Tailored Pain and Value Flashcards
What does Caplin do? (one liner)
Caplin builds SDP ranging from smaller components for big banks to full solutions for smaller banks across FICC(C).
We help banks solve their productivity problems when making a trade, ranging from sales to settlement instructions.
What’s new with Caplin? (for folks that already know Caplin)
Recently we’ve focused on automating post trade workflows to help banks:
1) Reduce manual errors such as re-keying.
2) Increase operational efficiency: Significant boost in the number of timely confirmations processed.
3) Onboard more clients and/or increase trade volume without increasing back-office overhead.
4) Improve client perception: Be seen as a “digital bank” and compete with challengers
What are all of our clients’ key objectives?
- improve productivity by error omission and focusing on revenue generating tasks
- increase revenue through access to intelligent data (margin rates, hit ratios)
- reduce risk (ie consequences to mistakes)
- clean up technology (old tech stack in places they’re actively trying to improve
- adhere to compliance
Head of Sales (Responsibility)
Responsibility: Generating revenue from client base
Head of Sales (2 issues)
1) Manual errors (e.g., incorrect settlement instructions): Simple mistakes take up time and can cause financial impacts (e.g., wrong payments).
2) Regulatory compliance: The burden is on the bank to ensure processes (e.g., KYC or fair pricing) are in place to meet regulations.
Head of Sales (3 example situations)
3 words: mistake, manual, margin
1) Incorrect settlement instruction spotted too late, causing payment issues and overdrawing accounts.
2) Salespeople manually keying tickets into systems, taking time away from revenue-generating activities.
3) Inconsistent margin calculations lead to unfair quotes and potential regulatory issues (e.g., price gauging).
Head of Operations of Back Office (Responsibility)
Responsibility: Ensure smooth running of back office.
Reducing cost, reducing risk, and meeting regulatory burdens in the post-trade process.
Head of Operations of Back Office (2 issues)
1) Sales providing incorrect or late information: This can cause missed deadlines and increase operational risk.
2) Manual, error-prone processes: Keying errors and incorrect accounts lead to time-consuming, unnecessary risk.
Head of Operations of Back Office (2 example situations)
2 phrases: sales deadline + incorrect account
1) Sales team misses a cutoff for sending correct settlement instructions, leading to a bottleneck.
2) Incorrect account keyed in during the trade settlement process, leading to time lost fixing the issue and an increased risk of financial loss.
Head of IT (Responsibility)
Responsibility: Deciding whether to buy or build technology solutions to automate processes and support other departments.
Head of IT (2 issues)
1) Automation of the post-trade process: Ensuring timely, accurate information reaches the back office to minimize errors and manual tasks.
2) Reducing manual tasks for salespeople: Freeing them from administrative burdens to improve productivity.
Head of IT (2 example situations)
1) Consideration of whether to build or buy a fintech solution that automates millions of trades to streamline post-trade operations.
2) Pressure to reduce error rates and eliminate manual administrative tasks performed by expensive sales teams (e.g., manually keying data).
Head of FX / Global Markets (Responsibility)
Responsibility: Overseeing trading, sales, structuring, and reporting with a focus on multiple asset classes (FX, FI, Commodities, Equities).
Head of FX / Global Markets (2 issues)
1) Sales productivity: Making sure the sales team is working efficiently while managing multiple responsibilities.
2) Trading risk and error management: Reducing the risk from trading errors and ensuring compliance with market regulations.
Head of FX / Global Markets (2 example situations)
2 words: manual + data (regulation + margins)
1) Sales team spend time manually inputting trade details, reducing their ability to engage with clients, close more deals, and financial loss when there are mistakes.
2) Missing regulatory checks on trading because of insufficient automation in the settlement and confirmation process which leads to fines and reputational damage.
Case Study: Back Office Automation at Fifth Third Bank (2 issues before deployment)
1) Manual administrative tasks: Sales operations were burdened with repetitive, manual tasks, reducing their productivity.
2) Client adoption of digital tools: Clients were hesitant to use e-channels for transactions and preferred phone communication, slowing down operations.
Case Study: Back Office Automation at Fifth Third Bank (2 areas Caplin has fixed)
1) Automated workflow tools: Eliminated manual re-keying by integrating Caplin’s e-PostTrade platform, allowing clients to self-serve with confidence.
2) Enhanced user experience: Delivered a multi-product platform with a high-quality user interface (UI) and user experience (UX), building client trust in digital channels.
Case Study: Back Office Automation at Fifth Third Bank (4 metrics of success)
1) Reduction in manual errors: Complete elimination of re-keying errors.
2) Increased operational efficiency: Significant boost in the number of timely confirmations processed.
3) Client onboarding: Ability to onboard new clients without increasing back-office overhead.
4) Improved client perception: Direct client feedback led to the bank being seen as a “digital bank.”
Case Study: Back Office Automation at Fifth Third Bank (ROI) – average trade confirmation time + time saved confirming trades (hours + days)
Time to manually confirm trades: 10 minutes
Time saved hours in 2023: 6,837
Time saved in 2023 (assuming 8 hour work day): 855
