Financial Advisor Compensation System for a Tier-1 BankField Compensation System Modernization
A tier-1 bank selected Synechron to fully modernize its Financial Advisor (FA) Compensation platform to support its FAs with fee and commission transparency, increase operational effectiveness, and adhere to the firm’s strict risk management principles. The legacy application calculated compensation and commissions across multiple products and investment strategies, but was untenable in an increasingly digital and regulated environment. Six primary needs were identified:
- Transparency – Maximum visibility and electronic tracking enablement are critical. FAs need the ability to compare commission plans and the business team requires greater formula-evaluation functionality.
- Flexible Calculation Formulas – Formulas should be easily tested, adjusted and implemented within the platform.
- Reporting - The platform must allow for easy reporting and data exports.
- Workflow Consolidation – The compensation system imports and/or exports data to 12+ workflows including human resources, profit and loss, and general ledger. Workflow consolidation would enhance efficiency and reduce risk.
- Audit Trail – Internal controls and regulations such as the Consolidated Audit Trail (CAT) mandate this data be logged.
- UI/UX – Added functionality necessitates a role-based UI to manage new functions, run reports, compare commission plans, adjust models, and monitor payments.
Synechron assessed the existing application and developed a 4-phase roadmap: Architecture & Rules Reengineering, End-to-End Workflow Integration, UI/UX design, and Release Management. In Phase 1, Synechron adopted an agile methodology to migrate the legacy system’s rules and hierarchies to a Next-Gen, rules-based, Event Processing engine. To manage risk, the development was rolled out in phased implementations, underwent parallel testing, and took a toll-gate approach to controls. The platform is architected to ultimately enable real-time feed processing that will increase transparency, enhance processing controls, reduce the risk of untraceable errors, and log audit trails.
In Phase 2, integrations across all 12+ workflows will be rolled out. Phase 3 calls upon design thinking to develop intuitive, role-specific dashboards. Lastly, in Phase 4, Synechron will conduct final implementation procedures, including testing and continued platform support.
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