CorpBanca adheres to the regulatory mandate funds in Colombia

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CorpBanca adheres to the regulatory mandate funds in Colombia
CorpBanca adheres to the regulatory mandate
and becomes the first custodian of investment
funds in Colombia
“Excellent people, excellent product. We are really happy to
work with TCS”
-- Maria Susana Montero Pinilla,
Head Manager- Legal representative, CorpBanca
About CorpBanca Investment Trust Colombia S.A. Sociedad Fiduciaria
“CorpBanca Colombia SA Investment Trust” Trust Company is a leader in the Colombian Trust
Industry and is a subsidiary of Banco CorpBanca, Colombia. CorpBanca Investment Trust has
the authorization of the Financial Superintendence of Colombia to implement the activities of
custody of securities. It is the subsidiary of the Group specializing in custody services to both
local and international clients.
The need to build a competitive edge
The securities services industry is characterized by the need for reducing risks in financial
transactions by taking timely and error-proof actions. This necessitates higher STP rates,
quicker flow of information about trade settlement, corporate actions announcements and
adherence to messaging standards such as through the SWIFT messaging system.
Solution helps their customers with cutting-edge professional services in the form of asset
servicing/corporate actions, comprehensive compliance, portfolio monitoring, safekeeping
and settlement processing.
The Custody and Settlement industry in Colombia is in an evolving stage and the regulatory
authorities wanted the trust companies who manage investments to play an active role in
being custodian of the investment funds. This mandate was received through a regulation
issued by the Colombian ministry of Finance in 2013 that required that trust companies must
choose to be administrator or custodian of investment funds.
The regulation also provided an opportunity to the potential custodians to establish direct
communication channels with the market entities (Stock Exchange, Depositories).
CorpBanca Investment
Trust Colombia S.A.
Sociedad Fiduciaria
Securities Processing,
Corporate Actions and
Web Channels
Driven by the regulation issued by the Colombian
ministry of Finance CorpBanca started looking for a
system which can help meet this regulatory
requirement and also communicate directly with the
market entities. The stakes were high, as a
non-compliance with this regulation meant failure in
achieving a custodian status, resulting in loss of
business to competitors.
Transforming a 10-year-old legacy IT landscape for
improved customer experience
CorpBanca’s present business is supported by a legacy
system which is around 10 years old. With the planned
sunset date of the legacy system of June 2016 and to
overcome the limitations it posed such as no direct
connectivity with the market, non-standardized
reporting to the various customers, no extensibility to
fulfil growing market needs etc., CorpBanca decided to
look for a new solution. Following were the key reasons
for CorpBanca to engage with TCS BaNCS for this
Compliance to new regulations which required trust
and brokerage companies to choose a local
custodian for investment funds
Overcome Limitations posed by Legacy system to
support growing market needs
Sophisticated, direct end user channel to customers
in the form of a web portal to give them real time
view of their portfolio and transactions
Adopt a scalable application that efficiently supports
organizational growth
CorpBanca wanted to serve both Global and a local
clients through a single, homogeneous IT platform.
After a round of detailed evaluation and due-diligence,
CorpBanca chose TCS BaNCS to help achieve its
objectives. TCS BaNCS has been deployed successfully
across leading custodians and asset managers across
the globe and recognized by leading industry experts
worldwide for its in-depth and advanced functionality.
A strategic partnership was established between Tata
Consultancy Services (TCS) and CorpBanca Investment
Trust Colombia S.A. Sociedad Fiduciaria in January 2014
to implement and support TCS BaNCS. TCS began
working with CorpBanca on this prestigious
transformation and legacy replacement program by
deploying TCS BaNCS to provide the following
Core and Reference Data – Reference and static
data set up including Client, Counter Party, Broker,
Stock Exchange data, Financial Instruments, Market
Information, Reports Management, Bank Structure
and User Management.
Trade Settlement – takes care of complete trade
settlement lifecycle services including Security
Settlement, Also the settlement of non standard trade
types such as Bulk trades, Security Lending &
Borrowing, Repos and Internal trades.
Corporate Actions – provides end-to-end processing
of events right from announcement capture to
eligibility & entitlement computation and finally to
payments, reconciliation and taxation.
Cash Management – offers extensive support for Cash
management and foreign exchange processing.
Position Management – facilitates booking of all
security & cash movements and calculation of real time
Workflow Manager – The Workflow Manager
component is a powerful tool to augment Operational
Efficiency. It enables queue based management of
work-items via ‘one-view’ Dashboards. A work Item may
be created in case of business process exceptions or
manual intervention scenarios like STP failure, message
repair, authorization, ‘to-do’ kind of user actions. The
allocation of work Item to a user is governed by the
configuration rule present in the system.
Service Integrator – TCS BaNCS Service Integrator
Components facilitates rapid, seamless integration with
third-party systems, existing in-house systems and
legacy applications through a variety of methods.
