Corporate Actions Automation - Surveying the Vendor Landscape

Once considered only a pipe dream, corporate actions automation is becoming a reality. Industry initiatives, maturation of third-party vendor solutions, and a rise in interest among securities and investments firms are paving the way.

In a new 48-page report, Corporate Actions Automation—Surveying the Vendor Landscape, Celent Communications examines current trends and initiatives in automating the corporate actions process. In particular, the report profiles a host of solutions available in the marketplace today from providers including: ADP, CheckFree Heliograph, FTI, Information Mosaic, Mondas, SmartStream, Tata Consultancy Services, Vermeg, and Xcitek. An assessment of the vendors based on critical features and functionalities as well as considerations such as live implementations and number of clients is included as part of the analysis.

"Though third-party vendor solutions are gaining acceptance, financial institutions should keep in mind that a number of the solutions do not have extensive track records," states Celent senior analyst Pamela Brewster, author of the report."Consequently, there are a number of risks involved with the solutions from whether the product can deliver on its promise, to whether the vendor will be around for the long haul, to how long the implementation will take."

The report also highlights current industry initiatives to help standardize and centralize corporate actions information and messages. Initiatives highlighted include the SWIFT ISO 15022 corporate actions messages, the DTCC’s Global Corporate Actions Validation and Messaging Services, the SIA’s Corporate Actions Liability Hub, and Euroclear’s internal enhancements, among others. Decision factors for weighing whether to automate or not, as well as steps for moving down the automation path are also presented to provide securities and investments firms with guidance in this process.

"In the final analysis, it is important to remember that automating the corporate actions process does not just happen when the technology gets deployed. In many cases, automation also entails total process reengineering, dictating a change in staff behavior. As such involving members of the corporate actions’ team in major steps of the project is critical for the ultimate success of the project," concludes Brewster.

A Table of Contents is available online.

of Celent Communications' Retail Securities & Investments, and Institutional Securities & Investments research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.