Bank Profile
Landesbank Baden-Württemberg (LBBW), headquartered in Stuttgart, is Germany’s largest Landesbank with €356 billion in total assets (as of year-end 2024) and over 10,000 employees. It operates as a universal bank with global reach and deep regional roots, serving corporate clients, institutional investors, private customers, and acting as the central bank for Sparkassen in Baden-Württemberg, Saxony, and Rhineland-Palatinate.
LBBW is known for being the top bank for the German Mittelstand and ranks among the top 4 in Germany for syndicated loans and real estate/project finance.
Challenge
LBBW’s Financial Markets Division faced a strategic question: “How can we quickly deliver a modern digital FX hedging solution to our mid-market and small corporate customers?”
Several factors made this a pressing issue:
1) Desire to move FX Flow from Phone to Online Channel
LBBW’s SME and mid-market clients were traditionally reliant on phone calls, emails, and spreadsheets to manage their FX risk processes that were slow, error-prone, and increasingly misaligned with modern treasury practices. The COVID-19 pandemic accelerated the demand for remote-ready, digital financial tools, pushing many businesses to expect real-time, self-service capabilities from their banking partners.
Internally, LBBW’s dealing desks were inundated with high volumes of manual requests, a setup that constrained scalability and clashed with the bank’s broader digitization goals. Transitioning FX execution to an intuitive online platform promised to streamline operations, unlock significant efficiency gains, and deliver the speed, transparency, and autonomy clients were beginning to demand.
2) Need to deliver a Distinct Digital Identity for LBBW and Sparkassen
Beyond digitizing the process, LBBW also needed to reflect its distributed customer base, particularly the smaller corporates served through its Sparkassen partners. These businesses often lacked access to digital treasury tools and continued to manage currency exposure manually. Recognizing its strong product expertise and central role within the Sparkassen-Finanzgruppe, LBBW seized the opportunity to introduce a branded, white-labelled FX platform.
This approach allowed both LBBW and individual Sparkassen to present a unified, professional digital offering, differentiating the group from fintech challengers while ensuring each client interacted with a platform styled to their bank’s brand. The result was a scalable, multi-entity solution tailored to Germany’s federated banking model.
3) Recent Business Expansion
In 2020, LBBW took over the interest rate, FX, and commodities risk management business from BayernLB (another bank) for the savings banks sector. This expanded LBBW’s responsibility for providing hedging services to a larger base of savings banks’ corporate clients across Germany. Handling this volume with traditional methods would be challenging; a scalable digital platform was needed to serve both its own direct clients and those of partner Sparkassen.
LBBW had to decide whether to “Develop an in-house platform or partner with a fintech?“
Building in-house would require significant time, given the need for intuitive UX, API integrations to corporate ERPs, and sophisticated risk engines – areas where LBBW had limited existing tooling for the SME segment. On the other hand, partnering could allow quicker deployment but meant relying on an external provider.
The bank’s priorities were speed-to-market, proven technology, and the ability to customize the solution for the German market with extensive front-end flexibility capabilities, which needed to cater to more than 300 Sparkassen clients, each with their own sub-branding and admin users.
Decision: Partnering with TreasurUp
After evaluating options, LBBW opted to partner with TreasurUp in March 2021, signing a cooperation agreement to use TreasurUp’s online FX hedging platform. The decision hinged on several considerations that favoured partnering over building:
1) Quick Time-to-Market
TreasurUp already had a mature solution used by other European banks. LBBW could thus launch a “cloud-based software tool” for FX hedging by the second half of 2021, as planned, a timeline that is difficult to achieve with in-house development. Speed was critical for LBBW to address client needs promptly and seize the digitization momentum.
2) Advanced Technology & Automation
By partnering, LBBW would “benefit from the latest technology” in FX risk management without having to create it from scratch. TreasurUp’s platform offered cutting-edge features like automatic risk identification from accounting data and one-click hedging execution. The software “automatically determines currency risks on the basis of accounting data (orders or invoices) and open positions can then be hedged within seconds.”
