In the past decade, the banking industry has witnessed operational and compliance risks growing into complex and entwined entities. Global banks are facing immense pressure to reduce the cost on mitigating risks while reporting to the regulatory authorities on a global basis. Conjointly, Alan Paris, Principal Financial Services of eClerx, explains there is harmonization paucity in the current global regulatory practices and policy rules, which leads to a daunting prospect for banks to report in a timely manner. Located in New York, eClerx provides risk and control solutions with accuracy and regulatory compliance in a cost efficient method.
Established in 2000, eClerx, a Knowledge Process Outsourcing (KPO) company develops flexible reporting frameworks and methods to aggregate and analyze data in the financial institution to report worldwide. “The report gives banks the ability to manage operational, market, credit, and liquidity risk in a timely and efficient manner,” adds Paris.
Our solution manages the reporting and provides liquidity in the financial market place
eClerx’s Operational Risk Reporting builds the risk reporting framework and verifies the right portfolio of reports that can accurately represent all intrinsic operational risks. The framework’s real-time middle office operational risk dashboard provides a holistic view of business operations across the trading areas and asset classes. “This middle office dashboard allows the customers to observe the state of a particular trade during the trade process life-cycle and mitigates the risks,” briefs Paris. The risk-reporting framework determines an accurate report, which highlights compliance with regulations.
Designed recently, Paris described The Risk pro platform as a combination of technology, workflow, and databases. The platform manages the trade confirmation, portfolio reconciliation and the settlement process in a direct method that is both automated and semi-automated. “With the platforms’ data management, dashboards, and reporting abilities, we provide our clients better reporting and control. This lets end-users to find their own subsidy or user captives from an offshore location,” adds Paris. The Risk pro platform also incorporates eClerx’s reconciliation tool, which supports reconciliations of over 200,000 trades on a daily basis for eight large investment banks. “The tool is used for trade, portfolio, or cash and payments reconciliation as it is flexible enough to be used across multiple functions and types of reconciliation,” delineates Paris.
“Our principal focus is to provide a solution that manages the clients’ trade process and reporting life-cycle,” emphasizes Paris. For instance, one of eClerx’s clients, a European-based bank, had over 400 reports produced across multiple centers around the world. Too many records resulted in overlapping and inaccuracy for the client. “We centralized their reporting and were able to risk rank the reports,” explains Paris. The solution also eliminated redundancy in the data and the outcome was reducing 400 reports to 150. In addition, the solution streamlined the client’s processes for data aggregation, cleansing, extraction, and analytics. The customer gained accurate information and reduced the overhead expenses associated with producing those reports. “Our solutions save our clients from P&L losses arising due to inaccurate documentation,” says Paris.
From the financial service perspective, eClerx highly focuses on capital markets, investment banking, functions, processes, operations, and technology. “With our domain expertise in the financial sector, process expenses and delivery to market, we work on solving our clients’ problems. This sets us apart from other competitors,” says Paris. Through the recent acquisition of a creative service and digital production firm, eClerx plans to introduce new product suites for banks pertaining to digital asset management in the near future.