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34


2017 ROUND-UP


Efficiency and lower costs are driving the TCM market


Mike Thrower, managing director and head of sales at Broadridge, has seen an increasing demand for management optimisation and compliance. Luckily, technology is here to make it easier for companies


Junior Reporter Henry Vilar


F


or those in charge of Treasury and Capital Markets (TCM) systems, regulation has been looming over their heads for a long time now. A quick peek at our feature focus back in


September on TCM says it all - MiFID II has been on everybody’s mouths, as regulation is the driving force for all the changes this industry is experiencing.


For the end-of-the-year round-up, we talk with Mike Thrower, managing director and head of sales in EMEA, at Broadridge: “This year, we have seen senior managers responsible for TCM face challenging demands from both internal and external stakeholders. Internally TCM managers are being asked to optimise the management of cash and liquidity at a time when profitability is under pressure, and the need to drive value from all aspects of the balance sheet has become paramount. Central to this is the effective management of cash. As we start to move towards a slightly higher interest rate environment, the oppor- tunity cost of poor cash management is increasing. From an external perspective, banks and FIs need to respond to regulation and compliance with better governance and controls.”


For Thrower, the year has only been increasing the pressure for those managing the systems. “Senior managers in banks and FIs are being asked to do more with less,” he said when asked about how he would sum up the year. This may sound quite foreboding, but it’s only the result of a process in which all systems and capabilities considered superfluous in many banks and FIs have been trimmed, and TCM has suffered from this just as much as the next one.


“Unifying systems into one that can make up for those which had been rendered useless is a priority. Our piece in September on TCM systems remarks on this – suppliers are now offering a unified solution that can perform its core functions with agility and flexibility. Thrower adds: “As such Broadridge is focused on providing TCM managers with the tools and analytics they need to optimize strategies and decision making around cash and liquidity management.”


He continues: “Banks and FIs have underinvested in TCM in the past five years. Change budgets have declined, and limited


funds have been channelled to regulatory and mandatory market change, leaving limited finance available for improving and optimising TCM functions. However, moving towards best practice in TCM can both drive efficiencies while meeting these regulatory challenges.”


According to Thrower, this trend that is reversing now. Banks had neglected TCM following the crisis in 2008, but it appears on the radar again. “We see greater focus on TCM in banks and FIs. Following some years of underinvestment, cash, treasury, funding, liquidity management; these are all critical business functions which are receiving increased internal and external scrutiny.”


Thrower: There will be a greater focus on Treasury and Capital Markets


As a result, the implementation of these systems needs to be attentive to such regulatory scrutiny, and there is a fine line between making these capabilities efficient or redundant. “Broadridge is focused on delivering real-time, highly integrated tools to transform these TCM functions into high performing business functions that deliver competitive advantage.”For an in- depth look at the types of technologies that are being adopted, it’s best to check our September issue, in which Stella Clarke, CMO at Murex, pointed out how Cloud was not only our best alternative to turn these inefficiencies around, but also the one that had been receiving the most attention.


In that same feature, Thrower’s colleague, David Campbell, highlighted the potential of blockchain technology for capital markets systems. Broadridge has already dived into blockchain projects, and other large suppliers, like Calypso, have echoed this feeling. While both blockchain tech and AI are only half-way there, people are still daydreaming about their potential and scratching their heads to make that a reality.


www.ibsintelligence.com | © IBS Intelligence 2017


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