These capabilities would be very costly and time-consuming to develop internally. The partnership gave LBBW immediate access to this high level of automation.
3) User-Friendly Design (Low Training Overhead)
A big selling point was TreasurUp’s user experience. The tool is so intuitive that no initial training is needed; even first-time users can hedge within minutes. It’s simple to use but packed with advanced features when needed.
For LBBW, this meant it could roll out the platform to many SMEs (and across numerous Sparkassen) without an enormous training program, a practical necessity given the scale.
An in-house tool might not have achieved such UX refinement without extensive iteration. TreasurUp’s focus on SME end-user design (tailored based on prior feedback from many companies) was a strong advantage.
4) Focus on Core Competencies
LBBW’s leadership acknowledged early on that developing fintech-grade software is not a core strength of a universal bank, but advising clients and deploying capital certainly is.
By partnering with TreasurUp, LBBW could concentrate its internal resources on client relationships, marketing, and strategic growth, while relying on a proven fintech partner for platform development and delivery.
5) Customization & Local Market Fit
TreasurUp was willing to work jointly on tailoring the platform for Germany. Niels van Daatselaar, TreasurUp’s CEO, noted that LBBW, being “very close to the target group” of German SMEs, would enable TreasurUp to develop “a solution tailor-made for the German market.”
This alignment ensured LBBW that the partnership would yield a product fitting local requirements (language, regulatory, and product preferences). In effect, LBBW got the best of both worlds: a proven out-of-the-box solution and a say in its localization. Given these factors, LBBW decided to partner (buy) rather than build.
This approach was validated by the fact that TreasurUp’s platform had won industry recognition (e.g., Global Finance’s Innovator Award) and had a track record in other markets, reducing the risk for LBBW.
Implementation Process
Once the decision was made, LBBW and TreasurUp moved quickly to implement the solution:
1) Scope and Integration
The partnership agreement covered making the TreasurUp platform available to both LBBW’s own corporate customers and those of the Sparkassen-Finanzgruppe (savings banks) that LBBW serves. This broad scope meant integration not just with LBBW’s systems, but also designing a rollout to dozens of savings banks.
TreasurUp’s platform, being cloud-based, is accessible via a web browser and does not require local installation at each bank, simplifying the technical deployment. LBBW integrated its market data feed and trade execution backend with TreasurUp’s system, so that when a customer executed a trade on the platform, it would seamlessly route to LBBW’s trading desk or electronic pricing engine.
2) Customization
TreasurUp worked with LBBW on German-language support and compliance checks. The platform was branded under LBBW/Sparkasse style (white-labelled) so clients see a familiar interface. Additionally, certain product parameters were adjusted; for example, LBBW set the available currency pairs and limits in line with its credit policies. The platform’s hedging templates were configured for common scenarios of German SMEs (such as export order hedging and import payables hedging).
3) Pilot and Testing
By mid-2021, a pilot was conducted with a few corporate clients and one regional savings bank. This pilot verified that data flowed correctly and that clients found the platform useful. Thanks to TreasurUp’s prior refinements, there were few issues. LBBW’s team was particularly impressed that even clients who had never used an online platform for FX were able to navigate it easily, reinforcing the “intuitive” claim. One pilot user reportedly hedged an exposure within 15 minutes of first login, without needing training, which validated the user-friendly approach.
4) Launch (H2 2021)
LBBW proceeded with a broader launch in late 2021, as targeted. The service was rolled out under a name like “FX-Manager Online” for LBBW and made available to savings banks to offer to their corporate customers.
LBBW’s press release in March 2021 had already created buzz, so by launch time, clients were eager to try it. Relationship managers introduced the platform to customers during regular meetings, highlighting that now they could manage FX risk digitally. Because the platform could handle everything from exposure identification to trade execution, it was marketed as a comprehensive solution: “from invoice to hedge in seconds.”
