The continuing evolution of the Network Management landscape is certain to be a principal recurring theme at this year's Network Forum Annual Meeting in Vienna.
Advances in technology and the possibilities to enhance the way the Network Management community utilises Artificial Intelligence (AI), Machine Learning (ML) and Robotic Process Automation (RPA) for removing time labour-intensive tasks, and the need for protection against cyber-attacks. The need to increase capacity (in terms of both human and machine resources). The trend for institutions to outsource due diligence requirements to third parties. And, of course, Brexit.
These are all likely to feature strongly throughout informal sessions and conversations, says Andrew Duffin, Managing Director, Head of Sales & Relationship Management, UK and Ireland at Societe Generale Securities Services (SGSS).
"For a significant number of years now the Network Management function has moved from being a mostly relationship-based function, towards being a risk-intensive one" he says. "This is reflected in the way that certain topics began to emerge, and then dominate, the network management agenda."
Traditionally there were three main criteria that had to be considered: service, price and risk, in that order. Today, as the network management function has become more prominent in the institutions that are active in the field, he would suggest it is now ordered risk, service and price.
"We have seen an upscaling of the function," he continues. "More people are working in Network Management and we are experiencing greater integration with support functions such as, Risk, Compliance and Cyber Crime Units."
"In the past, when basic custody was about the safekeeping of physical assets, we would concentrate on assessing the capacity and strength of an old-fashioned vault. With the vast proportion of assets now electronic, the risk of a cyber threat is a key area of asset safety and we need to assess the suitability of defences against cybercrime. This requires a very different skill set and demands a far greater degree of integration of specialist expertise within the Network Management function."
One feature of the ongoing change is that clients now have a broader choice of ways in which to access markets. These include connecting directly to a Central Securities Depository or Target2Securities, using a traditional agency bank model or a hub and spoke model.
"The challenge for the network manager is to decide which is best in each individual situation, and to bundle or unbundle the relevant services accordingly," says Andrew Duffin.
He identifies contract standardisation as another nascent discussion trend but immediately utters a word of caution about the extent to which that might proceed. It would undoubtedly make the life of a hard-pressed Network Manager easier if potential new clients all asked the same questions which could be answered with standard replies, but even to an external observer who has never actually worked in the industry it looks very challenging.
And finally, to Brexit. As the UK government apparently struggles to make its own preparations for the UK's departure from the European Union (a very different beast from the European Economic Community, or Common Market, that the UK signed up for in 1973), Andrew Duffin notes that SGSS clients are on track with their own arrangements. "Clients are asking us to sign contracts with additional EU legal entities and there is a possibility that some will take this as an opportunity to review and possibly renegotiate the underlying contracts."
This, it seems clear, is a highly sensitive issue.
Managing Director, Head of Sales & Relationship Management, UK and Ireland, SGSS
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The continuing evolution of the Network Management landscape is certain to be a principal recurring theme at this year's Network Forum Annual Meeting in Vienna.
Advances in technology and the possibilities to enhance the way the Network Management community utilises Artificial Intelligence (AI), Machine Learning (ML) and Robotic Process Automation (RPA) for removing time labour-intensive tasks, and the need for protection against cyber-attacks. The need to increase capacity (in terms of both human and machine resources). The trend for institutions to outsource due diligence requirements to third parties. And, of course, Brexit.
These are all likely to feature strongly throughout informal sessions and conversations, says Andrew Duffin, Managing Director, Head of Sales & Relationship Management, UK and Ireland at Societe Generale Securities Services (SGSS).
"For a significant number of years now the Network Management function has moved from being a mostly relationship-based function, towards being a risk-intensive one" he says. "This is reflected in the way that certain topics began to emerge, and then dominate, the network management agenda."
Traditionally there were three main criteria that had to be considered: service, price and risk, in that order. Today, as the network management function has become more prominent in the institutions that are active in the field, he would suggest it is now ordered risk, service and price.
"We have seen an upscaling of the function," he continues. "More people are working in Network Management and we are experiencing greater integration with support functions such as, Risk, Compliance and Cyber Crime Units."
"In the past, when basic custody was about the safekeeping of physical assets, we would concentrate on assessing the capacity and strength of an old-fashioned vault. With the vast proportion of assets now electronic, the risk of a cyber threat is a key area of asset safety and we need to assess the suitability of defences against cybercrime. This requires a very different skill set and demands a far greater degree of integration of specialist expertise within the Network Management function."
One feature of the ongoing change is that clients now have a broader choice of ways in which to access markets. These include connecting directly to a Central Securities Depository or Target2Securities, using a traditional agency bank model or a hub and spoke model.
"The challenge for the network manager is to decide which is best in each individual situation, and to bundle or unbundle the relevant services accordingly," says Andrew Duffin.
He identifies contract standardisation as another nascent discussion trend but immediately utters a word of caution about the extent to which that might proceed. It would undoubtedly make the life of a hard-pressed Network Manager easier if potential new clients all asked the same questions which could be answered with standard replies, but even to an external observer who has never actually worked in the industry it looks very challenging.
And finally, to Brexit. As the UK government apparently struggles to make its own preparations for the UK's departure from the European Union (a very different beast from the European Economic Community, or Common Market, that the UK signed up for in 1973), Andrew Duffin notes that SGSS clients are on track with their own arrangements. "Clients are asking us to sign contracts with additional EU legal entities and there is a possibility that some will take this as an opportunity to review and possibly renegotiate the underlying contracts."
This, it seems clear, is a highly sensitive issue.
Managing Director, Head of Sales & Relationship Management, UK and Ireland, SGSS
