In the spotlight: Scaling for sucess at AutoRek
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AutoRek is an industry leader in automating complex financial data processing, regulatory reporting, and manual reconciliations. Through our investment in 2021, SEP supported AutoRek to scale their technology platform, attract new talent, forge strategic partnerships, and expand their global reach. They serve global giants in banking, insurance, payments, and asset management and their intelligent automation solutions offer considerable efficiency savings to their clients.
We speak with Chris Livesey who joined AutoRek as CEO in October 2023, bringing on board 30 years leadership experience in software and technology businesses and a track record of creating high performance teams and delivering first-class customer service. One year into his role Chris says the company is well-positioned to capture a bigger slice of a $2 billion global market.
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What attracted you to join AutoRek as CEO?
The company was at a really interesting stage of its growth journey. It was a modest size but serving colossal global clients. It had household names as clients - tier one banks, asset managers, insurance firms and payments companies. Its clients trusted and depended on its products. I was intrigued by how its solutions solved clients’ problems.
I reckoned the company hadn’t yet fully emerged as the leader it could be. I saw an opportunity to work alongside an experienced growth investor - SEP - to make a difference. We are now in the process of creating the category leadership position that the business deserves.
One year on, we have made major progress. We have invested in our organisational processes and product technologies to make it easier to scale and bring new clients on board. We’ve also invested significantly in our team, through both internal development programs, and hiring additional expertise.
We have also made significant breakthroughs in forging new strategic partnerships which will open important doors for us in international markets. We are accelerating hard now into a $2 billion global market, and we are on track to achieve profitable growth next year.
What is driving demand for AutoRek’s intelligent automation solutions?
In a word, data. Businesses have to deal with increasingly large volumes of complex data. They need to collect and process it speedily, efficiently and securely and in a way that complies with regulatory reporting requirements. As an example, cross-border payments are growing very fast. The Bank of England expects cross-border payments to rise to $250 trillion by 2027 from $150 trillion in 2017 which will present major volume challenges and reconciliations for the financial sector.
The financial sector has particular challenges because large amounts of vital data linked to shareholdings, investments, payments and claims are still being processed manually using spreadsheets and legacy back-office software systems.
Manual processes are laborious and spreadsheets are prone to error. That is why new automated solutions are needed because as more and more data is generated, manual processing and reconciliation systems come under increasing pressure. That creates financial risk, operational risk and regulatory risk.
As the pressures and risks associated with tackling cost, complexity and compliance challenges mount, they reach a tipping point. Organisations are waking up to the fact that throwing more people and spreadsheets at the problem simply will not work, nor scale. They need pre-configured solutions they can trust.
The industry is generally aware it needs to do things differently. Research commissioned by AutoRek found that 84% of UK and US payment firms rely heavily on manual reconciliation controls and 86% acknowledged that their data is not sufficiently transparent or standardised. Further evidenced by the latest Capgemini world payments report which found 80% of firms rely on manual and paper-based processes for accounts reconciliation, resulting in significant corporate revenue and cash flow being tied up in the value chain.
What benefits do you deliver for clients?
We introduce intelligent automation to collate, match, validate and reconcile data. We are aware that for companies switching to third party software systems it is a major decision. The systems and processes being used in financial services are often the result of many years of incremental change, meaning they are not easy to unpick or replace. We offer the ability to move the client to a modern cloud SaaS solution which delivers the required outputs, but with a simpler, less expensive, and faster engine.
We deliver the high level of regulatory and reporting controls and security they need with the added benefit of efficiency and cost savings. We can demonstrate a track record of clients achieving significant cost savings and also time savings of as much as 75% compared to using manual legacy systems.
Our rules-driven platform is configurable so it can be deployed seamlessly and quickly. We invested in the architecture of our platform so it can scale as our business expands and to simplify the onboarding process. We want to make it easy to do business with us.
