Societe Generale Corporate & Investment Banking is looking forward to cutting up to 30% from their post-trade costs.
On Friday, the bank said it is the first client to adopt the post-trade processing solution offered by Accenture and Broadridge Financial Solutions. This new business claims to help banks operating in Europe and Asia-Pacific reduce post-trade costs, adapt to new regulations and technology, launch products and easily enter new markets. With such savings on the line, could this game-changing technology spearhead the next wave of upgrades to the banking industry?
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"The global investment banking industry is at a crossroads, with regulatory, market and technological pressures changing the economics of the business and leading banks to fundamentally reassess their operating models," said Bob Gach, global managing director of Accenture’s Capital Markets industry practice in a press release. "With Broadridge’s technology as the engine behind the solution and Accenture's expertise in capital markets, we can see this solution becoming the industry standard for post-trade processing."
Societe Generale Test the Waters
"Accenture and Societe Generale have a longstanding relationship,” explains Gach in an e-mail. “We agree on a common vision for what could be the future model for investment banks through the mutualization of back-office activities and costs; and we view Societe Generale as an industry leader in its approach to transforming its operating model."
Approximately 250 SocGen employees will be transferring over to the new Accenture Post-Trade Processing company, owned by Accenture, to take on the post-trade administration.
Features of the Future
To break it down, the Accenture and Broadridge jointly launched post-trade solution boasts the following benefits to banks operating in Europe and Asia-Pacific: Reduce post-trade processing costs, adapt to new regulations and technology, quickly and efficiently launch new products and enter new markets.
The technology behind these benefits is a single standardized operating platform. "From a regulatory perspective, any time we need to make a change we will only need to do so once on the common platform and all of our clients will share the cost -- which is a benefit of the utility structure," says Gach.
Accenture and Broadridge have designed the solution to also accommodate other technology to support certain functions, such as reconciliations and corporate actions processing, which is provided by SmartStream, another key alliance partner of Accenture. Becca Lipman is Senior Editor for Wall Street & Technology. She writes in-depth news articles with a focus on big data and compliance in the capital markets. She regularly meets with information technology leaders and innovators and writes about cloud computing, datacenters, ... View Full Bio