Evaluation, Selection & Implementation of Brokerage Processing Solutions Following Merger
Offering: Risk mitigation, Efficiency improvements, Cost reduction, Remaining competitive, Platform modernization, Post-merger integration
Client: Tier 1 Global Investment Bank, Private Bank & Global Wealth Management
Client Profile
Global Full-Service Bank with over $250 billion in client assets within its Private Bank Unit.
Recent merger activity had created a complex operating environment.
Supported 1.4 million accounts with daily trading volumes of 20,000–30,000 trades.
Diverse business lines relied on outsourced solutions for brokerage settlement and clearing services.
Predominantly managed accounts, with limited self-directed management among its client base.
Client Situation & Objectives
The bank faced significant challenges and opportunities following recent mergers:
Technology and Outsourcing Fragmentation:
Multiple disparate technology platforms and outsourcing providers supported the firm’s retail and private client bases.
In-Sourced Operations Transition:
The move to a best-in-class self-clearing solution aimed to reduce infrastructure complexity, minimize vendor dependencies, and lower operating costs by bringing outsourced operations in-house.
Enhanced Wealth Management Workstation:
Concurrently, the firm developed an advisor-focused wealth management model requiring full integration between front, middle, and back-office clearance and settlement platforms.
Integration Challenges:
The scale of the integration posed business and financial risks, necessitating extensive program management and testing to ensure seamless execution and no disruption to wealth management advisors or individual investors.
Resource and Expertise Gaps:
The client lacked sufficient expertise in program/project management to oversee 40+ workstreams, spanning technology development, business readiness, QA, and external stakeholder coordination.
Business Readiness and Training Needs:
Extensive training and documentation were needed for:
Front-office advisors.
Back-office and technology staff for end-to-end processes.
User guides for new and updated applications.
Projected Growth and Model Office Requirements:
Business growth required a model office for front-to-back testing, repeatable processes, and scalable, flexible systems with a high degree of client interaction.
Key drivers behind these initiatives included:
Risk mitigation.
Efficiency improvements.
Cost reduction.
Remaining competitive.
Platform modernization.
Post-merger integration.
Approach
Capital Markets Advisors leveraged its proven methodology and comprehensive toolkit to guide the client through the evaluation, selection, and implementation processes:
Overview of our Approach and Deliverables that leverages our proven methodology with our comprehensive toolkit.
Evaluation and Selection
Developed a core set of functional requirements tailored to the client’s needs.
Created customized metrics for evaluating potential solutions.
Designed a standardized RFP template for engaging vendors and outsourced providers.
Built and refined a vendor scoring model to assess potential solutions.
Created a framework for vendor testing and demonstrations, ensuring compatibility with client requirements.
Designed an interview guide for vendor reference checks.
Developed a comprehensive business case framework, supporting the selection of Broadridge as the optimal solution.
Capital Markets Advisors’ approach also included:
• Developing the organizational structures and framework under which all transformation activities would be managed and executed
• Collaborating with client functional and technical teams to build end-to-end implementation, conversion, and test plans
• Leading the testing, development of training materials, organizational change, and overall execution of the migration to the new technology platform and operating model.
Establish Program Management Office
Developed an integrated program structure to align and manage all workstreams.
Established guidelines, metrics, and templates to track progress and highlight interdependencies.
Created a comprehensive program plan with risk tracking and mitigation tools.
Designed and implemented a communication strategy for regular status updates across all organizational levels.
Standardized project management methodologies to ensure consistency across all workstreams.
Conversion and Implementation Planning
Created a detailed Conversion Roadmap and Timeline to manage the large-scale transition to a new clearing model.
Designed a comprehensive business and technology resource plan for conversion activities.
Developed a detailed playbook outlining conversion tasks across all workstreams and stakeholders.
Conducted mock conversions to proactively identify and mitigate potential risks.
Established standardized risk management processes and tools to track and resolve issues, manage change controls, implement mitigation strategies, and ensure accountability with severity scoring and target resolution dates.
Testing, Training and Conversion Execution
Designed a robust training program with tailored documentation for all brokerage stakeholder/user groups.
Created detailed user guides to support new processes, system enhancements, and solution adoption.
Delivered targeted training sessions to ensure operational and technology readiness for the conversion.
Supported testing and training by mapping data for conversion and sharing transport knowledge.
Led the conversion of static, trading, reporting, and historical data.
Implementation
Planned and managed the conversion and integration of the new Global Wealth Management workstation with the Broadridge solution.
Coordinated extensive training programs for front-office, back-office, and technology teams.
Produced detailed user guides for all new and updated applications.
Created a model office environment for rigorous front-to-back testing and process validation.
Benefits
Capital Markets Advisors’ comprehensive approach delivered significant benefits to the client:
Risk Mitigation:
Ensured a seamless transition with minimal disruption to client services.
Efficiency Improvements:
Streamlined operations and processes across retail and private client bases.
Cost Reduction:
Lowered operational costs by eliminating reliance on multiple outsourcing providers.
Enhanced Competitiveness:
Enabled the client to deliver superior wealth management services through an advisor-focused platform.
Platform Modernization:
Implemented a state-of-the-art Global Wealth Management workstation integrated with Broadridge.
Post-Merger Integration:
Unified operations and technology platforms across merged entities, creating a cohesive organization.
This initiative equipped the client with the tools and capabilities needed to enhance service delivery, reduce costs, and support long-term growth.
By leveraging our proven methodology and comprehensive toolkit, expertly executed by our skilled resource team, we delivered significant benefits to the client. These included:
Expeditious evaluation and solution identification: Quickly evaluated and identified several viable solutions, ultimately selecting the optimal solution (Broadridge) in collaboration with the client.
Development of a formal business case: Created a comprehensive business case to support the adoption of Broadridge.
Strategic planning and implementation: Planned the conversion and integration of the new Global Wealth Management workstation and successfully implemented the Broadridge solution.
The overall outcomes included:
Reduced risk through seamless implementation and integration.
Improved efficiency by optimizing processes and workflows.
Reduced costs by streamlining operations and minimizing dependencies.
Enhanced competitiveness in the wealth management market.
Platform modernization to align with future needs.
Successful post-merger integration for unified operations.
These benefits ensured the client achieved both immediate and long-term strategic goals.
