Contacts

EY | Assurance | Tax | Transactions | Advisory

About EY
EY is a global leader in assurance, tax, transaction and advisory
Scott Becchi services. The insights and quality services we deliver help build trust
and confidence in the capital markets and in economies the world over.

Ernst & Young LLP

We develop outstanding leaders who team to deliver on our promises
to all of our stakeholders. In so doing, we play a critical role in building

Principal
a better working world for our people, for our clients and for our

Process
communities.

+1 212 773 4388 EY refers to the global organization, and may refer to one or more, of

[email protected]
the member firms of Ernst & Young Global Limited, each of which is a
separate legal entity. Ernst & Young Global Limited, a UK company
limited by guarantee, does not provide services to clients. For more

automation in
information about our organization, please visit ey.com.

EY is a leader in serving the global financial services marketplace

Keith Caplan Nearly 51,000 EY financial services professionals around the world
provide integrated assurance, tax, transaction and advisory services to

asset servicing
our asset management, banking, capital markets and insurance clients.
Ernst & Young LLP In the Americas, EY is the only public accounting organization with a
separate business unit dedicated to the financial services marketplace.
Principal Created in 2000, the Americas Financial Services Organization today
includes more than 11,000 professionals at member firms in over 50
+1 212 773 3003 locations throughout the US, the Caribbean and Latin America.

[email protected] EY professionals in our financial services practices worldwide align with

key global industry groups, including EY’s Global Wealth & Asset
Management Center, Global Banking & Capital Markets Center, Global
Insurance Center and Global Private Equity Center, which act as hubs
for sharing industry-focused knowledge on current and emerging
trends and regulations in order to help our clients address key issues.
Michael Krause Our practitioners span many disciplines and provide a well-rounded
understanding of business issues and challenges, as well as integrated

Ernst & Young LLP

services to our clients.

Senior Manager
With a global presence and industry-focused advice, EY’s financial
services professionals provide high-quality assurance, tax, transaction

+1 212 773 1489

and advisory services, including operations, process improvement, risk
and technology, to financial services companies worldwide.

[email protected] © 2016 EYGM Limited.

All Rights Reserved.
Score No. 04212-161Gbl
1611-2113638 (BDFSO)
ED None
Alan Schneider This material has been prepared for general informational purposes
only and is not intended to be relied upon as accounting, tax or other
Ernst & Young LLP professional advice. Please refer to your advisors for specific advice.

Senior Manager ey.com

+1 212 773 9874

[email protected]
Process automation in
asset servicing
Robotics, software robotics and robotic process automation Now think about the possible dollar savings. Consider an Would virtual workers have a job in your business? Consider below. The more these factors
(RPA) all describe computer applications that automate tasks operation with 80:20 onshore/offshore mix with an average cost
typically performed by humans significantly faster and at a per full-time employee (FTE) of $75k. Change the mix to apply, the greater the likelihood that virtual workers should be on the payroll.
fraction of the cost. In asset servicing, the opportunity is to 60:10:30 onshore/offshore/virtual and the average cost per FTE
automate middle- and back-office labor intensive processes. drops to $57k, a 24% saving. For an operation with 1,000 FTEs,
Across the industry, robots already are reducing errors and
costs.
this is $18 million savings a year. People factors: People factors:
One of the biggest appealing aspects of the virtual workforce is
Today, asset servicers hire high-cost, high-value individuals to that most tools can be deployed quickly and without the need for • Access and gather data from multiple systems • Well-defined, relying on rules rather than
perform apparently complicated activities processing trillions of a large IT project. So what is required? A configuration resource • Move data from one system to another judgment
dollars in assets daily. The perceived need for talent with who knows the chosen tool, operations staff who know the end-
• Check data consistency in multiple systems • Time-consuming, while being time-critical
specialized skills, e.g., booking a swap deal, is widespread in the to-end business process to be automated and technical
market. In reality, this talent often is manipulating spreadsheets, production support to gain access to systems is necessary. • Update the same information in multiple • Frequent execution (e.g., daily or weekly)
typing data from one system to another, or undertaking other systems • Multiple systems that are not fully integrated
activities that don’t leverage their skillset or reach the value of So what is the leading practice?
• Remediate data across several accounts • Necessary improvements in quality and control
their compensation. Process automation is best used within an enterprise support
Through robotics, virtual workers log onto a system, navigate system, or a center of excellence that can prioritize the rollout of
menus, specify a download, load a spreadsheet, initiate a macro, automation across businesses and operations by leveraging
validate data, manipulate formatting, calculate, reformat, reusable objects and deploying standards and training for a
reconcile, look up a reference in another system, decide federated support model. Processes should be evaluated and The industry is making big bets on robotics.
something is right, and log into an accounting system and post prioritized by the business based on the largest benefit to be
the right trade. Add Optical Character Recognition (OCR) achieved through automation. In addition to automation, The CEOs of asset servicers are espousing the benefits and their plans for this technology. Many areas are benefitting from
software to handle those 4,000,000 faxes annually and none of opportunities for process improvement should also be robotics; among them are trade processing, cash management, reconciliation, billing, regulatory reporting, reporting
the 50 former paper shufflers will get a paper cut again. Plus, considered. consolidation, reference data management, pricing, sourcing daily counterparty files for reconciliation and processing,
virtual workers never complain, never demand a raise or more EY’s recent experience in asset servicing includes a systems corporate actions, accounting entries and new account openings.
challenging assignments, and never leave their job. upgrade within the middle-office outsourcing business of a major
global bank. A team of operations professionals developed an With all of these possibilities, leading practices have emerged to prioritize opportunities, manage deployment factories,
Automation software operates consistently, is scalable, deploys
quickly, maintains process standardization, runs all the time, is automation approach that included documenting the conversion stand up centers of excellence, and empower talent to off-load the rote aspects of their jobs. As more use cases come
fully auditable and requires little maintenance. process and detailing the data mapping with the automation online, expect to start reading about the results first in asset servicing trade publications, and then in general media as this
software. The robot could complete the process in 12 hours new type of automation changes the asset servicing industry footprint, employment and productivity.
Think about the potential of redeploying your human workforce versus the 4 weeks that it previously took a team of people to
by moving routine data input, data transfer, data lookup and complete. This also enabled our client to reallocate talent to
validation work to a virtual workforce. Practical experience client-facing, value-added activities, such as focusing on the
among financial services firms have shown upward of 30% of operating model for service delivery, information delivery and
resources recaptured across functions. developing day-to-day procedures for post-conversion client
support.

