Deutsche Bank will move its global collateral management operations to a cloud-based platform operated by CloudMargin.
The move makes Deutsche Bank the first of the major global banks to adopt cloud technology for collateral and margin management and is part of the German bank’s global transformation and cost savings programme.
“Moving our collateral and margin management onto an online platform means that we and our clients will enjoy a reduction in risk and resource-draining emails and calls,” said Joseph Macdonald, global head of collateral optimisation trading, Deutsche Bank.
“The movement of our collateral management programme to CloudMargin is also in line with a number of the bank’s goals: enhancing our client service, being technology-led and improving efficiency. The cloud platform will give us a cost-effective means of servicing our clients, regardless of their size.”
Through the CloudMargin platform, Deutsche Bank and its clients will be able to access the same information regarding regulatory obligations and required actions for their cleared and non-cleared OTC derivatives.
With added transparency to the collateral management process, it will help significantly reduce risks from manual intervention and discrepancies.
“Deutsche Bank interacts with virtually every other major bank as a counterparty, and its clients range from the world’s largest institutions to smaller buy-side market participants,” added Steve Husk, CEO, CloudMargin.
“Our solution enables the sell-side institution to provide the same high-quality service, efficiencies and transparency to everyone while achieving significant internal cost savings and operational improvements to these systemically important processes.”