Weighting is applied as follows: Factor of 7 for $100Bn+, 6 for $10-99.9Bn, 5 for ... 18.4% of all respondents are using
Results Presentation
Euromoney Cash Management Survey 2016 Population Total of 32,062 respondents representing annual turnover of approximately $25.76 Trillion* Responses Globally, from 9 regions (Africa, Asia, Australasia, CEE, Lat-Am, Middle East, Nordics & Baltics, N. America & W. Europe) as well as 125 individual countries. Responses across varying company sizes – grouped in terms of annual turnover domestically, regionally and globally. Response splits across Industry sectors (see later slide for specifics). Quality of Service responses across 20 categories broken into geographical splits (as above). Importance of Service responses across similar categories. Responses to a host of additional editorial questions.
Respondents provide 1st, 2nd and 3rd within global, regional and/or domestic and 4 points are awarded for 1st, 3 for 2nd and 2 for 3rd – a weighting on the size of company is then applied to global and regional responses. Weighting is applied as follows: Factor of 7 for $100Bn+, 6 for $10-99.9Bn, 5 for $2.5-9.99Bn, 3 for $500million-2.49Bn, 2 for $100-499.9million. *calculated on mid-point of annual turnover selected by respondent (top brackets are doubled –ie. >$100m given a value of $200m.
Number of Cash Managers…..
60.00% 50.00% 40.00% 1
30.00%
2-4
20.00%
5-6 7-10
10.00% 10+
0.00%
10+
• • •
7-10
5-6
2-4
1
Set on the far left shows 2-4 Cash Managers is the average across all respondents. Mirrored across the regions with Australasia and the Caribbean being the only two to buck the trend – mostly utilising one Cash Manager. 18.4% of all respondents are using more than 5 CMs and Asia, the Caribbean and Nordics
Number of Cash Managers
70.00%
Change in Number of Cash Managers over the next 12 months… 100% 90% 80% 70% 60% 50% 40% 30%
20% 10% 0%
No Change
• • •
Increase
Decrease
Around 80% of all respondents are looking to stick with the same number of cash managers. If you take the % looking to increase and subtract the % looking to decrease, then the Caribbean, Africa and Asia are the 3 regions with the largest difference. W. Europe’s % of respondents looking to increase is outweighed by those looking to decrease.
When did you last re-evaluate your CMs Vs Change, Add or Remove…. When did you last re-evaluate your relationship with your CM by issuing an RFP?
When did you last change, add or remove a CM? 100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20% 10%
10%
0%
0%
Last 12 months 30-60 months ago
• •
•
12 - 30 months ago More than 60 months ago
Last 12 months 30-60 months ago
12 - 30 months ago More than 60 months ago
Across All Respondents just under 50% of all clients have issued an RFP in the past 12 months and around 1/3rd have changed, added or removed a cash manager in the same time frame. Asia, Africa and the Middle East follow this trend. The CEE, Australasia and North America see the largest % of 60+ months since re-evaluating or changing and the Caribbean shows the most fluctuation with the highest % RFPs / change in the past 12 months. The 30-60 month brackets are the smallest in almost all cases, showing that most respondents continue with their cash manager in the window between these times and wait until 5 years before re-assessing.
Which is your most important CM Relationship – Regional/Global responses.
-4%
Which relationship is most important to you, your domestic, regional or global Cash Manager? – ALL Respondents
W. Europe
Asia
+10% -1%
+5%
CEE
-12%
-8%
+5%
Global 22%
+3%
+2%
Asia, W. Europe and CEE make up the largest portion of respondents in this section, Asia tips more to the “local” relationship vs “total respondent”, whereas W.E and CEE tip towards regional / global. Local 56%
Regional 22%
-1%
Middle East
Lat-Am
-1%
+5%
Africa
-8% Local
Regional
Global
-1%
-8%
+2%
+10% +3%
The Middle East almost follows the overall respondents graph exactly, with over 55% saying the “local” relationship is most important. Latin America responses follow the CEE graph in tipping more to the Global / Regional side and Africa has over 65% stating the “local” relationship is most important.
Service priorities – All Respondents 2
• 1.8
Speed/quality of response to enquiries
We asked all respondents to give us an indication of the factors which are most important to them when selecting a Cash Manager.
Competitive pricing and fees Demonstrable understanding of the business Local market presence
1.6
•
1.4 1.2
•
1 0.8
On a scale of 1-7 each of the 11 factors to the right were given a rating of importance and then we accumulated the results.
Existing relationship
Non-essential
We then plotted this graph on the results. We plotted the % of responses with a 6 or 7 score (very important) along the horizontal axis and then the Standard Deviation (spread of responses) across the vertical axis.
•
The whole responses base results show that Speed / Quality of response to enquiries and Competitive pricing and fees are the most critical for respondents.
•
Mobile Capabilities appear to be less important across the whole spectrum of respondents but still nearly 70% said they gave that factor a score of 6 or 7 for importance.
0.6 0.4
Core Differentiators Critical
Market reputation International/cross-border capabilities Innovative products Quality of RFP/pitches Mobile capabilities Ancillary business
0.2 0 0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Additional Information or further analysis on results?
For more information, please contact: Mark Lilley Head of Data Publishing Capital Markets Group Euromoney Trading Ltd. Tel: +44 (0)207 779 8820
[email protected] 