Asset managers have a more significant role to play today. Asset servicing is a profitable sector considering the current challenging economic environment. It is characterized by stringent regulations, demanding investors, and fierce competition. The evolving landscape is compelling asset managers to revisit their IT strategy, to reduce operational costs and improve efficiencies. As a result, they have been increasingly adopting outsourcing strategies to achieve these objectives.
The scope of outsourcing has gradually evolved into one that encompasses middle office functions, as well as, data management services. Outsourcing of data management services offloads the asset manager’s time significantly, allowing them to focus on core areas to streamline operations, drive growth and gain competitive advantage. Some of the key IT challenges faced by asset managers include; various processes and silo-ed data sources that make efficient client onboarding difficult and monetization of new opportunities a distant dream.
Hexaware offers comprehensive asset servicing solutions to help asset managers effortlessly meet new business requirements. Besides supporting traditional asset servicing functions, our client’s onboarding framework helps standardize onboarding processes with clear Key Performance Indicators (KPI), service levels and business processes. We have successfully built and implemented data & analytics solutions and managed data & reporting processes for several industry players, helping them make comprehensive data repositories to enhance data management and deploy efficient analytics functions.
The evolving global financial landscape has forced the asset management industry to revamp its business models and improve client experience, through a relentless focus on customer satisfaction. Asset management firms typically grapple with several challenges like; lack of integration between middle and back offices, often leading to poor customer experiences. For instance, straight-through processing is difficult to implement due to multiple interfaces between brokers, customers, and third parties. Increased use of exotic and less-liquid asset classes by the industry, adds to process complexity. Asset managers are therefore partnering with end-to-end service providers to enable seamless integration of middle and back office services with the goal of achieving operational efficiencies, increased savings and superior customer satisfaction.
One of the critical enablers of superior customer experience is an efficient client onboarding process. It also helps the industry meet regulatory requirements and provides the opportunity to expand into newer territories. Hexaware’s services address these specific middle office operational challenges faced by the industry as shown in the table (Figure 1) below:
|Middle office challenges||Hexaware’s capabilities|
|Constraining operating models and the presence of multiple partners, limit scalability, governance and consistent delivery.||Deliver significant onboarding capacity with a consistent and seamless global operating models.|
|Ineffective knowledge management due to constant churn in the onboarding team leads to, lack of knowledge retention on tools, processes, and best practices||Institutionalize knowledge transition and retention across the onboarding lifecycle.|
|Lack of demand predictability due to high variability in deal volumes and capacity requirements, across various work streams and geographies.||Provide a target state model that enables rapid ramp up/down, and effective demand management, while controlling costs.|
|High levels of financial and operational risk due to limited visibility and control.||Share financial risks as a strategic partner and help mitigate operational risks by ensuring aggressive strategic investments and successful onboarding.|
With over a decade of experience in partnering with leading asset managers, we provide integrated service offerings for a smooth onboarding experience. These include program, resource, and metadata management, differentiated pricing model, Business Process Management (BPM) modeling for business analysis, data exchange, client reporting migration service, analytics for asset management, and User Acceptance Testing (UAT) regression suite.
Global financial institutions are under enormous pressure to make better business decisions within shorter time frames. They are challenged to produce high-quality results with minimal risks and errors. However, the poor quality of information available and its unstructured format; impairs decision making, creating inefficiencies and compliance challenges.
To overcome these challenges and achieve a positive return on investment (ROI) at minimal risk and cost, financial institutions need to structure their data by embracing technological innovations.
Figure 1: Hexaware delivers State-of-the-art solutions that help our clients manage their data across front, middle, and back office operations.
Hexaware offers end-to-end investment data management solutions that address the clients’ requirements and enable them to overcome challenges.
