transaction services 2015 - Euromoney

June 2015

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TRANSACTION SERVICES 2015

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Transaction services

The technology dilemma

In a cost-conscious world, it can be difficult to make the case for technology investment. But the risks of being left behind are great.

Solomon Teague

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A 2

SMEs apply for credit cards

Commercial cards are moving beyond their use for expenses to become another source of funding in the supply chain, especially for the middle market.

Kimberley Long

Bank directory

A breakdown of global and regional transaction banking capabilities and key contacts

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Foreword

As transaction banking continues to evolve it faces both challenges and opportunities. Over the past year the renminbi has started to make progress as a currency for trade transactions. But transaction banking has also experienced heightened geopolitical risk across Russia and the Middle East, while Europe continues to struggle with its own economic crisis. In the 2015 Transaction Services guide we explore the changing face of transaction banking as the market modernises. A key theme to emerge is how technology is playing an ever-more important role in how the business is run. In addition to being a key function for payments, improved technology is assisting international corporates as banks continue to retrench in the face of growing regulations and expensive compliance costs. The need to develop new funding sources has become a pressing issue for many corporates, as many banks withdraw to their domestic markets. Rather than creating new products and services, banks have been exploring how better to use the options already available. Step forward commercial credit cards, which have found a new role in the market as a facilitator for supply chain finance. Corporates are relying on their banks more than ever for advisory services, particularly when it comes to the on-boarding of new technology platforms. However, some treasurers still feel that their respective banking partners have a long way to go to provide the services they require to obtain the correct platform for their operations. The internationalisation of even middle-market companies is changing how best to manage corporate treasury. This is leading to the emergence of cash pooling to mitigate fluctuating FX risk. However, this process of pulling in cash from around the world does not appeal to everyone. Despite the difficulties faced in meeting compliance requirements and keeping the regulators happy, there has been a growth in interest from global technology firms to enter the payments space. With little experience of working in the financial industry, there is speculation that Facebook and its social media peers might find they need more than just a network of millions to create a successful payments platform. Even as technology becomes a central theme for the business, many question how much time efficiency and financial benefit it brings. Banks are faced with the question of whether it is better to buy in the best of breed or to create their own proprietary platforms. As transaction banking continues to globalize and modernise, this challenge has become increasingly important to the banking TS community.

June 2015 · TRANSACTION SERVICES

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Technology

The technology dilemma The dilemma has never been more vexing. Banks and corporates are under ever more pressure to cut costs and streamline their operations, making it increasingly difficult to justify extravagant technology investment. Yet the risk of getting left behind has never been greater. By Solomon Teague Banks and the corporates they serve have always been keen to invest in technology. But the speed of regulatory change in the finance industry has become a key driver for their technology investments. Much of what is spent on technology is swallowed up by compliance – a cost that increases for banks operating across many jurisdictions. As a result, they are under pressure to ensure what is left over is spent wisely, to ensure the investment delivers the maximum bang for their buck. Banks’ increasing cost of capital has also encouraged investment to be directed at technology that helps them manage their assets and liabilities more efficiently. Regulation has encouraged banks to spend more on systems that increase transparency and accessibility in reporting, something many banks did not do to any great extent in the past. “The introduction of Basel III has created a strong business case for banks to improve their liquidity management, by investing in systems,” says Uppili Srinivasan, COO at iGTB, a provider of transaction banking technology systems for banks. Banks are committed to maintaining significant budgets for technology investment. Deutsche Bank, for example, plans to invest more than a cumulative €1 billion by 2020. But there are always choices to be made as they look to prioritise. “Banks have limited resources to spend on technology so there needs to be a clear business case,” says Srinivasan. “And there is quite a strong correlation between the level of investment and the clarity around the business case and ability to measure the benefits.” According to Stephen Greer and Jean-Marie Ubigau, banking analysts at Celent: “Core banking migration has historically been a high-risk proposition. For many, this has stalled any large IT investments and platform migrations.” Many feel the cost/ benefit analysis of migration is not yet compelling enough to convince many CIOs that the time is right. “Market demands can still largely be supported, despite legacy cores,” they say. In consumer technology, company behaviour is often driven by the desire to keep pace with competition. For banks it is a little different. “If one bank modernises its payments system you probably wouldn’t see the same scramble of others doing the same,” says Srinivasan. “But in the digital space they do watch the competition because a modern digital offering directly impacts end customer experience and brand perception.” Rick Striano, head of platforms and investments for trade

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TRANSACTION SERVICES · June 2015

finance and cash management corporates at Deutsche Bank, says the key drivers influencing banks’ technology policy are what the clients want, what the regulators want and what shareholders want. “Finding the right balance is critical to sustainability, and sometimes the importance of the last group is overlooked,” he says. “When a bank decides to invest in technology it considers what competitors are doing in the context of products and solutions, but when it comes to technology investments in infrastructure it’s all about addressing one’s specific needs based on their unique architecture, in the context of generating an appropriate return for shareholders. The investment needs to make financial sense.” Srinivasan breaks the business case for banks investing in technology into five categories: revenue generation, the attraction of new customers and businesses; revenue protection, the retention of market share; risk avoidance, which includes considerations such as the risk of regulatory noncompliance; risk reduction, about better understanding of risk and taking measures to reduce likelihood of or exposure to the same; and cost reduction, by replacing old infrastructure or consolidating systems. Corporates face the same pressures and must decide how to allocate finite budgets. “Technology is important to corporates because they want efficiency and automation, that improves their business,” says Cindy Murray, head of global treasury product platforms and e-channels at Bank of America Merrill Lynch (BAML). That kind of efficiency and automation can make an institution that has invested wisely much nimbler. “In the past a lot of technology was hard coded into the system, so if you wanted to make any changes you had to go back to the code base, which was time consuming and very costly,” says Striano. “Today’s technology offers much greater flexibility through configuration, so you can make a lot of changes at the front end, without rewriting the code, which reduces the maintenance costs and allows for greater flexibility.” It can also reduce the gap between the bank and the corporate so it is increasingly difficult to define where one ends and the other starts. “Technology should integrate the client further into the bank,” says Murray. “Building self-service capabilities such as the ability to access real-time information or research transactions reduces the need for staff and therefore cuts costs. That end-to-end automation increases client satisfaction.”

