Selecting a Clearing Provider
In our previous blogs we discuss the things you should consider when deciding whether to change clearing platforms. Once you have assessed your needs and determined your firm’s direction around growth, recruiting and technology improvements, it’s time to begin the process of finding the best partner to help achieve your firm’s goals.
Make sure you have projected your business needs far enough into the future (5, 10 or 15 years); you do not want to make a platform change very often. Selecting a new provider for the right reasons and making the transition are a lot of work and will disrupt your firm’s operations, home office, your sales force (including recruiting efforts), and may also impact your clients along the way. You will need processes and strategies designed to make the change as painless as possible.
Get the Entire Team Involved
It is important that there is consensus reached and shared ownership around the assessments done to get to this point. A solid and unified business plan will help align and unite your leadership team. Once a decision is made, the leadership team should be 100% onboard and kept fully involved to make the selection process and transition go as smoothly as possible. All key stakeholders should be present for the appropriate demonstrations and relevant follow-up meetings. It is vital for all leaders to share in the decision-making process.
Outsourcing Facilitation of the Selection Processes
If your organization is like most, everyone is busily focused on the day-to-day job of running the firm. Engaging a partner to guide you through the process will take some of the disruption pains away. For example, the Request for Proposal (RFP) process from potential providers can run three to six months and, if done well, takes a lot of focus and attention.
Oyster Can Help
Oyster has developed a firm ‘Playbook’ approach that provides clearing firms with everything they need to properly prepare a demonstration and provide a better, more accurate first proposal on pricing and various options – it helps the clearing firms quickly understand your firm and focuses them on your specific needs.
Oyster’s streamlined and tailored approach provides your firm with competitive intelligence, benchmarking, unbiased recommendations and best practices to help your firm manage the selection process and changes efficiently. Not only can Oyster help you decide which clearing firm is right for you, we can also provide support to help your firm to successfully execute the conversion cost-effectively.
About the Authors:
Pete Bowman has extensive executive and management experience advising on Brokerage Platform and Correspondent Clearing Alternatives. He began his career 35 years ago at Wheat, First Securities where he was a member of the “Management Fast Track Program”. Pete worked in all facets of Brokerage Operations and took on various supervisory and management positions. Ultimately he was appointed Director of Operations of First Clearing, the clearing arm and subsidiary of Wachovia Securities (now Wells Fargo Advisors). Pete expanded his career by joining the Correspondent Clearing Services division of Wachovia Securities as a Segment Director, where he oversaw top tier client relationship management and assumed numerous roles in Product Development and Sales. At Oyster, Pete created the Brokerage Clearing and Platform Advisory Services.
Pete McAteer has senior level management experience in coaching, consulting and leading large programs and operations teams; driving significant, impactful change management, process improvement and implementation efforts. He possesses a deep background with over 25 years of experience with Fortune 500 companies working in International Quality Manufacturing and Financial Services industries. Pete has spent the past 18 years in the financial services industry (brokerage and retail banking) in quality service delivery, program leadership, PMO governance and operations leadership roles. He has led complex organizational/operational integrations, change management and implementations, client service programs, regulatory responses/remediations and process improvement efforts. He has a proven track record of success serving as executive management consultant, Program Manager and PMO lead. Pete is especially skilled at building strong trusting relationships across all levels and functions across organizations.