HypoVereinsbank has entered an agreement to outsource its retail securities processing to ITS, the transaction banking joint venture established by HSBC Trinkaus & Burkhardt and Deutsche Telekom subsidiary T-Systems.
Securities processing for HVB's retail banking operations should be transferred to the ITS platform by the end of 2007. Insititutional and investment banking back office services will also be transferred to the ITS platform, but will continue to be processed by HVB's Financial Markets Service Bank (FMSB).
Financial details of the transaction and implications for HVB back office personnel have not been disclosed.
Matthias Sohler, chief operating officer at HypoVereinsbank, says the move will deliver operating cost benefits to the bank.
Christiane Marliani, managing director of ITS describes the mandate as "a decisive step for ITS, allowing us to take an active role in shaping the consolidation of the German securities processing market and building up the best securities processing bank in Germany".