Magazine article American Banker

Chase Expanding Its Global Trouble-Spotter

Magazine article American Banker

Chase Expanding Its Global Trouble-Spotter

Article excerpt

Chase Manhattan Corp. is expanding a system designed to pinpoint problems in its investment services area before they affect customers.

The system has helped Chase to send dividend payments out more quickly, and to reduce the amount of bond and equities trades that fail to be completed from 18% to 8% of all trades.

The system is being used in Chase's global securities services unit, which manages $799 billion of assets. By some measures, Chase, with $243 billion of cross-border assets under management, is the largest global custodian in the world.

Greater Control

With its far-flung network of subcustodian banks, and the many brokers in different countries that it must do business with, Chase cannot always guarantee the same standards of service around the world. The new system, called Account Service Planning and Administration, was designed to iron out those differences, and give Chase greater control over its network.

Even before the new system was developed, 90% of dividends were paid on time, says its designer, bank vice president Arthur Certosimo.

But any one customer might have received only 80% of his dividend payments on time, Mr. Certosimo says. The performance problems frequently are centered in just a few locations. If the problems there were resolved, the performance statistics for the customer would improve dramatically, he added.

Troubleshooting System

The system was designed to locate those anomalies. Chase began using it in the fall of 1992 to scan through thousands of transactions for those that do not fall within certain parameters of good performance.

Transaction data, including dividend payments and trade data, are sent at the end of each month into an executive management system, which uses a relational data base.

At a personal computer, a customer service manager can view the overall timeliness of dividend payments, or the failure rates of trades. …

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