The decision to choose Algo Collateral had strategic importance for BayernLB. The bank required a collateral management system that was flexible, had broad functional coverage, could normalize vast amounts of external data, and which was mapped to, and administered through, user-friendly interfaces.
"Specifically, we needed a proven cross-product margining application to automate and improve the operational aspects of our existing Repo margining
processes, and to support the future growth of our OTC derivative margining
program," said Jurgen Pohl, Head of Collateral Department, BayernLB.
BayernLB chose Algo Collateral following a visit to the Algorithmics' Algo Collateral User Conference in February followed by an extensive 3-month evaluation of available systems in the marketplace. The solution's significant
global client base and short implementation cycle, factored heavily in BayernLB's final decision. "Our overall plan is to integrate, step by step,
other product lines into Algo Collateral and to achieve global cross-product
margining. Production will commence in December with Repo margining and OTC
Derivative margining will be incorporated in March 2003," said Claudia Gutke,
Collateral Manager, BayernLB.
"The Algo Collateral team's professionalism and speed of response to questions and issues set them apart from the outset. This, combined with the willingness of their clients to provide references, significantly added to our confidence in the Algo Collateral solution and team," continued Pohl. "We're confident that Algo Collateral will provide a significant return on investment while being a important strategic tool for our organization."
BayernLB were also impressed with the ease of data import and export when using Algo Collateral. BayernLB intends to use the solution to update their limit systems with intra-day collateral balances, and update their regulatory data warehouse with capital requirements and collateral trade costs. Additionally, BayernLB purchased Algo Collateral's powerful reconciliation and "Four eyes" data entry modules that automatically resolve valuation discrepancies and provide heightened security around data changes, respectively.
"Algo Collateral's extensibility and straight-through-processing capabilities take care of all BayernLB's foreseeable future margining requirements," said Michael Zerbs, Chief Operating Officer, Algorithmics. "Moreover, Algo Collateral allows BayernLB to cost-effectively, and with minimal risk, assume better operational management of their key business lines."