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B-Source migrates Deutsche Bank (Switzerland) core banking platform to Avaloq Banking Suite

The Avaloq group has successfully completed the transformation project to exchange the core banking platform at the Wealth Management Operations Back Office of Deutsche Bank (Switzerland) Ltd to the B-Source Master, the Swiss Business Process Outsourcing (BPO) platform based on the Avaloq Banking Suite.

Deutsche Bank (Switzerland) Ltd today announced that the migration of its core banking platform to Avaloq’s Swiss BPO platform, the B-Source Master based on the Avaloq Banking Suite, has been completed. The transformation project was carried out within 13 months after the Avaloq group had taken over operational responsibility for the Wealth Management Operations Back Office of Deutsche Bank (Switzerland) Ltd.

Avaloq is the only independent provider for the financial industry to both develop and operate its own software. Business Process Outsourcing and Operations of the Avaloq Banking Suite for Deutsche Bank (Switzerland) Ltd are provided through B-Source, Avaloq’s BPO centre in Switzerland.

Marco Bizzozero, CEO Deutsche Bank (Switzerland) Ltd, said: “The migration of the operational platform and the outsourcing of support processes allow us to concentrate on our strengths and to free up resources for our core business: client advisory and investment management. With this Deutsche Bank (Switzerland) Ltd is further extending its leading position in international wealth management.”

B-Source CEO Markus Gröninger adds: “In a short period of time we successfully finalised the migration. Our highly industrialised services allow banks to fully concentrate on their core business and focus on generating future growth – I am delighted that Deutsche Bank (Switzerland) Ltd now profits from these advantages too.”

Francisco Fernandez, Avaloq group CEO, expressed his satisfaction with the going live: “I am pleased to welcome Deutsche Bank (Switzerland) Ltd as an important customer in our growing BPO community and consider this successful migration as a powerful reference for other tier one banks.”

Source: B-Source SA, 17.09.2014

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Filed under: Banking, BPO Business Process Outsourcing, Services, , , , , , ,

Avaloq Sourcing Asia Pacific adds CEO in Singapore

The Avaloq group, an international leader in integrated and comprehensive solutions for wealth management, universal and retail banks, announces the recruitment of Anantha Ayer. He will assume the position of CEO of the planned Business Process Outsourcing (BPO) centre in Singapore.

Anantha Ayer joins Avaloq following more than 20 years in distinguished leadership roles in Technology and Operations within the Asset & Wealth Management industry. He was most recently the interim Head of Wealth Management Operations (Global) at Deutsche Bank AG. Prior to that he has lead teams from Technology, Operations and large change initiatives across various financial centres.

“I am delighted to have Anantha joining Avaloq at this exciting time. Given our ambitious goals for the Asia Pacific market, we want to have the most talented people in senior management roles. Anantha brings a strong leadership in building organisations and his skills and experience in the banking operations and technology area will prove invaluable as Avaloq builds its presence in the Business Process Outsourcing (BPO) centre in Singapore for Asia Pacific”, comments Peter Scott, Chairman of the Board, Avaloq Sourcing Asia Pacific (Singapore) Pte. Ltd.

Commenting on his appointment, Anantha Ayer says: “I am very enthusiastic to be part of this exciting journey with Avaloq. I am convinced that the BPO offering from Avaloq provides benefits, advantages and opportunities to banks and wealth managers – not only a cutting edge technology platform but also an industrialised operational process to support the businesses.”

Source: Bobs Guide, 16.09.2014

Filed under: Asia, Banking, BPO Business Process Outsourcing, Services, Singapore, , , , , ,

Avaloq Group and BIL announce plans for Business Process Outsourcing centre in Luxembourg

The Avaloq group and Banque Internationale à Luxembourg (BIL) intend to forge a new strategic partnership: The international provider of banking solutions and the bank are planning to join forces to establish the first independent provider of full Business Process Outsourcing (BPO) services in Luxembourg for the Benelux and the French market.

The bank and the international provider of banking solutions today announced that they are in advanced discussions for a joint project to establish, pending amongst other, the closing of the transaction and regulatory approval, the first independent provider of full Business Process Outsourcing (BPO) services in Luxembourg for private and universal banks in the target market Benelux and France. This follows BIL’s recent decision to choose the Avaloq Banking Suite as its new core banking system after a thorough selection process.

As Luxembourg’s oldest private bank, BIL has always played an active role in the development of Luxembourg’s economy and with this decision confirms its intention of actively contributing to the ongoing transformation of the local financial industry. Avaloq, whose presence in Luxembourg goes back to 2007, has always considered Luxembourg as a key market in its strategy. Luxembourg was the first country outside of Switzerland Avaloq set foot in. Today, Avaloq counts 11 customers in Luxembourg that are either using or currently implementing the Avaloq Banking Suite as their comprehensive banking solution.

