WestLB AG - a major international bank - has successfully completed the remaining phases of its global implementation and deployment of a new enterprise-wide collateral management system – Kyros.
Supplied and supported by London-based software company Allustra Limited, Kyros has been successfully deployed across WestLB and a number of its subsidiaries. The system forms the central element of a unique, global, multi-entity cross-product solution and helps the Bank to operate more effectively at a time of rapidly changing trading conditions and challenging economic environments. The delivery of Kyros also included the introduction of seamless interfaces to a number of other new core systems.
Julie Dixey, Director Group Operations IT, explains, "Globally, we are experiencing rapidly increasing volumes of business on an ever broader spectrum of products and markets. Accordingly, we needed systems that would enable us to meet this demand together with the flexibility to adapt and grow in the future. Our complex business needs, including sophisticated management of our enterprise-wide collateralisation programme, could only be met by the comprehensive and flexible capabilities we found in Kyros."
"Going forward, this solution will allow WestLB to continue with its strategic imperatives: to centralise and streamline its operations, to enhance efficiency and competitive advantage and to meet the full rigours of Basel II."
The use of Kyros has helped WestLB significantly to reduce its exposure to operational risk. Among other benefits, it has also enabled the Bank to increase the number of its collateralised counterparts by a factor of five, with no increase in staff. Furthermore, Kyros' fully integrated real-time workflow helps users to observe the Bank's global collateral policies and to employ consistent, "best-practice" business processes. These result in the virtual elimination of errors, higher throughput and greatly improved customer service.
Gary Bailey, Head of Collateral Management, says, "Our new Collateral Management system enables WestLB to deliver the highest levels of service both internally, to meet our own rigorous standards and growth objectives, and externally, for the benefit our clients on a worldwide basis. We are able to operate universally from a single geographic hub, supporting all our collateralised products across all our locations, including, most recently, those agreements transacted in the Asia-Pacific markets. Most significantly, the multi-entity capability of the solution has enabled us to offer end-to-end collateral management facilities to our subsidiaries in the most low-risk, cost-effective, time-efficient manner."
WestLB continues to win many on-going benefits from the successful global implementation of an enterprise-wide collateral management programme, including increases in operational efficiency and productivity, all contributing to a rapid return on investment.
"We are delighted with the success of this strategic initiative," says Julie Dixey, "I really believe that collateral management is a primary key to successful investment banking both now and in the future and, in Kyros, backed by our early judgement and planning, WestLB now has the best and most cost effective system."
Mark James, Managing Director, Allustra, says: "Enterprise-wide, multi-product collateral and margin management is now critical to managing credit risk more effectively. This need has grown rapidly owing to the increasing importance of measuring and mitigating risk as a means of managing overall business uncertainty.
We are delighted to have delivered what we consider to be a highly effective global solution, reducing credit as well as operational risk across every business line."