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“Technology should integrate the client further into the bank. Building self-service capabilities such as the ability to access real-time information or research transactions reduces the need for staff and therefore cuts costs. That end-to-end automation increases client satisfaction” Cindy Murray, Bank of America Merrill Lynch

One priority for corporates, for example, is making the best possible use of their data, says Murray. “They want to understand the data better, they want the bank to be embedded in their systems.” Tom Durkin, head of digital channels at BAML, adds: “Data can make a big difference if you build the right infrastructure. Data points needed for client ERP reconciliation are all aspects of potential regulatory reporting. Creating the ideal infrastructure enables better adoption of technology across the institution. It’s also about improving analytics. It increases your customer insight and enables better modelling which can be used in many different ways.”

Allocation trade-off In deciding where to allocate their resources to technology, both banks and their corporate clients have to constantly consider the trade-off of improving their long-term stability versus overcoming short-term challenges in the allocation of resources to technology. Different banks have different approaches, depending on things like whether they have grown organically or by mergers

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with other banks, which leave them with a number of different legacy technology systems. Srinivasan says: “In a transaction banking context, technology investment is most frequently made in four key areas: digital; risk; payments and liquidity; and trade, supply chain and receivables.” According to one Celent report, digital is the one with the most buzz about it, and is “increasingly top of mind for our clients over the last couple of quarters”. Striano breaks it down into three groups: enhancements to the client experience via improved access channels, the trend that has seen banking migrate from tellers to mobile banking via ATMs and internet banking platforms; system automation, increasing straight-through processing and allowing greater scale and efficiency; and information management, making data more replicable, simplifying analytics and helping corporates make better – and quicker – decisions. Striano says: “You need to really understand and define the scope problem you are trying to solve. Too often people don’t, which increases the risk that the solution will not work as intended. ‘Scope creep’ is just one example of the idea that


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A EuromonEy magazinE sponsored statement

Cross-CurrenCy payments: international payments with an FX Flavour As globalization continues to drive the need for international payments, corporates are focusing on the underlying FX as well as the payment itself. Increasingly, they require their banks to offer fully integrated payment and FX platforms. BNP Paribas’ new cross-currency solution is designed to meet this requirement Why an integrated crosscurrency payment offering now? Adrian Brown This is a clientdriven change. We’ve responded to what our clients have told us. Corporates are becoming increasingly sophisticated and knowledgeable about the FX underlying cross-currency payments (CCPs) and they now look at CCPs as both payments and FX transactions. They want the best of both worlds – a platform and a service that offers both a highquality payment and FX experience. Wim Grosemans In the Eurozone, SEPA is up and running, so corporates are ready to address new aspects of treasury optimization. Crosscurrency payments are non-SEPA international payments that integrate an exchange of currency. And they are undeniably a focal point for corporates.

What is your promise to the market? WG Many corporates find that strictly separating the handling of their international payments and the embedded foreign exchange is not a winning strategy. Our commitment is to help them streamline their whole cross-currency payment process, once and at fair prices, even if their FX exposure is not actively managed as part of a dedicated foreign exchange policy. AB There are three key words to describe our CCP offering -

margin. It’s equally important to be willing to discuss what rate that margin is applied to and how that can be benchmarked or verified. By discussing and demonstrating these openly, we ensure that our CCP offering meets these requirements. Technology is a powerful tool to make this possible.

So it looks like convenience, flexibility and transparency are the words…

Wim Grosemans, head of product management - international payments, cash management (left) and Adrian Brown, head of commercialisation - FX (right)

convenient, flexible, and transparent. Our clients are under pressure to streamline and reduce their costs while remaining fully accountable. We want to help them meet this challenge. The ability to reach the entire world through one single point that combines both payments and FX is fundamental.

What strikes you most when implementing a CCP solution? WG Flexibility is essential to designing a successful crosscurrency approach. Not all corporates benchmark in the same way – provided they do at all. Some focus on automation and

efficiency to ease the workload, so it is on us to integrate how we work to how they want to work. Others want more control over their cross-currency transactions, so they expect more addedvalue services on the front end. As a leading bank, our powerful technological infrastructure means that we can meet these requirements, including the realtime monitoring of transactions and flows. AB Also, whatever their profile, corporates are seeking more transparency on how we create and apply FX rates. It’s not enough simply to disclose or negotiate a

AB Absolutely. Both our clients and the market research we have conducted confirm the importance of all three. Our approach to CCP is to offer a convenient, flexible and transparent service. This includes how corporates wish to submit payments, how we create and apply an FX rate, whether they wish to combine the payment and FX into one simple transaction or deal with them separately, and what level of transparency and auditability they require. WG In the end, it is all about understanding how treasurers think, where they come from and how they want to manage their FX exposure. Based on that understanding and on our expertise, we provide fair and effective cross-currency solutions to cater for a whole spectrum of corporate realities and strategies. And because continuous improvement is one of our drivers, we are already looking at further broadening our offer with more innovative, value-added services.

