To better manage financial services providers’ regulatory requirements, SüdFactoring is putting its trust in SAP Business ByDesign.
For some time now, the German financial service industry has seen a rise in the number of government regulatory requirements. This includes the minimum requirements for risk management as stipulated by the German regulatory authority BaFin.
According to SüdFactoring CIO, Dr. Ulrich Reidel, companies in this industry are well advised to quickly identify risk management requirements and other regulatory and supervisory requirements for IT projects, such as modernizing the IT landscape.
To be able to implement these regulatory IT requirements, the financial service provider’s IT department must completely restructure itself, from organization and processes right through to the application and infrastructure environment. This was the choice made by SüdFactoring, a subsidiary of the Landesbank Baden-Württemberg (LBBW), which, with an annual revenue of approximately €12 billion, is one of the largest factoring service companies in Germany. They wanted to modernize and professionalize their IT landscape, and opted for SAP Business ByDesign.
Choosing a Cloud Solution from SAP
In planning the accountancy elements of its new IT landscapes, SüdFactoring had several providers in mind. At the start of 2014, they decided on SAP Business ByDesign. “The SAP solution was the best fit for our requirements. The cloud solution enables us to scale easily, and we can access the application from anywhere. In choosing SAP, we also feel that we have a highly professional and reliable partner,” says Dr. Reidel.
In parallel to the SAP Business ByDesign implementation, the company also opted for a new central core banking system as part of the modernization project. Both innovations have already had a substantial impact on the business processes. The new applications have also laid the groundwork for further automation. Another benefit is that there is now a direct connection with SüdFactoring’s core banking system, which acts as a subledger. The requirements stipulated by the Generally Accepted Accounting Principles (GAAP) and the law governing credit (KWG) were also taken into account.
The asset accounting implementation took approximately one year. The financial accounting elements went live with the core banking system after approximately twenty-one months as planned. Thanks to the transition to SAP Business ByDesign, SüdFactoring internal operations have improved substantially.
Users Like the Intuitive Operation
“Since the go-live in November 2016, our operations are stable, and we have received very positive user feedback. Our development partner Data One also assists us as a service provider when implementing additional updates. Their support is very customer-oriented,” continues Dr. Reidel.
By implementing the SAP system, tax reports and asset accounting are now fully automated. Creating the monthly and annual financial statements has also been greatly simplified. According to employees, the tool is also very visually appealing, and has a comprehensive and helpful reporting system. Thanks to the clear structure, the users can intuitively find the information they need, which accounts for the smooth transition to the new system. Asset accounting and financial accounting both use the tool in the same scope.
SAP Business ByDesign has enabled SüdFactoring to meet regulatory requirements with greater speed and efficiency
SAP Business ByDesign has also enabled the company to improve its risk assessment from the first day of deployment. In the future, companies will be able to implement new regulations such as BAI, future amendments to the minimum requirements for risk management, and the BSI Act with minimal effort, which is one of the solution’s key benefits.
Reidel concludes: “Although our main motive was to modernize and professionalize our IT landscape, the transition to SAP Business ByDesign has also enabled us to meet the regulatory requirements the greater speed and efficiency.”
Photos via SüdFactoring.