How a clear view on your business flow performance can improve your margins

Measuring is knowing. Knowing what goes on in your business. Knowing if your client SLA's are met and risks are managed. Knowing how to become more efficient and profitable.

As payment activities get faster and trading generates high volumes of data at increasing speeds, it is almost impossible for financial service firms to monitor and manage every latency or performance glitch within their business processes. Almost.

Specialised Business Process Monitoring or BPM software allows you to gain complete operational oversight of all the data moving through your network and applications. It detects performance issues in real time, making sure you can minimise the impact of an issue before resulting in any great financial, operational or reputational losses.

How does it work?
Compare the software with a punch clock installation at every entrance door of an office building. The system registers when an employee enters or leaves, making it possible for your HR team to analyse how many hours employees worked and signalling who didn't show up that day.

The same for BPM software. Every order or trade that comes in through your business infrastructure will activate a probe to record a monitoring event. In our analogy, the probe is the punch clock and the monitoring event is the registered data when an employee's badge is presented. This type of network monitoring is completely non-intrusive, leading to truly unaltered and reliable data.

The software will not only take the exact timestamp of the event but also capture all required business information such as the trader or client ID, price or instrument. This allows for a more in-depth analysis of the raw monitored data as you can customise the view of the data that is most interesting for your company. You can for example choose to only view the completed trades on the NYSE for the first quarter of 2015.

With Business Process Monitoring, you are able to replay the whole lifecycle of a trade from beginning to end, even for complex parent orders that have been split up in multiple child trades. You are able to see which market data tick triggered the execution of the trade enabling you to understand the cause and effect of trading decisions.

The analysed information is shown in a user-friendly and rich dashboard displaying charts and alerting messages that give you real time operational visibility on how well your firm is actually doing. You'll be able to make an objective, business-level analysis of your most important KPI's.

But how will this software 'save' your company on a daily basis?
Because a real time alert is generated the instant an important performance threshold is breached. System degradation, latency bottlenecks, incomplete and unreliable market data or payments at risk of failure are noticed instantly, allowing users to act before it is too late.

Front offices, as well as middle or back offices in financial services firms benefit from this real-time business flow monitoring.
Trading calls for quick and reliable market data in order to make informed investment decisions. The lower the latency of the exchange data feed coming in, the more competitive they can be. When agreed latency thresholds are exceeded, Trading professionals are instantly informed so that they can take necessary countermeasures.

Also back offices profit from monitoring techniques that completely eliminate blind spots in complex payment infrastructures. For example, BPM software allows you to trace a payment from the moment it enters the system until the point of exit or completion. You will be alerted in case of missing payments, payments that require manual repair and payments that have not progressed far enough through the payment infrastructure to meet their completion deadline without intervention. By clearly directing you to the payment's exact location, you can quickly proceed with resolving the problem in time. This way, late payment fees, overnight interest charges or reputational risks are avoided.

Detecting and immediately solving these important day-to-day issues increases long-term client satisfaction, provides a blueprint of weak performance areas, helps you meet compliance requirements and most importantly, improves your company's overall profitability.

At Drebbel, we help financial services firms to understand how business process monitoring can improve their business performance and efficiency.
After 15 years of experience in the sector, we can relate to your business challenges and will translate your specific situation into efficient, scalable and professional software solutions.

Drebbel works together with a specialised technology partner that provides highly valued business process monitoring software.