Back Office

The back-office function is typically fraught with time-consuming, labour-intensive, manual processes that increase the cost base. The automation of such labour-intensive processes can optimise an organisation’s cost structure by utilising a strategic cost management framework. Minimising manual intervention reduces the costs related to human error. A single-enterprise data solution reduces the need for maintenance of redundant interfaces to multiple systems and minimises the reconciliation of data.

Settlement

Cost challenges in the settlement process

The most common problems in back offices around the world are the inefficiencies in the processes and workflows that deal with corporate actions, margin calls in collateral management, reconciliation and OTC derivatives processing. These processes usually include a labour-intensive data migration to and from spreadsheets, or other, non-integrated systems or databases. This data migration often results in an increasing need for manual controls and reconciliation of the holdings and transactions in various systems. It is crucial to minimise these error-prone elements in the settlement process if sustainable cost reductions in the back office are to be achieved.

SimCorp Dimension’s solution for cost reduction in settlement processing

SimCorp Dimension allows the user to fully customise and automate the different elements of the settlement process which makes it an advantage for organisations looking to implement long-term strategic cost management solutions. 

Accounting

Cost challenges in accounting

Today, investors are more cautious than in the pre-crisis environment. To comply simultaneously with national and international accounting standards, without increasing the related costs in doing so, has become even more important due to the demands for transparency from clients and the authorities.

SimCorp Dimension’s accounting solution

The accounting functionality in SimCorp Dimension enables data used throughout the enterprise to be entered only once, thus reducing the manual workload in the accounting department and minimising the costs arising from manual error. SimCorp Dimension handles manual processes such as the reconciliation of data duplication, the maintenance of interfaces to external systems and the correction of administrative transactions for backdating changes, in a highly automated way.

Fund Accounting

Cost challenges in fund accounting

The investment fund industry has been shaken by huge losses, massive redemptions and a significant shrinkage of assets under management. This has brought about new demands from investors and regulators that pose new challenges for the fund industry in mitigating risk and sustaining lower cost levels without sacrificing business flexibility and scalability. A long-term strategic cost management approach is imperative if these challenges are to be overcome.

SimCorp Dimension’s fund accounting solution

SimCorp Dimension encompasses an unparalleled number of automated processes and STP flows that allow fund administrators to significantly reduce costs related to manual errors, IT malfunctions, internal interfaces, confirmation processes and reconciliations. The fund STP flow provided by SimCorp Dimension allows fund administrators to focus on executing exception handling, thus considerably reducing costs related to labour-intensive tasks.

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