With the one year delay of UMR Phase 5, firms have a unique window to evaluate and implement automation opportunities within UMR operational processes. Automation is a key lever to improve risk management, increase efficiency, and reduce costs within the UMR workflow while enhancing business continuity following disruptive events.
The most impactful automation opportunities typically lie in the most manual and time-consuming processes in the UMR collateral lifecycle, from IM dispute management to collateral pledging and release instructions. The benefits of automation also extend to leveraging data mining and machine learning techniques to uncover process improvement opportunities.
Creative and prepared firms will take advantage of the extra year to introduce automation into UMR operations in order to drive cost savings and ROI over the long term.