Operations teams within large transaction banks are under constant pressure given the high volume of transactions they process, and the growing complexity of banking operations. How can technology help? Could operations teams benefit from “peace of mind” monitoring and get alerted when their attention is needed? Could technology take over repeated operational activities and offer instant access to transaction details as we experience through internet search engines? How to increase operational excellence whilst avoiding impacts on internal systems?
By André Casterman, CMO at INTIX – the data management fintech
Transaction banking is witnessing a flurry of digital innovations; one major value proposition stands out though for both IT and Operations teams: maximising visibility and control on end-to-end transaction processing operations so as to enable real-time business activity monitoring.
In this article, I expand on three use cases that are of particular importance for IT and Operations teams seeking to contribute to their operational excellence objectives. Whether focusing on payments, fx, securities, trade finance, … needs are very similar when it comes to ensuring operational excellence of internal transaction processing (use case 1), addressing legal requirements regarding long-term archives (use case 2) and providing instant access to all transaction data (use case 3).
Use Case 1: Real-time tracking of transaction processing
Problem statement – Monitoring the internal processing of financial transactions is critical to ensure frictionless operations and straight-through processing from front- to back-office. Financial transactions such as payment, foreign exchange, trade finance, securities, … instructions are processed and executed by various specialised internal systems within financial institutions. Following internal processing, instructions are delivered to counterparties in order to reach beneficiaries. It happens however that transactions get blocked in one of those systems, and no one notices, until the customer calls and enquires about the status of the delayed or failed transaction. The Operations team then needs to investigate and localise the problem, which can take much time and effort. Such situation creates costs (value date loss, claims, …) and leads to reputational damage.
INTIX solution – The INTIX Transaction Tracker solution monitors transactions from start to finish and provides visual insights combined with advanced analytics. It can raise exception alerts as specific events take place (e.g., aging transactions, cut-off times). The INTIX data management technology enables enterprise-wide business activity monitoring integrating both internal and external transaction data feeds. It also caters for tracking high volumes of transactions in real time.
The INTIX solution also provides deep insights on the activities being monitored. Rather than making legacy systems redundant, INTIX extends their life time as all the data residing in those is made accessible and actionable.
INTIX benefits – The benefits are immediate as operational problems are identified pro-actively and a timely resolution is enabled. This generated cost and risk reduction for the operations teams. Also, by increasing visibility and control on transactional flow operations, financial institutions are better equipped to make informed and timely decisions around their market strategies and sales activities.
Use Case 2: Legal archiving of financial messages
Regulators require financial institutions to keep long-term archives of financial messages according to a series of technical storage requirements. How can technology help organize those transaction data archived and ensure easy accessibility?
Problem statement – financial institutions are required to archive their financial messaging flows according to specific technical requirements related to readability, integrity, auditability, … various norms exist such as the ISO 14641:2018 which includes a set of technical specifications and organisational policies. Goal is to ensure legibility, integrity and traceability of the archived messages ain the long term.
INTIX solution – INTIX helps IT and Operations teams respond to such regulatory requirements. With INTIX, financial institutions create and organise their financial messaging archives in a compliant way. To achieve this, the INTIX solution is combined with Write Once Read Many (WORM) storage equipment such as DVD-R optical disks. Thanks to such hybrid set-up, financial institutions benefit from the best of each technology: WORM storage guarantees the long-term integrity of the archive whilst INTIX offers easy access to the archived data and caters for continuous checking of the archive integrity. This offers a robust framework for setting up legal financial messaging archives.
INTIX benefits – access to archived transactions is made as easy as it can be whilst addressing regulatory obligations in terms of guaranteeing long-term integrity.
Use case 3: Instant access to all transaction data
Data has become an economic asset. Business teams within wholesale banking need continuous insights on their past and on-going business activity whilst operations teams require access to transaction details for investigation purposes. One of the main obstacles in both functions is related to data accessibility which is often depleted due to legacy technology, a multitude of formats and dependency on other departments.
Problem statement – Financial institutions are hungry for analytics as this allows them to grasp their own operations and own client behaviours. This is why business teams within wholesale banking are continuously relying on analytics and insights on transactions processed by their own institution. Same goes for operations teams which want to ensure transactions get processed in a seamless and timely manner. However, both operations and business teams often face technical and operational challenges as transactions are processed by a multitude of internal systems which means transaction data is scattered and hard to correlate. Getting an easy single-window access to all required original transaction data would
INTIX solution – The INTIX solution helps operations and business teams face those challenges. The INTIX data management technology helps them access original transaction details from long-term archives and from production systems, whilst recognising all past and current financial messaging formats. Searching as well as ad-hoc reporting and dashboarding is instantaneous and allows for easy navigation through huge data sets. INTIX integrates seamlessly with legacy systems and minimises technical integration whilst guaranteeing data integrity. With INTIX, financial institutions increase their level of responsiveness as all needed data sources become available at their fingertips.
INTIX benefits – internal teams benefit from a most convenient tool to access any transaction data from archives and production systems whilst the increased visibility leads to more informed and timely decisions.
The INTIX technology
The INTIX technology integrates seamlessly with legacy data sources and quickly adapts to evolving requirements through configuration parameters. Key attributes are:
- Non-intrusive technology
- Standard software product
- Industry expertise
- Highly configurable
- Highly scalable
- Support for any message format
Get in touch
Contact us at firstname.lastname@example.org for more information.