Regulatory Pressure Key Factor Driving Financial Firms To Rethink Reconciliations

LAKE SUCCESS, N.Y., Oct. 17, 2012 /PRNewswire/ — A new report

released today by Broadridge Financial Solutions (NYSE: BR), a leading

technology and operations solutions company for the global financial

services industry, finds that industry-leading financial firms are

outsourcing reconciliation functions (both technology and operations

labor) to create standardized risk management processes, increase

their ability to enter new markets and comply with more complex

regulations, while significantly reducing costs and risks.

In light of ongoing regulatory pressures, financial services firms are

recognizing the value of developing an enterprise reconciliation

outsourcing strategy to increase transparency of business activity.

Basel III in particular, exemplifies a model for a new era in global

risk management standards, calling for more stringent reform measures

on capital, collateral and liquidity requirements.  According to the

report, one way firms are handling these stresses is by creating

standardized, real-time reconciliation processes to ensure their books

and records are fully balanced.

"Centralized reconciliation outsourcing represents a paradigm shift

for the industry," said Mike Alexander, Executive Vice President and

Chief Operating Officer, Business Process Outsourcing, Broadridge.

 "Historically, financial firms spend 30-40% of back office costs

gathering and preparing information as part of disconnected

reconciliation processes.  Firms partnering with an industry

reconciliation leader, providing both BPO and technology, can leverage

global centers of excellence to create standardized risk management

processes."

As noted in the study, many top firms have already heightened their

reconciliation focus, and over the next 18 months the adoption of

outsourced reconciliation services is expected to rise by 350%.  Four

key factors are driving the need for change and causing financial

firms to rethink their current reconciliation processes:

— Increased and more complex regulations such as Basel III and

Dodd-Frank

— Pressures on optimizing firm capital

— Cost of multiple IT applications and inconsistent business

processes

— Challenges of managing global and product expansion in a real-time

manner

As challenges persist, financial firms on both the buy-side and the

sell-side should assess their current reconciliation capabilities

across the core areas of Technology & Operations, Expertise, Risk, and

Cost.  Broadridge offers a structured approach to help these firms

achieve best in class reconciliations using Broadridge's technology

and outsourcing expertise in four steps:

— Develop a Strategic Roadmap for Centralizing Reconciliations.

Technology and operations provide the critical foundation for

supporting enterprise-wide reconciliation transparency.  Firms should

assess current or planned capabilities to identify processing gaps

that increase risks.

— Evaluate Firm's Expertise.   Reconciliation and exception

management require a seasoned staff with strong domain knowledge,

including the ability to evaluate and adopt the industry's "best

practices" across business units.

— Evaluate Operational Risk Management.   A centralized

reconciliation function can enhance risk management by: 1) Identifying

potential exposures before they occur; and 2) Providing the expertise

to appropriately respond to exceptions and issues, before they

escalate costs and risks.

— Assess Operating Costs.   As budget pressures continue to mount,

financial firms must continue enhancing reconciliation while achieving

cost savings and conserving capital.

For additional details or to download Broadridge's full whitepaper –

"Rethinking Reconciliation: How a global center of excellence can

enhance risk management and reduce costs" – click here.

About Broadridge

Broadridge is a technology services company focused on global capital

markets.  Broadridge is themarket leader enabling secure and accurate

processing of information for communications andsecurities

transactions among issuers, investors and financial intermediaries.

Broadridge builds theinfrastructure that underpins proxy services for

over 90% of public companies and mutual funds inNorth America;

processes more than $4.5 trillion in fixed income and equity trades

per day; and savescompanies billions annually through its technology

solutions.

For more information about Broadridge, please visit

http://www.broadridge.com.

Media Contacts:

Kelly M. Howard  Krista Eccleston

Broadridge Edelman

+212-981-1347 +212-704-4438

kelly.howard@broadridge.comkrista.eccleston@edelman.com

SOURCE Broadridge Financial Solutions

-0- 10/17/2012

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