The Value of SaaS for Post-Trade Processes

The Value of SaaS for Post-Trade Processes

Broker Dealers today are under more and more pressure as technological and social changes transform the landscape around them. Costs have increased and processing demands have risen with the widespread use of electronic exchanges, creating a new set of challenges to be overcome.

One of the biggest challenges for Broker Dealers today is the inefficiency of their back office management system.  The majority of firms still rely on Excel spreadsheets for this task, which requires hours of manual labor to maintain is therefore prone to human error. While there might be some in-house solutions available to help automate this process, most do not allow for customization or real-time, global visibility.

We believe the best way for Broker Dealers to address the issue of back-office inefficiency is with a customizable, automated and web-based solution, which is delivered as a service.  Using a SaaS-based (Software as a Service) solution can help companies streamline and integrate the different aspects of the post-trade process, including profitability reporting, client commissions, soft dollar programs and CMTA, eliminating hours of labor costs and providing instant access to all data across the globe without worrying about the mechanics.

A SaaS solution also eliminates the need for hardware or software purchases.  This will allow you to reduce IT spending on constant replacements and upgrades. As there is no hardware or software to configure, SaaS products can be implemented in 45% to 55% of the time that in-house systems take (

In addition to reduced setup and implementation costs, a SaaS solution requires no updates or continuous maintenance from your team.  Any issues or technical problems are taken care of by Incito Technologies for you, allowing you to decrease your dependence on an in-house IT staff and leverage the expertise of outsourced professionals.

With a SaaS-based solution in place for back-office management, Broker Dealers can seamlessly integrate and consolidate all of their transactions data into one database, so they have all the flexibility of their spreadsheets but eliminate time-consuming duplication issues and manual processes. When your time spent with spreadsheets and IT related issues decreases, you can then focus your energy on your business’s core competencies and serving your customers.

Incito Technologies back-office management service (which can be hosted on a firm’s servers or through our SaaS platform) also helps Broker Dealers by allowing them to easily create simple or tiered payout rules using the web-based console, simplifying the broker-dealer process. Our calculation engine can easily integrate multiple payout structures into one system—regardless of complexity or changes to contact structures. This feature ensures you are never leaving money on the table or giving revenue away, allowing you to go as far as specific broker-dealer commission adjustments.

Overall, a SaaS-based solution for back-office management provides many benefits to Broker Dealers. Its on-demand and web-based nature eliminates the hardware, software and maintenance costs associated with in-house systems; all data is streamlined, aggregated and easily accessible; and it can be easily customized and altered to fit the needs of each company.