Front Office, Middle Office and Back Office
Fleeting- Référence externe : https://www.efinancialcareers.fr/en/news/2016/06/front-office-middle-office-back-office-banking
front office jobs were always any that involved, “direct interaction with the client and customer - be that an individual or a corporate client.”
— https://www.efinancialcareers.fr/en/news/2016/06/front-office-middle-office-back-office-banking
traditional definition of the middle office, the people here support the front office in the interaction with clients. They don’t help with the downstream effects that result from those interactions.
— https://www.efinancialcareers.fr/en/news/2016/06/front-office-middle-office-back-office-banking
traditionally, you had the back office in an investment bank. This referred to all the functions behind the scenes
— https://www.efinancialcareers.fr/en/news/2016/06/front-office-middle-office-back-office-banking
back office
- Référence externe : https://www.investopedia.com/terms/b/backoffice.asp
What Is Back Office?
The back office is the portion of a company made up of administration and support personnel who are not client-facing. Back-office functions include settlements, clearances, record maintenance, regulatory compliance, accounting, and IT services. For example, a financial services firm is segmented into three parts: the front office (e.g., sales, marketing, and customer support), the middle office (risk management), and the back office (administrative and support services).
KEY TAKEAWAYS
- The back office is the portion of a company made up of administration and support personnel, who are not client-facing.
- Back-office functions include settlements, clearances, record maintenance, regulatory compliance, accounting, and IT services.
- The term “back office” originated when early companies designed their offices so that the front portion contained the associates who interact with customers, and the back portion of the office contained associates who have no interaction with customers, such as accounting clerks.
middle office
- Référence externe : https://www.investopedia.com/terms/m/middleoffice.asp
What Is the Middle Office?
The middle office is the department in a financial services company, investment bank, or hedge fund that sits in between the front and back office. It typically manages risk and calculates profits and losses. It is generally in charge of information technology (IT) as well.
KEY TAKEAWAYS
- The middle office tracks and processes all of the deals made by the front office before being reconciled by the back office.
- The department is generally responsible for risk management and for a firm’s information technology.
- The middle office grew out of the increasing complexity of modern financial transactions.
front office
- Référence externe : https://www.investopedia.com/terms/f/frontoffice.asp
What Is the Front Office?
The front office represents the customer-facing division of a firm. For example, customer service, sales, and industry experts who provide advisory services are considered part of a firm’s front office operations.
The functions of the front office generally generate the majority of revenue for a firm.
KEY TAKEAWAYS
- On a conceptual level, the operations of many firms are divided into three parts: the front office, the middle office, and the back office.
- The front office is typically composed of customer-facing employees, such as the marketing, sales, and service departments.
- Because the front office has the most direct contact with clients, it is responsible for generating the bulk of revenues for the firm.
- The front office relies on the back office for support in the form of human resources, internet technology (IT), accounting, and secretarial functions.