1. Client Experience
SCB improves regional custody
operational efficiency and productivity
levels with TCS BaNCS
Customer
SCB
Industry
Capital Markets
Offering
Custody
Increased globalization, coupled with the mounting need to
provide services across markets, borders and instruments,
have added to the complexity of operating custodial services
today. In addition, custodians must continue to improve
operational efficiencies and service quality levels. Standard
Chartered Bank’s (SCB) Securities Services division was
exploring ways to expand to a leading position in the custody
services market by building a regional Asian franchise. To help
SCB achieve its business objectives, the securities
management team realized the need to achieve greater levels
of efficiency and automation. The main criteria for enhancing
the custody system were product quality, implementation
speed and price. To allow SCB to achieve its business goals,
TCS BaNCS assisted SCB to integrate its next generation,
SWIFTReady Gold certified custody solution from TCS BaNCS
into their custody processing environment.
2. About the Client
Headquartered in UK, the Standard Chartered Bank operates in many of the world’s fastest
growingmarkets,andderivesover90percentofitsprofitsfromtheemergingtradecorridorsof
Asia, Africa and the Middle-East. Listed on both the London Stock Exchange and the Hong
Kong Stock Exchange, Standard Chartered PLC is consistently ranked in the top 25 FTSE 100
companiesbymarketcapitalization.
One of the major services provided by Standard Chartered is Securities Services.
Standard Chartered has been meeting securities industry participant’s needs in the Greater
Asia region for over 150 years, serving a discerning client base that comprises leading North
American, European and Asian institutions. Some of the world’s leading global custodians,
broker-dealers, fund managers and institutional investors are a part of Standard Chartered’s
clientele. Their securities services network extends across the ASPAC region and includes
Bangladesh, China, Hong Kong, Indonesia, Japan, Malaysia, Pakistan, Philippines, Singapore,
Business Context
As part of their regional expansion strategy, SCB
realized the need to provide custody services in several
Asian markets. To retain its leadership position and
remain committed to providing innovative and
customized custody services, SCB had to further
automate its securities services processes and update
its infrastructure.
TCS BaNCS helped the bank enhance and upgrade its
existing system to RCS (Regional Custody Services)
automating its regional custody operations and
offering higher levels of Straight-Through- Processing
(STP). SCB engaged TCS BaNCS owing to its exceptional
track record of delivering solutions within rigorous
resource constraints.
TCS Solution
TCS implemented its state-of-the-art custody solution
from TCS BaNCS to support all aspects of custody
operations, including custody management, trade
settlement, corporate actions processing, book keeping,
registration and charges. In addition, the solution was
architected to meet the existing and evolving needs of
sophisticated custody services providers across a wide
range of markets and instruments. The solution
provided for increased automation in sending SWIFT
messages to SCB clients and offered the flexibility to
add new features.
The solution’s trade settlement module includes
improved STP and auto-repair of SWIFT messages, and
support for partial settlement. Also included are batch
affirmation and a settlement engine with pending
corporate action prompts and support for contractual
settlement. The corporate actions module includes a
wide coverage of corporate actions events, including a
full suite of MT56x messages.
Client Experience
3. Client Experience
The custody management module records the physical
movement of scrips and supports automated
reconciliation of holdings against depository records.
The book keeping module provides for booking of all
security and cash movements. The registration module
manages the registration of physical securities,
automates changes, generates tracers and advices, and
cancels registration orders. In addition, the charges
module provides the flexibility to set invoicing at
account-, business partner- or business-partner group
levels; invoices can be generated at different
frequencies and with a configurable rule-base for
charging at various combinations of account, security,
market, and business partner. It also manages the auto-
generation of tracers for outstanding invoices.
Leveraging its Global Network Delivery Model™, world-
class methodologies, and Integrated Quality
Management System™, TCS BaNCS successfully
implemented the enhanced regional custody system
within stringent quality standards, ensuring high levels
of customer satisfaction.
Benefits
The custody solution from TCS BaNCS enabled SCB to
meet a number of its business objectives, which include:
Accomplishment of record levels of securities
transactions
Better management of higher transaction volumes
Increased operational efficiency and improved
productivity levels
Ability to deploy new custody functionality rapidly
across all markets
Improve time-to-market in response to customer
and business requirements
Maximize STP opportunities with customers and
market infrastructures
Contractual payment and security lending facility for
key customers
Automation of SWIFT MT54x to sub-custodians
Automated updates of fail/affirm/settle transactions
Elimination of manual creation of corporate actions
events
Automated processing of customer instructions for
voluntary corporate actions events
Automated creation of proceeds for corporate
actions events
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