[email protected] [email protected]

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Technology

“Tier-two or regional banks, especially in emerging markets, are in a different position. They have fewer issues around legacy systems and are more interested in making themselves more nimble and better placed to offer bundled products” Uppili Srinivasan, iGTB

while the patient is on the table you might as well make other changes, adjustments or enhancements to that system, which if not carefully considered and managed can create significant cost and delivery complications and jeopardise the overall project.” Instead, it is important to maintain focus, says Striano: “If an off-the-shelf solution can fix 95% of your problems, then that is a very good outcome. Solving that final 5% is often where the problems come in, and can constitute the majority of the expense.” The problems banks tackle with technology can take different forms. “Tier-one banks in mature markets often invest in technology to replace legacy systems or fill a specific void in their offering,” says Srinivasan. “Investing in an integrated GTB system allows them to offer a broader product suite – especially in international or expansion markets.” The world looks a little different to the smaller banks. “Tiertwo or regional banks, especially in emerging markets, are in a different position,” says Srinivasan. “They have fewer issues around legacy systems and are more interested in making themselves more nimble and better placed to offer bundled products to their clients.” Not every business is as ripe for technological improvement. Sometimes there is an urge to replace legacy systems that seem out of date but the benefits reaped by these investments may not be as revolutionary as expected. There have been numerous attempts to automate letters of credit, for example. While these efforts have yielded improvements, it remains essentially the same, largely manually driven business. “Supply chain and other back-office functions have the capability to eliminate a paper-intensive process, but certain processes still cling to paper,” says Murray.

Adoption cycle Banks often identify a new opportunity and invest in technology as a way to bring the opportunity to their clients. “The challenge is that new technology is usually aligned with new products and it can take years for those new products to gain traction with clients,” says Murray. “Benefits can have short- and long-term timetables. Where the product is on the maturity cycle will influence the adoption cycle with clients.” But banks cannot force their clients to follow them into new

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areas. Murray says: “Banks will not pull the plug on cheques, as long as clients want to use them banks will continue to support them. But we can invest in new technologies with new capabilities and try to encourage migration to electronic or digital payments.” Durkin adds: “Clients think about the future of technology opportunities and want banks to listen to them and provide a roadmap for the future based on innovation and efficiency. With Sepa [the Single Euro Payments Area] we rolled out a mass payment system in Europe and it presented an opportunity for clients to streamline accounts and increase transparency with a system with robust reporting capabilities.” Responding to the clients’ needs is a recurring theme when talking to banks about investing in technology. They clearly see the involvement of their clients as the key to ensuring they spend in the right places. In some cases, banks are stepping back and looking to their clients to lead the way. David Watson, head of GTB client access products at Deutsche Bank, says: “We want to bring the market closer to the product development process – market meaning not only our corporate clients, but regulators, competitors and even our own staff. By engaging and involving them throughout the product life cycle, we create solutions that truly solve their problems.” Watson believes banks have traditionally “had a mindset where competing on, and providing better, functionality equated to the number of portal or product links on the left-hand navigation menu.” However, he says Deutsche has changed tack, instead stepping back to listen to what clients want. “We found that what they wanted was simplicity and easeof-use, not more menu items,” says Watson. “They were being forced to spend too long in systems where it took too many clicks to get to where they wanted to go. When identifying a possible solution, we looked to consumer technology and software markets for inspiration. The result was Autobahn. To date, it has consolidated 67 existing online portals and offers a single sign-on, intuitive interface through an app-based delivery model.” Another change in mindset saw Deutsche think harder about the way it integrates its products. Watson says: “We had a lot of regional products with overlapping functionality. We were inspired by one of our car manufacturing clients, which has product managers not only for each car, but for each component of its cars. Through identifying its core strengths in component capabilities such as engines and brakes they were able to integrate the business horizontally across all of its models.” It is as much about recognising what others do better than you, as what your own strengths are. A car manufacturer may not make a car stereo as well as a consumer electronics firm, in which case it is better to partner with a third-party provider. “We have applied the same logic to our own organisation,” says Watson. “One of our component strengths is payment processing, so consequently we have invested heavily in that and made use of the technology across numerous products. And similar to the car manufacturer, we also don’t need to do everything ourselves; we recognise when working with partners to deliver a service may be more beneficial.”

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Measuring the increased efficiency gained from technological investment can be more art than science. In some instances it is simply a matter of calculating the cost saving in delivering a transaction, taking into account the longer term maintenance costs or update costs saved with the introduction of a new system. But not all improvements can be measured in dollars, euros or pounds. It is hard to accurately measure such intangibles as customer satisfaction and loyalty, system stability or the speed of problem resolution, let alone assess the impact on a company’s P&L. Investment in technology to enhance revenue generation is relatively easy measure compared to systems designed to improve a bank’s risk avoidance, says Srinivasan. Technology can take the form of sophisticated algorithms that enhance a bank’s ability to cross sell its products, but it is hard to measure which business was done purely as a result of such cross selling. To get the most out of technology banks cannot look at it in terms of numbers alone, but must take a more holistic approach. Client satisfaction is not easily quantified, but it goes a long way towards growing the business. “The most rewarding measure of success is client satisfaction, when you talk to clients and they tell you that they love using the product,” says Watson.

Value for money The big concern of any institution investing in technology is to ensure value for money. Inevitably, investments in technology can prove wasteful, because the chosen technology is overtaken by other, better systems, or because they do not work or are unpopular with clients. Such considerations are central to the question any institution must ask itself when investing in technology: should it buy systems from third party providers, or build the systems itself? When buying third-party technology there is always a risk the provider will disappear in the future, creating problems with support. But developing technology in-house risks wasting resources finding solutions to problems others have already solved. And buying technology from third parties allows banks to try before they buy, reducing the risk that they will end up with a system that is not fit for purpose. Srinivasan says: “When banks build their own systems they often lack the wherewithal to achieve the desired outcome across customer intimacy, operational excellence, product leadership and actionable intelligence. Our clients choose us because we have the ability to do so – helping them become principal bankers for their customers.” Often it will come down to control. Banks will develop inhouse the things they are most eager to retain control over, and buy in the more commoditized technologies. This means much of the regulatory and banking infrastructure technology is developed by the bank itself, as well as proprietary products developed out of the bank’s’ own financial expertise. Other business lines that are less strategically important to the bank, but which it needs to have the capability to offer its clients, are more likely to be bought in. Whichever way they go, there is no sign of any slowdown in

