The amount of regulatory reform today could easily, or perhaps uneasily, appear overwhelming to many compliance teams sitting in the middle and back offices of private banks, in terms of both cost and effort. Hence, many are turning to technology platforms for assistance.
With its holistic view of the industry, SmartStream’s suite of transaction lifecycle management (TLM) solutions has been able to respond to industry regulations quickly and solve operational processing challenges for private banks in the region. Encompassing cash and liquidity management, client money, collateral management, reconciliation, reference data management and trade process management components, these solutions have allowed private banks to tackle the ever-increasing list of regulations such as AIFMD, Basel II, Basel III, BSBC 293, EMIR, Dodd Frank, FATCA, IOSCO and Solvency II.
Indeed, new requirements have strained private banking operations, particularly its trading desks where cash positions and risk are managed in real-time. Traders use multiple end-of-day accounting platforms with little immediate visibility of daily positions. On the other hand, over-regulation results in cumbersome processes when offering advice, particularly at the front end where, among other things, relationship managers need to clearly differentiate whether investments are client-directed or not.
Consequently, compliance solutions that build on the robust engines of private banks in the middle and back offices must also compliment the front office. SmartStream has been able to address this issue through its TLM Cash Management solution which provides full front-to-back office compliance through global real-time views of cash positions across all settlement channels by business lines, portfolio, book and product. It also provides alerts that notify the trading desk of any potential risk challenges.
SmartStream is, in our opinion, the deserved winner of this year’s Best Compliance Solutions provider.