5) Training and Support
Although end-users didn’t need formal training manuals due to the design, LBBW did hold informational webinars for corporate clients demonstrating the platform’s features (e.g., how to connect an ERP or how to set a hedging rule). Internally, LBBW and Sparkassen employees were given overview sessions so they could assist clients if needed. TreasurUp provided supporting documentation (FAQ, integration guides) and stood ready to handle any first-line support questions during the rollout. This joint support model ensured any teething issues were resolved quickly.
The implementation was largely smooth, benefiting from TreasurUp’s experience and the prior development done for other banks. Within roughly 6 months of agreement, LBBW had a live, functioning digital FX hedging service – a testament to the efficiency of the partner approach.
According to the LBBW team, if they had chosen to build the solution in-house, those 6 months would have been spent on internal preparations before implementation could even begin.
Results
1) Faster Time-to-Service
By partnering with TreasurUp, LBBW met its goal of rapidly offering a new service. The platform went live in 2021 as intended, far quicker than an internal project could have achieved. This meant LBBW’s clients started automating their FX hedging sooner, and LBBW positioned itself as an innovator in the market at an early stage. In an industry where lengthy IT projects often delay innovation, LBBW’s approach delivered results in the same calendar year, an outcome that likely wouldn’t have been possible had they chosen to build internally.
2) Competitive Edge and Client Acquisition
With the new platform, LBBW and the affiliated savings banks could attract and retain SME customers by addressing a clear need. They marketed the solution as a value-added service, potentially winning business from companies that were considering fintech alternatives.
LBBW noted that offering “flexible, easily accessible solutions” is crucial for competitiveness, and indeed, this solution became a differentiator. It positioned LBBW (and the Sparkassen clients who use the service) as technologically forward-looking partners for corporates. This may not immediately reflect in large revenue jumps, but strategically it defends LBBW’s market share against tech-savvy challengers.
3) Volume and Efficiency Gains
As adoption of the platform grew, LBBW saw a measurable shift in FX execution from manual to digital channels. With each online trade replacing a phone-based transaction, the bank significantly reduced the operational load on its dealing desks.
Internal estimates show that switching to TreasurUp’s digital platform has saved LBBW well over a thousand man-hours per year in transaction processing.
This meant a significant improvement as compared to the time previously spent on phone calls, confirmations, and manual entries. This freed up LBBW’s front office to focus on higher-value client interactions. In parallel, the volume of FX transactions handled electronically increased steadily, consolidating fragmented SME flows into a more centralized and scalable system. The platform thus delivered not only customer convenience, but also internal efficiency gains critical to LBBW’s long-term competitiveness.
4) Empowering the Sparkassen Network
One unique outcome is the enablement of the Sparkassen-Finanzgruppe’s corporate customers. LBBW made the TreasurUp service available not just to its direct clients but also to clients of savings banks across its network. This “one platform, many banks” approach means a mid-sized company that banks with a local Sparkasse in, say, Baden-Württemberg, can use the same sophisticated hedging tool, with LBBW providing the back-end execution. It effectively democratized access to an advanced treasury tool across the federated banking group.
The result is a more uniform high level of service – a smaller regional bank could offer the same quality of FX solution as a large bank. This strengthens the group’s overall proposition and helps retain business within the Sparkassen network. And for TreasurUp, this also meant a large pool of end-users.
Testimonials and Industry Recognition
LBBW’s leadership continues to champion the value of fintech collaboration. Dirk Kipp, member of the Board of Managing Directors since July 2024, recently stated: “I am committed to systematically expanding the digitalization of the trading business and promoting innovative product developments.”
This reinforces LBBW’s ongoing strategy to modernize through partnerships rather than internal builds.
The successful deployment of TreasurUp’s FX platform is a showcase of this approach, positioning LBBW and the Sparkassen network as technology-forward and SME-centric. The collaboration received industry coverage in outlets such as Finextra and is regularly cited as a benchmark for effective fintech-bank integration. Internally, it has helped drive a more agile and digital-first mindset across capital markets and corporate banking teams.
