Why firms should embrace collateral management transformation
Posted by John372 days ago
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372 days ago
Ernst & Young - Collateral management was significantly impacted by the recent market stress, driven by the COVID-19 pandemic, exposing several legacy inefficiencies and vulnerabilities across the buy- and sell-side community. The challenges faced highlight a need to invest in the transformation of the collateral management life cycle, including leveraging enhanced technology and industry utilities, establishing infrastructure connectivity and moving toward automation for exception-based processing. Firms should initiate a comprehensive review of their collateral management capabilities to determine a target operating model that best fits current and future needs through in-house build, implementation of vendor technology or outsourcing to asset servicing providers.
Authored by: Mark Nichols; John Boyle