AutoRek currently supports payment clients with over $4 billion in annual transactions, asset management clients with over $6.5trillion in assets under management and insurance clients with over $1.3billion in gross written premium. Our ideal client has a lot of complexity and a high degree of regulation, it operates on a major scale in a fast-paced dynamic market and deals with fast-moving and large complex data sets. That gives us plenty of scope as it applies to a very large number of global businesses pursuing digital transformation and automation.
We have introduced scaled agile development process which delivers high quality, quarterly product updates. We support pure-SaaS clients and also offer an on-premise implementation option and are continually developing the solution to support emerging needs in financial services.
How vital are new partnerships and new channels to power future growth?
They are extremely important. We have focused hard on this, and it is beginning to pay off. We have achieved several major milestones recently which make it easier to buy our products. They create excellent new opportunities for us to grow. An example of this is the recently announced partnership with J.P. Morgan Payments which aims to unlock new market opportunities for insurance firms.
Earlier this year we became a certified partner for Microsoft Azure Marketplace, an online store for applications and services, certified and optimised to run on the Microsoft Azure cloud computing platform. Being available on the marketplace helps companies seeking innovative, cloud-based solutions to connect with partners like us that have developed ready-to-use solutions. It’s a stamp of approval in a way and we have recently completed our first new client sales through it.
We have formed strategic partnerships with Capgemini, a global business and technology transformation leader, as well as with Calastone, the largest global fund network.
Capgemini is our first professional services and technology partner. Its consultants will help our clients implement our solutions and provide complementary consulting and advisory services. It’s a landmark deal which will mean we can expand more quickly.
We have also partnered with Calastone to simplify the consolidation and reconciliation of fund manager data. Combining our expertise will allow clients to complete intensive monthly reconciliation processes on a daily basis. It’s a major step forward in risk reduction and operational efficiency for clients.
What people changes have taken place since you took on the top job?
I’m passionate about building high performance teams. It’s essential to delivering category defining technology and customer service - both are equally important for a successful high growth software business.
We have strengthened the team at all levels and in all disciplines and we have invested in training and development. We have also recruited exciting new talent that adds extra dimensions and firepower to our business. Our first US based employees will join us this month.
I’m keen to provide interesting and rewarding career paths at AutoRek and we have specific programmes including a women at AutoRek employee resource group in place to support and encourage female employees in their career.
How important is company culture when you are scaling a business?
It’s really important but it is often one of the biggest challenges. Change is not always easy, and businesses can often struggle to make the move from start-up to scale-up when new people with different backgrounds, skills and experience join the team.
Our workforce has more than doubled since SEP invested in 2021 - now we are around 175 people.
You need strong leadership to build a common purpose, and you need to bring people with you. We’re shifting from a phase of change to stability and opportunity, and we are in the process of co-creating the AutoRek culture by including everyone in defining how that should feel and what the values are that underpin it.
We want it to be inclusive, open, honest and transparent and we want to create a working environment that is safe, fun and rewarding.
How does it work having the founding AutoRek CEO still involved?
Gordon McHarg co-founded the business 30 years ago and he led it as CEO for 26 years, so he has enormous insight on the platform, the clients and the marketplace. The beauty of having him still available as a non-executive director is that I can tap into his exceptional depth of knowledge. Gordon built strong foundations, and he has been a great support as I work on building an even more exciting and dynamic growth story.
How do you find working with SEP as your growth equity partner?
We have two SEP Board members - Andrew Davison and Taylor Rampton - they both add a lot of value without telling me how to do my job.
SEP’s track record for scaling software businesses and the way they work was an important factor in my decision to take this job. Some investors hand you a playbook and tell you to follow it - that can lead to a difficult existence. That’s not the SEP way.
I knew I would have the support of people who know how to grow a business like this. They would not necessarily tell me how to do it, but they would help me. I’m glad to say it is playing out that way.
Learn more from AutoRek here or for further examples within our portfolio of financial services software click here.
SEP’s track record for scaling software businesses and the way they work was an important factor in my decision to take this job. Some investors hand you a playbook and tell you to follow it - that can lead to a difficult existence. That’s not the SEP way.
