By Gill Bacon,  Business Development Director, Banking at Eurobase
By Gill Bacon, Business Development Director, Banking at Eurobase

Adopting an innovative approach to treasury, sales and on-line customer trading

One of the largest, contemporary banks in the Baltic region has taken its customer service to the next level. They are one of a new generation of independent banks to adopt an innovative approach to treasury and sales, intertwining the two activities. The Bank recognised that making this strategic decision will give it a competitive edge in the market.

 Challenges

Any financial institution growing at speed will often face internal system and process challenges, leading to increased operational risk and decreased customer satisfaction.
The values of this Bank lie deep in the relationship with its customers and the services it provides. The drive to be able to offer the best service was always the number one priority for them.

Strategy and Research

The search for a treasury solution began as it was crucial to the operations of the Bank to have a comprehensive and future-proof platform in place to replace existing systems which were quickly being outgrown.

The Bank wanted to work with a solution provider who was flexible in its approach to provide a proven yet customisable solution, whilst also being able to meet tight deadlines. A provider who keeps abreast of regulatory compliance, understands the importance of adherence to its execution policy and could provide additional services such as SWIFT message generation and receipt and Asset & Liability Management (ALM) reports. Point solutions were not an option; the Bank already understood the technology risk of having many interconnected systems across one or more locations from multiple vendors. 

Harmonisation of the infrastructure and customer offering was vital. 

The Bank’s strategy, as with all enterprise firms, was not only to keep its customer base, but to grow its customer base. After researching the market to understand the primary priorities of retail and corporate customers in the trading space, the message was clear; customers wanted to trade on-line, in real-time, and make payments immediately off the back of its trading activities.

The Bank engaged in an extensive search across the globe for vendors who would partner with them to meet these essential requirements. Coupled with the Bank’s recognised requirements for a treasury, ALM and regulatory reporting solution, and after almost a year of engagement, Eurobase was chosen.

Eurobase
Siena sits at the heart of the treasury landscape

The Solution

Siena Treasury Manager ticked the boxes for a comprehensive treasury management solution for the Bank and its group companies, with the added integral functionality of real-time regulatory reporting.  The requirement for allowing the Bank’s customers to trade on-line via an integrated and secure portal to the Bank’s own website was complimented with Siena eTrader. The addition of this customer portal meant the Bank’s customers trading activities fed straight into Siena Treasury Manager; all dealing activities could be monitored in real-time with the added confidence of dealer intervention; an online chat facility between the Bank and its customers. 

The Siena platform will empower the Bank with real-time connectivity to rate and liquidity providers such as Bloomberg & Reuters, generation and receipt of SWIFT messages, and the automation of regulatory reports directly to the relevant ARM & APA. This was a strategic solution which could be compared to no other on the market today. 

The Result

The Bank quickly realised the advantages of implementing one solution, rather than point solutions for each requirement. Any bank looking to procure such a comprehensive solution reap the immediate benefits of reduced cost and increased operational efficiency. By removing manual tasks, such as the compilation of balance sheet and cash flow information kept on spreadsheets, it also removes the risk of data being ‘tampered’ with or miss-keyed, thus satisfying many audit and security policies. 

Having a solution which, overall, is a finished jigsaw puzzle, with perfect seams and joins lends to a huge saving in time through the automation of all treasury-related processes and increased data consistency.  From customer trading and payments to rate feeds and benchmark data, there are many factors that can contribute to enabling smarter investment decisions for the Bank and its customer base.  These include:

  • online chat between the customer and its sales desk adviser;
  • auto-update of account balances and cash flows;
  • feeding the accounting information through to the Bank’s general ledger system.

Maintaining a single source of data, upon which the Bank can schedule the running of reports to complete MI and extract analytical data greatly reduces time and eliminates errors.  The same data source also powers the Bank’s trade and transactions reporting to ensure it meets its regulatory reporting and compliance obligations.

Siena is a scalable, cohesive and componentised solution with a broad range of optional functionality.  With open access to all data, the technology risk innate in maintaining existing solutions is reduced, and with added functionality, potential new business lines with limited operational risk open up. 

It’s a growing trend….

Not only has this  Bank made the strategic decision to implement a fully integrated treasury, sales and on-line customer trading solution; the trend has been growing for some time. Two other Eurobase customers have also chosen this route;

A major retail Bank chose  Siena eTrader as its online customer dealing platform back in 2018. Since then, its initial requirement grew as they realised that the risk of choosing point solutions and integrating them was nullified by opting for one solution that met all its requirements. 

The Bank’s aim was to provide a world-class trading platform for its customers which was accessible in-branch and on-line through desktop, tablet and mobile devices. Shortly after issuing an RFP and meeting with Eurobase for the first time, the Bank realised that to meet and exceed expectations, an integrated solution was the best way forward. 

In addition, the group’s treasury team was keen to be able to manage the Bank’s positions using the same tool, integrating it with its core banking solution, adding further scope to the project. The Bank took advantage of Siena’s componentisation and was able to choose from the extensive selection of functionality available within the product, creating, for themselves, a bespoke and powerful solution.

A London-based branch of an overseas Bank selected the Siena platform to support its FX treasury management operations, whilst at the same time providing online trading functionality to its UK-based and international clients. The Bank’s strategy was to first replace its existing systems and processes conducted manually on spreadsheets via treasury and sales teams, then later add a customer trading portal. 

During the implementation, it became clear to the Bank that Siena offered them much more than a treasury platform.  It offered a real-time regulatory reporting tool which allows the Bank to retire the spreadsheets that were used to report to its regulator, removing errors and streamlining the reporting process.  Siena was a perfect fit offering seamless integration with the Bank’s head-office core banking solution.