Commerzbank: Outsourcing to HSBC later, restructuring charged

Commerzbank: Outsourcing to HSBC later, restructuring charged

         Prestige project Commerzbank: Delay in major HSBC project impairs renovation Exclusive Commerzbank would like to outsource its securities processing to the British bank HSBC. The problem: According to WirtschaftsWoche information, the start of the Prestige project is delayed – and affects the renovation of the institute. A setback for a major project is weighing on the restructuring of Commerzbank: the planned outsourcing of securities processing to the major bank HSBC is delayed until 2021 according to WirtschaftsWoche information. The project was originally supposed to start in spring 2020. It is considered to be one of the largest outsourcing projects in the German banking sector. As part of its reorganization, Commerzbank had hoped to cut costs through the project. The money house should not realize these savings until later. Experts of the project justify the delay because the project is apparently more complex than expected. A securities settlement works in the background: it ensures that the customer’s custody accounts function properly and, for example, that dividends are booked. The business is complex and only pays off if a provider manages a large number of depots. When asked by WirtschaftsWoche, HSBC confirmed that the institute was revising the schedule with Commerzbank. However, individual project components would start 2020. Commerzbank did not answer the question directly whether the outsourcing was delayed. However, a spokeswoman said that the institute’s 2019 new strategy would result in additional requirements, such as the planned full takeover of the Comdirect direct banking subsidiary. Neither of the two institutes announced a new start date for the overall project. Commerzbank did not want to comment on the question of how high the planned savings are and when the company will now realize them. None of the institutes also commented on possible additional costs. Commerzbank buys shares in its online subsidiary Comdirect from a financial investor. Now she can take over the daughter completely as planned. The later start is also a damper for HSBC and the German subsidiary based in Düsseldorf. The institute wants to grow in securities processing and had invested heavily. An HSBC spokesman, on the other hand, saw no burden from the later start and said: “Our strategy is coherent. The new schedule does not change our strategic positioning. ”HSBC did not want to comment on the question of what income the institute will initially have to forego due to the later start. In a report to the 2019 annual press conference of the German subsidiary, it was said that the long-term issue was “stable income in the double-digit million range”. Now on wiwo.de Do you want to know what drives the economy? Click here for the latest articles from WirtschaftsWoche. © Handelsblatt GmbH – All rights reserved. Acquire usage rights?          Services offered by our partners       
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