Increasing STP rates and strengthening pre-trade compliance in the front office
The Bank of Thailand’s responsibility is to maintain financial stability by keeping inflation and exchange rates at appropriate levels for Thailand’s economic conditions. Other responsibilities include banknote circulation management, supervision of financial institutions and payment system, as well as financial consumer protection.
As part of maintaining financial stability, the bank manages foreign exchange reserves and conduct open market operations. Its dealing room system supports both these functions.
With foreign exchange reserves growing from USD 32 billion USD 20 years ago to around USD 220 billion today, the Bank of Thailand needed a solution that could increase operational efficiency and improve the bank’s risk management and control.
A thorough due diligence process proved SimCorp Dimension to be the solution that could meet Thailand’s national bank’s demands.
The Bank of Thailand’s recent go-live on SimCorp’s consolidated front-to back investment management platform, has seen the bank gain a number of operational efficiencies, including the ability to expedite critical workflows including reconciliations, pre-trade compliance checks and reporting.
With the transformation implemented both on time and on budget, the bank is now primed with increased scalability, instrument coverage, and the ability to take on global multi-asset investments.
Go-live brings several tangible improvements
Key operational achievements following the implementation of SimCorp Dimension at the Bank of Thailand include:
- Replacement of four disparate systems and over 10 manual Excel-driven processes
- A consolidated accounting general ledger, using one data set across both IBOR and ABOR
- Highly automated workflows minimizing the need for human intervention.
- 70% increase of STP rate across operations
- 20% increase in rules automation, speeding up pre-trade compliance checks
- 50% less time spent on reporting
- Increase in number of daily reconciliations of portfolios and positions
With a better, holistic view of our reserves, we are more readily able to analyze and act on our data, and with greater governance. We are confident that the strong commitment we have placed on achieving operational efficiency, will hold us in good stead and enable us to responsively adapt to market conditions.Wongjan Sripaoraya, Head of Reserve Management Department, Bank of Thailand