Custom RPA Software – Securities Prospectus Process

McKinsey defines Robotic Process Automation (RPA) as “software that performs redundant tasks on a timed basis and ensures that they are completed quickly, efficiently, and without error.” RPA has enormous savings potential. In RiskSpan’s experience, RPA reduces staff time spent on the target-state process by an average of 95 percent. On recent projects, RiskSpan RPA clients on average saved more than 500 staff hours per year through simple automation. That calculation does not include the potential additional savings gained from the improved accuracy of source data and downstream data-driven processes, which greatly reduces the need for rework. 

Issuing a new asset-backed security requires a mountain of disclosure paperwork. These disclosure documents bring in many different types of data from many different systems and processesThe information must be accurate to satisfy regulatory requirements and to ensure that potential investors understand the terms of the offeringGenerating this information in a timely manner has traditionally required many staff hours by corporate securities lawyersThey compile source data and financial instrument specifications into existing templates. They take the issuer’s raw data files and tables and convert them into legally compliant issuance disclosures.   

RiskSpan data and analytics consultants are experienced in helping clients develop robotic process automation (RPA) solutions for normalizing and aggregating data, creating routine, reliable data outputs, executing business rules, and automating quality control testing. Automating these processes addresses a wide range of business challenges and is particularly useful in generating security issuance disclosures. 

Recently, a large issuer of securities approached RiskSpan with the challenge of producing a prospectus supplement—part of the mountain of paperwork (and manual labor) every new security issuance requires 

RiskSpan responded to the challenge by developing a custom RPA software tool, the Contract and Disclosure Tool.  This application dynamically converts deal-specific information from the issuer’s back-end data systems into a legally compliant security prospectus document. The web-based software provides an interactive, editable HTML file and PDF that the issuer’s analysts, lawyers, and deal managers can work with to draft and finalize prospectus documents. 

This custom solution reduced eight hours data prep and processing work down to 30 seconds of automated processing for each document. This saved the client nearly 24 weeks of staff time over the course of the year. Not only did the tool eliminate the routine burden on skilled (expensive) attorneys whose time could be more impactfully spent elsewhere, it added value through additional functionality. The tool compiles and organizes source files within the interface, reducing ambiguity in collaboration. It also tracks changes and enforces permissions set by the administrators, allowing tracked changes to be reviewed, accepted, or rejected by the document owners. 

RiskSpan’s experience automating routine business processes reduces redundancies, eliminates errors, and saves staff time. These solutions reduce resources wasted on reworkassociated operational risk, and keyperson dependenciesIn the example of the Contract and Disclosure ToolRiskSpan’s data experts automated routine tasks with customized validations. This customization effectively eliminated the need for staff intervention until data breached specified error thresholds. The client determined and set these thresholds during the design process. 

Talk to RiskSpan today about how custom solutions in process automation can create efficiencies in your organization. 


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