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JUDO SYSTEMS EXPLAINS HOW SECURITIES BROKERAGES CAN SURVIVE THE ECONOMIC DOWNTURN
Cost management is the critical capability in the current environment
SAN FRANCISCO, Calif. (June 13, 2008) — Judo Systems, the developer of advanced technology solutions for financial institutions in emerging markets, released a white paper explaining how securities brokerages in Vietnam must manage costs to survive the downturn. The report provides details on how companies should approach cost management, the types of cost drivers to address, and strategic options for utilizing cost savings.
"This is a very challenging time for the global securities industry,” said Michael Tao, a financial services industry expert and Judo Systems executive. “Markets have dropped significantly, and several major economies are bordering on recession. Many of the largest financial institutions have suffered record losses and scrambled to raise additional capital. In emerging markets like Vietnam, brokerages are faced with figuring out how to scale back their growth ambitions and position themselves to lead when markets recover.”
“Most companies rely on traditional cost-cutting exercises, which rarely lead to long-term benefits,” Tao added. “The smart move is to build a capability whereby one can sustain an ongoing, long-term focus on maximizing efficiency. Companies with world-class efficiency management can develop a significant competitive advantage.”
“To do this successfully,” Tao continued, “one needs to understand the different types of costs – structural, operational and execution costs – and address them appropriately. There is a balance that should be maintained between reducing cost and making smart decisions that result in future benefits.”
Depending on strategies and financial performance, brokerages may decide to utilize their cost savings in different ways. “In the simplest terms, brokerages need to decide whether to take the immediate financial benefit or to invest in the future,” explained Tao. “If a brokerage’s revenues have dropped significantly, shareholders may demand the best possible financial performance.”
Tao emphasized, “It is clear that technology is absolutely critical in pursuing world-class efficiency. There is simply no way to maintain the best levels of productivity, accuracy, and risk management without advanced technology.” In its white paper, “Surviving the Downturn,” Judo Systems describes how its platform is ideally designed to enable securities brokerages to manage costs as well as plan for future growth. “Our flagship product addresses the current and future needs of securities brokerages in Vietnam,” Tao concluded.
The “Surviving the Downturn” white paper is available at www.judosystems.com.
About Judo Systems
Judo Systems is an innovative developer of technology solutions for securities brokerages in emerging markets. Judo’s management team has applied its experience with the world’s most advanced capital markets and developed a flagship product, Judo Advanced Brokerage System, that supports the rapid growth of brokerages in Asia. Judo brings critical functionality – including workflows, transaction processing, reporting, security and risk management – so that customers may grow quickly and confidently.
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CONTACT:
Michael Tao
Judo Systems
michael.tao@judosystems.com
http://www.judosystems.com