Our solutions leverage a mix of innovative technology and deep domain expertise in the following Market Data Feeds (MDF) across asset classes:
Hexaware delivers state-of-the-art solutions (as shown in Figure 1) that help our clients manage their data across front, middle, and back office operations.
|Front Office||Middle Office||Back Office|
|Master Data Management (MDM) Solutions||Managing Data Needs of Business Solutions||Data Consolidation|
|Data Quality Assessment and Implementation of Data Quality Products||Business and Technology Architecture Consulting and Assessment (BPM)||Implementation of Metadata Data Modeling|
|Third Party Product Implementations|
Hexaware’s proprietary tools accelerate and improve process efficiency while reducing implementation efforts by at least 20%.
Figure 4: Hexaware’s offering framework:
|Hexaware Proprietary/ Framework Tools||Features|
|Data Dictionary and Data Dictionary and Metadata summit, for investment business information, data dictionary|
|Transactional reconciliation process for identifying matches, mismatches, and discrepant data|
|BI environment metadata foundation tool that creates semantic layers such as universes and models|
|XML-based query engine for a data integration environment. It ensures Extract, Transform and Load (ETL) coding standards and locates coding errors|
|Metadata-based analysis tool for any BI environment to identify duplicate reports, dead variables, and subset-related reports|
|Toolkit that delivers a scalable, flexible and integrated data model. It improves quality and time-to-market for implementing dashboard, reports, and analytics|
Contact us to learn more about Hexaware’s investment data management service offerings.
Regulatory requirements and clients’ demands are changing rapidly in the evolving investment management landscape. Therefore, portfolio and asset managers must have access to timely and accurate data, which in turn, drives the demand for an improved IT infrastructure and enhanced operational efficiency.
|Top 3 Analytics Demands of Asset Managers|
|The Demand||What does the demand refer to?||Why does the demand arise?||How can the demand be met?|
|Get Smarter||Smarter risk management (especially for discretionary matches)||Investor demand for increased transparency||Granular-level performance attribution reporting, which is tied to risk data that is tailored to the clients’ needs|
|Renewed emphasis on risk data due to the introduction of alternative assets||Risk data on a broader set of assets, combined with more sophisticated analytics|
|Trade Smarter||Smarter and better trading||Search for Alpha||New data infrastructure to enable portfolio managers to extract investible insights from data|
|Real-time focus||Increased focus on real-time data from markets, which is tied to internal data, enabling the traders to take faster trading decisions in the electronic and algorithmic trading world|
|Sell Smarter||Improved sales intelligence||Cross-sell and up-sell requirements||Offer fact-based investible insights to the client|
Figure 1: Key Ask by IT Managers in asset Management.
Leveraging its deep expertise in enterprise data management, Hexaware offers a high-end cloud-based managed services package, that help customers jumpstart the development of their performance analytics model and provide operational and maintenance support.
Leveraging its proprietary analysis methodology, Hexaware significantly optimizes the reporting landscape by:
Using prebuilt and ad hoc IP addresses, Hexaware reduces the implementation time by almost 40%, compared to standard alternative solutions.
Hexaware provides standardized and integrated platforms, which reduce implementation costs by 50%, compared to the standard alternatives.
Safeguarding of Client IP Addresses
Hexaware employs a hybrid on-premise/cloud model to segregate client IPs, based to the security levels required, to maintain a high level of security for proprietary IPs.
Access to the Latest Technologies
Leveraging strong vendor partnerships, Hexaware enables clients to access emerging technologies, including; social media, mobility, noSQL, data bus, and open APIs.
Hexaware’s solutions are platform-agnostic and work seamlessly with the client and third-party platforms. We employ proprietary methodologies, besides leveraging partnerships and tools to support analytics and reporting implementations and create tangible value for the customer.
|Hexaware’s Proprietary Tools|
|A data dictionary that provides a 360° view of metadata|
|A light-weight reconciliation tool|
|An automated extract, transform, and load (ETL) code review tool; to ensure coding standards across developers. It speeds up the review process by almost 90% and identifies coding errors missed out in manual checks|
|A metadata tool for BI environments reduces the effort of analyzing existing environments by up to 4%|
|A dimensional data model for key investment management decisions|
|A mobile Backend-as-a-Service (MBaaS) platform to: