Societe Generale Corporate & Investment Banking (SG CIB) has completed the first step in a project to migrate its securities processing systems to an outsourced platform provided by Accenture and Broadridge.
In July SG CIB was announced as the first customer of the new Accenture Post-Trade Processing service. The joint offering with post-trade processing technology firm Broadridge is designed to help banks increase competitiveness, adapt to regulation and reduce costs by outsourcing certain back-office functions.
The Societe Generale group’s internal trading practices and governance have been under the spotlight since former employee Jerome Kerviel was sentenced to three years in prison in 2010 after being convicted of unauthorised computer use. Kerviel had used his previous knowledge of the bank’s IT department to circumvent security controls in order to make unauthorised trades, costing the bank 4.9 billion euros (£4.2 billion) in 2008. In 2011 former trader Samarth Agrawal was also sentenced to three years in prison after being found guilty of stealing the bank’s computer code.
SG CIB has now completed the first phase of its migration, with Accenture managing securities processing functions including settlement, asset servicing, reference data, reconciliation and administrative accounting for the bank. A number of SG CIB staff have also moved over from the bank to Accenture as part of the project.
The next step is now under way to transfer the processing systems onto Broadridge’s multi-entity technology platform. This is aimed at simplifying compliance with incoming and existing regulations, optimising performance with access to real-time trade information, as well as enabling new financial products to be launched quickly, Accenture said.
“We are very pleased with this initiative to create a new securities back-office outsourcing solution for investment banks in Europe and Asia-Pacific,” said Christophe Leblanc, Chief Operating Officer, Corporate & Investment Banking, at Societe Generale.
“Accenture Post-Trade Processing will allow us to deliver top-level services to our clients while being price-competitive with the largest players in the industry.”
Eugenio Bonomi, senior managing director and head of Accenture Post-Trade Processing added: “In an increasingly competitive and capital-intensive industry, this new approach to post-trade processing will help the bank meet its efficiency and client service objectives.”