Success Story: DZ PRIVATBANK

Automated calculation of fund fees

DZ PRIVATBANK

DZ PRIVATBANK SA is a solution provider and competence center for all German cooperative banks and their clients in private banking. It offers a unique combination of local connections and international skills. An important business area is investment funds. Special attention is paid to the calculation process.  Extensive fee calculations have recently been automated charges using calculo software by the company Sowatec.

Success Story

Company

DZ PRIVATBANK S.A. is the specialised financial services partner of the Volksbanken Raiffeisenbanken cooperative network and operates nationally and internationally.It was founded in Luxemburg in 1977. DZ PRIVATBANK has 12.7 billion EUR of assests under management. About 64,000 private banking clients are served by a total of 920 employees.

Interviewee

Jürgen Schmitt (Project Manager & Senior Business Manager, Investment Funds) and Uwe Gillen (Group Manager Fees and Data Administration, Investment Funds) DZ PRIVATBANK S.A., Luxembourg.

Details

  • Background

    DZ PRIVATBANK and the management company IPConcept offer comprehensive fund services for fund initiators. With an increasing volume of funds, the requirements of the Business Rules Management (BRM) have grown. To address these circumstances, the DZ Private Bank has revalued its fee calculation processes.

  • Goal

    To implement a new powerful and auditable system solution, with flexible data integration and open interfaces for third-party applications.

  • Solution

    calculo  is a solution that is based on "Business Rules Management (BRM)" technology. It allows for automated billing and allocation for each type of incoming and outgoing commissions/fees on a single platform.

Read an excerpt from the interview with Jürgen Schmitt und Uwe Gillen, DZ PRIVATBANK S.A., Luxembourg.

Why did you opt for automated fee calculations?

The number of investment funds that we are managing is growing rapidly. As a result, our fee management system requirements are becoming more and more complex. The existing solutions were not capable of handling the demands. Our customers need us to offer flexibility, quality and a high degree of process security. This demands a professional system solution.

How complex are your fee calculation processes?

Our service range is very broad: we act as a deposit bank and we offer centralised administration, with register and transfer services, but we also manage actual funds. On the other hand we have diverse fund initiators and asset classes, which demands a high degree of flexibility in the fee process. This means we have to be in a position to handle the most complex fee calculation models.

What models do you use to calculate the numerous fees?

Our calculation models take into account turnovers, basic rates, types of fees, volumes and minimum and maximum amounts. We also have combinations of different models such as progressive scale fees with minimum and maximum amounts. We also use different day count conventions such as actual/actual or 30/360 and we calculate at different levels i.e. at the fund level, the sub-fund level or the share class level.

Uwe Gillen Uwe Gillen

Group Manager Fees and Data Administration


"An intensive selection process led to us choosing Sowatec – they convinced us of the agility and flexibility of the calculo solution. From the earliest implementation to the Go-live phase, we could clearly see that we had chosen the right partner and above all, the right solution for the complex demands of this business."

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