Case Study

Set-Up of a BPO Center in Germany

In 2013, five German financial institutions embarked on a project to replace their individual legacy core platforms with the Avaloq Banking Suite. The project was complex as the institutions included retail banks, private banks and financial services brokers. Orbium as an Avaloq Premium Implementation Partner was chosen to assist Avaloq in the planning and delivery of this large transformation program.

The challenges faced by the financial institutions were significant as their individual legacy systems had grown piecemeal over time, were inflexible and demanded expensive manual attention. Data was often duplicated or inconsistent across departments and not all processes were adequately documented.

The nature of the systems’ development over time meant it was impossible to have an up-to-date, complete catalogue of all their capabilities, complicating implementation and migration planning.

In addition, the integration process had to accommodate almost 100 surrounding system applications and interfaces, as well as the German tax code and legal reporting requirements.

The plan was for Avaloq to build a Business Process Centre (BPO) in Germany to serve the five financial institutions. While the institutions did have some commercial relationships with each other, they were autonomous stakeholders in the project with very different business models, adding to the project management challenges.

The project was the first for Avaloq and Orbium in Germany.


The goal was to deliver a modern system that satisfied all five institutions, with connectivity to all the major applications and interfaces. The institutions also wanted a single source of data to replace multiple, discrete databases.

Orbium played a key role, to help set up the BPO, increase the data throughput rates and streamline business processes, including far greater automation within back office operations.

The idea was to gain significant economies of scale in terms of implementation by running one large project rather than five individual smaller projects. The single implementation also offered the opportunity of further economies of scale in terms of operations and gaining access to improved market rates by enabling the individual entities to act as one large entity to the outside world. The new BPO was also intended to give the institutions a business-to-business network.


Over 50 Avaloq-experienced Orbium consultants contributed over the course of this multi-year project to successfully deliver the implementation and achieve business transformation. The project drew in Orbium staff from our Zurich, Warsaw, Geneva, Luxembourg and Frankfurt offices. On-site consultants were supported by offshore resources to help reduce overall project costs.

Orbium’s methodology complemented Avaloq’s software expertise, successfully delivering a complex, multi-stakeholder project. Today, the five institutions enjoy significant economies of scale achieved at a fraction of the cost had they each acted alone. They also have the potential for further gains as market standards are now supported.

Significantly, they have a 360-degree view on all their business processes, with all the interfaces specified and required connectivity achieved. As a result, the banks’ operations are more efficient, faster, more responsive and more flexible than before, cutting risk and improving margins.