Practically speaking, the move to T+1 means a number of post-transaction processes (that previously happened within one business day of a transaction) will need to happen by the end of the same day. Batch processing cycles will need to be updated. In addition, communication around transaction exceptions or breaks will need to happen more quickly and with more efficiency.
Email is currently the main method of communication between stakeholders in this process, as is a ‘follow the sun’ model. When operating models are reviewed, we need to ask some fundamental questions about how things are done now, how they relate to the past vs. a future state. Email was born in 1998, lacks transparency, structure and security. Nightly batch processing existed in a T+5 environment, and traditional ‘follow the sun’ mechanisms spill you into a T+1 processing timeframe. None of these solve the email black hole problem; did the recipient receive my message, will they respond in time, did they see my attachment, did it go to the right team group.
The adjustments that financial firms need to make to achieve T+1 aren’t just about speeding up existing processes—they’re about changing the way parties think and interact with more efficiency. Minutes will matter more and more in this new world. Here are three ways the industry can make progress toward achieving the T+1 goal as it relates to communication in a new, and more connected world.