Genpact and Lombard Risk Launch New Collateral Management Solution for Capital Markets
Innovative collaboration helps financial institutions streamline their margin and collateral management processes
NEW YORK, NY, November 20, 2014 – Genpact Limited (NYSE: G), a global leader in designing, transforming, and running intelligent business operations, and Lombard Risk Management plc (LSE: LRM), a leading provider of integrated collateral management, liquidity, and regulatory compliance solutions for the financial services industry, announce their collaboration to provide a new solution to help financial services firms optimize their collateral management operations.
The collaboration between Genpact and Lombard Risk with CARDS and COLLINE addresses major cost pain points in the industry, and significantly improves margin and collateral management efficiencies with a true end-to-end solution. Genpact will integrate its Collateral Agreement and Reference Data Services (CARDS) with Lombard Risk’s COLLINE® collateral, clearing, inventory management and optimization solution. This unique solution will enable both buy and sell-side firms to automatically digitize and capture the terms and conditions of various collateral agreements across asset classes, counterparties, and business silos, resulting in a margin and collateral rulebook by counterparty.
More specifically, the digitized data loads COLLINE’s agreement management database with the critical counterparty margin and collateral rules needed to efficiently manage and optimize margin and collateral, sharply reducing the time required to manually capture the information from existing and new agreements and amendments. Genpact’s service includes the data entry of custom agreement terms which are incapable of being extracted and digitized by CARDS, and management of the data.
In addition, the two companies are launching a joint Business Processing Outsourcing (BPO) service for the collateral management function to include processes such as setup and management of agreements, integrating and verifying positions and inventory, processing of margin calls extending from issuance to settlement, and supported by aging analysis, dispute resolution, and failed settlement and customized reporting—together with comprehensive optimization and inventory management.
Real-time margin management and intra-day collateral management are rapidly becoming the table stakes for financial services firms to survive and grow. They must drive a number of key functions including managing dynamic margin, collateral eligibility rules, settlement systems, exchanges, collateral across multiple counterparties, and clearing venues with diverse margin and collateral requirements. They must also ensure their liquidity and funding capacity through collateral optimization as well as capturing, mitigating, and allocating collateral costs across products and businesses. This joint solution will address these pain points because Lombard Risk’s award-winning COLLINE is the leading platform for collateral management and CARDS has the widest coverage of agreement types.
“We are very pleased to partner with a service provider like Genpact given their impressive global client base, collateral management domain expertise and their unique ability to combine process expertise with technology and analytics,” said Cliff van Tonder, Global Alliances Director at Lombard Risk. “Having just won Custody Risk’s European Awards 2014 ‘Collateral Technology Vendor of the Year’ – and now, in partnership with Genpact, delivering the world’s first collateral management solution complete with truly integrated automatic digitization of collateral agreements – exemplifies why we are market leaders in this space.”
“Lombard Risk brings its valuable COLLINE solution used by a number of financial institutions, which addresses the real-time enterprise view of inventory,” said Monty Singh, senior vice president and business leader, Capital Markets and IT Services, Genpact. “When combined with Genpact’s services delivery capabilities and CARDS platform which seamlessly manages collateral relationship, we are filling a huge gap in the market by enabling true collateralization. This service helps firms advance their operating models and make operations more intelligent – able to capture data, execute transactions and provide visibility faster and more time effectively – thereby enabling companies to better sense, react, and continuously learn from their activities in the market.”
Lombard Risk’s COLLINE provides firms with a comprehensive collateral management, clearing, inventory management and optimization solution – supporting both house and client-clearing for direct and indirect clearers, and offers flexible functionality, with rule builders, to enable clients to manage their ongoing requirements.
Developed by Genpact’s Capital Markets business resulting from Genpact’s acquisition of Headstrong in 2011, CARDS is designed to provide financial services firms with a streamlined margin and collateral management process. CARDS helps banks automatically digitize and capture the terms and conditions of various collateral agreements across asset classes and counterparty types. It integrates this data with counterparty and security reference data and central counterparty (CCP) margin models as well as enterprise-wide collateral inventory sourced from systems across different lines of business. Finally, CARDS enables use of this information to drive effective downstream processes such as collateral allocation and substitution and collateral optimization.
About Lombard Risk
Lombard Risk (LSE: LRM) is a leading provider of integrated collateral management and liquidity, regulatory, transaction and MIS reporting solutions – enabling firms in the financial services industry to significantly improve their approach to managing the risk in their businesses.
Founded in 1989 and headquartered in London, Lombard Risk has offices in New York and New Jersey in the US; Hong Kong, Shanghai, Singapore and Tokyo in Asia Pacific, and service centres in Atlanta, Cape Town, Luxembourg and Miami.
Our clients include banking businesses - over 30 of the world's "Top 50" financial institutions, as well as investment firms, asset managers, hedge funds, fund administrators, insurance firms and large corporations worldwide. More information is available at www.lombardrisk.com. Follow Lombard Risk on Twitter and LinkedIn.
Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run intelligent business operations including those that are complex and specific to a set of chosen industries. The result is advanced operating models that foster growth and manage cost, risk, and compliance across a range of functions such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization. Our Smart Enterprise Processes (SEPSM) proprietary framework integrates effective technology and data-driven insight into the fabric of enterprise processes to help our clients be more competitive. Our hundreds of long-term clients include more than one-fourth of the Fortune Global 500. We have rapidly grown to over 66,000 people in 25 countries with key management and corporate offices in New York City, but our global critical mass doesn’t dilute our flexible and collaborative approach and our management team still drives client partnerships personally. Our clients attribute much of our success to our unique history – behind our passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 16 years. Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube.
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For more information:
Gail Marold (For Genpact Media Relations)
Matthew Kirdahy (For Genpact U.S.)
Quintin Keanie (For Genpact Europe)
+44 (0)207 309 1053