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“What [clients] wanted was simplicity and easeof-use, not more menu items. They were being forced to spend too long in systems where it took too many clicks to get to where they wanted to go. When identifying a possible solution, we looked to consumer technology and software markets for inspiration” David Watson, Deutsche Bank

the technological arms race. New systems are constantly emerging, be they of the cost reduction or functionality enhancement varieties. And while spend on technology is set to increase apace, so too will the benefits this expenditure delivers. And while regulation may continue to dominate the way budgets are spent on technology, it cuts the other way too. As advances make new things possible in GTS, legislators and regulators will need to work hard to keep up. The advent of cloud computing is revolutionising the way banks and technology companies deliver services to their clients, and it remains unclear how data protection rules apply, or what the implications are in jurisdictions with strict rules about data being stored locally. Striano says: “The benefits stemming from technological developments will continue to increase for the foreseeable future, even if the way they deliver value changes. As an example, technology has allowed some types of trading systems to operate at quasi real-time speed, so for those systems, technology’s next contribution will be in reducing the cost of that speed or increasing the scale of that speed.” It means the kind of investment being made now is very different to the ones made 15 years ago, with the problems facing businesses today often nonexistent back then. Srinivasan says: “Today it’s not enough to build a system that makes faster or more efficient payments because that is a given; it needs to have solid funds control, an ability to consider the customers’ cash management structures, collaterals of various kinds and historic TS transactions for payment decisioning.”


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Commercial cards

SMEs apply for credit cards Commercial cards are moving beyond mere expenses to become another source of funding in the supply chain, especially for the middle market. Kimberley Long reports Banks are searching for alternative funding solutions for their clients in a market where restricted liquidity demands better use of available resources. And as corporates push for better working-capital management and internal efficiencies, being more inventive with products they are already familiar with is a smart solution. Commercial credit cards have now moved to the fore to fill that mandate. Cards are hardly a recent development in corporate banking, but they have matured beyond being used just to pay for corporate travel and entertainment expenses. Cards are increasingly being used as part of supply-chain financing and even as part of the cash-management process. The immediate advantage in their use comes from the additional time available to settle the final payment. Maria Parpou, director of product, Barclaycard GCP, says: “There is an inherent benefit to businesses from using cards though the extended payment terms that they offer.” By using a credit card, a corporate can pay its supplier within a couple of days of making a purchase, yet still have some time before they have to reconcile with the bank, giving them greater liquidity in the intervening period. Mel Gargagliano, head of commercial cards for GTS EMEA, Bank of America Merrill Lynch, says: “Suppliers can receive commercial card payments within two or three days, so they receive their money quickly. The buyer then could have up to 55 days to pay the bank, depending on where it falls in the payment cycle.” Deutsche Bank’s commercial credit card services are provided by American Express. When a payment is made by a corporate customer, American Express does not require the transaction to be settled for up to 58 days. Björn Hoffmeyer, country manager for Germany and Austria at American Express, says this ensures that the buyer gets paid promptly, while improving the client’s liquidity as they receive 58 days of interest-free credit. This shift towards credit cards is creating new streams of liquidity for smaller businesses as it cuts the cost of processing payments. “They [SMEs] can pay suppliers to terms and achieve working capital benefits, or potentially pay earlier than terms, still gain a cash flow benefit but look to negotiate better commercial rates from the supplier as they will benefit from earlier payments,” Parpou says. Cards can also create strategic advantage, which translates into cost savings. Depending on the volume of transactions, these can quickly add up. Steven Robson, head of wholesale cards at Citi, explains: “The change in how transactions are

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made can reduce costs. Changing payment processes to credit cards allowed a corporate to reduce the cost of each transaction from £58 to £8. The movement of other payment flows to cards can also create a new revenue stream based on the rebate on the card spend.” Corporates willing to receive payments through cards are seeing that it is a guaranteed payment from their buyer that comes within a set timeframe. Because of the certainty it provides, they are often willing to offer discounts. Many corporates still operate with spreadsheets and cheques. They will, therefore, need to make considerable cultural changes – not to mention investments – to adapt to rapidly changing technology and move towards an e-payment system. In the meantime, credit cards are emerging as a bridge between old paper and new electronic payments – and beyond. Diane Reyes, global head of payments and cash management at HSBC, says: “Cards are increasingly being considered as part of a broader cash management strategy. Cards can adapt to the e-commerce and mobile payments options more easily than paper. They can be utilised as a virtual payment solution, but its functionality is reassuring in its familiarity.” Cards have the advantage of being a known quantity by corporate treasurers. Mostly, they do not require expensive or complex new technology before adoption. The user does not have to be given training on how to make a payment. Reyes adds: “It’s easy to understand how to use cards and the benefits are clear. We are seeing interest in HSBC’s card offering really ramping up.” Commercial credit card usage has been gaining traction in the US, where many mid-market corporates are still transitioning away from using cheques. European institutions appear to be slower to migrate away from cheques, but are adapting as the advantages become clear. In particular, virtual cards are emerging to cover a gap in e-payments. Operating digitally, they have time and efficiency advantages, but, like cheques, they have clear payment and security parameters. Virtual cards are given an individual number to make a one-off transaction; limits are set on the time frame in which the cards can be used; the amount to be transferred is preset; and the payee institution is also predetermined. All of this prevents the card from being used for any other purpose. Reyes says: “The company can limit the specific usage of the card. Spending taking place in unauthorised locations will be rejected at the terminal.”

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Virtual cards also give very detailed information. As well as the basic details of the card used and the customer details, each item is individually listed with its quantity and unit cost, which enables granular analysis of spending and gives the treasurer greater insight into the company’s purchasing. Parpou says: “Consider the process steps leading up to and post payment in both the corporate’s account payable and the supplier’s accounts receivable teams. Take, for example, the bank statements that have to be reconciled with payments made and payments received.” The detail also improves time efficiency as it makes the payments and invoices more readily identifiable. Parpou says: “Using (say) a virtual card-based payment solution means that there would be one virtual card for each payment instruction or invoice. This makes reconciliation a simple 1:1 matching, and this is done by the issuing system automatically, hence improving data quality and reducing process time.”

