Collateral Management System Transformation Case Study

This case study details the transformation of Standard Chartered Bank's (SCB) collateral management system. The bank faced challenges in managing the increasing volume of collateral, which led to frequent human errors and costly margin calls. Previously, 99% of margin calls were fulfilled using cash instead of utilizing the bank's unused long inventory. Issues arose from siloed systems and communication gaps between trading and back-office units, resulting in conflicts over asset postings. The implementation of ActiveViam's platform allowed for real-time data access, enhancing collaboration and accuracy. The new system provided a comprehensive view of the bank's inventory, enabling managers to optimize collateral posting and reduce errors. The integration with IBM's ILOG optimization algorithm further streamlined processes. Analysts reported improved inventory management capabilities, allowing for detailed data analysis and exploration across various dimensions. This transformation is expected to lead to significant cost savings for the bank.