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08 April 2021 6 min read

Fast-track platform build to support $350bn of payment flow at a global bank

  

Implementing USD clearing capability and a new accounting platform in the space of one year for the US branch of a major universal bank.

Our client is a major universal bank that had outsourced its US dollar clearing capability to a third party supplier. The bank had a global presence and needed to clear its own USD as well as those of correspondent banks it serviced.

The supplier had served notice on the contract following increasingly stringent rules on payments sanctions and origination. This left the bank with one year to bring the $350bn daily clearing flow in-house, in order to protect its US and global corporate and investment banking offerings.

 

Client Requirements

Within this timeframe, the client required the project to go through scoping, platform selection, target operating model (TOM) design and deployment, requirements gathering, build, test and cutover.

Specifically, this required a new payments engine and accounting platform, as well as supporting systems and the migration of more than 600 corporate customer accounts. The new systems would be tasked with handling a range of high value payment types, including Swift, Fed and CHIPS, as well as testing with the schemes.

 

Baringa's Role

Baringa managed stakeholders and functions across three different geographical locations to design and implement this global model in a short pace of time. To achieve this, we had pivotal roles across all the main functions, including: finance, treasury and payments, and product.

Acting as the primary points of contact between business and technology, the Baringa team led the design of the new operating model and its implementation, defined requirements and managed user acceptance testing in support of system integration. We also provided project management office (PMO) support to bring structure, planning and governance.

 

Outcomes and Impact

Baringa consultants worked in partnership with the client to successfully deliver a new payments engine and accounting platform with customers successfully migrated on time and on budget - no mean feat in just a year.

The achievement was all the more impressive due to the sheer scale of the project, including: the migration of 600 corporate customer accounts, documenting of more than 4,500 business requirements, addressing of over 2,000 defects and building of at least 50 interface or component changes.

The combined client and Baringa team was recognised by senior executives from across the business, including the group CEO, corporate CEO and US executive.

Client Group CEO: “Please accept my personal gratitude for all your hard work – this is an important step in the right direction to continue to build the ‘Go-To’ bank.”

Client Programme Manager: “We managed to deliver these exceptional results as directed, and at the budget we nominated a year ago. This is a phenomenal achievement of which you should all be very proud.”

David Harris, Baringa, Financial Services, Partner: “Given the delivery scale, complexity and hard deadline, the value of Baringa’s industry expertise was clearly demonstrated, as well as our cross-functional experience. We were able to flex our role throughout the duration of the project to ensure that the client had the right resources at the right time, while taking on some of their most challenging delivery issues.”