The goal of the planned strategic partnership is to offer local and foreign private and universal banks a solution to standardise and automate back office processes and to have them operated by a seasoned specialist. As an industry leader in this area, Avaloq understands the importance of fully industrialising back office processes while at the same time driving innovation and differentiation in the advisory area. This enables banks to focus entirely on their front office activities and thus to make a difference in client interaction. The BPO model also serves as the ideal solution for foreign banks wishing to use Luxembourg as an entry point into the European financial market.

The Avaloq group has already successfully implemented this independent BPO model in Switzerland and Germany. BIL and Avaloq are now planning to join forces in order to adapt the business model to the market specific requirements of Benelux and France. Furthermore, Avaloq is currently in the process of building up an international network of BPO centres, which the new BPO centre in Luxembourg would be part of. Further announcements will be made later this year.

Source: Avaloq 05.06.2014

Filed under: BPO Business Process Outsourcing, News, , , , , , , ,

Reference Data Utilities Offer Cost Savings, but Challenges Remain DMS Review

Managed services and utilities can cut the cost of reference data, but to be truly effective managed services must be more flexible and utilities must address issues of data access and security.

A panel session led by A-Team Group editor-in-chief Andrew Delaney at the A-Team Group Data Management Summit in London set out to discover the advantages and challenges of managed services and utilities, starting with a definition of these data models.

Martijn Groot, director at Euroclear, said: “A managed service lifts out existing technology and hands it over to the managed service provider, while a utility provides common services for many users.” Tom Dalglish, CTO, group data at UBS, added: “Managed services run data solutions for us and utilities manage data for themselves.”

Based on these definitions, the panellists considered how and why managed services and utilities are developing. Dalglish commented: “We need to move away from all doing the same things with data. Managed business process outsourcing services are well understood, but utilities present more challenges – will they be run as monopolies and make data difficult to access, what is the vendor interest?” Steve Cheng, global head of data management at Rimes Technologies, added: “The market has moved on from lift outs. New technologies mean managed services can be more flexible than outsourcing.”

It is not only the nature of available services that is driving financial firms to third-party providers, but also cost and regulation, both of which are high on the agenda. Jonathan Clark, group head of financial services at Tech Mahindra, explained: “Cost is significant, but regulation is the number one issue. Regulations require more holistic and high quality data and that is high cost for firms, so they are trying to get data quality at a reasonable price point.”

Dalglish focussed on cost, saying: “The business case is about money. Large companies have lost the ability to change, a utility can help to reduce costs. Banks are looking at these data models to regain efficiencies they have lost internally and are difficult to rebuild.”

Cheng described the reference data utility model as being more like the satellite television model than water or electricity models, and noted that Rimes’ experience of customers is that they want to innovate, but not allow their cost base to increase.

While consensus among the panellists was that managed services and utilities can provide cost savings, they also agreed that it is not the cost of data, but the infrastructure, sources, services and people around the data that rack up the cost to an extent that is leading firms to seek lower cost solutions. Firms that opt to use a data utility can convert capital costs to expenditure and chip away at elements such as multiple data sources.

Dalglish commented: “If you can achieve savings of 30% to 35% that is good, but this is a conservative estimate and it should be possible to save more going forward.” Cheng added: “The rule of thumb is that for every £1 spent on data licences, £2 or £3 is spent on infrastructure and staff. The need is to identify those hidden costs so that the use of a managed service or utility can be justified.”

Returning to the pressure of regulation, Delaney asked the panel whether managed reference data services and utilities would be regulated in the same way as banks. While this is not happening at the moment, some panel members expect it to happen and warn that utilities may find a way around regulation by using disclaimers. Cheng said: “Forthcoming regulations are very prescriptive about data models and regulators may look at the whole data chain. This means utilities and managed services may in future be subject to the same regulatory requirements as other market participants.”

The concept of managed services and utilities is not new. Dalglish recalled an effort to set up a utility that did not take off back in 2005 and said that the moment has now come for utilities as the technology stack has improved, data is better understood and this is a good time for competition and collaboration in the market. Groot added: “Data delivery mechanisms have changed, the bar has been raised on projects and the business case for an internal service is difficult, making external services attractive.” Panellists also noted technologies such as the Internet and cloud facilitating mass customisation, and the benefit of utilities that are built for a single purpose.

With so much to offer, Delaney questioned the panel on what type of organisations will benefit from third-party utilities. Panel members said both large and small firms could benefit, with large companies reducing today’s massive data costs and small firms being able to hand off non-core reference data services. Clark added: “Firms that can benefit most are those that find it difficult to discover the cost of data, perhaps because it is managed in different departments or geographic regions. But these firms are also the hardest to convert because they don’t know their costs.”

A question from the audience about defining reference data, making it open and putting it in a utility for all to use, met a consensus response from panel members who said it is a great idea, but will not happen because there are too many vendors with vested interests in the market.

Closing with a blue skies scenario, Delaney asked how far the utility concept could go. Groot concluded: “There is a need for operational procedures and recovery planning, but utilities could go a long way as there is a lot of data in scope.”

Source: Reference Data Review, 08.10.2013.

Filed under: BPO Business Process Outsourcing, Data Management, Data Vendor, Reference Data, Standards, , , , ,