For more than a decade, TCS Financial Solutions has been working with the investment banking and custody divisions of major financial institutions to deliver continuous improvement and technological innovation to meet the business challenge of managing corporate actions (CA) information.
On July 30, 2019, TCS was granted a patent for its innovative method of handling CA information for multi-entity financial institutions. Investment banks and custodians both have an essential need for information about corporate actions (CA), which are material announcements pertaining to equity or debt that include dividends, stock splits, rights issues, and M&A announcements. Although investment banks and custodians respond to different corporate actions in different ways, both rely upon the same underlying data.
Yet global financial institutions have typically maintained their investment banks and custody divisions as separate operations, further divided by country or geographic region. Through this approach, separate divisions have had to procure, provision and support multiple systems for managing CA data, resulting in duplicate costs for software licenses, hardware, vendor management, upgrades and maintenance. The higher costs of maintaining two different CA systems also resulted in underinvestment in system enhancements, often leading to discrepancies between data feeds from these systems.
Read how TCS envisioned an improved method and optimized system for CA processing that would support investment banks and custodians through a single user interface.