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Avaloq Banking System

Business Bus

Avaloq not only supports business co-operations but also actively designs them in collaboration with its clients within the framework of the 'Business Bus' initiative.

The financial sector is experiencing a period of fundamental change. Globalisation, deregulation, greater transparency, new technologies and the pressure of the financial markets are forcing banks into a process of industrialisation. This is creating new business models for reducing the depth of manufacture and breaking down the added value chain which in turn is enabling financial institutions to concentrate on their core areas of expertise and outsource services which deliver minimal earnings. The task with the outsourced service is to find an efficient partner. This requires the co-operation processes to be standardised and an infrastructure to be in place. Working together with efficient partners enables the banks to offer its clients 'one-stop-shopping'.

The 'Business Bus' provides for new business models. The modular structure of the Avaloq Banking System, the central importance of order and workflow management as well as the powerful open interface offer the ideal conditions for this purpose. With a division of labour Avaloq's clients are linked to specialist service providers or service distributors via standardised interfaces. The processes performed by the bank itself are combined together with the purchased services so that bank clients can be offered comprehensive products and services. The client does not notice the breakdown of the added value chain. Members of the Business Bus - in the role of producer or distributor - are not forced to use the Avaloq Banking System.

Existing elements. The first components of this initiative have already been implemented into productive operation. The Business Bus unites the market and thanks to the Avaloq Community today already covers six different areas of creating added value for banks. It is being continually expanded to meet client needs.

Please find the Business Bus Flyer at the Download area.

For more details please click on the graphic.

CLS: Continuous Linked Settlement (CLS) enables banks to eliminate the currency risks associated with the settlement of foreign exchange transactions. Since September 2003, as a third party bank, Clariden Bank has been using the CLS system for settlement of its foreign currency transactions. In this context, access to the CLS is guaranteed through Credit Suisse. Credit Suisse is a CLS settlement member and also offers its services within the framework of the Business Bus to other Avaloq clients.

Funds: The fund hub of Bank Sarasin has been in productive operation since mid 2003. In this context, fund products compiled by Bank Sarasin itself are marketed via the Avaloq Business Bus through its financial advisers or fund partners AWD and JML on a 'white-labelled' basis.

ASP: Since mid 2004 Telekurs Services has been offering its services as an Application Service Provider (ASP) on the basis of the Avaloq Banking System. The ASP model contains all the services required for discerning banks: from supply to operation, through to support and the associated processes. This consequently also gives small and medium sized banks the opportunity to implement new business models into practice quickly and with controlled risks. Bank Linth is able to concentrate on its core areas of expertise and establish itself as a commercial bank with a comprehensive range of products and outsourced services.

Trading: Rahn & Bodmer is a securities dealing partner of the RBA banks. For these and other banks that have no direct access to the stock exchange, Rahn&Bodmer execute stock market transactions on domestic and foreign stock exchanges as well as derivatives exchanges. The standard interface to the electronic dealing connection of these banks has been in operation since January 2004. These banks therefore have access to Straight-Through Trading (STT), the fully automated placement of orders on national and international stock exchanges, thanks to the Avaloq Banking System. Rahn & Bodmer itself is achieving an impressive Straight-Through Processing rate (STP) through this electronic connection.

Since mid 2004 Bank Linth has a direct Avaloq-to-Avaloq link for transmitting and monitoring its orders and uses this link to handle its stock market dealing for all markets supported by Rahn & Bodmer.

Credits: Thanks to the Business Bus, since Spring 2003 PostFinance, which does not possess bank status, has been able to obtain credit products through the “Credit Asset Transfer“ (CAT) business model recently launched by UBS and to market these products via the Avaloq platform. As a producer UBS focuses on the refinancing of the credit as well as taking on and managing the credit and interest risks so PostFinance does not have to either include these transactions in its balance sheet or to provide capital backing through its own resources. On the contrary, PostFinance is able to focus entirely on providing advice and support for its clients, the sale of credit and the efficient processing of these transactions. Other Avaloq clients are also able to sell UBS credit products within the framework of a “white labelling” without any additional investment in IT.

BSP: ATAG Asset Management (AAM) offers Service Center services based on the multi-entity oriented Avaloq Banking System. Small and medium sized banks are able to not only outsource their IT and Back Office to the AAM Service Center but the handling of all transaction processing resulting from the investment decision.

Today, two banks are already using this Business Service Providing (BSP) offer from AAM: BW Vermoegens-Management (BWV) since 2000 and Mitsubishi Tokyo Wealth Management (MTWM) since 2002.