dwpbank: Germany’s leading securities services provider
Deutsche WertpapierService Bank AG (dwpbank) is the leading securities services provider for Germany’s financial market. With 1,288 member banks in total, more than 75% of all German banks use dwpbank’s securities settlement processes and systems.
dwpbank manages approximately 4.8 million securities accounts for savings banks, cooperatives, and private and commercial banks across various sectors. In 2019 alone, 27.8 million transactions were settled using dwpbank’s systems. With approximately 220,000 managed users – investment advisors and bank employees – dwpbank’s central securities settlement platform WP2 is one of the most significant IT applications in the German banking sector.
dwpbank started as a transaction bank for securities processing. Transaction banks handle standardised securities transaction processes such as statements, corporate actions and interest and dividend income processing for their members. In addition, they ensure that technical custody and management processes for securities accounts are compliant with the latest legal and technical standards.
Securities transaction banking is a relatively new and dynamic speciality in the financial services sector. It was not until the mid-1990s that transaction banks established themselves as an integral segment of the banking industry, as increasing regulatory and margin pressure in traditional banking rapidly elevated their significance as specialised service partners. This is because it is less costly for everyone involved when new regulations are implemented at the same time for as many institutions as possible. Alternatively, each firm would be forced to modify its own settlement systems individually to comply with statutory requirements.
dwpbank helps its clients to navigate a European securities market that is experiencing increasingly rapid and clear-cut harmonisation driven by the ECB, the European Commission and the financial industry. At the same time, it ensures that regulatory market requirements placed on settlement between various national financial markets are implemented on time and without disruption.
dwpbank has developed from a transaction bank to the leading securities service provider along the entire value chain. dwpbank ist part of the market infrastructure of Germany’s financial centre for the German Savings Banks Financial Services Network (Sparkassen-Finanzgruppe), the German Cooperative Financial Services Network (Genossenschaftliche FinanzGruppe) as well as for private banks.
By bundling large transaction volumes from all three sectors of the German financial system, dwpbank generates a cost advantage through economies of scale and economies of scope relating to products, services and expertise. It further helps its clients to reduce costs by assuming operational risks. dwpbank’s range of products and services makes it possible for each of its member banks to leverage synergies on a large scale. It does so not only by bundling transaction volumes and securities accounts en masse, but also by constantly adapting systems and automating routines and processes to handle challenges as they arise. All regulatory requirements are implemented for all member banks centrally on dwpbank’s WP2 securities settlement platform.
As a cross-sector service provider, dwpbank…
- offers a central securities settlement platform, WP2
- combines market event knowledge and information with rapid response capabilities
- provides transparent processes and an agile infrastructure for time-critical processes in any market situation
- influences “better regulation”
- pools regulatory audit procedures
- offers professional management of operational risks
dwpbank’s clients value the significant reduction in their own operating risks and costs.
dwpbank offers services along the entire value chain from its central IT platform. In addition to the standard securities services, the offering also includes sales support solutions for client advisors at branches and for sales analysts at the head office.
dwpbank serves clients from every sector of the German banking industry. This makes it the only securities service provider which covers all three sectors:
- German Cooperative Financial Services Network
The central bank, DZ BANK, as master clients with 869 member credit cooperatives.
- German Savings Banks Financial Services Network
348 savings banks from 16 federal states and six state Landesbanks (BayernLB, Bremer Landesbank, Helaba, HSH Nordbank, NORD/LB, SaarLB)
- Private and commercial banks
Around 24 private and commercial banks, such as Deutsche Postbank, Santander Consumer Bank, BHF-BANK, Deutsche Kreditbank and SEB.
Overall, 1,250 banks – more than 75% of all banks in Germany – rely on dwpbank as a partner for securities settlement.
dwpbank is owned by banks belonging to the German Cooperative Financial Services Network (Genossenschaftliche FinanzGruppe) and the German Savings Banks Finance Group (Sparkassen-Finanzgruppe), which are equal partners. dwpbank is the first – and thus far, only – transaction bank with a shareholder structure comprising cooperative as well as savings banks. As a neutral financial service provider, it safeguards the interests of its clients throughout the various sectors of the German banking industry.
|Key figures at a glance||as at 31 December 2018|
*Number of direct and indirect – through DZ BANK – connected institutions
|System users of WP2 IT platform||220,000|
|Securities accounts||4.7 million|
|Transactions in 2017||26.3 million|
|Employees (headcount/full-time equivalents)||1,234|
|Branch offices||Frankfurt am Main (head office), Munich, Düsseldorf|