Case study: Large-scale implementation of single counterparty view for European Bank

“High quality project leadership – alongside excellent technical
skills – is the key driver behind this solution that meets both
regulator and commercial objectives.”

Background

This large, northern European bank operates a full retail service that covers day-to-day consumer banking including mortgages, insurance and lending. It also has a significant investment banking arm. As a `global, systemically important bank’ (G-SIB), it not only has significant books of business across several adjoining countries, it also has major investments and exposures throughout global markets.

 

The bank needed to respond to post-2008 regulatory demands that required it to make available a single view of its global `counterparties’ – namely those entities in which it has exposure through share acquisition other capital market activities. Often involving brokers and other third parties, this is a highly complex web of financial relationships. And the bank needed to be able to detail all aspects of it to regulators often at short notice – especially in the event of crisis.

 

At the same time, the bank also saw a single counterparty view as an opportunity to leverage relationships – for example to negotiate more favourable terms when buying financial products and services itself, as well as to encourage better management of its own sales and marketing processes.

 

But while the need for a single counterparty view had long been identified and the technology acquired, a successful solution had so far eluded both the bank and the major international systems integrators it had previously engaged to deliver it.

 

Solution

Rather than pointing the client in the direction of new technology, or suggesting further expensive investment in people, the consultancy team chose to build on the project’s existing IBM Master Data Management technical foundations. This would involve encouraging client `buy in’ to it taking a leadership position to drive, steer and advise on the best way to achieve success – better engaging the business to gather requirements. It also put a Master Data Management architect in post to shape and keep control of the implementation – in particular its scope.

 

A key early priority was to break the work down into manageable units and ensure the Master Data Management platform was properly configured. Then the team set about ensuring that the data was of sufficient quality, as well as properly integrated.

Helping the client formulate both its internal organisation and strategy around data governance, the team enabled the bank to see a working prototype within six months – and a fully operational system in just one year.

 

Outcomes

The bank is now able to meet its regulatory obligations – avoiding penalties and reducing reputational risk. And, as a business, it is also much more engaged. Business sponsors now head up IT projects making them much more visible in terms of value. There’s also an enterprise-wide approach to data quality supported by the creation of a centre of excellence for information and data governance.

 

This refreshed mindset is set to bear further fruit, already feeding in to new single view solutions that will make even more of the bank’s many valuable relationships into the future.

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