[ T H O U G H T L E A D E R S H I P | S W I F T ]
Could you highlight some of the current challenges in corporate actions? It won’ t surprise anyone when we say there are quite a few challenges in this space, most of which are tied to how fragmented and complex the processes are in general. But there are three that are front of mind. The first issue we see is sourcing. Corporate actions data comes from multiple different sources and the majority of them have their own formats, their own systems or even their own communication methods. This inconsistency naturally leads to data fragmentation, where reconciliation becomes a huge headache and often requires manual work and intervention. Receiving information from various sources adds to the operational complexity and creates room for errors and delays. The second issue we see is around timing. Delay and inaccuracies in getting information out can lead to missed entitlements or even claims. So, ensuring that the information about a corporate action is both timely and accurate is crucial. With the push for shorter settlement cycles and 24 / 7 trading, the stakes are even higher. Everyone needs accurate, real-time communication. But we see that many systems just aren ' t built for that level of responsiveness, which adds further strain to the processes. Then, finally, the third issue is the issue of communication. Just the sheer complexity of having so many players involved be it custodians, asset managers, issuers or agents, creates bottlenecks. It creates miscommunication and a lot of duplicated work for everyone that ' s involved. Managing these intricate processes can be resource intensive. It drives up operational costs and it also demands more robust systems to handle the workload effectively. These challenges really highlight the need for a mix of technological innovation, standardised processes and improved collaboration among all stakeholders involved.
How much attention has been given to this sector in terms of transformation, automation and technology in recent years?
While there ' s been some progress with new technologies, the industry still struggles with many of the same issues it has faced for the years. Much of the
Modernising corporate actions through technology and collaboration
Corporations actions has been hampered by the same challenges, frustrations and manual processes for years now. However, a combination of new technologies, collaboration and industry initiatives could finally give corporate actions the transformation and modernisation it deserves, according to Duygu Kaya, capital markets strategy director at Swift.
effort has been piece meal addressing isolated parts of the process rather than undertaking a comprehensive and systemwide transformation. For example, many initiatives have focused on automating specific tasks or streamlining select processes, yet the broader structural inefficiencies such as fragmentation or a lack of standardisation remain unaddressed. There was a recent study by the ValueExchange which really highlighted this issue. It showed that 75 % of investors in high growth markets still rely on manual processes when they validate their corporate actions information. This dependence on manual methods not only increases the risk of errors and delays, but it also hampers scalability as the volume and complexity of these corporate actions grow. The lack of uniform standards and interoperable system really impairs these challenges as stakeholders continue to operate within their own silos. That said, there are promising examples of successful transformation that we see as well. One initiative could be SGXNet in Singapore, which integrates an issuer source model for corporate actions and the feedback we ' ve been hearing on this model has been really positive. It indicates
34 Global Custodian Spring 2025