Open Finance pioneer LUXHUB, along with banking and insurance coverage software program chief VERMEG, are at this time asserting a brand new partnership across the assortment and processing of custodian information, out there to insurance coverage firms.
Custodix Hub, by the mixed tech experience and trade data of each companions, facilitates the flows and monetary information exchanges between custodian banks and insurance coverage firms, in a trusted and safe surroundings offered by LUXHUB. The 2 firms additionally announce a profitable POC (Proof of Idea) with a number one participant in Luxembourg.
Tackling the monetary information accumulating and processing challenges
These days, life insurance coverage firms, in addition to different exterior asset administration firms, face key challenges when accumulating and processing information from custodian banks. “Knowledge assortment represents a major price as a result of multiplicity of custodians, the usage of a number of codecs and the amount of transactions or the variety of failures that require corrections,” explains Eric Bemelmans, Director, Digital Transformation, at VERMEG. He provides: “Upkeep and scalability of custodian interfaces represents a major fastened price and heavy workload for inner groups”.
One other key problem for insurance coverage firms is the profitable integration of more and more advanced information – place reporting, securities and money transactions, new asset lessons, derivatives, Solvency 2, and so on. It requires practical experience which, by the modern partnership and answer, is offered by VERMEG. Lastly, technical experience is essential to
grasp the a number of codecs utilized by the custodian banks: Swift MT or MX recordsdata, proprietary codecs, XML recordsdata, FIX, internet companies.
“Typically, the completely different custodian banks ship info in their very own format. This requires life insurance coverage firms to execute a recurrent and infrequently guide course of of knowledge retrieval, formatting, reconciliation and injection into their Portfolio Administration System.
“With this modern answer, we’re mutualizing the hassle, for all insurers, and we may have extra impression towards the custodian banks to request extra automation. On the finish of the day, insurers will have the ability to proceed to give attention to their core enterprise,” provides Eric Bemelmans.
A central hub
Via this partnership, VERMEG’s modern answer turns into out there in LUXHUB’s central platform, linking insurance coverage firms and depositary banks. The Fintech, which was constructed by compliance and continues to be pushed by innovation, affords a seamless circulate and trade of knowledge, in a trusted, safe and confirmed surroundings.
“Via the automated information injection into the PMS, insurers will have the ability to use elevated high quality information whereas decreasing their operational dangers by an elimination of guide duties. They can even achieve in effectivity by automation, with a major discount of prices,” underlines Claude Meurisse , COO, LUXHUB.
Custodix Hub has truly been examined by a key native participant over the summer season, in a Proof of Idea (PoC) undertaking. It proved to be environment friendly over this era, because it validated the imaginative and prescient and concepts of the life insurance coverage firms, in addition to LUXHUB and VERMEG’s potential to assist the wealth administration trade in its digitalization course of.
A win-win partnership – leveraging one another’s tech and enterprise data
VERMEG is a pacesetter in digital transformation with a enterprise vertical method, famend consultants, and able to use digital apps. VERMEG has been providing custodian banks integration companies and options for its present shoppers in Luxembourg, and this for a few years.
“To supply the service and the answer with the suitable degree of safety and scalability, partnering with main Fintech LUXHUB was the suitable and apparent alternative. Collectively we convey extra worth to the insurance coverage sector, in addition to operational effectivity, service effectivity and innovation in an “Open” and interconnected world,” highlights Anne Thiel, Regional Gross sales Govt, VERMEG.
However, LUXHUB, with its PFS – Skilled of the Monetary Sector – standing and its technical experience in connecting the completely different stakeholders of the monetary companies trade, gives a trusted platform and safe IT Infrastructure.
“As advocated by LUXHUB since its very inception, it’s the collaboration of specialised actors and mutualization of information and efforts that can assist with the speedy and really mandatory transformation of the monetary sector.
“Finally, the insurance coverage sector might vastly profit from this modern partnership, by gaining vital time when accumulating information from depositary banks, drastically bettering the client expertise, and pleasing their end-clients with a novel and environment friendly service,” concludes Claude Meurisse.