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Case Study: Paragon – Leading regional bank


As sweep products are increasingly coming back into favor, our client was finding its deposit customers were increasing their use of various sweep products. These increases in volume placed onerous pressures on their existing manual processes, causing failures in trying to meet the legal requirement to report to their clients before the start of the next business day. The sheer volume of work and reporting needed meant it was essential to automate what would otherwise be a time consuming manual process, requiring specialist (and expensive) collateral management knowledge with no tolerance for inaccuracy or human error. All of this had to be achieved overnight.


Paragon consultants worked with the bank to set up a completely automated end-of-day sweep processing operation. Using the new Automation Scheduler in tandem with paragon’s Auto Collateral Assignment module, an exceptions only automated process was delivered that processed daily trades, optimized collateral usage, handled the cash movement via ACH, and notified customer of the trade and collateral via electronic messaging. While almost all cases are processed with no human input, the sophisticated exceptions management process flags only those potential problems to processing teams with the requisite tools to allow for quick and efficient resolution.


The bank is now enjoying increased deposits from the extra service to its clients, with no material increase in resource cost. Furthermore, paragon’s comprehensive reporting suite means they are able to demonstrate to both internal auditors and external regulators that regulatory responsibilities are being met in a robust service provided to account holders. The complex task of collateral assignment is entirely automated, and processing teams only work on the cases the system identifies as needing intervention when something has really gone wrong.



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