Broadening our horizons
13 November 2018
After Vermeg鈥檚 recent acquisition of Lombard Risk, its chairman Badreddine Ouali provides an insight into how the firm is looking forward to expanding its offerings
Image: Shutterstock
What is the reasoning behind Vermeg鈥檚 acquisition of Lombard Risk?
Vermeg is mainly based in western Europe and the US, and with Lombard Risk, we are now active in almost every continent.
When you make software, you want to distribute it to the widest market possible, covering as many geographies as you can, so your product can become more competitive and access
more clients.
Even though we are in the digital age, we still like to have close contact and face-to face customer relations. So, as Lombard Risk and Vermeg work in the same fields within the financial services industry, we both have very complimentary geographies.
From a UK perspective, we are very happy to be in London; after all, it is one of the world鈥檚 leading financial centers. We should鈥檝e had a presence there a long time ago and we鈥檙e delighted that through this acquisition we now have a London base.
What will the integration of Lombard Risk into Vermeg mean for clients and staff?
For the clients, we will be able to offer access to a wider range of regulatory risk, collateral management and back-office monitoring and management tools. Our staff will benefit from being part of a larger business with a truly global outlook. The opportunities for them will grow.
On the acquisition of Lombard Risk, you said 鈥渨e will further develop our offering鈥�. What are your global ambitions for the future with this statement in mind?
Lombard Risk has a market leading collateral management service for commercial banks and Vermeg has a great collateral offering for central banks, so together that makes Vermeg and Lombard Risk one of the world leaders in the collateral management field. At the same time, Vermeg has fantastic software for investment securities and Lombard Risk has outstanding solutions for regulatory reporting.
We will be able to offer a comprehensive offering to clients in the financial services industry and we鈥檒l also be able to share our research and development knowledge.
You cannot manage asset management without taking into account all the constraints that regulators have put in place. Together, Vermeg and Lombard Risk will cover the whole spectrum of investment, supporting decision making and supervisory activity.
Can you tell me about Vermeg鈥檚 collateral offering and the trends you have seen within collateral in the last 12 months?
For Vermeg, the offer of collateral management has a destination鈥攃entral banks. Currently, we service some of the largest European central banks on agileREPORTER.
Following the 2008 Financial Crisis, banks are starting to grow again but governments and authorities do not want to pay for such an event again. Today, you cannot enter any market without demonstrating adequate collateral.
Authorities are keen to check your collateral is valid. Even if another financial crisis did occur, they want to be sure that banks can still honour their commitments so there is no risk the taxpayer has to pay. Collateral is crucial to keeping the markets safe. This trend is set to continue and define financial management.
How does agileREPORTER carry out Vermeg鈥檚 commitment to regulatory reporting? What is its unique selling point?
We have deep knowledge and understanding of regulatory reporting and the underlying business of collateral. As we are experts in collateral markets, it is crucial we support our clients in their compliance processes. As capital markets become more sophisticated, you cannot be blind to what is going on when reporting to a regulator and you need to know much more. That鈥檚 how it is in the financial services today.
You have offices all over the world. How did Vermeg start out? How is the business outlook different today, compared to when you first started out?
First, we served global markets from one country, and from there we began to export our expertise to other regions.
We quickly realised that clients wanted us to be more present and have a regional base. Now, with Lombard Risk, we truly have a global footprint.
We鈥檝e moved from being a regional player to a global player and now we have greater means to invest because we have that global reach. This is key for us and our clients. We want to take our best in-market offering and become a truly global leader in regulatory reporting, collateral management and investment securities software.
Vermeg is mainly based in western Europe and the US, and with Lombard Risk, we are now active in almost every continent.
When you make software, you want to distribute it to the widest market possible, covering as many geographies as you can, so your product can become more competitive and access
more clients.
Even though we are in the digital age, we still like to have close contact and face-to face customer relations. So, as Lombard Risk and Vermeg work in the same fields within the financial services industry, we both have very complimentary geographies.
From a UK perspective, we are very happy to be in London; after all, it is one of the world鈥檚 leading financial centers. We should鈥檝e had a presence there a long time ago and we鈥檙e delighted that through this acquisition we now have a London base.
What will the integration of Lombard Risk into Vermeg mean for clients and staff?
For the clients, we will be able to offer access to a wider range of regulatory risk, collateral management and back-office monitoring and management tools. Our staff will benefit from being part of a larger business with a truly global outlook. The opportunities for them will grow.
On the acquisition of Lombard Risk, you said 鈥渨e will further develop our offering鈥�. What are your global ambitions for the future with this statement in mind?
Lombard Risk has a market leading collateral management service for commercial banks and Vermeg has a great collateral offering for central banks, so together that makes Vermeg and Lombard Risk one of the world leaders in the collateral management field. At the same time, Vermeg has fantastic software for investment securities and Lombard Risk has outstanding solutions for regulatory reporting.
We will be able to offer a comprehensive offering to clients in the financial services industry and we鈥檒l also be able to share our research and development knowledge.
You cannot manage asset management without taking into account all the constraints that regulators have put in place. Together, Vermeg and Lombard Risk will cover the whole spectrum of investment, supporting decision making and supervisory activity.
Can you tell me about Vermeg鈥檚 collateral offering and the trends you have seen within collateral in the last 12 months?
For Vermeg, the offer of collateral management has a destination鈥攃entral banks. Currently, we service some of the largest European central banks on agileREPORTER.
Following the 2008 Financial Crisis, banks are starting to grow again but governments and authorities do not want to pay for such an event again. Today, you cannot enter any market without demonstrating adequate collateral.
Authorities are keen to check your collateral is valid. Even if another financial crisis did occur, they want to be sure that banks can still honour their commitments so there is no risk the taxpayer has to pay. Collateral is crucial to keeping the markets safe. This trend is set to continue and define financial management.
How does agileREPORTER carry out Vermeg鈥檚 commitment to regulatory reporting? What is its unique selling point?
We have deep knowledge and understanding of regulatory reporting and the underlying business of collateral. As we are experts in collateral markets, it is crucial we support our clients in their compliance processes. As capital markets become more sophisticated, you cannot be blind to what is going on when reporting to a regulator and you need to know much more. That鈥檚 how it is in the financial services today.
You have offices all over the world. How did Vermeg start out? How is the business outlook different today, compared to when you first started out?
First, we served global markets from one country, and from there we began to export our expertise to other regions.
We quickly realised that clients wanted us to be more present and have a regional base. Now, with Lombard Risk, we truly have a global footprint.
We鈥檝e moved from being a regional player to a global player and now we have greater means to invest because we have that global reach. This is key for us and our clients. We want to take our best in-market offering and become a truly global leader in regulatory reporting, collateral management and investment securities software.
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