Introduction
The client, one of the largest banks in Germany, needed to implement a new, unified, and future-oriented custodian system to manage compliance mandates. The existing custodian systems at the Düsseldorf and Frankfurt locations were to be replaced by the XENTIS system from the provider, Profidata. The bank engaged Capco to deliver the migration project based on our longstanding expertise in financial services and our proven track record of successful collaboration with the bank. Capco was responsible as an integration partner to support the client throughout the entire process from business design, interface architecture, communication, test to migration, and aid during the post-go-live coordination phase.
Why Now?
The objective was to harmonize previously separate processes and to perform the custodian function in accordance with BaFin's audit model 2 as defined. The project was structured in two phases with the system go-live in December 2019 followed by the migration of all custodian-managed funds by 2020. Each phase came with its own set of challenges. In the first phase, the tight timeline, scope of required parameterization, and interface adjustments posed the greatest challenges. The second phase was marked by the complexity of operating both legacy and modern environments in parallel and the large number of funds that had to be migrated.
How We Did It
- Advisory and Support for Project Management: Support and guidance for project management, including communication and participation in key governance and steering committees
- Design and Implementation of Requirement Management and Tracking Tool: Development and rollout of "ANTRAS," a custom-built tool used for the first time in Project XENTIS to manage, track, and report on requirements
- Planning and Implementation of Functional Requirements in XENTIS: Planning, coordination, and configuration of functional requirements within the XENTIS system, in close collaboration with the software provider, as well as implementation of all relevant interfaces to XENTIS
- Development of Test Strategy and Execution: Design of the end-to-end test strategy and test cases, coordination and management of all testing phases, and reporting and oversight across all test activities
- Migration Process and System Optimization: Ensure seamless migration process with full post-migration functionality of the new XENTIS system, including continuous optimization after go-live and the development of a custom migration process/script tailored specifically for Project XENTIS
- Training and Enablement: Preparation and delivery of system training sessions for over 50 employees within the custodian bank organization
What We Delivered
With the implementation of XENTIS, the bank achieved the following key results in the first phase of the project:
- Successful migration of investment funds managed by external KAGs
- Establishment of a scalable foundation for onboarding additional funds – including those of external capital management companies – enabled by XENTIS’s multi-client capability
- Compliance with increased requirements from the KAGs and regulatory authorities
- Successful transition of the custodian function from Audit Model 1 to Audit Model 2 in accordance with the German KAGB
Through the continued migration of all custodian-managed funds, the bank achieved the following outcomes in Phase 2 of the project:
- Maintained full project oversight and coordination across all workstreams, despite primarily remote operations due to COVID-19
- Completed the migration of the remaining fund packages from external KAGs
- Strengthened the collaborative partnership with the software provider Profidata
How We Can Help
Capco is well positioned as a key intermediary, combining business and technical expertise between clients and other providers. We pride ourselves on providing a true partnership, especially in the areas of testing, migration, and training. Our experts offer a tailored interdisciplinary consulting approach to support your company in achieving new strategic goals.