Duco grows during Covid-19 due to focus on operational resilience
By Sunniva Kolostyak
Self-service data integrity and reconciliation services provider Duco has reported rapid growth in new business since March this year as financial institutions look to secure operations during the Coronavirus crisis.
In the second quarter of 2020, from April to June, Duco agreed enterprise-wide deployments worth $6 million with asset managers, banks and insurance companies looking to improve operational resilience, control cost and reduce risk.
The data services provider offers a cloud-based platform for the aggregation normalisation and reconciliation of data on demand.
Commenting on the increased business, Christian Nentwich, CEO of Duco, said the pandemic has shone a harsh light on operational data tasks reliant on manual work, legacy technology and on-premise installations.
“At Duco we’ve always believed that financial services institutions need access to agile, scalable solutions in the cloud, to deal quickly with a fast-changing business environment. The increased demand for our data services shows that there is a clear and pressing need to improve the resilience and efficiency of middle- and back-office processes.”
According to the Futures Industry Association (FIA), trading volumes in futures and options contracts increased in aggregate by 32 per cent in the first half of 2020 over 2019, reaching an all-time high. Exchanges have also seen high equity volumes, with Nasdaq reporting an increase of 62.7 per cent in cash equity volumes year-on-year in Q2 2020. In addition, multiple major banks reported record fixed income volumes, currency volumes and associated revenue in Q2 statements, prompting a spike in activity in middle and back offices to deal with the demand.
Nentwich added: “Duco’s focus on delivering a highly resilient, machine-learning enabled platform has enabled our customers to cope with this market volatility, with our top clients’ volumes spiking by over 100 per cent multiple times during the market turmoil. We are pleased with the increasing number of mandates now deploying Duco enterprise-wide to solve data challenges.”
Last month, Duco partnered with Murex to deliver its data reconciliation solution for enhancing automation and straight-through processing across a range of asset classes. In May, it launched a blueprint to drive reconciliation management.
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