KAS BANK and dwpbank commence joint venture for retail securities processing in Europe

  • KAS BANK N.V. and Deutsche WertpapierService Bank AG (dwpbank) signed a long term strategic partnership agreement to join forces in Europe; A 50/50 joint venture between the partners will be set up to establish a European securities processing platform for retail banking – starting in The Netherlands
  • With this specialized securities processing platform KAS BANK and dwpbank will provide a solution for the currently fragmented and complex European securities infrastructure
  • dwpbank will set up a branch in Amsterdam. Professional staff from KAS BANK will be moving to this branch in 2015, coinciding with the migration of KAS BANK’s processing volumes to dwpbank’s platform
  • KAS BANK and dwpbank will strengthen their German wholesale services through a joint wholesale approach

KAS BANK dwpbank
European partnership
KAS BANK and dwpbank will create a retail securities processing platform for the European financial services sector. In this respect, contracts have been signed by both parties. The agreements mark the formation of a joint venture for joint sales activities for the pan-European securities platform. The newly created company will be set up at the end of 2012 and aims to become market leader in providing retail securities processing services in The Netherlands by the end of 2018. In the second phase of this joint venture, service solutions will be expanded to other European markets. By jointly developing this specialized infrastructural service, a potential market of approximately 6 million accounts in The Netherlands can be developed and automated. This will create efficiency, continuity, lower risks and lower costs for the participating institutions and the market as a whole.

As part of this cooperation, dwpbank will establish a branch in Amsterdam for securities processing. Approximately 150 KAS BANK securities specialists will relocate to the branch in 2015 to broaden the necessary technical expertise and market knowledge in the branch, therefore enabling the migration of KAS BANK’s processing volumes and services to dwpbank.

In addition, the partnership with dwpbank will support KAS BANK to optimise its growth opportunities in Germany. Therefore dwpbank is offering technical and structural support to KAS BANK to address wholesale securities services to the institutional clients of dwpbank and German financial institutions. By combining their respective expertise both organizations will be in a position to offer and further develop an extended range of wholesale and value added services geared towards the German institutional client base.

European Infrastructure
The financial landscape in Europe is rapidly changing and regulatory requirements for the securities industry have been dramatically increased over the last few years. By creating a specialized securities infrastructure for the retail and wholesale processing services dwpbank and KAS BANK offer a solution to the market to address increasing complexity, costs and risks. The partnership will further harmonize the securities processing market and reduce risks in the infrastructure.

Albert Röell, chairman of the managing board of KAS BANK, says: “KAS BANK and dwpbank are two specialist institutions both in retail and in wholesale banking, each with a pure play strategy and an infrastructural footprint in their home markets. They will collaborate on mutual strengths, sharing a common vision on the European harmonization of the securities processing market. Comparable to the payment sector, the new European retail securities platform will implement all current and future European securities regulations thereby reducing operational risk and costs for banks across Europe.”

Markus Walch, chairman of the board of dwpbank, says: “The partnership will strengthen dwpbank’s and KAS BANK’s pivotal position in the European securities infrastructure. Based on the already existing and successful IT-platform of dwpbank, together we are building the European infrastructure for a stronger and more efficient securities industry.”

Karl-Martin im Brahm, board member of dwpbank, responsible for sales, says: “It is our aim to develop our joint venture to market leadership in The Netherlands by the end of 2018. Participants on the new platform are expected to realize significant cost savings and a decline in operational risk”.

Sikko van Katwijk, member of the managing board of KAS BANK, says: “Not only retail banks, but also investment funds and Premium Pension Institutions (PPI’s) experience few challenges in securities processing: increasing government regulation, traditional back offices and consumers demanding up to date applications. The joint venture offers to participate in a platform, already servicing nearly 6 million accounts, in which the latest technology and regulatory demands are built into the system. Therefore Frankfurt and Amsterdam will be the stepping stones for this growing European platform.”

Profile KAS BANK
KAS BANK N.V. is the independent European specialist in securities services and risk control and reporting services for around 500 professional institutions in the pensions and securities industry. The bank pursues a ‘pure play’ strategy. A low risk profile is integral to its services and is reflected in the quality of its balance sheet and a solvency ratio which is well above the Basel III requirements, underlining the bank’s absolute neutrality and independence.
KAS BANK was given an ‘A–’ long-term rating and an ‘A-2’ short-term rating by Standard & Poor’s.

KAS BANK’s role as a specialist in securities custody, clearing and settlement is complemented by compliance services, risk control and management information. Outsourcing their administrative functions to KAS BANK enables our clients to focus primarily on their own core activities. Tailor-made services and complete transparency are paramount: this is achieved by combining a proactive approach with advanced information technology and rigorous process control.

KAS BANK has a market share of ca. 30 percent of the Dutch institutional market and approximately EUR 300 billion Assets under Administration. For financial institutions KAS BANK processes more than 100,000 wholesale transactions per day. Our global network of close to 100 correspondent banks ensures high-quality services worldwide.

Founded in 1806 and listed on the NYSE Euronext Amsterdam stock exchange, KAS BANK is a European institution with a strong international presence. KAS BANK has offices in Amsterdam, London and Wiesbaden and employs around 750 staff, representing over 35 nationalities.

Profile dwpbank
Deutsche WertpapierService Bank AG (dwpbank) was established in 2003 and is the market leader in Germany for securities processing services. 383 direct clients with more than 1,500 institutions from all sectors of the banking industry use dwpbanks` process and system services for securities processing. dwpbank manages a total of approximately 6 million securities accounts with a technically managed volume of approximately 1,800 billion Euro. The institute bundles securities processes in the Cooperative Financial Services Network via the two cooperative central banks, as well as providing more than 80% of securities business services for savings banks and Landesbanken and does securities processing for more than 30 private and commercial banks of varying types and sizes. The service is supported through dwpbank’s core securities processing platform, WP2, which is currently used by more than 250.000 people working in the financial sector. WP2 will be also the technical core system for the planned European platform.

More information:
KAS BANK: Michiel Janssen, T: +31 20 557 52 30
KAS BANK: Joerg Sittmann, T: +49 61 1186 53801
dwpbank: Ralf Droz, T: +49 69 5099 3359

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