KBC Bank en Rabobank Nederland: joint venture for securities transaction processing
10-6-2004 | Press Release
Joint press release by KBC and Rabobank Nederland KBC Bank and Rabobank Nederland intend to set up a joint venture to process securities transactions for both KBC and Rabobank Nederland. Based in Eindhoven, the new company will start operations in 2005, processing securities transactions for Rabobank Nederland. In 2006, the fully operational joint venture will start processing KBC’s securities transactions, as well. At that point, the new company will employ some 160 people. Talks have now begun with the works councils of both KBC and Rabobank Nederland regarding the related organizational aspects and the consequences for the personnel concerned. The joint venture has yet to be screened by the relevant supervisory authorities.
KBC Bank and Rabobank Nederland intend to set up a joint venture to process securities transactions for both KBC and Rabobank Nederland.
Based in Eindhoven, the new company will start operations in 2005, processing securities transactions for Rabobank Nederland. In 2006, the fully operational joint venture will start processing KBC’s securities transactions, as well. At that point, the new company will employ some 160 people. Talks have now begun with the works councils of both KBC and Rabobank Nederland regarding the related organizational aspects and the consequences for the personnel concerned. The joint venture has yet to be screened by the relevant supervisory authorities.
An alert response to market opportunities and economies of scale
At the start of the year, KBC Bank and Rabobank Nederland announced their intention to set up a common cross-border platform for the settlement of securities transactions for both retail investors and professional parties. Having explored the relevant organizational ramifications over the past few months, the two companies are today announcing the launch of their joint venture. Through this unique, cross-border project, KBC Bank and Rabobank Nederland aim to achieve greater flexibility in their response to market developments, improve the quality of their customer service and cut costs significantly. Both banks’ systems are due for replacement and they will now be able to share the cost of investing in new IT systems. Moreover, this venture will allow them to take advantage of the possibilities afforded by new technologies.
The project is consistent with the aim of achieving operational effectiveness, cost efficiency and risk control, and the new company will offer a flexible, volume-independent and cost-conscious solution to changing market needs. By joining forces, Rabobank Nederland and KBC Bank can cut costs significantly and continue to offer competitive prices to their customers. Banks that outsource securities transaction processing to a specialized company meeting the highest standards of quality can also free up more resources for providing service directly to customers.
At KBC, the securities transactions of KBC Bank and its subsidiaries are handled by the Securities and Derivatives Processing Directorate and by KBC Securities; for the local Rabobanks, securities transaction processing is handled by Rabobank Nederland Effectendiensten (RNE).
New company in Eindhoven
KBC Bank and Rabobank Nederland will be setting up a new company under Dutch law, in which each will hold an equal stake. The new company will start operations in 2005, processing securities transactions for Rabobank Nederland. In 2006, when fully opera-tional, it will also be processing KBC’s securities transactions. KBC and Rabobank Nederland will not only be bringing their operational know-how to the endeavour, they will also be sharing their market expertise and worldwide network of contacts in the financial world.
It will in time also give other financial institutions the opportunity to outsource some or all of their securities transaction processing. This will afford them a dual benefit, as they will save on the cost of processing and future investment, while continuing to maintain an independent profile on the investment market.
Based in Eindhoven, the new company will be headed up by Floris Henning (RNE) and Christel Gijsbrechts (KBC).
Personnel
Approximately 160 people will be on the company’s payroll, half coming from Rabobank Nederland, half from KBC. Talks are currently being conducted on this matter with em-ployee representatives of both KBC and Rabobank Nederland. On no account will there be any forced redundancies.
