The aim is to minimise transaction prices
The aim is to minimise transaction prices
We have collaborated with Vitec Aloc for almost 15 years, and they are the best and most reliable IT supplier we have ever had
“We have collaborated with Vitec Aloc for almost 15 years, and they are the best and most reliable IT supplier we have ever had. And it is not just me that thinks that”, says Lisbeth Amby Møller, Senior Business Developer in Payments & Trade. “Our internal IT department agrees with this evaluation. However, the decisions we make at Spar Nord cannot be based solely on subjective opinions, so naturally we regularly make sure we compare Vitec Aloc’s prices and solutions with other suppliers – often bigger suppliers. But Vitec Aloc is still around.”
The purpose of Vitec Aloc’s broker network is to minimise error risks and transaction costs per trade. Major operational risks and increased costs are incurred by handling international trades manually, instead of having this process automated. Therefore, Vitec Aloc has granted access to Reuters’ AUTEX broker network, which consists of more than 2,000 brokers worldwide. The broker network is integrated into Vitec Aloc’s IDEAS trading solution, which is also connected to the Reuters AUTEX broker network, which transfers the trades to the broker.
In ‘the old days’, which in this case means prior to 2013, trades in foreign papers were carried out over the phone. The client called the dealer, the dealer gathered the prices on the market, the client refused or accepted, and the dealer closed the deal. As a general rule for the Spar Nord dealers, a trade should not take more than 10 minutes to carry out. The bank experienced increased demands for the trade system’s functionalities and ability to keep track of audit trails and other compliances, such as the MiFID regulations. In addition, manually handled trades naturally increase the risk of misunderstandings, typing errors, etc. There was, therefore, great business potential in importing the trades in foreign papers into more streamlined and automated processes. “We were already using Vitec Aloc’s IDEAS trading system for our domestic fund trading, which had given us confidence in Vitec Aloc and their market understanding, so when they proposed a solution, we were obviously interested”, says Lisbeth Amby Møller about the first steps of what today is known as Vitec Aloc’s broker network.
”When you initiate a project like this, the most essential thing isn’t the technique – many can deliver that – no, it’s the people that develop and implement the solution that are crucial. If they understand your business, you already have a good basis for success”, says Lisbeth Amby Møller, who continues: ”And Vitec Aloc has, to a high degree, showed a good understanding of our business”. The project took six months, from initial idea to the first trade. “And the system functioned as intended from the first trade”, says Lisbeth Amby Møller. “The only issue was that we were required to change deposit bank as we initiated the new solution. Otherwise, it was totally unproblematic.”
Today we do not measure the trades in minutes, but in seconds. This has freed up many resources, which has enabled Spar Nord to massively increase the number of trades in foreign papers. “The broker network is immediately scalable, which means that we can easily handle the increased activities within the current frame”, says Lisbeth Amby Møller. According to her, there is no doubt that the broker network is very important for the satisfaction of Spar Nord’s clients.
The solution has made our services much more attractive. Clients can now place orders into the system 24/7 directly from their net bank. And with the availability on a level we haven’t experienced before, 24/7 isn’t just a marketing term – it is the real world
“We have a really good collaboration with Vitec Aloc. Not only do they understand our business and what is important for both us and our clients, but they also have a set of values that we really appreciate. At Spar Nord, we live up to our values by being attentive, ambitious and straightforward. I can see a strong resemblance at Vitec Aloc”, says Lisbeth Amby Møller, who concludes: “I have never experienced that Vitec Aloc has swept something under the rug or hidden behind the argument that ‘it wasn’t their fault’. If there is any error or mistake, they locate it – often before we even do – and correct it. Overall, we experience great support. They do not waste time discussing whose fault it is. They are super-professional and understand the significance of downtime in our industry. And that, of course, is why we have so much confidence in them”.
About Spar Nord
Spar Nord Bank was established in 1824 as the first financial institution in Jutland, Denmark. Since 1990, the bank has been listed on the Copenhagen Stock Exchange. Today, the bank is a full-service bank based in North Jutland, with 88 local banks throughout the country. Spar Nord Bank has approximately 320,000 clients and has approximately 1,350 FTE employees.
If you have any questions, or would like to know more, please contact Chief Sales Officer, Mikkel Severin Lyngbye, at +45 29997141 or send us an email.Contact us