In the spotlight: Scaling for sucess at AutoRek
AutoRek is an industry leader in automating complex financial data processing, regulatory reporting, and manual reconciliations. Through our investment in 2021, SEP supported AutoRek to scale their technology platform, attract new talent, forge strategic partnerships, and expand their global reach. They serve global giants in banking, insurance, payments, and asset management and their intelligent automation solutions offer considerable efficiency savings to their clients.
We speak with Chris Livesey who joined AutoRek as CEO in October 2023, bringing on board 30 years leadership experience in software and technology businesses and a track record of creating high performance teams and delivering first-class customer service. One year into his role Chris says the company is well-positioned to capture a bigger slice of a $2 billion global market.
_______________________________________________________________________________
What attracted you to join AutoRek as CEO?
The company was at a really interesting stage of its growth journey. It was a modest size but serving colossal global clients. It had household names as clients - tier one banks, asset managers, insurance firms and payments companies. Its clients trusted and depended on its products. I was intrigued by how its solutions solved clients’ problems.
I reckoned the company hadn’t yet fully emerged as the leader it could be. I saw an opportunity to work alongside an experienced growth investor - SEP - to make a difference. We are now in the process of creating the category leadership position that the business deserves.
One year on, we have made major progress. We have invested in our organisational processes and product technologies to make it easier to scale and bring new clients on board. We’ve also invested significantly in our team, through both internal development programs, and hiring additional expertise.
We have also made significant breakthroughs in forging new strategic partnerships which will open important doors for us in international markets. We are accelerating hard now into a $2 billion global market, and we are on track to achieve profitable growth next year.
What is driving demand for AutoRek’s intelligent automation solutions?
In a word, data. Businesses have to deal with increasingly large volumes of complex data. They need to collect and process it speedily, efficiently and securely and in a way that complies with regulatory reporting requirements. As an example, cross-border payments are growing very fast. The Bank of England expects cross-border payments to rise to $250 trillion by 2027 from $150 trillion in 2017 which will present major volume challenges and reconciliations for the financial sector.
The financial sector has particular challenges because large amounts of vital data linked to shareholdings, investments, payments and claims are still being processed manually using spreadsheets and legacy back-office software systems.
Manual processes are laborious and spreadsheets are prone to error. That is why new automated solutions are needed because as more and more data is generated, manual processing and reconciliation systems come under increasing pressure. That creates financial risk, operational risk and regulatory risk.
As the pressures and risks associated with tackling cost, complexity and compliance challenges mount, they reach a tipping point. Organisations are waking up to the fact that throwing more people and spreadsheets at the problem simply will not work, nor scale. They need pre-configured solutions they can trust.
The industry is generally aware it needs to do things differently. Research commissioned by AutoRek found that 84% of UK and US payment firms rely heavily on manual reconciliation controls and 86% acknowledged that their data is not sufficiently transparent or standardised. Further evidenced by the latest Capgemini world payments report which found 80% of firms rely on manual and paper-based processes for accounts reconciliation, resulting in significant corporate revenue and cash flow being tied up in the value chain.
What benefits do you deliver for clients?
We introduce intelligent automation to collate, match, validate and reconcile data. We are aware that for companies switching to third party software systems it is a major decision. The systems and processes being used in financial services are often the result of many years of incremental change, meaning they are not easy to unpick or replace. We offer the ability to move the client to a modern cloud SaaS solution which delivers the required outputs, but with a simpler, less expensive, and faster engine.
We deliver the high level of regulatory and reporting controls and security they need with the added benefit of efficiency and cost savings. We can demonstrate a track record of clients achieving significant cost savings and also time savings of as much as 75% compared to using manual legacy systems.
Our rules-driven platform is configurable so it can be deployed seamlessly and quickly. We invested in the architecture of our platform so it can scale as our business expands and to simplify the onboarding process. We want to make it easy to do business with us.
