Overview

Following a take-over by German Saving Bank Group Sparkassenverband (DSGV) in 2007, LBB Landesbank Berlin (LBB), began a major transformation. The process involved wide-ranging changes in the bank’s business structure, including the divestment of its capital markets business and commercial real estate subsidiary.

The bank had been running its capital markets and treasury activities on a Murex platform since the early 2000s, initially on MXG2000, before upgrading to the MX.3 platform. Pre-transformation, the platform had been highly customized to meet BSK’s broad business needs, resulting in a large installation which required a dedicated team equipped with specialist knowledge to maintain the platform.

The change in the bank’s status therefore presented a compelling opportunity to introduce improvements to drive efficiency, enhance performance and strengthen competitive positioning. Going forward as a much leaner operation, much of the specialist functionality and complex data structures would no longer be required.

Solution

Faced with a range of challenges, BSK identified an innovative approach that would require resizing their Murex installation. The idea was to extract only the core elements and data to be kept for an optimised target installation.

The project commenced in January 2016, based on a greenfield MXpress target model. The same binary, hardware, operating systems and RDBMS were used, only the data and structures in scope for the downsized banking functions were migrated. The migration scope had been continuously challenged by redundant data and structures, and so the global operating model was stripped down to remove unnecessary entities and portfolios. The overall reporting solution and back-office workflows were redesigned from scratch following MXpress standards, new naming conventions were introduced to ease maintenance and development and most historic workarounds were removed.

Successful delivery required close collaboration between the Excelian team and the bank. As with any migration, there were technical challenges to be managed, but there were also cultural issues to work through arising from the impacts of restructuring on personnel.

In March 2017, following meticulous preparation, with ten full test cycles, the bank could go live and start running the optimised Murex platform.

Benefit

The bank’s investment in this project will be recouped in less than a year. In addition to significant long-term savings and optimized performance, it brings multiple benefits. Such as the ability to respond much faster to market changes, maintain high-quality customer care and introducing innovative new services sooner.

Commenting, Annette Gätcke from LBB / Berliner Sparkasse said: “We are delighted that, with Excelian’s support, this implementation has been a success. Despite initial concerns and cautions raised about undertaking the project, the results are very impressive and speak for themselves.”

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