Lombard Risk Management plc (LSE: LRM) ("Lombard Risk"), a leading provider of integrated collateral management, liquidity and regulatory reporting solutions for the financial services industry, announces that one of the largest financial services providers in Central and Eastern Europe - Erste Group Bank AG - has selected COLLINE(R) as its strategic collateral management solution. This important contract further extends Lombard Risk's growing customer base in EMEA, and in particular in the German-speaking region.
Erste Group was founded in 1819 as the first Austrian savings bank ("Erste oesterreichische Spar-Casse"). In 1997, Erste Group went public with a strategy to expand its retail business into Central and Eastern Europe (CEE). Since then Erste Group's customer base has grown through numerous acquisitions and organic growth from 600,000 to 17 million. 95% of all clients are citizens of the European Union. The EU membership gives the countries of the region a stable regulatory framework that supports their economic development. Today Erste Group is one of the largest financial services providers in Central and Eastern Europe in terms of clients and total assets. It has always focused on retail and SME banking.
COLLINE(R) is a state-of-the-art, web-based solution designed by experienced business practitioners for end-to-end, cross-product collateral management. It provides a consolidated solution for mitigating credit risk while meeting the growing demand for multiple global entities, cross-product margining, Central Counterparty Clearing (CCP), MIS reporting and electronic messaging.
Erste Group has decided to use the Lombard Risk's COLLINE(R) system to increase efficiency and have the possibility to manage its OTC collateral operations more effectively. Lombard Risk's COLLINE solution was chosen after a detailed selection process where it had to compete with the top products on the market. The system and the vendor have been selected because their system fulfilled all of Erste Group Bank AG's functional and technical requirements, having good references from existing clients and at the same time being cost efficient in implementation and running operation.
Adam Zentai, Head of Risk Management and Business Support, Group Capital Markets commented: "Erste Group will benefit from the new collateral system in having a state-of-the-art collateral management tool that allows for efficient and precise exposure and margin calculations and, through a high degree of possible automation, decreases the operational risks incurred in a manual margining process."
Martin Heraghty, Sales Director EMEA commented: "Lombard Risk is very pleased to welcome Erste Group Bank AG to its ever-growing customer base. COLLINE(R) is already well established in EMEA and in particular the German speaking region and this strategic win will help us grow this part of our business even further."