Comtek Bizsoft Pvt. Ltd.1 Corporate Performance Management & Reporting Challenges for Financial Service Organisations Nilesh Sangani Director Comtek Bizsoft Pvt. Ltd.

2 Objective To create awareness about reporting challenges faced by corporate brokers & understand tradeoffs between various solutions

Comtek Bizsoft Pvt. Ltd.3 Major Revenue sources Brokerage from Cash, F&O, Commodity Insurance / Mutual Funds PMS, Wealth Mgt. Fees Proprietary Trading, Margin Funding, Arbitrage DP Operations (Client Servicing)

Comtek Bizsoft Pvt. Ltd.4 Major Enterprise Challenges Strategy planning – Improving processes & deploying technology to support the processes Retaining existing Customers & Expanding customer base through Channel Partners, Branches Application Software Management Customer service availability 24 x 7 x 365 Audit & Compliances Human Resources

Comtek Bizsoft Pvt. Ltd.5 Organisation Back Office Cash, F&O, Commodity,RMS Insurance, MF Wealth Management Other Systems like CRM Application DP Back Office NSDL, CDSL PMS Margin Funding Front office e-Broking Middle Office Corporate Accounting, H R Applications Application Software Architecture

Comtek Bizsoft Pvt. Ltd.6 Application Software Challenges Services provided in the organisation comes from different vendors which means it is be difficult to identity and implement management tools that interact well with all platforms and systems. This results in creation of Multiple data sets leading to disintegrated data pools within an organisation distributed across multiple servers

Comtek Bizsoft Pvt. Ltd.7 Application Software Challenges …. Linking and consolidating fragmented data from various systems to provide summarized view of the business and all its operations is a bigger challenge Requiring to deliver right information to the right person with the right level of interactivity in timely and action oriented form

Comtek Bizsoft Pvt. Ltd.8 Commonly used solutions Operational staff Skill set Operational staff Skill set operational staff managing MIS requirements to some extent with their own skill sets typically Excel & macros. – Disadvantages : data can be inconsistent & unreliable, time consuming, limited reporting, can not be restricted for viewing to targeted managers, problems in delivery quality & enforcing enterprise quality standards. In house software development team In house software development team Advantages : Information retrival is automated & hence under control / secured Disadvantages : maintaining source codes, retaining software people, may not be scalable because of limited vision

Comtek Bizsoft Pvt. Ltd.9 Commonly used solutions… 3External solution provider ????? – advantages :automated, consitent – disadvantage : continuously changing business needs calls for maintenance

Comtek Bizsoft Pvt. Ltd.10 Back office dependences Back Office Front Office RMS PMS DP Back Office Corporate A/c Data Analysis / MIS

Comtek Bizsoft Pvt. Ltd.11 Recommended Guidelines Unified Process across organisation Deploy centralised database repository for common entities like customer master (integrating with Front office, Back office, RMS, Collateral Mgt, DP, PMS etc.) Unified identity of a customer across all the systems like Back office, DP & front office, MF, insurance, wealth management. Uniform Scrip coding across all the subsystems Streamlining individual applications to capture core transactions data at the root level & enabling them to share information

Comtek Bizsoft Pvt. Ltd.12 Recommended Guidelines ….. Identify Risk components & automate Share Payout & Fund Payout process based on customer centric profiles * uncleared receipts, collaterals, open buy / sale, ledger balance, third party Exposure / limit setting Use a centralised reporting warehouse Plan mechanism to consolidate fragmented data from various systems & resources to get organised single view of the business & all its operational units Define how much data need to be collected and how long it needs to be stored in the reporting design Use interactive reporting to pin point exactly what is happening in business Analyse these information to uncover patterns & trends & understand why particular events are impacting business.

Comtek Bizsoft Pvt. Ltd.13 Recommended Guidelines ….. performance monitoring & proactive strategy planning. – – One can view performance data in the following ways Real Time, Near real time, Short term, Long term – – eg. Sqoff & Delivery brok sharing - impacts on business. – – Brokerage V/s Funding cost – – Top ‘n’ clients in terms of revenue earned from Clients across all segments including mutual funds, pms / wealth mgt. fees etc. – – Contribution of n% of income – – Channel Partner / Branch / Subbrokers analysis – top ‘n’ branches – – Utilization of exposure / under utilized This ensures decision makers have the right information at their fingertips when it comes to making decisions that drive the business forward.

Comtek Bizsoft Pvt. Ltd.14 Recommended Guidelines ….. Leverage latest Hardware technologies like SAN, High end servers Leverage latest Hardware technologies like SAN, High end servers Consolidation of Servers through Virtualisation technology to reduce cost with efficient managebility Consolidation of Servers through Virtualisation technology to reduce cost with efficient managebility Disaster recovery plan Disaster recovery plan – Regular backups

Comtek Bizsoft Pvt. Ltd.15 What if analysis –Business Intelligence –Graphical Analysis –Drag & Drop

Comtek Bizsoft Pvt. Ltd. 16 Thank You Queries / Suggestions