Client:

A global investment bank based in New York.

Challenge:

The Managing Director of a 250-person team was responsible for managing over 5,000 margin calls daily. While 60% of the calls were automated, the remaining 40% needed manual handling due to discrepancies in call values or products.

The team was overwhelmed by a high volume of emails and phone calls related to disputed margin calls. These disputes weren’t being prioritized, leading to operational losses. 

Solution:

eClerx developed a risk model to prioritize margin call disputes based on 19 key factors, such as risk rating, product type, pricing risk, and client profiles. First, the eClerx team analyzed the current process to find gaps. Then, we created a Minimum Viable Product (MVP) to rank disputes by risk level. After gathering feedback from the risk and operations teams, we refined the model.

The final model was deployed to predict and prioritize high-risk margin calls, ensuring that the most urgent issues were handled first, reducing potential losses.

Impact:

The solution brought about major improvements:

• Reduced client escalations by 90%.
  
• Eliminated operational losses for three years. 
  
• Secured regulatory approval for the solution. 

This success led to the model being implemented at two other banks, enhancing their margin call management and response times.