Minimizing Transaction Process Risk – UniCredit

Project Background

UniCredit Bank approached PaceMetrics looking for a solution that provided greater visibility into their transaction processing.

Key concerns included:

• Reputational Risk – The bank needed to cement its reputation as a premier trading house with a solid track record for successful trade completion
• Credibility – It required real time visibility of problem trades so as to identify and track issues before clients or counter-parties raised them
• Internal Efficiencies – UniCredit required a solution that improved the efficiency of the transaction settlement process

Solution

PaceMetrics provided UniCredit with a dashboard view of the entire transaction process. The PaceMaker solution alerts the bank to any problem trades and provides direction on resolving these issues. It provides the client with visibility in the following areas:

• What went wrong? – Real time view of the transaction process
• Where it went wrong? – Insight into how to resolve the problem and complete the trade
• Why it went wrong? – Provides intelligence on the causes of the problems

Benefits

The PaceMetrics solution offers the following benefits to the client:

• Optimized resources as specialist knowledge of multiple systems is no longer required. Bank personnel are trained to use the PaceMaker dashboard which interprets data from multiple systems, provides notifications when errors occur and offers direction on how to resolve them
• Detects problems earlier to help the client settle trades within required time frames
• Avoids penalties by assisting the bank in minimizing exposure to failed settlements and buy-ins resulting in charges and interest payments
• Tracks other key metrics as the PaceMaker dashboard is configurable to display other data such as:
  • Performance against agreed SLA metrics for key clients
  • KPIs for management teams
• Ability to drill down into data to identify suspicious patterns or activities across the transaction process