CS Automated Treasury Back-Office Operations at Raiffeisen Bank
Raiffeisen Bank is one of the leading banks in Ukraine, part of the Austrian banking group Raiffeisen Bank International AG. The bank provides a full range of banking services to private and corporate clients, as well as financial institutions.
CHALLENGE
As Raiffeisen Bank planned to increase its securities operations, it faced the need to improve the accounting process. The existing system, where transaction accounting was performed in the TrustDealSecurities front-office system and bookkeeping was done manually, no longer met the bank’s growing needs.
The main challenges were:
- Minimizing the human factor in securities operations accounting
- Automating the support of securities operations
- Increasing the back-office throughput capacity by 10 times without hiring additional personnel
- Integrating the TrustDealSecurities front-office system with the bank’s back-office system
SOLUTION
To address these challenges, the bank chose the CS::Custody module developed by CS. This solution was integrated with the existing TrustDealSecurities front-office system and CBS B2.
Key features of the implemented solution:
Process Automation:
- Automatic creation of securities transactions in CS::Custody based on data from TrustDealSecurities
- Automatic creation of documents for accounting and payment for securities
- Automatic calculation of social contribution and building an amortization schedule
Extended Functionality:
- Management of securities portfolio
- Automatic interest accrual, discount/premium amortization, securities revaluation, coupon/dividend redemption
- Automated reserve accounting with adjusting entries
Integration and Control:
- Reconciliation of the TrustDealSecurities front-office system and CS::Custody through online error control and reconciliation reports
- Automatic generation of regulatory reporting based on data from CS::Custody
Technological Innovations:
- Integration with TrustDealSecurities was carried out using Kafka in accordance with the bank’s requirements
- Implementation of extended electronic signature with timestamp according to the CAdES-X Long standard
RESULTS
The implementation of CS::Custody at Raiffeisen Bank led to significant improvements in securities operations:
- Achieved a 10-fold increase in back-office throughput capacity without hiring additional personnel
- Minimized operational risks associated with manual data entry
- Automated processes from transaction creation in the front-office to their accounting in the back-office and generation of regulatory reporting
- Improved efficiency of treasury back-office staff
- Created a technological foundation for further increasing the volume of securities operations
Volodymyr Lapa, Director of CS Kyiv office
Despite all the challenges of today, banking business continues to develop. We recently successfully implemented a project at Raiffeisen Bank, which aimed to automate the work of treasury back-office employees for securities operations. The project implementation allowed the bank to minimize operational risks of manual input, facilitate work with securities, and increase back-office throughput capacity.
Tetiana Gryn, Head of Back-Office Department, Raiffeisen Bank
The goal of implementing the securities module at Raiffeisen Bank was to increase the back-office throughput capacity by 10 times without hiring personnel – the stated project goals were achieved.
Among the interesting things that were done in the project, besides implementing the ‘Securities’ module:
- Integration with TrustDealSecurities was carried out not using DB-link, but with Kafka – according to the bank’s requirements.
- Along with the ‘Securities’ module, an extended electronic signature with timestamp was implemented according to the CAdES-X Long standard.
- The bank migrated the ‘Securities’ portfolio from one operating system to another over the weekend.
We are very grateful to CS for the quality interaction during the implementation:
- to the head of the Kyiv office – Volodymyr Lapa – for the quick project launch and client-oriented management;
- to analyst Kateryna Slastikova – for quality analytics and testing, and for teaching the back-office to work in the ‘Securities’ module of CBS B2 and becoming like family with the Raiffeisen team;
- to developers – Oleksandr Morozov, Igor Lunyov – and all other members of the large CS team who participated in the project.
The successful implementation of CS::Custody at Raiffeisen Bank not only solved the bank’s current challenges but also created a reliable foundation for further development of securities operations.
