Client Situation
This large regional bank was transitioning to a new performance measurement system—First Rate Performance. A risk existed that settled trade dates would not be passed to the new system. Because such missing trades would be excluded from the calculations, this would result in inaccurate performance computations.
Client Challenges
If certain trades were excluded, all performance reports generated with the missing data would be inaccurate. About 1500 trades, spread out over 800 accounts, would be impacted. Bank staff would then have to spend 25 hours manually entering the trades.
Reason for Challenges
Transactions prior to the settlement date would not automatically be passed from the old trust system to First Rate Performance. Only new trades would be passed from the old to the new system.
What the Client Wanted
What First Rate Provided
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Working collaboratively with the bank, we developed a plan for creating a separate transaction file containing all transactions that were pending at the time of conversion.
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We then created custom programs to load this new file.
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Using existing reconciliation methods, First Rate was then able to validate the transactions in the correct month, with the correct performance effect.
The Impact
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Accurate performance results were calculated during the conversion period.
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Clients received their performance reports without disruption during (and, of course, after) the transition period.
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100% of the trade activity that occurred during the transition period was captured, loaded and calculated.
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With no missing data to contend with, the transition period was smooth for both bank employees and customers.
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