DekaBank selects Ilog for IFRS compliance
09 May 2007 | 1246 views | 0
Ilog (Nasdaq: ILOG; Euronext: ILO; ISIN: FR0004042364) today announced that DekaBank, the Central asset manager for the Savings Banks Finance Group and one of Germany's leading financial services providers, has deployed ILOG JRules, a key offering in ILOG's Business Rule Management System (BRMS) product line, to help comply with the IFRS (International Financial Reporting Standards) reporting requirements for managed accounts.
Using ILOG JRules, the business user from the Fund reporting division can now make changes to the system without any interaction from IT, highly reducing the time-to-market for new IFRS rules. Most changes can now be completed within one to two days compared with up to four weeks previously.
The introduction of IFRS, which impacts managed account investments, is placing a strain on European banks, which now have to centralize multiple GAAP numbers from different countries into a single consolidated view for their managed account customers.
DekaBank's fund reporting needed a flexible software solution that would ensure industry compliance with IFRS but also improve and streamline its business processes by enabling effective and agile financial reporting. Prior to deploying ILOG JRules, DekaBank had business rules hard-coded in their IT systems, which meant that changes, such as the new IFRS rules, were difficult to implement. Using ILOG JRules, the business users from the Fund reporting division have direct access to the reporting process templates, instead of waiting for the IT team to change software code, as it was handled previously. The new process allowed 2,800 new rules to be implemented within four weeks by only four users from the business department, reducing the time-to-market for new IFRS rules by over 50%.
ILOG JRules also ensures business-IT alignment, since it provides DekaBank's business teams with their own rule-management interface and environment that is separate but synchronized with IT. JRules also allows technical teams to leverage corporate development standards, like Eclipse, best practices and processes.
"Pressure on banks to comply with financial reporting standards is always immense and the latest IFRS directive is no exception," said Kalliopi Minga, head of financial and regulatory reporting at DekaBank. "The ILOG solution allows us to meet such demands head-on and has already provided us with tangible business benefits. Thanks to the implementation, our business users can ensure that their reports satisfy investors, as well as regulatory and business requirements for security, traceability and audit of policy changes. At the same time, our technical teams enjoy greater productivity."
The new solution has also enabled the bank to increase the number of reporting templates it offers its clients from one to three (banking, insurance, industries). As a result, DekaBank can provide customised reports allowing the bank to more closely tailor the template to meet customer needs.
Following the success of the implementation, the IFRS compliance model has already been adapted for a JRules-based Basel II solution, which went live during the first quarter of 2007.