Watch the robots working at

http://bit.ly/EYassetdemo
So what should you do next?
You owe it to yourself and your business to evaluate the potential impact of robotics. Many asset servicers are executing
proof of concepts (POCs) on robotics technologies, automating select, labor intensive, repetitive processes to demonstrate
the impact of automation. POCs can typically be completed in a matter of weeks for very little cost. Once you see the
results, you will quickly find yourself and your business partners looking for new ways to leverage this powerful technology.

Process automation in asset servicing Ernst & Young LLP

Process automation in
asset servicing
Robotics, software robotics and robotic process automation Now think about the possible dollar savings. Consider an Would virtual workers have a job in your business? Consider below. The more these factors
(RPA) all describe computer applications that automate tasks operation with 80:20 onshore/offshore mix with an average cost
typically performed by humans significantly faster and at a per full-time employee (FTE) of $75k. Change the mix to apply, the greater the likelihood that virtual workers should be on the payroll.
fraction of the cost. In asset servicing, the opportunity is to 60:10:30 onshore/offshore/virtual and the average cost per FTE
automate middle- and back-office labor intensive processes. drops to $57k, a 24% saving. For an operation with 1,000 FTEs,
Across the industry, robots already are reducing errors and
costs.
this is $18 million savings a year. People factors: People factors:
One of the biggest appealing aspects of the virtual workforce is
Today, asset servicers hire high-cost, high-value individuals to that most tools can be deployed quickly and without the need for • Access and gather data from multiple systems • Well-defined, relying on rules rather than
perform apparently complicated activities processing trillions of a large IT project. So what is required? A configuration resource • Move data from one system to another judgment
dollars in assets daily. The perceived need for talent with who knows the chosen tool, operations staff who know the end-
• Check data consistency in multiple systems • Time-consuming, while being time-critical
specialized skills, e.g., booking a swap deal, is widespread in the to-end business process to be automated and technical
market. In reality, this talent often is manipulating spreadsheets, production support to gain access to systems is necessary. • Update the same information in multiple • Frequent execution (e.g., daily or weekly)
typing data from one system to another, or undertaking other systems • Multiple systems that are not fully integrated
activities that don’t leverage their skillset or reach the value of So what is the leading practice?
• Remediate data across several accounts • Necessary improvements in quality and control
their compensation. Process automation is best used within an enterprise support
Through robotics, virtual workers log onto a system, navigate system, or a center of excellence that can prioritize the rollout of
menus, specify a download, load a spreadsheet, initiate a macro, automation across businesses and operations by leveraging
validate data, manipulate formatting, calculate, reformat, reusable objects and deploying standards and training for a
reconcile, look up a reference in another system, decide federated support model. Processes should be evaluated and The industry is making big bets on robotics.
something is right, and log into an accounting system and post prioritized by the business based on the largest benefit to be
the right trade. Add Optical Character Recognition (OCR) achieved through automation. In addition to automation, The CEOs of asset servicers are espousing the benefits and their plans for this technology. Many areas are benefitting from
software to handle those 4,000,000 faxes annually and none of opportunities for process improvement should also be robotics; among them are trade processing, cash management, reconciliation, billing, regulatory reporting, reporting
the 50 former paper shufflers will get a paper cut again. Plus, considered. consolidation, reference data management, pricing, sourcing daily counterparty files for reconciliation and processing,
virtual workers never complain, never demand a raise or more EY’s recent experience in asset servicing includes a systems corporate actions, accounting entries and new account openings.
challenging assignments, and never leave their job. upgrade within the middle-office outsourcing business of a major
global bank. A team of operations professionals developed an With all of these possibilities, leading practices have emerged to prioritize opportunities, manage deployment factories,
Automation software operates consistently, is scalable, deploys
quickly, maintains process standardization, runs all the time, is automation approach that included documenting the conversion stand up centers of excellence, and empower talent to off-load the rote aspects of their jobs. As more use cases come
fully auditable and requires little maintenance. process and detailing the data mapping with the automation online, expect to start reading about the results first in asset servicing trade publications, and then in general media as this
software. The robot could complete the process in 12 hours new type of automation changes the asset servicing industry footprint, employment and productivity.
Think about the potential of redeploying your human workforce versus the 4 weeks that it previously took a team of people to
by moving routine data input, data transfer, data lookup and complete. This also enabled our client to reallocate talent to
validation work to a virtual workforce. Practical experience client-facing, value-added activities, such as focusing on the
among financial services firms have shown upward of 30% of operating model for service delivery, information delivery and
resources recaptured across functions. developing day-to-day procedures for post-conversion client
support.

