Dresdner Bank sells reference data engine to IBM

IBM has purchased Dresdner Bank's financial market database operation and signed an outsourcing agreement to provide that bank with necessary reference data on demand. Dresdner Bank, based in Germany, and IBM developed the financial market database for risk control purposes. Dresdner risk management director Otto Steinmetz said the new business transformation outsourcing arrangement would allow the bank to focus on its core competencies while ensuring constant quality and supply of necessary market data. As part of the agreement, 24 bank employees will be transferred to IBM.

IBM plans to resell the service to universal and investment banks, insurers, and asset management firms, according to IBM managing director Norbert Dick said. "Buying in-market data of this kind is interesting not just because it costs less than an in-house solution, but because of the higher quality of the data provided," he said. "That should be of interest for all banks and insurers for whom the new service will provide more and better data." About one quarter of banks are looking at outsourcing their reference data operations or otherwise purchasing the service, Dick said.

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