Deeper data analysis A further benefit beyond reduced costs to the treasurer comes from the ability to look into types of data that cannot be gathered in cash or cheque payments. The data obtained from cards can help to highlight any issues in the chain that could be made more efficient. Hoffmeyer at American Express says: “As well as giving insights to help longterm forecasting, the data from these expense-management systems can be invaluable for managing cash-flow issues in the short term by flagging any areas where costs are too high or inconsistent.” This data can provide in-depth analysis on where spending is being made away from favourable suppliers, or identify trends in developing spending patterns through shifts in the business operations and expansion into new regions. Gargagliano says: “There are working-capital benefits through the levels of control and the visibility of data.” Through working in this way the buyer’s procurement team may be able to negotiate favourable terms with its most-used suppliers, enabling further cost savings. The data obtained from card use can also help solve the problem of how to assess transaction and counterparty risk for an SME’s treasury team, since card providers will have already carried out some detailed scrutiny of existing and future customers before extending credit. Parpou explains: “There is no need for master data cleansing. In signing up to accept card payments suppliers are checked and registered by the acquirer and corporates are similarly vetted by the card issuer, and so payments are transacted using this data rather than corporate held accounts payable master vendor records. “Of course good records are important but gathering, checking and maintaining detailed records across the whole supply chain, including the long tail, is not core to business and can be rendered unnecessary [this way].” Through assessing trends in spending, the treasurer can identify points where higher volumes of payments are being made, and help the team to plan their cash management strategies to

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“By improving visibility of outgoings, businesses can gain a better overview of all expenditure, as well as a greater understanding of potential cash pressures” Björn Hoffmeyer, American Express

deal with these spikes in use. Hoffmeyer at Amex says: “By improving visibility of outgoings, businesses can gain a better overview of all expenditure, as well as a greater understanding of potential cash pressures in the future. Expense-management tools ensure that businesses can track trends, such as potential over-expenditure or excessive ordering. “Having accurate information management systems and forecasting in place ultimately leads to tighter financial control, resulting, hopefully, in more opportunities for investment and growth.”

Corporate on-boarding Despite the cost savings and data-analysis benefits, banks are finding that they still need to explain to corporate treasurers at companies of all sizes how commercial cards could be a favourable alternative to paying in cash. But when a company does understand the advantages, it is often keen to adopt the payment method. “There is growing mid-market interest,” Gargagliano says. “Some corporates are learning of the benefits and want to adopt a commercial cards programme. Others need some education around how it can be advantageous to them.” The experience across corporates varies; some may have a number of suppliers in the chain that are already willing to take payments by cards, while others may be thinking of on-boarding at a later date. There are also corporates that are resistant to change. Changing the culture of making payments within a company


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Sponsored chapter

ADCB: Competing in the gloBAl mArketplACe Abu Dhabi Commercial Bank acts as a gateway to the Middle East for global businesses and a springboard for businesses within the region eager to expand into world markets Abu Dhabi Commercial Bank (ADCB) has grown in leaps and bounds since the banking industry’s dark days of 2008-09. Now one of the Middle East’s most influential lenders, the United Arab Emiratesbased bank is gaining new clients as well as market share both regionally and globally, and earning plaudits for its technologically advanced, service and advisory oriented transaction banking and cash management services. Murali Subramanian, executive vice president and transaction banking head at ADCB, outlines the bank’s clear-minded and wellhoned ambition. “Our message has consistently been that ADCB is a bank that keeps up with technology trends, and is built to compete in a global marketplace,” he says. “We present ourselves as the bank of choice for multinationals coming to do business in the Middle East, and for regional firms looking to do business outside the Middle East. We keep up to date with best-practice IT and banking services, and continue to build and strengthen our alliances with correspondent banks.” The bank focuses heavily on improving key services, notably cash management and trade businesses, which have been consolidated under a new transaction group headed by Subramanian. That business today accounts for more than 44% of the bank’s wholesale banking revenues and 19% of group revenues, and is rapidly securing new global

business, as well as snagging trade and industry awards. In 2014, it was ranked one of the world’s top 20 best global cash managers for nonfinancial corporates for the second time, outlining both the ambition of, and the elite level of managerial talent present in, the region’s leading lender.

Key decisions One of ADCB’s shrewdest decisions came not long after the financial crisis, when it agreed to buy the local consumer business of troubled UK lender RBS for $100 million. Soon after, ADCB signed a preferred correspondent arrangement with Bank of America Merrill Lynch and Banco Santander. These events transformed it into a visible provider of quality. This soon brought in a host of new business opportunities, turning ADCB into the bank of choice in the region for global and local corporates looking either to set up in the region or to improve the quality of their treasury services. “We worked with global corporates, helping to transfer their operations smoothly on to our systems,” says Subramanian. “With so many Western banks departing or downsizing, it offered us the chance to provide genuine value to a host of multinationals, all of whom recognized the rising economic importance of the UAE and the wider region. We have consistently proven to clients the level of our ambition; and more importantly, the quality of our platform and its ability

to cater to the demands and needs of the region’s and the world’s leading corporates.” Under ADCB’s five-year-old transaction banking group, the bank is continually looking for more streamlined ways to interact and engage with clients. Transferring clients from international banks and expanding its wallet with existing corporate clients have proven key to driving revenue growth, along with securing new clients keen on expanding into the Middle East’s fast-growing economies. Key to that process has been proving to multinationals that ADCB can deal with any challenge, and the professional services capabilities once equated with lenders in Europe and North America. “The smooth manner with which we can take on clients not just from the region but around the world too, then help them settle here and build up their regional business, is key,” says Subramanian. “So if a multinational client out of the UK or Germany comes to us, we can offer them the option of working across the Middle East using their own bank access platform: be it online, where payments are entered into the bank’s system; or file-based, where payments are sent in a batch to the bank for processing.

