ABN Amro has switched to an application service provider model for treasury processing in North America, under a multi-year contract renewal agreement with existing vendor ADP/OMR.
The Dutch bank currently processes foreign exchange and money market transactions in North America with a license version of ADP's TradeThru software.
The move to a service bureau environment will enable the bank to take advantage of scaleable volume-based costs says Michael Geslak, chief administrative office of wholesale clients North America.
He says: "ADP's variable cost model enables us to reduce our cost in a down market while providing the flexibility to expand volume in a growing market without additional capital investment."
The ADP/OMR package employs XML formatted messaging along with an Oracle database and a Web-enabled Java front end.