HVB Group Integrates BPM Apps

Germany's second-largest private-sector bank to improve productivity, boost customer service, reduce operational risk

Germany's second-largest private-sector bank to improve productivity, boost customer service, reduce operational risk

Cambridge, MA — October 20, 2003 — HVB Group, the second largest private-sector bank in Germany with eight million customers and thousands of branch offices, is deploying a suite of Pegasystems Inc. applications that police the transfer of millions of euros changing hands internationally on a daily basis. Pegasystems is a provider of rules-based, smart business process management (BPM) software.

The agreement was signed in the first quarter of 2003.

"Mitigating risk is too often an inexact science in financial systems, and there are numerous ways that payments can go awry," said Martin Buehler, HVB Group. "Pegasystems' software is scalable, allowing many thousands of users to use the software at once. Its graphical approach to business rules is easy and intuitive, allowing us to quickly adapt to changes in a rapidly evolving environment."

HVB Group has integrated Pegasystems software with its existing payments and reconciliation systems and other back-office systems. The new solution automatically routes payment exceptions — discrepancies that can arise in the complicated process of transferring large amounts of money internationally — into the Pegasystems application to help HVB Group resolve them.

Pegasystems said its rules-driven software helps to decrease the number of steps involved, to reduce manual re-keying of data, to automate reporting and provide standardized message templates so that operators can respond to customers consistently. The software also reduces the time and expense involved in processing exceptions, and helps to reduce the number of faults that occur in payment transactions, according to the provider.

Pegasystems' software automates such investigations as payments, compensation claims and reconcilement. It creates records for reporting, allowing historical research for instruction detail, transaction messages and confirmation detail. It also includes Web self-service capabilities that extend the solution to branch offices, customers and partners.

The software parses messages directly from SWIFT, the international financial communications system, strips out the relevant data and creates an electronic case that an HVB Group employee can immediately begin processing. The file is integrated with the institution's databases and applications so it can directly access information relevant to a query or investigation.