This leading European bank used Duco to tackle three key challenges: upcoming regulatory change, excessive costs and poor agility in the back office, and an outdated legacy reconciliation system.
Prior to Duco the bank was suffering for several key challenges:
- Not scalable: The bank’s incumbent system struggled to cope with the large amounts of data required for regulatory reporting under MiFID II, EMIR and Dodd-Frank. They needed a new platform that could reconcile large quantities of data from disparate sources quickly and efficiently.
- Expensive: Maintenance costs for the current system were very high, with any new reconciliations usually requiring major projects. The reconciliation process also included a great deal of manual work, which was costly and inefficient.
- Lack of agility: The bank was (and still is) required to report across several different regulatory regimes in a timely and accurate manner. The incumbent system was clearly unable to cope with these requirements. With MiFID II and evolving changes to EMIR, a far more agile solution was needed, able to adapt to new processes and data formats at speed.
As well as the immediate challenges posed by regulatory change, the bank was also motivated to look for a new reconciliation system as part of a widespread transformation programme. Duco perfectly fitted their vision for disruptive, state-of-the-art systems that offer strategic possibilities around reconciliation and data quality automation across the business.
“With everyone else in the market (other than Duco) there will be a charge of, say, 50 days of consultancy to help build the recs. 50 days always becomes 100. Then 150. The costs start to spiral out of control.”
The bank chose Duco for a number of reasons. They learned very quickly that our solution could start reducing overheads (the competitor solutions they explored would have ended up increasing costs).
Going live on the Duco platform allowed the bank to eliminate a number of manual processes, which significantly reduced reconciliation costs. Staff found the system extremely easy to learn and use, removing the need for expensive training and consultancy.
Speed and adaptability was another key consideration for the bank. Their incumbent platform and systems from other vendors were unable to match the speed and flexibility of our system when setting up a reconciliation.
“Other systems just operate a black box – you feed the data in and some other data comes out the other end. There’s no visibility if you get unexpected results. But with Duco the team can build the rec themselves and access the rules at any time. That’s a key difference. Duco is the first system I’ve seen that truly gives the operations department end-to-end ownership of the process.”
On top of this, the ease of use of the Duco platform means that the operations team is able to own the reconciliation process themselves. The team found our platform highly intuitive and user-friendly. This enabled the operations team to create their own rules and processes quickly, which not only saved time and money, but also greatly improved transparency.