding intermediaries, sought Hexaware’s expertise to streamline operations and mitigate risks.
Hexaware introduced the Liquidity Command Center Portal, leveraging automation to automate fee calculations and eliminate manual errors. This holistic solution enhanced operational efficiency, reduced risk exposure, and empowered teams to focus on strategic initiatives.
Through collaborative efforts, the client achieved significant improvements in operational efficiency, with manual validation checks reduced by approximately 40%. The Liquidity Command Center Portal provided enhanced visibility and control, revolutionizing liquidity management processes and reinforcing the client’s position as a leader in the global financial landscape.