AutoRek currently supports payment clients with over $4 billion in annual transactions, asset management clients with over $6.5trillion in assets under management and insurance clients with over $1.3billion in gross written premium. Our ideal client has a lot of complexity and a high degree of regulation, it operates on a major scale in a fast-paced dynamic market and deals with fast-moving and large complex data sets. That gives us plenty of scope as it applies to a very large number of global businesses pursuing digital transformation and automation.
We have introduced scaled agile development process which delivers high quality, quarterly product updates. We support pure-SaaS clients and also offer an on-premise implementation option and are continually developing the solution to support emerging needs in financial services.
How vital are new partnerships and new channels to power future growth?
They are extremely important. We have focused hard on this, and it is beginning to pay off. We have achieved several major milestones recently which make it easier to buy our products. They create excellent new opportunities for us to grow. An example of this is the recently announced partnership with J.P. Morgan Payments which aims to unlock new market opportunities for insurance firms.
Earlier this year we became a certified partner for Microsoft Azure Marketplace, an online store for applications and services, certified and optimised to run on the Microsoft Azure cloud computing platform. Being available on the marketplace helps companies seeking innovative, cloud-based solutions to connect with partners like us that have developed ready-to-use solutions. It’s a stamp of approval in a way and we have recently completed our first new client sales through it.
We have formed strategic partnerships with Capgemini, a global business and technology transformation leader, as well as with Calastone, the largest global fund network.
Capgemini is our first professional services and technology partner. Its consultants will help our clients implement our solutions and provide complementary consulting and advisory services. It’s a landmark deal which will mean we can expand more quickly.
We have also partnered with Calastone to simplify the consolidation and reconciliation of fund manager data. Combining our expertise will allow clients to complete intensive monthly reconciliation processes on a daily basis. It’s a major step forward in risk reduction and operational efficiency for clients.
What people changes have taken place since you took on the top job?
I’m passionate about building high performance teams. It’s essential to delivering category defining technology and customer service - both are equally important for a successful high growth software business.
We have strengthened the team at all levels and in all disciplines and we have invested in training and development. We have also recruited exciting new talent that adds extra dimensions and firepower to our business. Our first US based employees will join us this month.
I’m keen to provide interesting and rewarding career paths at AutoRek and we have specific programmes including a women at AutoRek employee resource group in place to support and encourage female employees in their career.
How important is company culture when you are scaling a business?
It’s really important but it is often one of the biggest challenges. Change is not always easy, and businesses can often struggle to make the move from start-up to scale-up when new people with different backgrounds, skills and experience join the team.
Our workforce has more than doubled since SEP invested in 2021 - now we are around 175 people.
You need strong leadership to build a common purpose, and you need to bring people with you. We’re shifting from a phase of change to stability and opportunity, and we are in the process of co-creating the AutoRek culture by including everyone in defining how that should feel and what the values are that underpin it.
We want it to be inclusive, open, honest and transparent and we want to create a working environment that is safe, fun and rewarding.
How does it work having the founding AutoRek CEO still involved?
Gordon McHarg co-founded the business 30 years ago and he led it as CEO for 26 years, so he has enormous insight on the platform, the clients and the marketplace. The beauty of having him still available as a non-executive director is that I can tap into his exceptional depth of knowledge. Gordon built strong foundations, and he has been a great support as I work on building an even more exciting and dynamic growth story.
How do you find working with SEP as your growth equity partner?
We have two SEP Board members - Andrew Davison and Taylor Rampton - they both add a lot of value without telling me how to do my job.
SEP’s track record for scaling software businesses and the way they work was an important factor in my decision to take this job. Some investors hand you a playbook and tell you to follow it - that can lead to a difficult existence. That’s not the SEP way.
I knew I would have the support of people who know how to grow a business like this. They would not necessarily tell me how to do it, but they would help me. I’m glad to say it is playing out that way.
Learn more from AutoRek here or for further examples within our portfolio of financial services software click here.
