KBC Bank and Rabobank Nederland are joining forces to develop a common cross-border platform for the settlement of securities transactions.
The two banks say the move will lead to significant cost savings, not least because both banks are already looking to replace their current systems, so they can share the investment costs. The savings can be passed on to customers.
KBC Bank and Rabobank say the common platform – which will not be operational before 2006 – also offers new possibilities in terms of flexibility, capacity, and adaptation to changing market needs, as well as operational efficiency, cost-effectiveness and risk management. “By joining forces in this area, Rabobank and KBC Bank can reduce costs significantly and hence offer competitive prices to their customers,” say the two banks.
At KBC Bank, securities transactions of the Bank and its subsidiaries are handled by its Securities and Derivatives Processing Directorate and by KBC Securities. At Rabobank this activity is performed by Rabobank Nederland Effectendiensten (Securities Services). The organizational consequences of the co-operation are currently being explored.