Mid-sized Midwest bank - paragon case study
Problem: A Midwest regional bank planning to meet its obligations under Dodd-Frank requirements identified a need to improve the efficacy and care in its pre and post trade due diligence compliance and review of creditworthiness. The new requirements would make the documentation and review processes nearly impossible to manage with their existing business architecture. In their own words they faced two choices, automate their compliance process or shrink their holdings of municipal and corporate bonds to a more manageable volume.
Action: paragon worked with the bank to map out the entire compliance workflows needed to remain Dodd-Frank compliant. Deploying compliance.edge the bank was able to load and store all the required pre and post trade compliance documents electronically by both CUSIP and Issuer. This central repository provides a central point to find any securities which need to be reviewed as well as to review history for each CUSIP, whether for operational performance or compliance review. compliance.edge is a platform to store, organize, track and report on the vast breadth of financial documentation required to fulfil regulatory requirements. It also has the ability to be customized by the user to meet many other regulatory compliance reporting needs.
Result: The bank has in place a fully tested, robust system for storing and reporting on their compliance activity with regard to pre and post trade credit worthiness of each security they hold for themselves and for others. The user friendliness and reliability of the information in the system allowed the bank to provide their regulator with access to the application directly. This not only reduced time spent helping auditors obtain these documents during the audit but the business unit received high praise from the auditors for the ease with which they were able to conduct their audit