Our clients are stockbrokers, asset managers, banks, pension and hedge funds, and businesses in the broader business market that may want to outsource certain administrative functions.
The outsourcing of back office functions (in whole or in selected parts) appeals to both large and small stockbrokers and other businesses who do not want to maintain these expensive support functions.
Outsourcing is an efficient and cost effective alternative, offering numerous benefits to clients:
· Allows them to focus on their core business skills – they can concentrate on revenue-generating activities and their own client service and satisfaction, knowing that back office administration is being well taken care of
· Reduces and controls operating costs – by leveraging off Finsettle economies of scale, clients can reduce salary, equipment, training and other fixed costs. Their back office cost structure changes from a fixed cost model to a variable per transaction charge
· Frees up internal resources and capital – client staff, equipment and funds can be redeployed and used more effectively in operations
· Enables the outsourced functions to be performed by skilled specialists with world class competencies in that field
· Broker clients benefit from greater accuracy, seamless settlements and the knowledge that their own clients are being well serviced – these back office functions will always be well managed and completed, irrespective of any operational disruptions the broker may have.
· Frees up extensive capital for our stockbroker clients – JSE rules specify that when the settlement function is outsourced, base capital adequacy requirements are no longer needed by the broker member. R3 million gets immediately released to be effectively used elsewhere in the business.
Transition from in-sourcing to outsourcing
Our Finsettle Services Partner Transition plan manages the transfer of the required outsourcing function from the client business across to us.