About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Commerzbank Focused on Integration of Dresdner’s Customer Data onto its Central Database

Subscribe to our newsletter

Commerzbank may have fallen foul of the UK regulator earlier this year as a result of transaction reporting errors, but the German bank has been engaged in sorting out some of its underlying data issues by doing some of the groundwork to integrate the customer data acquired as part of its takeover of Dresdner Bank back in 2008 with its own internal customer database. Similar to some of the work that has been going on behind the scenes at Royal Bank of Scotland with ABN Amro’s customer data, Commerzbank has been moving towards a more integrated data infrastructure over the last 18 months.

In the second half of this year, the bank put in place a more integrated organisational structure across all of its business lines and in August, it rolled out new technology infrastructure to support this new structure. Frank Annuscheit, who is responsible for group services on the Commerzbank board of managing directors, explains how all of this will facilitate the move of Dresdner Bank’s customer data onto its own systems: “In August, we achieved an important milestone for the merger of the IT systems on schedule, with the largest roll out of software in the history of Commerzbank. We have thereby put in place the necessary conditions for migrating the business and customer data of the former Dresdner Bank to the Commerzbank systems and processing them there.”

The focus has therefore been on increasing the systems capacity for the increased number of customer data records, much the same as went on recently at RBS. According to Annuscheit, the plan is to complete this migration process by the second quarter of next year.

Within Germany, the majority of the former Dresdner Bank customers will keep their former account numbers and sort codes, he adds. Most of the mapping of this customer data is likely to be behind the scenes, in order to ensure there are no duplicate records or incompatibilities with the bank’s internal systems.

Unlike most rollouts of this scale, the German bank has been able to achieve many integration objectives ahead of schedule across its 1,600 branches and around 700 former Dresdner Bank locations, says Annuscheit. Commerzbank estimates that it will achieve significant cost savings from the overall integration process (beyond that of just the reference data aspects), totalling €1.1 billion by the end of the year, exceeding original expectations by 10%. This is expected to form a major part of the overall total saving of €2.4 billion, which is expected to be realised by 2013.

This should go some way towards making up for the £595,000 fine the bank had to pay to the UK Financial Services Authority (FSA) for data related failures underlying its transaction reports to the regulator over the period of two years. According to the FSA, as an incoming EEA branch passporting into the UK under Article 32 of the MiFID Directive, Commerzbank failed to provide correct transaction reports to the regulator between 5 November 2007 and 20 November 2009.

The bank failed to meet the FSA’s data requirements over a period of two years with regards to these reports for approximately 1.03 million transactions, an estimated 94% of its reportable transactions during that period. For example, one of the anomalies identified by the regulator in the report was the use of incorrect internal codes for the counterparty field, which meant that the FSA was unable to allocate individual transactions to the same client.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Best practice approaches to data management for regulatory reporting

Effective regulatory reporting requires firms to manage vast amounts of data across multiple systems, regions, and regulatory jurisdictions. With increasing scrutiny from regulators and the rising complexity of financial instruments, the need for a streamlined and strategic approach to data management has never been greater. Financial institutions must ensure accuracy, consistency, and timeliness in their...

BLOG

Regulations in the Balance as Institutions Remain Sustainability-Focussed: ESG Summit London Review

Despite a perception that ESG is in retreat around the world, financial institutions continue to take the issue very seriously as a matter of risk management, a trend that continues to exert an influence on the data demands of organisations. It isn’t even the compliance imperatives of organisations operating in heavily regulated parts of the...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

Regulatory Data Handbook 2025 – Thirteenth Edition

Welcome to the thirteenth edition of A-Team Group’s Regulatory Data Handbook, a unique and practical guide to capital markets regulation, regulatory change, and the data and data management requirements of compliance across Europe, the UK, US and Asia-Pacific. This year’s edition lands at a moment of accelerating regulatory divergence and intensifying data focused supervision. Inside,...