Client
The client is a global asset servicing firm with operations in over 10 countries and over $3 trillion in assets under custody. The client sought a strategic partner to modernize and scale their asset servicing operations while enhancing service quality and reducing risk.
Challenge
Overcoming service delivery issues and operational bottlenecks in asset servicing
For over a decade, the client had outsourced its asset servicing operations to a large tier-1 provider but struggled with persistent service delivery issues and operational bottlenecks:
- Lack of domain expertise among incumbent staff led to frequent operational issues and limited scalability.
- Manual, fragmented processes increased costs and risk, while limiting productivity and operational efficiency.
- Service delivery gaps disrupted critical custody functions—like trade processing, settlements, corporate actions, fund administration, fund accounting, reference data management, income and taxation, reporting, and invoicing—leading to client and revenue erosion.
- Inability to handle trading volume spikes during peak periods risked delays and compromised client trust.
The client needed:
- Qualified resources with domain expertise to resolve operational bottlenecks.
- A scalable, automation-driven operating model to handle trade spikes, streamline high-volume, repetitive tasks, and improve accuracy without sacrificing service quality or timelines.
- End-to-end ownership and transformation of operations, with reduced costs and consistent, reliable delivery.
- Strong governance to oversee and sustain operational excellence.
Constraints:
- Execution within tight 3–4-month timelines due to non-responsiveness from the incumbent service provider.
- Minimal disruption to business-as-usual during transition.
Solution
Operations transformation and intelligent automation for asset servicing
Hexaware delivered a comprehensive solution based on our value-creation framework, executed in three strategic phases: establishing stability, driving operational excellence, and enabling scalable innovation.
Establishing Stability
- Initiated a pilot in reconciliation and analysis (R&A), scaling up to manage the end-to-end R&A hub.
- Seamlessly migrated operations from the US, Poland, and the incumbent service provider in India to Hexaware’s shared service hubs in Pune and Mumbai.
- Selectively rehired key resources from the incumbent provider to ensure continuity.
- Established a collaborative governance model involving Hexaware, the incumbent, and the client’s IT and operations teams.
Driving Operational Excellence
- Built cross-trained teams to handle volume spikes and ensure consistent productivity.
- Implemented business-linked performance metrics for accountability and transparency.
- Streamlined processes by removing non-value-adding steps, driving immediate productivity gains.
- Deployed experienced leadership and domain experts across all levels.
Enabling Scalable Innovation
- Introduced platform enhancements and intelligent automation for asset servicing across middle and back-office workstreams.
- Implemented 5+ workflow enhancements for the reconciliation engine, improving match rates and reducing manual overhead.
- Proposed 20+ transformation initiatives, including automation and system upgrades.
- Developed custom tools such as a web-based auto cash reconciliation app and embedded business rules to eliminate reconciliation errors.
- Promoted API-driven solutions and reuse of proprietary tools to enhance efficiency and scalability.
Benefits
Digital managed services drive operational excellence, cost savings, and resilience
Immediate Impact:
- 5% productivity gain from day 1 through process de-skilling and rationalization.
- Significant improvement in service delivery, resulting in higher stakeholder satisfaction.
- Seamless management of 2X trading volumes during the pandemic with uninterrupted, high-quality service.
- 9%+ SLA achievement across all functions from the outset.
Long-term Value:
- 100% elimination of manual errors in fund accounting cash reconciliation.
- 55% reduction in total cost of ownership (TCO) over the engagement.
- 35% reduction in FTEs committed over 5 years, reflecting sustained efficiency.
- Realized ~25% effort savings through a center of excellence and intelligent automation.
- Enabled a shift from Capex to Opex through an all-inclusive pay-per-use model covering both digital transformation and operations delivery.
- Enabled flexible service offerings and custom billing models to meet evolving market needs.
- Embedded a culture of continuous improvement, keeping operations lean and responsive.
Resilience in Crisis:
- During the pandemic, Hexaware mobilized its workforce to remote operations with real-time tracking, ensuring zero SLA breaches and no impact on service delivery—even as volumes across trade support processes surged by up to 175% in some processes.
Summary
A new standard for digital managed services in asset servicing
Hexaware’s digital managed services engagement enabled a global asset servicing firm to overcome legacy outsourcing challenges, modernize operations, and build a scalable foundation for the future. By combining deep domain expertise, robust governance, and technology-driven transformation, Hexaware delivered 55% cost savings, reduced FTEs by 35%, eliminated manual errors, and empowered the client to adapt and thrive—even during market volatility. This partnership has set the stage for ongoing innovation, with a joint business transition unit exploring next-generation solutions and GenAI proofs of concept.
Connect with Hexaware’s digital managed services experts today at marketing@hexaware.com and discover how our tailored solutions can transform your asset servicing operations!