Watch the robots working at

http://bit.ly/EYassetdemo
So what should you do next?
You owe it to yourself and your business to evaluate the potential impact of robotics. Many asset servicers are executing
proof of concepts (POCs) on robotics technologies, automating select, labor intensive, repetitive processes to demonstrate
the impact of automation. POCs can typically be completed in a matter of weeks for very little cost. Once you see the
results, you will quickly find yourself and your business partners looking for new ways to leverage this powerful technology.

Process automation in asset servicing Ernst & Young LLP

Contacts
EY | Assurance | Tax | Transactions | Advisory

About EY
EY is a global leader in assurance, tax, transaction and advisory
Scott Becchi services. The insights and quality services we deliver help build trust
and confidence in the capital markets and in economies the world over.

Ernst & Young LLP

We develop outstanding leaders who team to deliver on our promises
to all of our stakeholders. In so doing, we play a critical role in building

Principal
a better working world for our people, for our clients and for our

Process
communities.

+1 212 773 4388 EY refers to the global organization, and may refer to one or more, of

[email protected]
the member firms of Ernst & Young Global Limited, each of which is a
separate legal entity. Ernst & Young Global Limited, a UK company
limited by guarantee, does not provide services to clients. For more

automation in
information about our organization, please visit ey.com.

EY is a leader in serving the global financial services marketplace

Keith Caplan Nearly 51,000 EY financial services professionals around the world
provide integrated assurance, tax, transaction and advisory services to

asset servicing
our asset management, banking, capital markets and insurance clients.
Ernst & Young LLP In the Americas, EY is the only public accounting organization with a
separate business unit dedicated to the financial services marketplace.
Principal Created in 2000, the Americas Financial Services Organization today
includes more than 11,000 professionals at member firms in over 50
+1 212 773 3003 locations throughout the US, the Caribbean and Latin America.

[email protected] EY professionals in our financial services practices worldwide align with

key global industry groups, including EY’s Global Wealth & Asset
Management Center, Global Banking & Capital Markets Center, Global
Insurance Center and Global Private Equity Center, which act as hubs
for sharing industry-focused knowledge on current and emerging
trends and regulations in order to help our clients address key issues.
Michael Krause Our practitioners span many disciplines and provide a well-rounded
understanding of business issues and challenges, as well as integrated

Ernst & Young LLP

services to our clients.

Senior Manager
With a global presence and industry-focused advice, EY’s financial
services professionals provide high-quality assurance, tax, transaction

+1 212 773 1489

and advisory services, including operations, process improvement, risk
and technology, to financial services companies worldwide.

[email protected] © 2016 EYGM Limited.

All Rights Reserved.
Score No. 04212-161Gbl
1611-2113638 (BDFSO)
ED None
Alan Schneider This material has been prepared for general informational purposes
only and is not intended to be relied upon as accounting, tax or other
Ernst & Young LLP professional advice. Please refer to your advisors for specific advice.

Senior Manager ey.com

+1 212 773 9874

[email protected]