Client Notifications – generates and sends various For
Your Action (FYA) / For Your Information (FYI)
notifications to inform clients of Custody & Corporate
Action status throughout the events /trade lifecycle.
The TCS BaNCS Securities Processing - Custody Solution
generates notifications in the form of SWIFT MT5XX,
email, fax, paper advice etc.
Web Channels – offers financial institutions a
competitive edge by providing a comprehensive
delivery Channel which enables them to offer
consistent multiple services to its local/ global
Creating a unified Securities processing and corporate
actions processing platform
The TCS BaNCS implementation was completed in 2
phases. The first phase covered reference data, trade
settlement, announcement capture, and corporate action
and web channels capabilities while phase 2 would take
care of market connectivity.
The transformation program took place successfully with
phase 1 going live in November 2014 and phase 2 going
live in June 2015
The roll-out strategy is incremental wherein the applications
and processes are rolled out into production in multiple
tranches. This is driven by the need to go operational with
minimum risks. Migration of Local and Global client is planned
over a period of 3 months. The first local customer was
migrated on 22-Jul-15 and all local customers are planned to
be migrated by end of Aug-15. Migration of Global customers
started from 25-Jul-15 and is planned to be completed over a
period of 3 months.
Governance and Regulatory Compliance
Adherence to Industry Standards – Fully ISO15022
Mitigated Risks
Reduced the risk through a phased deployment and
migration methodology
An enriched customer experience through Web Channel
The TCS BaNCS solution has delivered the following critical
benefits to CorpBanca:
Enables customers to view real time portfolio holdings
and make transaction entries
Market Connectivity
Customers who are not yet SWIFT users can use this
portal to input transactions through screen or through a
user friendly file upload feature
Provides customers a dashboard giving view of status
wise transaction details, asset valuations, Corporate
Actions event classification, Response deadline dates for
the responses can be provided for Corporate Actions
open on their holdings
Web channel also provides access to reports as
published by CorpBanca for customers as a value added
To get the certification from local stock exchange (BVC) to
act as Custodian in the Colombian market
Integration of local custody specific interfaces with Local
stock exchange (BVC), Local depositories (DECEVAL and
DCV) and Broker Allegment interface
Shorter service response times due to direct connectivity
with market entities
Allowing SWIFT enabled customers to send their
instructions directly through SWIFT messages eliminating
all non-efficient modes of sending instructions that were
being used till now
Workflow dashboards for improved productivity
End to End Single integrated platform for Trade
Settlements (Local and Global), Corporate Actions &
Position Management
Better end customer reporting and timely advices
Ease of integration with existing systems at CorpBanca
through the TCS BaNCS for Service Integrator layer, thereby,
reducing customization related to interface integration
Enabling CorpBanca’s customers to view real time portfolio
holdings and make transaction entries using Web Channels
An enabler to strategize CorpBanca’s business in terms of
providing a wider array of products in the Custody and
Asset servicing domains
Layered Architecture enables quick time to market for
expansion to new market initiatives & regulatory reforms
Setting foot on a journey of sustainable growth...
TCS leveraged its long, enriched experience and best
practices from the implementation of TCS BaNCS for its
customers worldwide in this transformation program at
CorpBanca. Senior associates have been retained since
commencement of the project to help support the
implementation both in terms of solution analysis and
production maintenance.
Phase 2 was a critical part of the project which required roll
out of integration with local stock exchange (BVC) in a short
period of time. Development of the interface with local
stock exchange (BVC) was specifically challenging due to
frequent change in requirements and a roll out date was
that was fixed.
TCS ensured a successful delivery by developing in an agile
manner and doing a round of market connectivity testing
with BVC for an early detection and resolution of integration
issues before the final delivery. This ensured timely and
quality delivery to CorpBanca.
This program helped bringing in a much needed
competitive edge by delivering a richer customer
experience, improved operational efficiencies and
productivity on its journey to growth making CorpBanca
first custodian in Colombian market to get certification from
local stock exchange and approval from local finance
ministry to offer custody services to local clients
The TCS BaNCS product suite for banking, capital markets and insurance enables business
transformation in financial services. Increasing operational efficiency and helping financial
institutions stay agile, our solutions deliver a competitive edge with unmatched certainty! We aspire
to be better than established benchmarks, which is why we have embedded an Alpha (“ ”),
representing superior returns delivered to our customers, consciously and prominently within our
brand. The plug and play, component-based product suite consistently turns in impressive
benchmark results, with a fine-tuned, highly scalable technology architecture that supports financial
institutions with the highest capacities for transaction volumes, peak transactions per second, and
transaction history size. With such a track record, it is only natural that the TCS BaNCS product suite
can help financial institutions of any size gain a distinct, competitive edge.
For more information, visit: www.tcs.com/bancs
To know more about us, contact [email protected]
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