The following is a guest editorial courtesy of Darren O’Hare, CASS Manager at Finalto, an innovative core brokerage firm providing customized fintech and liquidity solutions. Finalto provides best-in-class pricing, execution and premium brokerage solutions across multiple assets, including CFDs on shares, indices, commodities, crypto and rolling FX, precious and base metals and specialty products such as NDFs.
CASS is one of the cornerstones of regulatory financial protection in the UK. The FCA’s CASS (Customer Asset Sourcebook) sets out the standards that firms must meet to protect customers’ money and assets and to maintain confidence in the financial system.
As defined by CASS, businesses must effectively identify risks and implement effective controls to manage those risks. Achieving this requires meticulous and comprehensive record keeping and reporting. It’s a process that can be tedious, time-consuming and error-prone if you rely on manual processes:
Error prone
Spreadsheets are subject to human error, as anyone who works with complex data will recognize. This means an unacceptable and unavoidable risk of incorrect data entry and failed deals.
Lack of control path
Spreadsheets do not have automatic audit trails required by the FCA to ensure transparency and accountability.
Scalability limits
CASS regulations require financial services firms to effectively manage large volumes of complex data. At a certain point, it becomes unwieldy and impractical to still use manual input.
Opportunity cost
Team members who spend hours each day doing manual data entry have less time to spend on more productive and creative tasks.
Develop an automation strategy
Fortunately, a new generation of powerful automation solution tools means companies no longer need to rely on spreadsheets and can minimize the associated risk of human error.
Upon assuming the role of CASS Manager at Finalto, one of my main goals was to improve operational resilience and efficiency through a structured automation strategy. After a comprehensive evaluation of specialized software solutions, we implemented a platform that not only simplified and accelerated CASS processes but also aligned with the Target Operating Model (TOM), ensuring consistency, scalability and regulatory robustness across the operation.
The case for automation is clear. But the real question is how do you turn performance gains into improved value?
Enable governance
At Finalto, we have focused on using automation to enhance governance and insight, approaching automation as a tool to transform our processes.
1. Improved reporting
Reporting has shifted from labor-intensive and data-heavy documents to streamlined, information-driven updates. Instead of writing dense reports, I can now provide concise, accurate updates to the board and other departments, providing frequent, actionable information instead of occasional exhaustive data summaries.
2. Interdepartmental Coordination
Automation also freed up capacity in Finance, enabling more proactive engagement with teams like Onboarding and Client Services. This closer coordination improves visibility, streamlines cross-departmental processes and helps us anticipate issues before they arise.
3. Scenario-based training
We have implemented training sessions with the finance team informed by real world scenarios. In these sessions, we look at real internal case studies, where breaches have occurred, how controls can be made stronger to prevent further breaches. This leads to reliable insights that allow us to better understand our internal processes and improve our operational resilience and efficiency.
4. Application of CASS rules & risk mapping
With the time saved through automation, we were able to take full advantage of another key element of our chosen provider’s offering: a Governance, Risk and Compliance (GRC) portal. This platform enabled us to systematically align the Applicable CASS Rules with the corresponding risks, creating a clear and traceable risk framework. For each identified risk, we implemented targeted controls and linked them to supporting processes, ensuring a robust and controlled control environment. This has not only strengthened our oversight capabilities but also enhanced our ability to demonstrate compliance and operational resilience.
Turning efficiency into advantage
Automation creates room for enhanced oversight and strategic insight. However, efficiency gains do not automatically translate into more resilient operations or better customer service. You need to be proactive about turning efficiency into improved value.
These are courses that extend beyond CASS. From compliance and regulatory reporting to the use of artificial intelligence for business intelligence, efficiency gains should be seen as a growth opportunity.
As automation becomes more prevalent in financial services operations, the key differentiator will increasingly be the smart uses we can put the latest generation of digital tools to.
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