The cantonal banks of Lucerne, St. Gallen and Thurgau have decided to outsource their securities management in connection with their migration to the Avaloq banking platform. This is a first in Switzerland, as banks have previously kept their securities management in-house. The service is being provided and managed by Swiss independent business service providers Fin-Log AG and Comit AG together. St. Galler and Luzerner cantonal banks have been operating the new system for several weeks already and Thurgauer Kantonalbank will go-live shortly too.
When the three cantonal banks decided to migrate to Avaloq’s comprehensive banking platform, they also resolved to outsource the key banking-related aspects of their securities data management to a specialised provider. Following an intensive evaluation process, Fin-Log and Comit won the tender to implement and provide the service. Having successfully implemented the project, the Luzerner and St. Galler banks have been receiving their securities, event and price data in a refined, user-friendly format from Fin-Log/Comit for several weeks. Thurgauer Kantonalbank will start operating the new system on 1 August.
By fulfilling this mandate, Fin-Log/Comit have become the first external provider to deliver these key banking services. Securities, event and price data are integral components of banking back office operations. Banks have traditionally used highly qualified staff for these processes, as inaccurate data can lead to major financial losses. Until now data processing and refinement services have therefore mainly been provided within banking groups or in cooperation with computing centres. However, the relatively new trend towards commercial solutions has prompted the cantonal banks to respond positively to a partnership with an independent provider.