IBS Journal February 2016


Paratus AMC HQ, Berkshire


Silent running In Paratus AMC’s view, the whole migration was relatively smooth and sweet. Everything went ‘more or less to plan’


and Paratus AMC agreed fi nal closure with HML.


‘I have no issues with the way HML helped us and supported us through that weekend.’ ‘We did have ten issues raised over the


migration weekend, but none of them were show stoppers and we put a fi x in. ‘We had 210 steps that we took


through the weekend to check the balance at all stages, checking loans, and making sure data came across.’ Once all this was sorted, Paratus AMC


was live by the start of Tuesday [5th May 2015], and Keeble says ‘we haven’t had any issues since’.


Call security One thing Keeble likes to stress is the importance of the securitisation aspect. ‘One issue when you securitise is that


you have to record the split of borrower repayments between principal and interest. And a lot of systems out there, including HML’s Jade system, don’t record this split naturally as part of the balance. ‘So that’s why we chose something


new that would meet the borrower loan accounting and the needs of securitisation so we could also retire our own bespoke system. ‘Our own system is internally managed


and over time it requires more and more care, plus the people who look after it tend to move on and so it was an area of poten- tial failure in the future. We were running a


42 © IBS Intelligence 2016 www.ibsintelligence.com


poorly supported system for a critical part of our solution.’ Paratus AMC now has Phoebus as sup-


port and ‘isn’t relying on one or two indi- viduals’. Because the migration always erred on the side of caution, Keeble ensured every eventuality could be handled adroitly. ‘I am naturally pessimistic over these


things and I wanted to go through a full cycle of securitisation distribution which is a three month period, rather than check a single month. We could use Exit [the in-house system] if we needed to, but would have had do some work to use Phoebus data as opposed to Jade data. ‘So we had a fall-back position, which I


haven’t used in a live scenario. ‘We’ve now gone through fi rst quar-


terly distribution where, due to timing, we used two months of Exit and one month Phoebus’ securitisation module.’ He says Phoebus provides a lot to


the company – such as principal interest arrears balance and redefi ning rules about how balance is collected ‘So we’re happy to take the securitisa- tion model and we can retire our internal system.’ ‘Most of our borrowers pay on the last


working day of month or the fi rst work- ing day. So 60% of direct debits were processed in that period, which provid- ed Phoebus with a challenge in terms of volume.’ The migration was not without minor


issues, as can be expected. But there was a project steering board, which included Paul Hunt, MD of Phoebus, and Keeble as


case study: paratus amc


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