Migrating between systems introduces risks for investment firms using outsourced service and technology providers.
Successful migration management is as fundamental as the foundations of a building, yet is often given less priority than the BAU systems integration.
Seven typical data migration risks we identify can include, but are by no means limited to:
- Account Information security breaches: due to incorrect client information leakage or simply sharing the wrong fund data or providing wrong client trade data.
- Data mapping: Incorrect mapping of source data leads to incorrect information being loaded into the target systems. The risks of long-term error are reduced, but not eliminated through post-upload quality assurance (QA) checks.
- Manual Intervention: An environment with significant manual intervention will have higher error rates leading to increased human resource demands.
- Reputation: The data migration stage is usually a precursor to a parallel phase, which itself places a significant burden on project and BAU teams. Issues with the data, either in quality or timeliness usually has a knock-on impact into the subsequent parallel and go live phases. Data migration mishandling can sometimes lead to customer service and reputation impacts, and regulatory awareness of the problems.
- Regulatory: Firms may require written approval from local and or regional entity authority regulators within a scheduled deadline. This adds further stress and challenges to the team.
- Economic: If the data migration phase is not successfully completed as contractually planned, this can lead to a severe economic impacts or contractual penalties.
- Operational: Delays and further dry runs can quickly lead to significant distractions for the existing BAU operations team and lead to errors and impacts.
All the above risks combine to jeopardise the overall service migration of the business and reduces client trust in your firm as a service provider.
Segue
The Segue cloud managed service empowers firms to migrate Trading, Operations and Accounting data from one service provider to another efficiently and safely.
Segue has been designed and built by our own migration experts, with the objective of providing a scalable and cloud technology data-driven service for firms completing investment migration activities.
Our cloud technology validates data and accelerates the overall client migration experience.
Firms are increasingly migrating their front and middle office systems to the cloud and operation to managed services. Cloud deployment provides several key benefits, including frequent software upgrades, high quality data, predictable costs, and the latest cybersecurity.
The platform
- ProdktrSegue uses advanced integration framework to connect with the world’s leading capital markets service and technology providers for cross asset classes including CRD, SS&C, Calypso and Fund Administrators.
- Cross-asset instrument coverage. Supports 45 instrument types including derivatives, fixed income, equities, foreign exchange and private asset classes, including market events.
- Bank Loan, CFD and Prime Broker agnostic. Pre-canned with some of the leading street brokers.
- FinTech cloud and managed service expertise. Supported and managed by experienced migration engineers, accountants and architects.
For more information please visit our Segue page by clicking here.
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