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CASE STUDY #3 - XYZ Financial Services

Omniscient acts as a powerful “backbone” in this study of a large firm’s search for a technology platform for it’s outdated systems.

XYZ Financial Services is a large national RIA firm with 600 Financial Advisors located in many states throughout the United States. XYZ has grown significantly over the last five years. In that time, it has developed relationships with all the major custodians and a few independent broker/dealers in order to accommodate the growth of its advisor base.

XYZ’s rapid growth has left the firm struggling to efficiently and effectively manage the firm’s substantial back office and regulatory responsibilities. The firm adopted its current technology solution set over ten years ago performing an in depth needs analysis and solution review before finally electing to use its current suite of technology solutions. XYZ has added staff on an as needed basis to shoulder the needs of the growing company and fill in gaps where the firm’s technology does not quite get the job done. Currently, the firm relies heavily on a handful of applications to assist in the daily reconciliation and review of business data namely:

  1. Portfolio accounting solution
  2. Trade order management system
  3. Document management system
  4. Network document and task sharing solution
  5. Customer relationship management system
  6. Email hosting and review solution
  7. Various spreadsheets and manual processes to fill in the gaps

Currently, none of these solutions effectively integrate with each other forcing the firm to dedicate a substantial portion of their support team to the daily tasks of gathering data and then reconciling it before manually performing required calculations and producing business reports.

Additionally, XYZ has seen a disconnect in terms of back office and compliance work develop between the advisors in the field and its home office due to the large volume of work leading to a drop in customer satisfaction and further reliance on staff to manually track work flowing to and from home office and the field.

XYZ finally concluded that it was time to perform and new needs analysis and begin the search for new solutions to their business problems which could also cope with the future growth of the company.

After the completion of a needs analysis, XYZ concluded that the company would benefit most from an integrated end-to-end technology solution that would address the needs of the front, middle and back office operations. The needs analysis strategy looked like this:

Front Office

Client Relationship Management

Document Management

Workflow processing

Email

Client portal

Middle Office

Client Relationship Management

Document Management

Workflow processing

Email

Portfolio Accounting

Trade Order Management

Back Office

Client Relationship Management

Document Management

Workflow processing

Email

Portfolio Accounting

Compliance Management

Compensation

Accounting

With this new needs analysis in hand, XYZ now understood the magnitude of the task before them. The company began an extensive solution search and concluded that they had a set of additional requirements that would also need to be considered:

  1. Solution must be web based and hosted
  2. Security must meet regulatory and best practice standards
  3. Integration would improve efficiency so the more of the firm’s needs that could be met by a single solution the better.

XYW approached Omniscient for a discussion to review their needs analysis and explore how the Omniscient platform could be a potential solution.

After a lengthy discussion of the firms needs and current organizational structure, XYZ and the Omniscient Team concluded that Omniscient Enterprise would be a strong solution for the firm’s needs. Omniscient would be able to act as the firm’s data “backbone” providing a web based end-to-end solution providing an integrated solution for the firm’s advisors (or front office), middle office (portfolio management and investment operations) and the back office (operations, finance and compliance). The application’s unique integrated database was able to house al the company’s business data from client information to custodian account data as well as process the firm’s substantial internal work flows seamlessly.

The implementation process would allow XYZ to consolidate its email, document management, portfolio accounting, client relationship systems while also allowing it to discontinue using manual processes and its old document sharing and task management tool. Each member of XYZ’s organization would have access to the business data related to their job function while still being able to delegate work flows, tasks and documents throughout the organization. The integrated data base allowed management to see their business from virtually any business angle. Omniscient allowed the risk/compliance team to efficiently see client account activity as well as advisor activity and documents in one view.

Ultimately, XYZ was able to substantially reduce their technology efficiency and re-task employees that were executing manual processes to focus on raising customer satisfaction.