Commerzbank was established by individual and merchant bankers in Hamburg in the year 1870 after consolidating with Berliner Bank. It is the second-largest bank in Germany after the Deutsche bank whose headquarters are in Frankfurt. The bank has several branches situated in Europe, London, Luxembourg, Poland, Spain, and Switzerland. The main banking services offered by the bank are commercial banking services, retail banking and mortgaging (Binder 2006).
The management of the bank uses a financial information system known as the info broker. This system is used to ensure that strategic and content demands of the bank are met within the specified period of time. Its objective has been to ensure that current financial information, customers’ data, and banks internal information are consolidated into one single application in order to enhance proper delivery of services to the customers (Binder 2006).
Business systems refer to the systems that are found in business organizations composed of a large number of businesses, tradesmen in the same field of operation that combine resources, enhance sharing of information and also provide services that are beneficial to the organization. System Application Program (SAP) software is business software that consists of enterprise resource planning and related applications that enables the users to run the operations in the organization in an efficient manner. It also enables the bank to solve their core banking processes. System Application Program (SAP) software consists of tools and automated processes that assist the management of a company to manage the front office activities in the banking environment away from the transactional banking services, customer management systems, cost control, financial accounting and profitability and to undertake risk analysis of the bank (Laurentis 2005).
The management of the Commerzbank implemented the System Application Program (SAP) software to centralize and optimize the business processes of the bank’s solutions portfolio. It also restructured systems such as the loan transaction business unit and the loan factory unit that can process over 1.2 million loans while using the System Application Program (SAP) solution portfolio. The other systems that were restructured were the enterprise-wide standardized and integrated processes. The features within the System Application Program (SAP) solution system enables the bank to have improved efficiency and enables the performance of the bank to be carried out through using a high degree of workflow automation that has a shorter processing period (Laurentis, 2005).
The bank’s factory loan system enables it to provide an integrated information technology system in business areas that are based on standard solutions to accounting for a high level of integrated workflow automation for the company. System Application Program (SAP) software also helps the company to serve many company’s clients at reduced costs. Major Banks in the world are using the software because it leads to higher levels of productivity, agility and improves the way banks conduct their activities. The use of the balance sheet and risk systems has contributed to the success of the bank in matters such as. increased release of quality data, improved riskselection and provision of transparency in areas that involve the borrowing of resources from one person to another.