Corporate Actions Automation - The Vendor Landscape Matures

by David Easthope, March 13, 2006

Abstract

Boston, MA, USA March 13, 2006

Financial institutions are spending more on corporate actions automation. Celent estimates that approximately $988 million will be spent on corporate actions automation projects from 2006 to 2010, advancing automation from hype to reality.

Corporate action automation has made strides. But a collective solution is necessary to achieve true automation. According to Celent, the primary concern today is the lack of uniform data standards for corporate actions. Data is often unreliable or incomplete, and many institutions get corporate actions data from numerous sources. Manual intervention is necessary to correct the data and make it uniform預 time-consuming process. STP rates for corporate actions processing will improve only with data standards.

"Industry initiatives, despite clear setbacks, continue to bring a higher level of standardization to the back office on a global basis," says David Easthope, Celent analyst and author of the report Corporate Actions Automation裕he Vendor Landscape Matures. "Most notably, ISO 15022 standardization is increasingly on the radar screens of operational personnel and senior management teams across the globe."

In this report, Celent evaluates leading corporate actions automation software providers using Celent痴 four-dimensional ABCD vendor view, identifies spending trends, and evaluates the status of corporate actions automation across the industry.

Celent found that a handful of dominant vendors, such as Xcitek and TCS, are facing new competition from relative upstarts like CheckFree, SmartStream, and GoldenSource, as well as overseas firms such as Information Mosaic.

While competition is heating up, the good news for vendors is that overall spending on corporate actions automation will increase as a result of demand and a wider variety of vendor solutions. Leading corporate actions automation providers should benefit from the uptick in spending and move for more financial institutions to turn to third party providers rather than internal solutions.

The report is intended to be a preliminary guide for institutions planning initiatives and evaluating vendors to enhance automation and STP rates. The vendors analyzed in detail include third party software applications covering the corporate actions life cycle from ADP Wilco, CheckFree, GoldenSource, Information Mosaic, Mondas, SmartStream, TCS, Vermeg, and Xcitek as well as solutions that tackle select parts of the corporate actions process, including Asset Control, ADP's service bureau, Advent, CCH, and Infosys.

This report is a follow-up to Celent's April 2004 report, Corporate Actions Automation - Surveying the Vendor Landscape.

The 64-page report contains 18 figures and 11 tables.

A table of contents is available online.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Boston, MA, USA March 13, 2006

Executive Summary 3
Industry Overview 5
Spending Estimates 11
New Industry Trends 15
Assessing The Solutions 22
CELENT ABCD Vendor View 33
Corporate Action Vendors 35
  ADP Wilco 36
  CheckFree 38
  GoldenSource 40
  Information Mosaic 42
  Mondas 45
  SmartStream 46
  Tata Consultancy Services 48
  Vermeg 50
  XcitekSolutionPlus (Xcitek) 52
Additional Alternatives 54
  Asset Control 54
  Fidelity ActionsXchange 55
  Infosys 56
  Advent 57
  ADP 59
  CCH Incorporated 60
Conclusions 62
Objectivity & Methodology 63

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