Step by step It can be easy to underestimate or overlook the importance of getting the nuts-and-bolts of areas like cash management right. ADCB doesn’t

“We present ourselves as the bank of choice for multinationals coming to do business in the Middle East, and for regional firms looking to do business outside the Middle East”

make that mistake. It understands the importance of helping a client make its move into the Middle East as seamless as possible, as well as smoothing a Middle East corporate’s long-term transition to a more globally-focused strategy. “We give clients a very low pain threshold in terms of shifting their account and their business to us - it’s a very simple step-by-

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step operation,” says Subramanian. “We make things very easy to understand, helping cross-border corporates to understand local rules and tax issues, and committing to getting their transition to our platform completed within a matter of days. We pre-agree that process by way of a disciplined and well planned onboarding-andimplementation plan.” ADCB has also invested heavily in ensuring that it offers clients global best-practice transaction banking services. That in large part reflects the rising set of demands placed on corporate treasurers and chief financial officers under increasing pressure to streamline cash management and supply chain operations and improve risk management and enterprise resource planning (ERP). Treasurers rightly demand ever-higher standards of data encryption and security from their banking provider, and ADCB is happy to meet those demands. Cash and supply-chain management require banks to provide clients with real-time levels of feedback and diagnostics, ensuring that they have access to a global system of pricing and informed as soon as a payment or a shipment has been delivered. ADCB offers best-in-class cash management services across all these services.

The best platform Abu Dhabi Commercial Bank also invests for the future. One of the hardest decisions is deciding what technology it needs to service clients in the years, and which it can disregard or pursue at a later date. The name of the game here is ensuring that clients gain access to the best and most sustainable transaction banking platform available. So while technologies such as transmission protocol EBICS and markup language XML are less

prevalent at corporate level in the Middle East than they are in, say, Europe, ADCB opted to take the long view, adopting both as standard throughout its global structure. “EBICS is less popular in the UAE, but it allows us to better support global clients, and to tailor new risk practices and ERPs to their strategic needs,” notes Subramanian. “By investing in technology, we can benchmark our own best-practice services against other global financial providers. We interact regularly around the world with existing and potential clients, to showcase and explain the internal evolution under way within our cash management and payments business. We invest a lot of money in IT to ensure that we offer the very highest level of security and encryption. We focus on what our corporate treasurers are telling us, allowing us to glean feedback on a 24/7 basis from all sources.” Naturally there are cash management services that either clients or the market aren’t yet ready for. An example here is electronic bank account opening (eBAM), which is demanded by a very small number of clients. “It requires significant new IT investment, and it’s something that we have decided not to invest too much time on,” says Subramanian. “In terms of the way that these decisions are made, we have a steering committee that comprises stakeholders from our operations, technology, and financial controls teams. That’s where all the feedback is analyzed, and where ‘go’ and ‘no-go’ investments are agreed. It’s a very robust and inclusive process.” Two areas that determine ADCB’s transaction banking and IT strategy are its ongoing capacity and fault-tolerance management in production systems and the deployment of the most enhanced security and encryption techniques.

Murali Subramanian, executive vice president and transaction banking head, ADCB

Broader horizons ADCB is also planning for the future, ensuring that global clients keen to expand into the region, or to broaden their horizons outside the Middle East, are offered the best cash management services available. Clients are becoming increasingly involved in automating their internal workflow and cashflow systems. Risk management is , says Subramanian, “central to doing business in the UAE – more so than when you’re doing business elsewhere. Automating enterprise management and risk management is increasingly vital to clients, and to us. Treasurers increasingly automate their internal payments and receipts processes, and we guide corporates on how to do that. “Equally there are clients who regularly receive letters of credit, and need to pay on open account,” he adds. “A lot of that used to be paper-based but now can be easily transferred into a simple source-style technology. So the shift to electronic payments and electronic cash management systems globally, and notably here in the Middle East, is becoming more complete. Perhaps the biggest evolution is in interaction: how treasurers at corporates deliver instructions to their

banking providers, and how they receive messages back. That is where the evolution in transaction banking is happening.” Abu Dhabi Commercial Bank continues to focus on providing world-class, best-practice cash management services to clients looking to break into the Middle East, or expand their regional operations, while acting as a financial services bridgehead and guide to Middle East corporates looking to enlarge and expand their global presence. “We provide a smooth gateway into the region for multinationals, while our consultancy services show clients what to look out for on the ground – the pitfalls and opportunities provided by one of the world’s fastest-growing regions,” says Subramanian. “Abu Dhabi Commercial Bank is a big regional financial institution that is committed to the region, as well as an increasingly internationally minded lender with connectivity into the global banking system through our major alliances and networks. We are an innovative bank focused on world-class new technology and services and innovation, and we will continue to give clients access to our best-inclass cash management services.”

Commercial cards

can be a slow process, as treasury staff need to be educated about the advantages. Some of the team may be reluctant to give up a portion of their responsibilities. Citi’s Robson says: “On the B2B side, card transactions can help to deliver process efficiency and real cost savings. But gaining the maximum benefit does mean some internal re-engineering, and then there can be some departmental reluctance as a result.” Such change requires the approval across a number of functions within a company. In addition to treasury, procurement, accounts payable and IT will have to be involved with various elements of the process, which can slow adoption. The decision to bring in cards will be assessed between the bank and the company to decide if it is the correct approach for their operations. Banks can work closely with the client to ascertain if the shift will work with their supply chain through looking into their existing supplier base and identifying which of these firms are already accepting cards for payments. Should there be enough in the network to make it beneficial, a move to cards will likely be proposed. Irfan Butt, head of trade product and structuring for GTS EMEA at BAML, says: “We analyse the supplier spend data and propose an appropriate solution. The treasurer would know what they want to do but may be unsure of whether their suppliers will join the supply-chain finance programme. In truth, depending on the supplier’s profile, they could even prefer to receive a payment by card.”

