The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Investec’s Gatfield, HSBC’s Hamilton and RBS’ Gibbons Agree on the Benefits of a Centralised Data Management Hub

A unified back office system with a centralised data management hub allows for the obvious benefits of global consistency of data, a reduction in operational costs (apart from the initial outlay) and the ability to meet risk management requirements, agreed panellists at SunGard’s City Day in London last week. Trevor Gatfield, head of securities operations at Investec, explained to attendees that his own firm operates with one trading system and one back office, which allows it high levels of STP, efficiency and the ability to deal with exceptions quickly. Fellow panellists from rather larger organisations Royal Bank of Scotland (RBS) and HSBC noted that even though they have not reached this level of integration, they are working towards a single view of data across their organisations.

Cressida Hamilton, who is in charge of securities operations for fixed income and equities at HSBC, indicated that her firm is keen to realise the benefits of a globally consistent data management environment. To this end, the One HSBC programme has been running for a number of years and has involved the rationalisation of the group’s various data management teams into one centralised unit. It has also included the decision to move a large part of its reference data cleansing and management offshore to India and Kuala Lumpur.

“With one unified system in the back office there is no need for data reconciliation between different system fields and there is only one set of system deployments required for upgrades,” explained Hamilton of the tangible benefits of a centralised system.

Fellow panellist and global head of equity settlements at RBS Andrew Gibbons added that benefits could also be seen in increased consistency of client service for a global organisation and in scalability. He noted that RBS has been investing in its data architecture and that although the firm does not have one single database for all of its reference data, it has begun introducing intelligent workflow tools to get a view across these databases. In fact, the firm has just completed a large integration project focused on consolidating its entity data onto one database for its wholesale business.

Hamilton explained that HSBC is also working with a number of large legacy back office systems and is slowly moving towards a more integrated environment, but in the meantime, she contended that communication is key. “If you can’t have the same system across your business, then you need robust, real-time links between these systems for data exchange,” she said.

Communication, however, extends beyond technology to keeping all parties involved in the integration process, she added. For HSBC’s five year strategy, the focus has been on keeping clients in the loop and meeting their future needs. “It is also important to share information about best practices and experiences with your peers,” she added.

Related content

WEBINAR

Recorded Webinar: How to run effective client onboarding and KYC processes

Increasing cost, complexity and regulatory change continue to challenge firms implementing client onboarding and Know Your Customer (KYC) systems. With an effective strategy and a clearly defined pathway, it’s possible to gain a valuable competitive advantage whilst meeting those all-important compliance requirements. But how to get there? With a myriad of different options out there...

BLOG

Reformis Adds Matrix IDM and NeoXam to Vendor Partner Programme

Reformis, a buy-side business transformation consultancy, continues to build out its vendor partnership programme with the addition of Matrix IDM’s cloud native data management software, and NeoXam’s Impress reporting solution. These join the company’s list of existing partners and products including IHS Markit’s EDM software, Snowflake’s cloud data platform, and Compliance Solution Strategies’ Accudelta product....

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that will be held in June 2021 with an exceptional guest speaker line up of RegTech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment.

GUIDE

The Global LEI System – A Solution for Entity Data?

The Global LEI System – or GLEIS – has been in development since the middle of last year. Development has been patchy at times, but much has been done, leaving fewer outstanding issues, but also raising new questions. What’s emerging is a structure for the GLEIS going forward, complete with a mechanism for registering and...