In 2010, BNP Paribas Securities Services (BNP Paribas) started a project to enhance the Bank’s systems and processes within Network Management. Senior Management was keen to use technology and tools to improve performance and accuracy as well as freeing resource to pursue activities focussed on ‘value add’ rather than administration.
The Bank’s main objectives were to:
- Improve management control on fees payable
- Allocate fees within the organisation
- Improve reporting and MIS
Dominique Ansiaux, Global Head of Network Management, Clearing Custody Services at BNP Paribas Securities Services observed that “In recent years the financial services industry has heightened its focus on asset safety, regulatory requirements and cost efficiency. In line with this market trend, BNP Paribas Network Management sought to find a solution to strengthen our processes and systems in order to further mitigate risks, provide better reporting to management and to improve the efficiency of our activity”
The BNP Paribas Network Management project has been a real success with a strong improvement in the efficiency of the Network Management team and a reduction in operating risk. This success is apparent in the following areas:
- Improvement in the efficiency of the Network Management team
- Improvement in the level of service
- Standardisation and automation of processes
- Solid and continuing (annual) ‘return on investment’
- Better control of operating risks
- Fewer manual procedures
- Improvement in fees control
- Better allocation of costs to end clients
- Improved reporting and MIS
The project focussed on three processes: overall fee schedule management; the control of invoices received; and the allocation or ‘re-charging’ of those fees, once processed. Fees covered would include sub-Custody fees, ICSD fees, Clearing fees and out-of-pocket expenses.
The Bank prepared a business case centred on these main objectives and priorities. The Bank analysed the group’s functional needs and drew up a detailed, comprehensive list of requirements. The Bank then identified a small number of vendors who could provide a suitable solution that could also be aligned, architecturally, to BNP Paribas’ I.T. environment.
The Bank ran an RFP and selected MYRIAD. Following a rigorous proof-of-concept, the Bank began an implementation of the target solution. MYRIAD had to be integrated with the BNP Paribas environment and had to integrate a number of existing BNP Paribas business processes. The Bank assembled a team from both the business line and I.T. which worked very closely together with the MYRIAD team to install the platform in Paris.
Quoting Dominique Ansiaux: “We went through an RFP process and identified MYRIAD as an interesting solution. We worked with them to design the architecture of the target solution and during the implementation phase. Overall, the project lasted 12 months and required two-and-a-half internal resources.”
MYRIAD was selected based on the following criteria:
- Functional features
- Solution dedicated to Network Management
- Simple and flexible solution
- Plug-ins for main BNP Paribas suppliers
- Multi-site solution
- Technical features
- Robust, secure technical architecture
- Capacity to manage a high volume of data
- Possible to host the solution with BNP Paribas
- Business proposal
- Fast implementation
- Competitive overall budget
Commenting further, Dominique Ansiaux said: “We appreciated the fact that MYRIAD had a strong understanding of our needs and a solution dedicated to Network Management. The solution proposed by MYRIAD is flexible and our financial fees project has been a success. We have managed to reach our objectives: most of the highly detailed invoices are automatically integrated within the system and we are able to check the amount payable, allocate and re-charge costs more precisely. We assess that we have managed to make savings in financial fees processing alone, following the implementation of MYRIAD.”
This business case has been independently prepared by Jean-Christophe Jardin, senior Manager at Lunalogic Conseil et Services in Paris ( www.lunalogic.com ) in consultation with BNP Paribas Securities Services.