Securities Processing Q&A
Q&A with David Hoffman: Achieving Business Goals and Industry Initiatives
David Hoffman, vice president, Brokerage Solutions and Strategy, FIS, gives his perspective on some of the issues facing FIS’ clients and prospects today and how the Securities Processing Suite can help them solve their business goals and industry initiatives.
Q. What are some of the issues FIS clients and prospects are facing today in terms of running and growing their business?
There is an unpredictable and inconsistent cost structure throughout infrastructure. Trading volumes are only growing slightly, with shrinking commissions and revenue. Coupled with increasing operational enhancement costs of disparate systems, such as regulatory, compliance, integration and upgrades, resources have become over-burdened and there is pressure to reduce infrastructure costs on an ongoing basis.
Q. What are some of the industry issues affecting our clients and prospects?
Improving efficiency and cost-effectiveness is always a priority for our clients and prospects. In The FIS™ Readiness Report: The Hunt for Growth Across the Buy and Sell Side, 51 percent of sell-side respondents say the biggest benefit to their technology investment over the next 12 months will be to reduce operating costs. In the report, the biggest drivers for outsourcing are cost-effectiveness (52 percent), the need to speed up processes (52 percent) and the desire to keep pace with competitors (41 percent). Infrastructure spend is also an issue with half of sell-side firms fearing their technology and operations can’t support their growth ambitions.
Q.With all the industry issues and initiatives, what is the number one issue our clients and prospects are looking to address?
Without a doubt, reducing their total cost of ownership (TCO) on a one-time and ongoing basis.
Q.How can FIS’ Securities Processing Suite help clients solve their business goals and industry initiatives?
Firms today have to be able to scale in order to meet internal business requirements and maintain control. By consolidating systems onto a scalable platform, clients can focus on growing their business. As costs continue to rise, particularly with changing regulatory requirements, an advanced system with real-time data and a holistic view of activity can help clients comply and reduce the risk created when updating multiple systems.
Q.How does the FIS Securities Processing Suite help in terms of reducing and managing client’s infrastructure cost?
Firms that take advantage of the FIS Securities Processing Suite’s economy-of-scale pricing model can see savings of 25 percent – 40 percent in monthly fees. The FIS Securities Processing Suite and the on-going integration, included as part the solution, can result in the elimination of clients’ unfunded mandates. Cost certainty is achieved through a predictable pricing model with no surprises. This frees up over-burdened internal resources for revenue growth. By mitigating the burden of managing infrastructure, clients can focus on core competencies. And a fully integrated, adjacent and complementary solution guards against TCO inflation.