Evaluation & Selection of Custody & Clearing Solution Alternatives
Offering: Risk mitigation, Efficiency improvements, Cost reduction, Remaining competitive
Client: US divisions of Tier 1 Global Investment & Private Banks
Client Situation
A Global Investment Private Bank sought to build a comprehensive wealth management platform to better serve its growing HNWI (High Net Worth Individuals) and UHNWI (Ultra High Net Worth Individuals) client base. The primary objectives were:
Self-Clearing and Custody Capabilities:
Address rapid growth with greater flexibility and more efficient processing to deliver superior client services.
Strategic Alignment:
Align the self-clearing operating model with the bank’s overall strategic initiatives.
The key drivers behind this decision included:
Risk mitigation.
Efficiency improvements.
Cost reduction.
Remaining competitive.
Client Profile
Client Type: US divisions of Tier 1 Global Investment & Private Banks.
Offering: Risk mitigation, efficiency improvements, cost reduction, and competitive positioning.
Approach
Capital Markets Advisors leveraged its proven methodology and comprehensive toolkit to evaluate and select the optimal custody and clearing solution for the client. The approach included:
Customizing Functional Tools:
Developed a core set of functional requirements tailored to the client’s specific needs.
Designed custom metrics for effective solution evaluation.
Vendor Engagement and Analysis:
Prepared a standardized RFP template, refined for the client and target vendors.
Utilized a vendor scoring model to assess and rank potential solutions.
Developed a framework for vendor testing and demonstrations, ensuring alignment with the client’s requirements.
Designed an interview guide for vendor reference checks to validate solution capabilities.
Business Case Development:
Leveraged a framework for formal business case development to support the selection of the optimal solution, Pershing.
Implementation Planning:
Outlined the conversion process and integration of the Pershing solution across Private and Investment Banks.
Benefits
Capital Markets Advisors’ approach delivered significant value to the client:
Seamless Evaluation and Selection:
Expedited identification of several viable solution alternatives and facilitated the selection of Pershing as the optimal solution.
Comprehensive Implementation:
Developed a robust business case and planned the seamless integration of the Pershing solution across the bank’s divisions.
Key Outcomes:
Reduced Risk: Enhanced operational and technological safeguards.
Improved Efficiency: Streamlined custody and clearing processes for scalability and speed.
Cost Reduction: Lowered operating expenses through improved systems and processes.
Maintained Competitiveness: Enabled superior client services to retain and attract high-net-worth clients.
This initiative positioned the bank for sustained growth and operational excellence while aligning its platform with its strategic goals.
