The London Stock Exchange has teamed up with Indian IT services company Wipro to make its UnaVista reconciliation platform available globally in a multi-tenanted pay-as-you-go model.
The software helps financial services businesses to balance their books and spot fraud and error – vital capabilities in any regulated environment.
With finance firms seeking to cut costs while remaining compliant with the regulatory environment, the service offers lower cost of ownership with automated updates. It takes away the need for customers to invest in people, processes and technology.
The system is hosted in London Stock Exchange datacentres and delivered using Wipro’s global service delivery capabilities. The pairing combines the trust placed by the finance sector in the stock exchange with the IT services expertise and economies of scale of Wipro.
Customers will pay as they use the platform. It will be scalable, compliant with regulations and, according to estimates, reduce total cost of ownership by up to 40%.
Gert Raeves, research director at analyst firm TowerGroup, said reconciliations are a success story of capital markets automation. “There is not a single back-office activity with a higher degree of market adoption of automated platforms.
“Moving to a hosted delivery model is high on the wishlist for many institutions who want to maximise the ROI potential of their reconciliation solution.”
Wipro CEO Manoj Punja said the system will set the de facto standard for banks mutualising their reconciliation costs. “It offers banks the potential of moving all reconciliation activity onto a single platform with round-the-clock operations processing support and zero infrastructure requirement.”
The system means that customers will not have to separately change their own systems when the regulators make changes. Mark Husler, head of product management, information services, at the London Stock Exchange, said the platform will incorporate regulatory changes quickly whenever they occur.