Transaction risk Corporates looking to step up to the international stage may find that a universally accepted payment option removes some of their concerns about transacting with new foreign counterparts. Cards can be used internationally, making payments across the supply chain. While they might not be accepted by corporates in every market, they can make completing payments with overseas corporates easy and mitigate some of the risk. Middle market companies are the ones who stand to benefit the most from switching to cards. Many are becoming savvier about how to manage their efficiencies with a small treasury team. Reyes says: “Smaller companies, which can be leaner, can

“They [SMEs] can pay suppliers to terms and achieve working capital benefits, still gain a cash flow benefit but look to negotiate better commercial rates from the supplier as they will benefit from earlier payments” Maria Parpou, Barclaycard

12 TRANSACTION SERVICES · June 2015

“There is growing mid-market interest. Some corporates are learning of the benefits and want to adopt a commercial cards programme. Others need some education around how it can be advantageous to them” Mel Gargagliano, BAML

really benefit from the additional working capital that can be accessed through using cards.” Like consumer credit cards, commercial card products come with benefits. Corporates can receive rebates on the cards and can also offset business costs. Depending on the provider, these can range from discounted membership to breakdown services and cashback on fuel purchases to rebates on spending. While they are nice to have, these are advantages that stretch deeper into the business. The combination of working capital benefits to middle market goes far beyond the advertised advantages of preferential hotel rates or car hire. Barclaycard’s Parpou points to another benefit as being the process of transfer of title of goods. In traditional ordering and payments, the ownership of the goods passes to the buyer when the goods are paid for. However, as this could be up to 120 days later, the goods may have already changed hands again or been consumed in production process. Parpou explains: “Think of bricks that move from the manufacturer to a builder’s merchant, to a builder to a home owner for their extension. If the builder’s merchant defaults on their payment, the brick is now part of a house but whose brick is it? With a card-based payment that risk is with the manufacturer’s card issuer and title passes at a much earlier point.”

History Cards also help companies that may have struggled to get formal financing from their bank because of a poor credit history. The payment terms of the cards will vary depending on the credit worthiness of the company, but can still act as loans or provide a solution for companies that do not otherwise have access to supplier finance. Parpou adds that card payments can smooth the invoicing process to the point that it can remove the need for the invoice completely: “Cash flow can be improved by deferring payment to suppliers while settling with the card company on extended terms. This provides prompt payment, to terms or better, to the supplier and releases aged debt and decreases their risk. It also helps the customers’ working capital and potentially reduces TS unit costs through them being ‘competitive payers’.”

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Bank directory ADCB Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America

Network outline INFRASTRUCTURE No. of countries with fully integrated full service branches:

3

1

0

1

0

0

1

0

0

67

12

8

2

2

10

14

18

1

PAYMENT CLEARING SYSTEMS & SERVICES No. of countries with direct access to local paper based clearings: No. of countries with fully automated direct access to same-day clearing systems: No. of countries with fully automated direct access to ACH/Giro Electronic Clearings:

68 12 8 2 2 10 14 18 2 67 12 8 2 2 10 14 18 1

Products/Services offered Coverage/Products & Services Number of branches: 12 8 2 2 10 14 18 1 Clearing/Payment Services: Yes Yes Yes Yes Yes Yes Yes Yes Payment/Card Services: Yes No No No No Yes No Yes

Sweeping Intra-day: Yes Yes Yes Yes Yes Yes Yes Yes Overnight: Yes Yes Yes Yes Yes Yes Yes Yes

Notional Pooling Single country (All accounts in same location – single currency): Single country (All accounts in same location – multi-currency): Multi-country (Leave funds locally in each country – single currency): Multi-country (Leave funds locally in each country – multi-currency):

10 10 10 10

8 8 8 8

2 2 2 2

1 1 1 1

1 1 1 1

1 1 1 1

Investment of excess cash Money market funds: Yes No No No No Yes No Yes Automated sweeps: Yes No No No No Yes No Yes

Reporting Real time/Intra-day reporting: Yes Yes Yes Yes Yes Yes Yes Yes End of day reporting: Yes Yes Yes Yes Yes Yes Yes Yes Payment/Cashflow reporting customization tools: Yes No No No No No No No

Reporting channels available Swift: Online portal: Email: Mobile applications for liquidity/treasury monitoring:

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No No No Yes No No

BAML Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


37

12

13

5

3

2

0

0

2

31

10

10

5

3

2

0

0

1

PAYMENT CLEARING SYSTEMS & SERVICE No. of countries with direct access to local paper based clearings: No. of countries with fully automated direct access to same-day clearing systems: No. of countries with fully automated direct access to ACH/Giro Electronic Clearings:

37 12 13 5 3 2 0 0 2 36 11 13 5 3 2 0 0 2

Products/Services offered General coverage/Products & Services Number of branches: 12 8 2 0 2 0 0 4855 Clearing/Payment Services: Yes Yes Yes Yes Yes Yes Yes Yes Payment/Card Services: Yes Yes Yes Yes Yes Yes Yes Yes



6 3 0 0

9 0 0 0

5 1 0 0

3 0 0 0

1 1 0 0

0 0 0 0

0 0 0 0

2 0 0 0

Investment of excess cash Money market funds: No Yes Yes Yes Yes Yes No Yes Automated sweeps: Yes No No No No No No Yes

Reporting Real time/Intra-day reporting: Yes Yes Yes Yes Yes Yes Yes Yes End of day reporting: Yes Yes Yes Yes Yes Yes Yes Yes Payment/Cashflow reporting customization tools: Yes Yes Yes Yes Yes Yes Yes Yes

Reporting Channels available Swift: Online portal: Email: Mobile applications for liquidity/treasury monitoring:

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Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

June 2015 · TRANSACTION SERVICES 13

Bank directory BNP Paribas Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


57

13

11

5

10

1

8

7

2

51

9

11

4

10

1

8

6

2


54 12 11 4 10 1 8 6 2 54 12 11 4 10 1 8 6 2

Products/Services offered General coverage/Products & Services Number of branches: 28 90 7 57 1 37 7 82 Clearing/Payment Services: Yes Yes Yes Yes Yes Yes Yes Yes Payment/Card Services: Yes Yes Yes Yes No Yes Yes Yes

Sweeping Intra-day: Yes Yes Yes Yes No Yes No Yes Overnight: Yes Yes Yes Yes Yes Yes No Yes


