Investment bank WestLB has extended an IT outsourcing deal
with ADP Brokerage Services after a successful roll-out cut foreign
exchange processing costs at its London office by
70%.
ADP Brokerage Services Group, a division of consulting firm ADP, is
also to take over WestLB's foreign exchange and money market
processing in the German bank's Dusseldorf and New York offices.
The service will be run on the consultancy's Tradethru
system.
Tradethru software automates the procedures involved in processing
a trade, including portfolio and risk management.
West LB's London office said it had reduced its costs for foreign
exchange and money market processing by 70% after signing a deal
with ADP in 2002.
Daniel Mayo, lead analyst in the financial services practice at
Datamonitor, said investment banks were putting in enterprise
application integration and workflow software to cut costs by
automating the trading process.
"The key thing for the software is to deal with things that go
wrong during the trading process," he said. "Software that can
automate much of this can save banks money."