Tech-based capital market transformation since 1999 – Interview with CEO Peter Schurau

LPA helps Banks, asset managers and other finance institutions reduce their fixed cost base by automating and digitizing their client advisory and regulatory documentation processes, thereby increasing their efficiency, scalability and achieving full compliance. At its headquarters in Frankfurt and at ten other international locations including Tel Aviv, London, Zürich, New York, Paris, Barcelona and Singapore, over 400 technology and capital market experts are now working for a portfolio of international clients. 

Briefly explain your business models

Peter Schurau: As a leader in FinTech software and consulting since 1999, we truly understand what makes the capital markets tick. We are a global, rapidly-growing provider who transform and digitalize players in the ecosystem of capital markets – from banks to asset managers. Our expertise lies in our sound capital market knowledge combined with powerful technology.

Consulting is provided on a project basis. Software is adapted to clients specific needs and processes and is licensed on an SaaS model either in the cloud, via API or on premise and includes the required project design, testing and integration and ongoing support.

“Capmatix Post-Trade” was developed as a digitization project in an approximately 18-month co-innovation process between Commerzbank and the LPA Group and tailored to the requirements of the post-trade area. The solution transforms the back office processes in the capital market corporate customer business by allowing processes to be controlled as a whole and adjusted if necessary. As a result, Commerzbank benefits from shorter time-to-market times for new products and further improved customer service.  

What can banks expect from you?

Peter Schurau: Our vision is to unlock potential in the financial services industry enabling agility and client focus. We apply our deep domain expertise to tailor technology and advisory solutions enabling clients in the financial world to remain agile and efficient in complex, changing environments.

Banks can expect to see several results from a joint project with LPA. Firstly a reduction in the fixed cost base, which may also mean a transition to a variable cost base by outsourcing to LPA.

Secondly a more robust compliance position by relying on LPA knowledge of applicable regulatory standards and how that should change workflows and documents.

Thirdly, digital transformation of legacy IT platforms and working processes to become more scalable and hyper-efficient enabling greater competitiveness and even making smaller deals potentially more commercially viable.

Our aim is to be the skilled specialist who clients can turn to as a trusted and reliable strategic partner. A project with a large German savings bank / bank to automate the issuing process of structured retail products improved the scalability and enabled the bank to become one of the market leaders in Germany.  

What is your USP

Peter Schurau: Clients continually thank us for a real combination of deep financial domain expertise with software and consulting know-how. Over and above this, we take great care to ensure our people have a genuine care for the client. Our success and growth depends on the success of our clients.

Paper-based processes and systems are encumbered by unclean data, manual reconciliations, and potentially uncontrolled customisation. Migrating these systems to the cloud and transforming these processes, capital markets players can reduce costs up to 75%.

Implementation knowledge is lacking in organisations—73% of banks see lack of knowledge and experience as a primary barrier to further cloud adoption. LPA provides this implementation capability.

64% of sell-side firms in a recent survey have made increasing automation through AI one of their critical longer-term goals as overall global spending on AI systems rises to $98 billion in 2023 with a compound growth rate of 28.4%. LPA has significant capability and experience in AI.

Regulatory reporting challenges are numerous and will continue to increase in the coming years. Our acarda platform automates all processes – from data management and sophisticated calculations to the creation and distribution of reports. This service with a transparent dashboard to all data and calculation is used by many asset managers and fund administration for their clients. We calculate, produce and distribute all kind of European reports from AIFMD, PRIIPS EPT, EMT, Solvency II TPT, VAG, CRR II, SFDR with one single data source and one platform.  

About Peter Schurau

Peter is CEO of LPA and also Industry Partner at Motive Partners and former Chief Executive Officer of Capco Europe.

Prior to this Peter worked in the Financial Services division of KPMG Consulting. When KPMG Consulting spun-off from its audit holding company and was listed as BearingPoint, Peter became a member of the European Management board and ran Financial Services Europe. Under his leadership, BearingPoint became one of the leading advisory and SI consulting firms servicing the FS industry. In 2007, he joined Capco to lead the European region. During his tenure, he successfully transformed the business into a high growth and above market profitable organization. He grew the business in all relevant markets while expanding in all major Key Accounts. He was also managing Capco’s growth aspirations in the Asia Pacific region.    

Article published on May 14th 2021 by Geldinstitute.de