ABN AMRO Clearing Brasil chooses 3CON's share rental system
Success Stories >> ABN AMRO Clearing Brasil chooses 3CON's share rental system
ABN AMRO works exclusively with companies and has a comprehensive menu of products and services, including capital markets.
After six years away from Brazil, ABN AMRO returned in 2013 with a very different focus from the one it was known for in its association with Banco Real. One of the products offered by the bank to non-resident clients is the Loan or Asset Rental settlement, an important modality for those who invest in shares but don't intend to trade their assets in the short term.
Despite being a necessary product for investors, the loan or rental of shares was experiencing a peculiar reality in terms of technology in the country: it lacked software solutions to automate the entire process. Sílvio Teixeira, Chief Technology Officer of ABN AMRO's Clearing division, says that when he listened to the bank's business executives, it became clear that there was a need for software designed specifically to serve stock rental clients, giving them autonomy while facilitating the day-to-day work of desk operators and bankers.
Teixeira recalls that there was yet another issue. The system they were looking for had to comply with the rules of B3's Post-Trading Integration Project (IPN2), which aimed to unify its clearing houses, settlement and risk management operations. "The fact at the time was that no one could control the whole process of renting shares, so much of it was done manually. There was nothing ready on the market, let alone IPN 2 compliant," said the CTO of ABN AMRO Clearing Brasil.
The situation began to change when, at a B3 event in Campos do Jordão, his team learned about a solution that could be the answer to their needs: 3FM&S, from 3CON, a Brazilian consultancy that already had a solution ready. "The application was so adherent that it was clear that whoever designed it had a great deal of capital market expertise," he said. 3FM&S (Financial Market & Solutions) is a suite made up of the Stock Rental and Risk Simulator systems that already comply with the guidelines of the B3's IPN project.
After months of searching for a solution and conducting market surveys, ABN AMRO decided to adopt 3CON's 3FM&S. Teixeira explains that the selection criteria were based on the consultancy's expertise in software development combined with its knowledge of the financial market. "We chose 3CON because it already had a relationship with our operation and knew the technological architecture we work with, as well as meeting the requirements of our market."
After the decision, when the processes began to be mapped out, because ABN AMRO is not a brokerage house, it was realized that the new system would need customization, which was done in record time. "I can say that it was plug and play. The implementation took no more than two months from the day we got to know the solution. In 30 days of working together, the customizations, the front-end and the conversion of all the services to the API model were resolved," he said.
The CTO reveals that before the implementation, he needed at least three people involved to carry out all the activities involved in renting shares. "Now, with just one person, we can handle all the rental processes already integrated with the stock exchange's systems. It's a user-friendly tool that requires no training. Today, it is used by the entire ABN AMRO Clearing Brasil back-office," he explained.
The executive also reveals that the project's payback was immediate, mainly because it was a mandatory adjustment on the part of B3.
"The tool certainly pays for itself; the cost-benefit ratio is extremely competitive. That's the secret: earning less per user, but making up for it on scale"
According to Teixeira, another difference that made him choose 3FM&S was the support - whether by email or telephone. "I've never slept with a problem. The personalized service and agility are fantastic," he concluded.
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