Oddo & Cie embraces SmartStream risk management
French bank Oddo & Cie has chosen SmartStream Technologies to help improve its risk management and increase levels of automation in its reconciliations processing.
Under the deal between the two firms, the bank’s business process outsourcing unit Oddo Services Switzerland will use SmartStream’s TLM Corona reconciliation software, which is designed to automate manual end of day processing to enable more effective forecasting based on real cash positions.
TLM Coronoa’s modules cover intra-day reconciliation of cash transactions, securities messages and confirmations. Because the liquidity of the bank can be managed on a real time basis, in theory the bank will gain greater control of its financial exposure, cutting down on risk and providing a better opportunity to exploit market trends.
“We are very enthusiastic that Oddo Services, one of the major back office outsourcing providers in the French market, selected TLM Corona for its new Swiss business,” said Emmanuel Lesur, EVP and global head of sales at SmartStream. “Our goal is to help financial firms in the region solve important issues such as better control of operational risk and enhanced visibility of actual cash balances.”
Risk management has taken a larger profile in recent years, partly as a result of large fines levied on major global banks for failings in their internal risk management. In December, HSBC was fined £1.2 billion for failing to adequately prevent its operations being used to finance fraud and illegal operations in Mexico and the US. The same month, Standard Chartered agreed to pay £204 million to the US for illegally breaching that country’s sanctions on Iran.
Earlier this month, Nordic bank Alandsbanken chose a set of risk management tools from SunGard, Ambit Risk and Ambit Performance, to manage interest rate and liquidity risk and help the bank keep track of its balance sheet.