Major Private Bank Transforms to Meet the Fixed Income Data Management Challenge
The client is one of Switzerland’s most prestigious private banks with over US$386 billion of assets under management and custody. Since 1805, the bank has advised clients on protecting and growing their wealth.
As the bank’s investment management business expanded so did its need for accurate, specialist data. Maintaining data quality was difficult and costly, particularly for fixed income. Data was stored and used in multiple applications, including data management, front office and performance attribution.
The bank maintained relationships with many index data vendors. Validation of fixed income data accuracy became difficult: data formats vary between index data vendors and change frequently. Answering data queries was time-consuming as it was necessary to work with individual vendors to resolve issues.
The bank invited RIMES to survey its fixed income business and propose a practical solution to meet its immediate and strategic needs. The study examined over 140 international benchmarks, including standard, custom and preview data. A comprehensive analysis revealed that the RIMES could meet most of the bank’s fixed income requirements; however, the bank also needed additional data, not then available via RIMES, which it acquired this specifically for the bank.
RIMES offered a significant improvement in the quality, cost-effectiveness, speed and reliability of managing complex sets of data. RIMES was customized to meet the bank’s overall requirements while meeting the specific needs of individual departments in terms of accuracy and timeliness of data delivery.
Working with RIMES also enabled the bank to improve data governance. A structured methodology enables the bank to audit its data requirements to ensure that only essential indexes are acquired. This had been a challenge when there were multiple relationships with individual index vendors. RIMES also advises on which specific data items to choose and the bank values the fact that RIMES proactively checks and monitors data usage, which helps mitigate operational risk.