SubledgerTM
SubledgerTM is a methodology that enables financial institutions to automatically generate requirements and populated templates for the implementation of financial data management systems. 42 Solutions and SubledgerTM Limited, believe there is a finite number of ways in which financial data management systems can be implemented and we have built our methodology around this belief.
Success rates on Financial Enterprise Data Management projects are notoriously low and there are two basic reasons for this.
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The widespread use of consultants on these projects who do not have the very specific and very deep skill sets that are required to successfully implement accounting and data management solutions in sell-side and buy-side financial institutions.
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The second reason for such low success rates is the application of generic project methodologies to requirements that are specific the financial data management space.
Proven Methodology
Under the SubledgerTM methodology there are twenty four possible combinations of Static and Economic Data Flows with each combination defining the data in terms of timing, counterparty fungibility, transaction granularity and cash actuality. At one extreme of the SubledgerTM methodology is a central finance function that defines and calculates financial reporting balances using raw transaction data input by traders and operations. For many financial institutions it is a strategic objective to move calcuations such as accruals, average cost, valuations, FIFO, realised and unrealised p&l out of front-to-back architecture of the bank and into a centrally controlled finance environment. The other end of the SubledgerTM set of methodologies assumes that finance required calculations remain in the FOBO architecture and that a standarisation layer acts as a conduit to the General Ledger. Independent of the source of the financial information is the requirement to account for it and to meet the reporting requirements of both the various regulatory bodies that need to be satisfied and those of the company's internal management structure.
The experience and expertise we provide at Subledger Solutions allows us to quickly understand the strategic and tactical requirements of a financial institution and identify the SubledgerTM methodology that best fits the financial institution's requirements.
Data Foundations
The foundation of the methodology is the classification of data inputs into meaningful and standardised "Data Flows". Once data inputs have been classified into the correct categories, a set of achievable reporting requirements is obtained through the use of SubledgerTM Limited proprietary decision tree analysis.
