Deutsche Bank AG says an improved account substantiation process will give it better control of balance sheets at its business units around the world.
The Frankfurt company is using a system developed by the London consulting and software firm Business Control Solutions PLC, which plans to offer it to other companies.
Mandy Coxon, Deutsche Bank's head of U.K. finance, said it already has deployed the BCS Integrity system in the Asia Pacific region, which previously used manual processes. "It had the biggest bang for the buck for us."
Deutsche Bank plans to introduce the system this year at its offices in London and New York, she said in an interview last week.
Those offices use more sophisticated systems than the Asia Pacific region, Ms. Coxon said, "but not as robust as we wanted to roll out worldwide."
By the end of the first quarter Deutsche Bank plans to complete the BCS Integrity rollout to manage operational risks globally in its retail bank, asset management, private wealth management, investment banking, and corporate operations, she said.
The system takes feeds from various ledgers to provide a consolidated view of Deutsche Bank's accounts, Ms. Coxon said.
"Every balance sheet is made up of thousands of accounts that roll up into different categories," she said. "Every month there are literally millions of accounts that are verified within each entity, in each location."
The system documents processes and reconciliations, not only confirming that the work was done but also quantifying areas of concern, she said. The investment bank, for example, would have to account for bond positions, equities, equity derivatives, and other assets. "We do actually catch problems at early stages."
Nigel Walder, the chief executive of Business Control Solutions, said BCS Integrity can take information from any general ledger, spreadsheet, or database program and can help companies comply with things like the Sarbanes-Oxley Act or Basel II.
Most companies have processes to confirm that balance sheets have been reviewed, "but there's very little context around whether there is any issue or any risk about the amount and what they're doing about it," he said.
By replacing simple spreadsheets with a global database, Mr. Walder said, the system provides "a glass bottom boat ride for senior management across their enterprise."
