Commerzbank has hired Infosys, in a five year deal, to remodel its existing IT architecture to meet the changing needs of its investment banking customers, through digital technology. The professional services firm will, in addition, set up a domain-based Centre of Competence to train their respective teams as well as explore a potential Post-Trade Processing Utility.
Commerzbank was founded in 1870 in Hamburg, Germany. The bank has since grown to become a global institution, and the second largest bank in Germany, with branches and offices in more than 50 countries. The bank is a leader within Germany’s SME banking market, and also provides a breadth of traditional retail banking services. Commerzbank has revenues of around €9.8 billion with roughly 51,300 employees.
The bank, like many of its incumbents, faces a host of IT related challenges – from increasing transparency to satisfy regulators and omnichannel demand from customers and clients to legacy systems that impede development. Furthermore, as new alternative investment markets open up across Europe, as well as a range of agile and scalable FinTechs develop innovative propositions, the bank is seeking to improve its IT system to raise its overall competitiveness.
The bank recently sought to attract third party providers for the delivery of a remodelling of its existing IT architecture to meet the changing needs of its investment banking customers. The five-year contract with Commerzbank was won by Infosys, a global professional services firm focused on consulting, technology and outsourcing services. The value of the deal has not been disclosed by either party.
As part of the contract, Infosys will deliver an optimisation to the bank’s investment banking IT architecture, which includes streamlining and consolidating the existing systems at the bank, as well as evaluate a potential Post-Trade Processing Utility. The Utility would then focus on the clustering of trade processing platforms across various product types. In addition, the parties are to collaboratively establish a domain-based Centre of Competence, which is aligned to the bank’s business functions within its Corporates and Markets segment, as well as develop an online and physical academy for Commerzbank within which cross-skilling and continuous learning will be realised.
Stephan Müller, Group CIO, Commerzbank, remarks "We are continuously developing the IT at Commerzbank, also on a strategic level, focusing on digitalisation of our processes. The collaboration with technology experts is essential for us to stay ahead of the curve in our markets.”
Mohit Joshi, President and Global Head for Financial Services, Infosys, says "Financial institutions need every advantage in this hyper-competitive industry, and this partnership will be providing just that. Middle and back office utilities are the future of the financial services industry and this will be one of the first of its kind. Commerzbank is benefitting from the renewal and simplification of its current IT landscape, developing new and radical technologies, and is pursuing new business models to compete better in an increasingly regulated market."