Slovenská spořitelna
Introduction to cooperation
Slovenska sporitelna cooperated with CTS TRADE IT since April 2011, and since then CTS has provided our primary Treasury system. Comprehensive functionality in the area of direct stock exchange trading and direct settlement of securities transactions with the central securities depositories in Slovakia and abroad is a given. CTS is also used for portfolio management for maintaining the status and accounting records of the portfolios of Slovenská sporiteľňa, settlement and management of clients' asset positions (Custody), settlement and billing of OTC products (currency / interest options, IRS / CIRS, currency forwards and swaps) and loan products / depo.
CTS successfully expanded its product to cover the agenda of distribution of Asset management Slovenske sporiteľna certificates of participation in 2017. Slovenská sporiteľňa used the CTS system in its branch network for securities trading until 2017 and at present, the distribution of certificates of participation is also carried out through CTS at branches. CTS thus became the main system for recording individual client positions for distributed participation certificates, which significantly strengthened the importance of CTS for Slovenská sporiteľňa. In 2017, we also helped Slovenská sporiteľňa to adapt to the migration of the main CSD settlement system to the new European Target 2-Securities (T2S) platforms.
In addition, Slovenská sporiteľňa uses the CTS system to perform the function of fund depositary, where the aim is to simplify and streamline processes Slovenská sporiteľňa performs as a fund depositary. This allows CTS to check the assets of the funds and monitor whether they are properly valued, calculate and verify the assets and liabilities of the fund, the net asset value of the fund (NAV) and check the limits and structure of the fund assets according to applicable legislation and fund rules. The CTS has also succeeded in implementing the necessary adjustments related to the new European MiFID II / MiFIR directives, which have brought about major changes in the provision of investment services on the European continent.
Initial situation
As part of the implementation of the new core-banking system, it was necessary to resolve the issue of connecting the existing banking system for securities trading to this system. In a program aimed at reducing costs and increasing flexibility in introducing new products and services, Slovenská sporiteľňa decided to select a new system solution for securities. The basic task from Slovenská sporiteľňa from a long-term perspective was to deliver a solution of lower operating costs, which will also enable further strategic development of treasury at Slovenská sporiteľňa. Last but not least, it was necessary to meet a deadline for deployment in live operation in accordance with the launch date of the new Slovenská sporiteľňa core-banking system.
Project progress
CTS’s product won the tender as it met all of Slovenská sporiteľňa’s requirements and surpassed the legacy system, especially in terms of lower operating and maintenance costs, potential for integration with other banking systems and great flexibility for the specific needs of users from various bank departments.
The implementation of the new system for the support of securities trading at Slovenská sporiteľňa began in April 2010, with a three-month in-depth analysis, which involved employees from all the involved departments and the bank’s executive management. At this stage, a functional CTS prototype (the current version of the product without customisation) was also installed to speed up and refine user input while saving time in communicating with users and consultants on the vendor side. Thanks to the experience with the real application, users were not forced to read hundreds of pages of user manuals, and instead the controls and possible modifications were discussed with the vendor using this prototype.
With regard to the date of deployment into live operation, it was necessary to prioritise the users' requirements and then divide them into 3 stages of delivery so that critical business functionalities were delivered in advance for user tests at Slovenská sporiteľňa. Bank users approved the business specifications during the final phase of analysis.
Result and benefits of the solution
The key benefit of CTS for Slovenská sporiteľňa is the reduction of operating costs associated with maintenance and future development in the specific conditions of the Slovak market. A significant benefit is the synergy of the business model with other CTS clients in the securities trading area, in particular with Česká spořitelna, a sister bank in the Erste Bank Group.
The bank thereby acquired a modern, stable and efficient system with the possibility of easy development, thanks to which it will provide better services to its clients.
Read our case study
CTS implementation at Slovenská sporiteľňa
CTS implementation resulted in a reduction in operating costs for the treasury department thanks to higher quality IT support for securities trading processes on both domestic and foreign stock exchanges and a more effective connection to the central securities depository in Slovakia, including direct support for the sales of treasury products in the bank’s branch network
