Pirum announced its extended the CoacsConnect network and enhanced functionality to fully automate income claims, reducing capital and funding costs by up to $5 million.
This service continues to grow with twenty leading financial institutions automatically distributing, matching and paying income claims. Today CoacsConnect is automatically processing over $1.5 billion worth of income claims daily, across an average of 136,000 income claims for fixed income and equity securities finance trades. Pirum clients have achieved estimated annual savings of up to $5 million related to unsecured capital and funding costs.
These savings are further supplemented with the reduction in manual processing costs with all claims issuers and receivers benefiting from higher rates of straight through processing freeing up an average of between 2 and 5 full time employees.
Alongside the rapid expansion of the client network, Pirum continues to enhance the service with further automation allowing the counterparts to receive fully automated status updates, exchange payment instructions electronically and automatically bulk match and track all exceptions in the user interface where required. This process is assisting clients by fully automating the matching and payment process to reduce outstanding exposures, capital consumption and risk, with claims being paid up to 75% quicker where the service is being used versus the previous manual process.
The next phase of CoacsConnect will fully automate the voluntary corporate action process for the securities finance industry. Pirum is currently developing this solution with a design partner group of several clients with the product launching in the second half of 2023.