Mortgages Integration Project at ABN AMRO

We have been working on an integration project at ABN AMRO and their subsidiary ABN AMRO Hypotheken Groep. The project requires the migration of mortgages from an obsolete system to a Quantitative Risk Management (QRM) system.

To manage the project effectively we compiled a scenario for a successful migration, based on information gathered throughout the organization. As part of this process, we studied both the current process of funding the mortgage contracts and the process they to which they are migrating. This presented an opportunity to immerse ourselves the funding practices of banks and link these to implementation, i.e. proper engineering.

The migration requires a move from an existing funding methodology to the industry standard of Funds Transfer Pricing [1. see for more details on FTP] (FTP). Implementing this needed a conversion methodology. After a literature search we suggested a methodology and implemented it. For the implementation we build a Microsoft Excel/VBA tool to do the relevant computations. Migration of the mortgage contract data from the old system required custom built SQL scripts in combination with the QRM Transaction Data Mart tool. Once the migration is complete all the mortgage information will be stored and processed in one place, reducing operation risk.