DEXIA GROUP SELECTS ALERI LIQUIDITY MANAGEMENT SYSTEM TO OPTIMIZE GLOBAL CASH, LIQUIDITY AND COLLATERAL MANAGEMENT

Brussels - 3 October 2006

Dexia Group, one of the 15 largest banking organizations in the Euro zone, has selected Aleri Liquidity Management System (LMS) to support Dexia Bank Belgium’s intraday cash, liquidity and collateral management operational requirements across all entities and currencies. The objective is to prepare the bank’s treasury and payments operations to leverage full value of market initiatives such as SEPA, Target2, and RTAI.

Aleri LMS automates time-consuming, manual processes to allow institutions to focus on cost-effective liquidity strategies that reduce operational costs while enhancing their competitive position.

Mr Philippe Thonnard, Head of Control and Support, Financial Markets, Dexia Bank Belgium, commented “For a group like Dexia, getting ready for the major changes brought by Target2 is critical. More important than the technical adaptation to the new standards, it is the change to the management of the liquidity that has driven our decisions relative to information systems. Target2 should enable Dexia to manage its liquidity more effectively across the different entities of the group. But to achieve this, we had to replace our existing systems that are not integrated enough to be really efficient. We needed to select a new tool. Aleri’s solution was chosen for two main reasons: first because it answered our liquidity management requirements as elaborated above, but also because it is the only solution that enables a completely integrated management of the liquidity, up to and including the management of collateral at the central bank. Although the management of the collateral is still under development by Aleri, our review of the scope, the architecture and the integration of this new development within the rest of the application was promising enough to influence our choice”.

“Dexia’s selection of Aleri LMS is a major recognition of the need in the financial services industry for enterprise wide liquidity management systems,” said Hervé Lefèvre, sales director at Aleri. “Banks recognize the requirement for completely changing the way cash, liquidity and collateral need to be managed across the enterprise, linking more closely the treasury, payments and risk management operations”.

“At the same time they do not want to undertake major changes of their payments infrastructure which are the results of decades of investments, which would result in projects which are too expensive and risky, and so incredibly difficult to business justify. This is exactly the equation that LMS has been built to resolve, with considerable investment made over the last 6 years taking a fresh approach to the business issue: changing drastically the existing processes, bringing value quickly and still without unbearable costs and risks. We know that more banks are leading towards this way.”

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