Reimagining Corporate Actions: A Transformation Opportunity

The Corporate Actions landscape is facing an unprecedented challenge with a deluge of increasingly complex events that strain traditional processing methods. This complexity is further compounded by the fact that the financial industry is navigating a sea of information, where Corporate Actions are often the most unpredictable waves. Market participants grapple with intricate processes, fragmented data sources, and relentless pressure to achieve more with less, making the task of finding the right corporate actions data, connecting the elusive dots, and streamlining tangled workflows a daunting daily challenge. Yet, within this challenge lies a remarkable opportunity to revolutionize the industry through intelligent automation and data analysis.

We stand at the cusp of a fundamental transformation in Corporate Actions processing. By harnessing the power of analytics to understand the intricacies of the data, deploying Artificial Intelligence (AI) and Generative AI to intelligently process and extract insights, and implementing intelligent automation to streamline workflows—we can transform Corporate Actions processing. Our vision is to be at the forefront of this transformation, driving the adoption of our ‘AAA’ framework to create a future defined by efficiency, reliability, and proactive risk management in the world of Corporate Actions.

A Smart, Iterative Approach

Technology is evolving rapidly, and so is our ‘AAA’ framework. It is not a static solution; it's a dynamic, evolving journey. We're committed to continuous learning and adaptation, recognizing that each component—Analytics, AI, and Automation—is rapidly advancing. Our approach involves:

• Establishing a robust foundation with Analytics: Before unleashing the power of AI, we first need a solid understanding of the data landscape. Advanced analytics helps us identify pain points, optimize workflows, and establish key performance indicators (KPIs) to measure the success of subsequent AI and Automation initiatives.
• Strategically deploying AI and Gen AI: We're not just building AI solutions for the sake of it; we're taking a highly strategic and targeted approach. We focus on high-impact areas within Corporate Actions where AI and Gen AI can deliver tangible value, such as intelligent data extraction, summarization, and insight generation, all while keeping costs and data security in mind.
• Automating intelligently, not blindly: Automation is most effective when informed by data and augmented by intelligent, human-guided decision-making. We're prioritizing the automation of repetitive, manual tasks, freeing up valuable human resources for higher-value, strategic activities. This approach combines the efficiency of automation with the insight and expertise of human oversight, ensuring optimal outcomes.

The Data and Platform Advantage, Tailored for Corporate Actions

• S&P Global Corporate Actions Data: The gold standard for validated, comprehensive, and timely Corporate Action information. It's the bedrock upon which we build.
• S&P Global Corporate Actions Processing Platform: Our platforms are the engines, already powering many of the industry's Corporate Actions workflows every single day, from announcement capture to downstream processing. This provides us with an unparalleled understanding of real-world challenges and opportunities.

Our Four Core Focus Areas to Conquer Corporate Actions Complexity

Intelligent Data Extraction: Leveraging AI, including Large Language Models (LLMs) and Natural Language Processing (NLP), alongside Robotic Process Automation (RPA) to extract vital information from unstructured Corporate Action announcements and diverse sources. This multifaceted approach reduces manual effort, enhances accuracy, and expedites processing. We are utilizing LLMs in IDX for processing 2 key documents. For instance, we automatically extract key data from unstructured sources like fund administrator emails and websites, replacing the previous manual extraction process. This dramatically accelerates corporate action event processing, improving data accuracy and eliminating time-consuming manual effort for open-ended and mutual funds. Now clients have timely and reliable information critical for their investment decisions.

AI-Powered Data Summarization: Instantly condense complex reports, SWIFT messages, prospectuses, and spreadsheets into concise, actionable summaries. This empowers users to quickly identify key information and make informed decisions.

Consider the case of lengthy and complex corporate action announcements, often with multiple amendments, were difficult and time-consuming to interpret. Using Gen AI, we generate concise summaries of intricate events from structured data, including risk scores and restrictions. This lets users across back office, front office, and research rapidly grasp key details, such as offer terms and deadlines, in multiple languages and make faster, more informed decisions.

Advanced Data Analytics & Visualization: Transforming extensive datasets into clear charts, tables, and interactive dashboards. This allows users to identify trends in event types, track issuer behaviors, and uncover hidden opportunities. Gen AI further enhances this by summarizing existing analytics and generating entirely new insights. Our interactive dashboards transform complex corporate action datasets into clear visualizations, enabling users to monitor events requiring special handling, analyze volume trends, and assess risks by asset class, market, and event type. These dashboards provide tailored views for different teams, like dedicated dashboards for taxable events, improving the ability to identify trends in event types and track issuer behaviors, promoting better resource allocation and more informed decision-making.

Seamless Workflow Orchestration: Designing intuitive, user-friendly Corporate Actions workflows that leverage the best of technology experiences to simplify the management of these complex events. These workflows are designed with human oversight in mind, where analytics provide insights into areas needing attention, and the AI-powered recommendations engine serves as a co-pilot, offering intelligent suggestions to enhance decision-making and improve efficiency.

To streamline corporate action management and mitigate data conflict issues, we developed a machine learning-powered recommendation engine. This intelligent system analyzes historical data to generate real-time, AI-driven recommendations for resolving data conflicts, each accompanied by a confidence score derived from over 20 key data attributes. Its user-friendly interface promotes quick adoption and empowers teams to make faster, more informed decisions when managing complex corporate action events, with a feature to review past decisions and a retraining framework ensuring ongoing accuracy.

The Future of Corporate Actions is Intelligent, Automated, and Data-Driven

We're not just building tools; we're building a smarter, more efficient future for Corporate Actions processing in the financial industry. Our commitment to an iterative, data-driven approach, incorporating the full power of the ‘AAA’ framework, ensures that our solutions are constantly evolving and improving. We're dedicated to monitoring performance, ensuring accuracy, actively listening to our users, and continuously refining our approach based on real-world feedback and market demands. We are confident the ‘AAA’ will revolutionize the Corporate Actions industry, leading to improved processes and better outcomes for all involved.

Contact us today to learn more about how our ‘AAA’ framework can transform your Corporate Actions operations.