Evaluation of Beta vs. Other Brokerage Processing Solutions, especially Broadridge
Offering: Risk mitigation, Efficiency improvements, Cost reduction, Remaining competitive, Platform modernization
Client: US division of Tier 1 Global Investment Bank & Broker-Dealer
Client Situation
The client, under pressure to meet regulatory compliance requirements, enhance functionality and performance, and reduce costs, sought to evaluate alternatives to their existing processing systems (BETA).
Key challenges and objectives included:
Phase 1: The client requested an initial assessment to determine whether replacing or enhancing their current systems would address a list of identified deficiencies.
This initial study was conducted anonymously and within a short timeframe, limiting the depth of vendor evaluation and negotiating leverage.
Several attractive ASP (Application Service Provider) solutions were identified, and outsourcing options were recommended for further consideration.
Phase 2: The client launched a deeper analysis to explore options for enhancing core brokerage processing, including vendor solution implementation or outsourcing.
The main drivers behind the initiative included:
Risk mitigation.
Efficiency improvements.
Cost reduction.
Remaining competitive.
Platform modernization.
Approach
Capital Markets Advisors deployed its proven methodology and comprehensive toolkit to efficiently evaluate and implement the optimal solution. Key steps included:
Customizing Evaluation Tools:
Developed a core set of functional requirements tailored to the client’s needs.
Designed customized metrics to evaluate potential solutions effectively.
Vendor Engagement and Analysis:
Prepared a standardized RFP template, refined for this client and target vendors.
Created and utilized a vendor scoring model to assess solutions and providers.
Established a framework for vendor testing and demonstrations, ensuring compatibility with the client’s requirements.
Designed an interview guide for vendor reference checks to gather deeper insights.
Business Case Development:
Leveraged a business case framework to develop a formal proposal for the selected solution, Broadridge, while considering an enhanced version of BETA as an alternative.
Implementation Planning:
Crafted a detailed plan for converting and implementing the Broadridge solution.
Benefits
The initiative delivered transformative benefits to the client:
Seamless Evaluation and Selection:
Identified and compared viable solution alternatives, including an enhanced version of BETA and Broadridge.
Selected Broadridge as the optimal solution through a collaborative decision-making process.
Strategic Implementation:
Developed a robust business case and planned the seamless transition to Broadridge.
Key Outcomes:
Reduced risk: Strengthened controls and minimized system vulnerabilities.
Improved efficiency: Enhanced processing speed and accuracy.
Cost reduction: Achieved operational savings by adopting a more scalable and efficient platform.
Competitive edge: Positioned the client to better compete in a rapidly evolving industry.
Modernized platform: Migrated to a cutting-edge system, aligning with the client’s growth and regulatory objectives.
This project exemplified Capital Markets Advisors’ ability to deliver tailored solutions that drive efficiency, reduce risk, and support long-term strategic goals.
