Shared Service Utilities
With financial organisations under increasing pressure to cut costs, improve efficiencies and increase effectiveness SmartStream’s shared service utilities have become a very attractive option. A shared service utility is where a focused centre of excellence facilitates multiple lines of business, using centralised technology, expertise and operations.
Internal shared service utilities
An internal shared service enables clients to remove siloed operations that result in the replication of back-office functions across multiple lines of business. SmartStream, operating as a third party, delivers a centralised repository of standardised data to a client for reconciliation, reference data, corporate actions and cash management. Key benefits are:
- The cost of transaction processing is greatly reduced, while operational effectiveness and efficiency significantly increase.
- Duplication of basic operations across various teams is consolidated into one integrated function.
- Different areas of the organisation can view the same data when it moves from a siloed operation to a utility approach.
External shared service utilities
SmartStream's shared service to internal teams is enhanced by additional external centralised services which enables a bank's securities reference data to be cleansed, validated and fed into its security master. This:
- Removes the need for internal bank teams to check data.
- Results in higher quality of data – guaranteed 97% accuracy.
- When market participants use the same reference data and reconciliation and exception management processes through SmartStream’s external, standardised service, both risk and cost are significantly reduced.