NORD/LB Luxembourg S.A. Covered Bond Bank (CBB), a wholly-owned subsidiary of German Landesbank NORD/LB, has successfully completed the migration of three group international branches – New York, Singapore and Shanghai – to the Avaloq Banking Suite.
This project builds on an established ten-year relationship between Avaloq and NORD/LB CBB which selected Avaloq as a strategic partner in 2010 to support its wholesale and financial markets businesses. The project utilised key Avaloq functionality, allowing for American and mainland Chinese client entities to be consolidated in one centralised IT operations for the first time.
The latest implementation utilises Avaloq’s multi-entity, single-instance (MESI) capabilities to centralise the bank’s IT operations in Luxembourg and thus to reduce the complexity, while at the same time it offers a wider range of functionalities to NORD/LB. The solution leverages the fully integrated corporate and wholesale banking functionalities of the Avaloq Banking Suite, already used by NORD/LB CBB to run the institution’s New York, Shanghai and Singapore operations on one platform. Long-term implementation partner Orbium conducted the full scope of Avaloq migration, delivering a fully localized platform through onsite consultancy support.
NORD/LB Luxembourg Covered Bond Bank generates competitive refinancing for NORD/LB group’s core lending business through the issuance of high-quality covered bonds. It was formed in 2015 through the merger of NORD/LB Luxembourg and its subsidiary NORD/LB Covered Finance Bank. At 30 June 2019, the institution held total assets of EUR 16.5 billion1.
Paco Hauser, Global Head of Markets Avaloq, said: “Our latest project with NORD/LB showcases the advanced technical capabilities of Avaloq and the compelling benefits that consolidating complex, cross-border systems onto one platform can bring - in this case, our centralized platform operated in Luxembourg. This project, the outcome of the close cooperation between Avaloq, Orbium and the project team at NORD/LB, strengthens Luxembourg as a central operating centre but also extends Avaloq’s footprint into new target jurisdictions.”