Process optimisation

High level of automation

Since the groupwide introduction of the Avaloq banking software suite in 2011, the LLB Group has consistently improved its processing quality and productivity. By focusing on automation, the Group IT Division is helping to design more flexible work procedures and implement more efficient distribution processes.

In comparison with the appropriate benchmarks (CC sourcing of the University of St. Gallen), in 2015 the LLB Group attained very high STP rates (the percentage of transactions, which from start to finish are processed fully automatically). For example, in 2015, 92 percent of all processed payment orders were already being submitted electronically, the STP rate stood at 99 percent. Over 98 percent of stock market statements were processed automatically and the STP rate with capital market transactions was almost 80 percent. Accordingly, the LLB Group has the essentials in place to efficiently process large transaction volumes.

We understand the busy lives of our clients, which means that contacts with us should be as brief and pleasant as possible. To this end, in 2015 we accelerated and optimised the processes for opening a business relationship with the bank and the granting of loans. As a result, we have significantly shortened the processing time from the commencement of a loan application up to the time point of the earliest payment of the loan facility.

Major progress in improving efficiency, optimising IT and simplifying structures led to further cost savings in comparison with the previous year of 6 percent. Expenditure for IT projects in 2015 amounted to CHF 6.8 million. Fifty percent of our IT investments, i. e. CHF 3.4 million, went to business projects, CHF 2.9 million was invested in our infrastructure, while expenses and investments for current regulatory issues totalled CHF 571’000 (see chapter “Regulatory framework and developments”).

A major point in 2016 will be the implementation of the provisions concerning the automatic exchange of information. This applies especially to the processes of client identification and tax reporting as well as the complex IT applications required for this purpose.

Shared Service Centers

As the backbone of the LLB Group, the Corporate Center made a significant contribution in 2015 to adapting the LLB to face fiercer competition. The measures that began in 2012 with the amalgamation of the payment services, trading and securities administration of the LLB and Bank Linth in a shared service center at the headquarters in Vaduz were continued in 2015. The payment systems of LLB (Österreich) AG in Vienna have also been channelled through Vaduz since 2014, and in July 2015 the central client register of Bank Linth together with the LLB’s Client Master Files Department were also merged in a further shared service center in Vaduz.

The degree of automation achieved by our shared service centers is steadily increasing. Every year, they participate in benchmarking projects to continually improve cost efficiency and performance. Consistent improvements in efficiency is one of our goals as part of the StepUp2020 strategy.