With a pending split of the bank into two independent legal entities focusing on public sector financing (DEPFA BANK plc) and property activities (Aareal Bank AG), the firm also signed a new contract to equip the future property bank with a Summit front-to-back suite for a further 40 users. DePfa currently deploys Summit in its two headquarters offices located in Wiesbaden, Germany, and Dublin, Ireland, with additional users in the firm’s London and Tokyo business centers.
DEPFA actively uses almost every instrument type supported by Summit’s integrated transaction platform. The bank processes vanilla and exotic derivatives, real-time FX trades, money markets, bond securities (including repos and MBS and ABS instruments), equity swaps and options, credit derivatives, FX options, commercial lending trades, and other types as well.
Along with a standard set of comprehensive on-line analytics tools, DEPFA exploits optional tools like Summit’s FASB 133 module and sophisticated Delta/Gamma and Monte Carlo VaR engines.
The bank will use Summit’s back-office modules for comprehensive documentation, settlement and accounting across all instrument types. A CORBA-based Credit Risk Server will be used for real-time limit management and control. Connectivity with the bank’s system environment and third-party applications is handled by Summit’s customizable middleware layer, which provides seamless real-time linkages to Reuters Dealing 2/3000/EBS, the Bloomberg Trading System, and various in-house systems.
Rolf Hengsteler, COO of Dublin-based DEPFA BANK plc explained: "We set several goals after conducting a systematic review of our bank’s technology infrastructure. First was to consolidate our software environment and eliminate redundant and aging systems. Second was to make state-of-the-art functionality available to our financial professionals. Lastly, we wanted a solid technology foundation for future growth. Summit has allowed us to achieve all three objectives."
"In this instance we succeeded in doing more with less," said Dr. Christian Fahrner, Director and Head of IT, Aareal Bank AG.. "Summit’s modular platform approach allows us to perform all of the disparate functions associated with today’s front office, back office, and risk management tasks within the context of a single system."
He added: "The cost efficiencies and reliability of an integrated STP platform—coupled with scalability and excellent external connectivity options—affords the bank unquestionable competitive advantages."
Michael Gouverneur, Managing Director of Summit’s Frankfurt Business Center, commented on the sale: "The new contracts are the culmination of a very rewarding joint effort between my office and Summit’s London office to demonstrate the scope, depth, and cost-efficiency of our Summit software. After an extensive series of product demonstrations and financial workshops, the bank chose Summit as the strategic technology solution for their banking offices in Dublin, London, Tokyo and Wiesbaden. The bank takes advantage of a great deal of Summit’s available functionality, and we look forward to working with DePfa in the future as they expand their business operations and continue to rely upon Summit solutions."