Setting the stage
One large, global bank recognized that the firm’s corporate actions function could present a significant financial and reputational risk for the bank. Like many complex financial services organizations, this bank’s approach to corporate actions processing included functions ranging from event creation and processing, to middle-office corporate actions functions to proxy voting and class actions.
The result? An environment where a decentralized corporate actions organization had contributed to more than $3 million in risk exposure and financial losses in just a six-month period.
Why FIS got the call
The bank’s leadership team knew it would be no small undertaking to get a handle on its existing corporate actions processes, and that to do it right, they needed a partner with true expertise to effectively evaluate the landscape.
With our decades of experience, not only in supporting our clients with award-winning corporate actions technology and services, but in playing a key role in driving the industry forward with our partners at SIFMA, ISITC, and SWIFT, we were the team with intellectual property and the in-house expertise the bank needed.
The bank knew they could rely on FIS to evaluate their systems and processes far beyond technology – in fact, this initiative was focused on our ability to share industry best practices and support the strategic transformation of this bank’s corporate actions function, not only software.
A corporate actions tour de force
When FIS walked in to reimagine our client’s corporate actions approach, we were tasked with reviewing the current organization, developing a long-term vision, and constructing a roadmap to enable the bank to transform this critical function into a best-practice organization.
Over a three-month period, our FIS corporate actions consultants interviewed 115 members of the bank’s staff, analyzed more than 70 existing processes, and visited five locations where our client was processing corporate actions. We also conducted an industry peer analysis to determine how the bank’s corporate actions strategy and technology stacked up against firms of similar size and complexity.
What did we find? The bank was incurring risk and financial losses stemming from manual, non-standard systems and inexperienced staff handling high-risk processes. We also found that the bank’s clients’ late responses and use of faxes contributed to increased risk exposure.
Ultimately, our vision for the bank’s corporate actions function was one of a centralized, standardized global system designed to run efficiently and minimize risk exposure due to events processing. For this client, working with FIS to transform its corporate actions organization has the potential to save the bank over $12 million.
Writing the sequel
With banks of all sizes battling risk and cost challenges associated with corporate actions processing, do you have the expertise you need to revamp your strategy and infrastructure?
To learn more about how FIS partners with banks to transform corporate actions processing, connect with us at email@example.com.