Investment Banking and Societe Generale is looking forward to cutting up to 30% from their post trade processing costs. The bank said it is the first client to adopt the post trade processing solution offered by Accenture and Broadridge Financial Solutions. This new business hopes to help banks operating in Asia-Pacific and Europe to reduce post trade processing costs, launch new projects, adapt to new technologies and regulations, and easily enter new markets. With the savings on the line, this technology just might lead the next wave of upgrades in the banking industry.
These days, we see the global investment banking industry at the crossroads, with technological, market and regulatory pressures changing the economics of the business and banks to look into their current operating models. With the technology of Broadridge behind the solution and the expertise of Accenture in capital markets, we can see this solution becoming the standard of the industry when it comes to post trade processing.
For a long time, Societe Generale and Accenture have had a relationship. They agree on a common vision on what could be the future of investment banks through the mutualization of back office costs and activities. The Societe Generale is viewed as the industry leader in its approach to transforming its operating model. About 250 Societe Generale employees will transfer over to the new Accenture Post Trade Processing Company to take on the post trade administration.
To break things down, Broadridge and Accenture jointly launched post trade processing solution that boasts various benefits to banks offering in Asia-Pacific and Europe, including quick and efficient launch of new products and entering new markets, adaptation to new technology and regulations and reduction of post trade processing costs.
The technology behind these benefits is one standardized operating system. From a regulatory perspective, anytime a change is needed in post trade processing, you will only have to do it once on the common platform and all the clients will share the cost. This is the benefit of the utility structure. Broadridge and Accenture have created the solution that will also accommodate other technology to support various functions, like corporate actions processing and reconciliations.
The investment accounting software package that you select can have a significant on your organization. Some investment accounting software packages are simple while others are complex and involve many users with different access levels to data. Whatever the size of your business, your investment accounting software should give you a way to record transactions and get a better understanding of your business operations.
Assess your needs. Put together a committee that is made up of members of various departments with no more than 7 members. Have every member analyze the needs of their department. Analyze how these tasks are done and come up with plans to show how its efficiency can be increased with an improved accounting system. If you do not have the time or manpower to do so, consider hiring an independent consultant to assess your business and give an investment accounting software package recommendation.
Understand the kinds of accounting software packages. Entry level investment accounting software is for smaller companies with $5 million in sales or less. Companies with sales no more than $100 million and not more than 100 employees usually use small to medium business software. Companies with higher numbers use small to medium enterprise accounting software. Enterprise resource planning software is used by big companies with no more than $500 million sales and 500 employees.
Compare pricing. Entry level investment accounting software can cost between $100 and $2,500 while large companies can pay up to $250,000 and up for an accounting software package. Pricing should not be the most important concern, though. Rather, it should be to ensure that the accounting software package meets the demands of the organization.
Schedule on-site demonstrations. Vendors should be more than happy to let you and other decision makers to test drive the investment accounting software. Discuss how the software can be implemented and integrated into your business. Ask the vendors about installation times and any system requirements for compatibility.
Review the legal consequences. When making a big investment in an investment accounting software package, have your attorney go through the contracts to protect your best interest. Language should be stated in the contract regarding your recourse of the software does not work. Note the cost of maintenance and upgrades to your software.