Deutsche Bank has formed a partnership with CloudMargin, a collateral and margin management solution to the cloud, to improve its client experience.
The deal will see Deutsche Bank integrate the CloudMargin platform into its collateral infrastructure. By doing this, it is hoping to improve the client experience by establishing a networked solution for its collateral management which will increase transparency, reduce operational risk and simplify processes.
Collaborating with CloudMargin is part of the bank’s global transformation programme.
From this integration, clients will benefit from access to information regarding obligations and required actions for their cleared and non-cleared over-the-counter (OTC) transactions. This transparency will lower the need of manual intervention and eliminate discrepancies.
CloudMargin clients are automatically connected to an online hub with a community of partners which offer further efficiencies and processing opportunities. The London-based company helps financial institutions to meet regulatory deadlines and lower costs for collateral requirements.
Deutsche Bank global head of collateral optimisation trading Joseph Macdonald said, “Moving our collateral and margin management on to an online platform means that we and our clients will enjoy a reduction in risk and resource-draining emails and calls.
“This is believed to be the first time a Tier 1 bank will use a public cloud-based service for a critical piece of infrastructure, such as managing margin calls with its own counterparties. For our clients, this will make for an intuitive online user experience on the platform.
“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.”
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