Sparda Banks Strengthen Digitization

Apr 16, 2018

For more than three decades “Sparda-Datenverarbeitung eG” has been operating the Sparda banks’ IT as an internal IT service provider. It is now migrating its IT infrastructure to T-Systems data centers to save money and increase efficiency.
Major Order from Sparda Banks
The trend towards IT outsourcing in the financial sector is continuing. More and more banks are relying on external IT service providers and are focusing on their core business. The Sparda banks are among the financial service providers that are giving up their own data centers and are now outsourcing their entire IT infrastructure: to T-Systems – with a seven-year contract in the mid three-digit million euro range and an extension option for another three years. Only the management of the software, for example the core banking system, remains in the hands of the IT experts of “Sparda-Datenverarbeitung eG” (SDV-IT).

IT outsourcing increases efficiency

“The current market situation in the banking world with low interest margins, increasing regulatory requirements and the necessary striving for digitization requires sustainable measures by a professional IT service provider. We must therefore constantly increase our efficiency, reduce costs and at the same time drive innovations in order to strengthen our currently good competitive situation. The IT outsourcing contract with T-Systems offers potential cost savings in the triple-digit million euro range and we are thus taking the next consistent step in our on-going digitization strategy,” says Burkhard Kintscher, CEO of SDV-IT. “We made a conscious decision in favor of T-Systems because we value the partnership-based cooperation and because the company also enjoys an excellent reputation in the market with regard to compliance and IT security. Together with T-Systems as a strong and experienced partner, we are able to cost-effectively meet the high requirements of the banking supervisory authority BaFin.”

Central solutions for more IT security

More digitization also means having to arm oneself against the increasing attacks of hackers and data thieves. The Sparda banks are therefore also transferring important IT security measures to T-Systems. T-Systems manages the central firewall services that protect the corporate network against attacks from the Web. T-Systems also provides Security Information & Event Management (SIEM), which enables real-time analyses of attacks on IT systems to detect and avert cybercrime before harm is done. SIEM collects security-relevant log and event data, correlates them and identifies trends and patterns in real time. The security package booked by the Sparda banks is supplemented by Identity & Access Management (IAM) and PKI Services (Public Key Infrastructure).

Managed WAN and Managed LANS

The overall package commissioned by the Sparda banks also includes network infrastructure services. T-Systems will connect the approximately 400 branches and locations of the banking group to the data center via a network based on Multiprotocol Label Switching (MPLS). MPLS accelerates the data flow in networks and enables quality of service in the network. The management of the local networks (LAN) and the workstation systems of the approximately 6,000 employees of the Sparda Bank Group are also part of the new contract.

Journey to digitization

“The Sparda Group's win demonstrates that clients continue to need help in managing their complex IT infrastructures. As a digitization partner, we help our clients drive more productivity and efficiency in their IT infrastructures, as we help them get on the journey of digitization,” says Telekom board member and T-Systems CEO Adel Al-Saleh. “We are laying the foundation for Sparda banks’ transition to cloud services and further digital transformation.”