Further validating the partnership, Rainer Widmann (Manager of FX, Rates, and Commodities at LBBW) and Manuel Guggemos (Director Innovation and Management) on their visit to TreasurUp’s Utrecht office in June 2025 gave clear feedback: “TreasurUp is a very, very, very stable and reliable platform—we have hardly ever encountered any issues.”
They both mentioned a significant increase in trading flow since implementation and emphasized the positive commercial impact the platform has had across the business. This endorsement not only highlights operational success but also confirms the strategic fit of TreasurUp within LBBW’s long-term transformation journey.
Satisfaction Score
LBBW recently gave TreasurUp a satisfaction score of 9 out of 10, underlining the bank’s positive view of the cooperation. This score reflects strong performance in usability, innovation, and support.
The end user CSAT score of 4.4 out of 5 equally showcases the satisfaction, trust, and reliability of the TreasurUp platform.
Insights
LBBW’s build-vs-partner case yields valuable insights for banks weighing similar decisions:
1) Time and Innovation vs. Full Control
LBBW recognized that buying a solution could deliver innovation much faster than building in-house. In a fast-changing fintech landscape, speed can trump having full control over development.
The insight is that banks should focus on delivering value to customers quickly if a vetted external solution exists; partnering can be the smartest route. As evidenced, LBBW gained a state-of-the-art platform in months, whereas a DIY approach might have taken years, by which time the market may have moved on.
2) Leveraging External Expertise
By partnering, LBBW tapped into TreasurUp’s specialized expertise in SME treasury needs and UX design. The result was a product finely tuned to end-users (e.g., minimal training needed, automated workflows), something banks alone often struggle with.
This case shows the benefit of “operating under a ‘bank and fintech’ partnership model,” where each party brings strengths: the fintech brings innovation and the bank brings client trust and distribution. LBBW essentially outsourced the heavy R&D to a fintech, which proved efficient.
3) Scalability through Partnerships
LBBW’s partnership allowed it to serve not just its clients but also scale the offering across many banks (the Sparkassen). This is a powerful lesson: a single collaboration can have multiplier effects. Instead of each savings bank considering its own build or smaller solution, LBBW’s centralized partnership created a shared utility that individual banks could use. For banking groups or correspondents, this model can accelerate digital transformation group-wide.
4) Customization and Ownership
A common worry in partnering is losing flexibility. LBBW’s case counters that the bank ensured a tailor-made solution for its market and kept its “own brand front-and-center” (white-label) in the client experience. Banks can negotiate partnerships that allow extensive customization.
The insight is that partnering doesn’t mean a one-size-fits-all product; with the right fintech, the solution can be adapted to the bank’s identity and requirements, as was done for LBBW.
5) Risk Mitigation
Build vs. buy also has risk considerations. LBBW mitigated project risk by choosing a proven platform (reducing the risk of project failure) and by not having to invest CapEx in a big IT build. The pay-as-you-go or license model with TreasurUp was likely more cost-effective in the short run. If the service hadn’t caught on, LBBW could pivot with less loss than an internal project. This flexibility is an insight: partnering can lower the financial and execution risks of innovation.
6) Cultural Impact
Finally, LBBW’s partnership story has an internal cultural insight. Embracing a fintech collaboration required open-mindedness and cross-collaboration between LBBW’s business, IT, and risk teams and an external startup.
The success of this project likely made LBBW more confident and willing to pursue further fintech partnerships, fostering a culture of innovation. It exemplifies how a well-chosen initial partnership can serve as a “catalyst” for digital transformation within a bank.
Conclusion
LBBW’s choice to partner with TreasurUp instead of building in-house was vindicated by a successful rollout of a cutting-edge FX hedging service. The bank achieved in a short span what would have otherwise been a multi-year endeavour, all while empowering its clients and the wider Sparkassen network with a much-needed tool.
The case highlights that in the build vs. partner dilemma, partnering can often be the superior strategic choice delivering speed, innovation, and scale, and ultimately leading to better outcomes for both the bank and its customers.
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