3 3 3 3

11 11 11 11

5 5 5 5

5 5 5 5

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Investment of excess cash Money market funds: Yes Yes Yes Yes No No No Yes Automated sweeps: Yes Yes Yes Yes No No No Yes

Reporting Real time/Intra-day reporting: Yes Yes Yes Yes Yes Yes No Yes End of day reporting: Yes Yes Yes Yes Yes Yes No Yes Payment/Cashflow reporting customization tools: Yes Yes Yes Yes Yes Yes Yes Yes


Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No No No No No Yes No No

Citi Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


96

18

11

7

10

23

12

13

2

72

16

9

1

2

21

10

11

2


70 17 12 5 7 12 6 9 2 77 17 12 5 7 18 6 10 2

Products/Services offered General coverage/Products & Services Number of branches: 497 167 4 199 2064 100 52 962 Clearing/Payment Services: Yes Yes Yes Yes Yes Yes Yes Yes Payment/Card Services: Yes Yes Yes Yes Yes Yes Yes Yes

Sweeping Intra-day: Yes Yes Yes Yes Yes Yes Yes Yes Overnight: Yes Yes Yes Yes Yes Yes No Yes


9 1 1 3 1 1 14 14

2 2 2

Investment of excess cash Money market funds: Yes Yes Yes No Yes No No Yes Automated sweeps: No Yes Yes No Yes No No Yes

Reporting Real time/Intra-day reporting: Yes Yes Yes Yes Yes Yes Yes Yes End of day reporting: Yes Yes Yes Yes Yes Yes Yes Yes Payment/Cashflow reporting customization tools: Yes Yes Yes Yes Yes Yes Yes Yes




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Commerzbank Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


19

4

8

2

4

0

0

0

1

19

4

8

2

4

0

0

0

1


19 4 8 2 4 0 0 0 1 19 4 8 2 4 0 0 0 1

Products/Services offered General coverage/Products & Services Number of branches: 6 35 6 4 0 0 0 1 Clearing/Payment Services: Yes Yes Yes Yes Yes Payment/Card Services: Yes Yes Yes Yes No

Sweeping Intra-day: Yes Yes Yes Yes Yes Overnight: Yes Yes Yes Yes Yes


0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Investment of excess cash Money market funds: Yes Yes Yes Yes Yes Automated sweeps: Yes Yes Yes Yes Yes

Reporting Real time/Intra-day reporting: Yes Yes Yes Yes Yes End of day reporting: Yes Yes Yes Yes Yes Payment/Cashflow reporting customization tools: Yes Yes Yes Yes Yes


Yes Yes Yes Yes Yes Yes Yes Yes No No No No Yes Yes Yes Yes

Yes Yes No Yes

Danske Bank Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


12

6

4

2

12

6

4

2


12 6 4 2 12 6 4 2

Products/Services offered General coverage/Products & Services Number of branches: 71 266 3 Clearing/Payment Services: Yes Yes Yes Payment/Card Services: Yes Yes Yes

Sweeping Intra-day: Yes Yes Yes Overnight: No No No


3 3 3 3

4 4 4 4

1 1 1 1

Investment of excess cash Money market funds: No No No Automated sweeps: No No No

Reporting Real time/Intra-day reporting: Yes Yes Yes End of day reporting: Yes Yes Yes Payment/Cashflow reporting customization tools: Yes Yes Yes

Reporting Channels available Swift: Yes Yes Yes Online portal: Yes Yes Yes Email: No No No Mobile applications for liquidity/treasury monitoring: Yes Yes Yes

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Bank directory Deutsche Bank Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


38

14

9

2

7

2

3

0

1

36

13

9

2

7

1

3

0

1


28 14 2 7 1 3 0 1 35 12 9 2 7 1 3 0 1

Products/Services offered General coverage/Products & Services Number of branches: Clearing/Payment Services: Payment/Card Services:

Sweeping Intra-day: Yes Yes Yes No No No Yes Overnight: Yes Yes Yes No No No Yes


6 6 6 6

5 3 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

1 1 1 1

Investment of excess cash Money market funds: No Yes No Yes Automated sweeps: No Yes No Yes

Reporting Real time/Intra-day reporting: End of day reporting: Payment/Cashflow reporting customization tools:


HSBC Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


62

19

11

5

9

5

8

1

4

50

19

8

2

3

5

8

1

4


61 19 11 5 9 5 8 1 3 66 16 19 5 9 5 8 1 3

Products/Services offered General coverage/Products & Services Number of branches: 675 1000 1802 903 2000 246 1 433 Clearing/Payment Services: Yes Yes Yes Yes Yes Yes Yes Yes Payment/Card Services: Yes Yes Yes Yes Yes Yes No Yes



10 10 18 18

8 6 10 10

2 2 2 2

3 2 4 4

0 0 0 0

9 7 8 8

1 0 2 2

2 2 3 3

Investment of excess cash Money market funds: Yes Yes Yes Yes Yes No No Yes Automated sweeps: Yes No Yes No Yes No No Yes

Reporting Real time/Intra-day reporting: Yes Yes Yes Yes Yes Yes Yes Yes End of day reporting: Yes Yes Yes Yes Yes Yes Yes Yes Payment/Cashflow reporting customization tools: Yes Yes Yes Yes Yes No Yes Yes



Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

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KBC Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


8

3

3

1

0

0

0

0

1

0

0

0

0

0

0

0

0

0


8 3 3 1 0 0 0 0 1 8 3 3 1 0 0 0 0 1

Products/Services offered General coverage/Products & Services Number of branches: 3 4 1 3 0 0 0 1 Clearing/Payment Services: Yes Yes Yes Yes No No No Yes Payment/Card Services: No Yes Yes Yes No No No Yes

Sweeping Intra-day: No Yes No No No No No No Overnight: Yes Yes Yes Yes No No No Yes


0 0 0 0

4 4 4 0

1 1 1 0

3 3 3 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Investment of excess cash Money market funds: Yes Yes Yes Yes No No No No Automated sweeps: No No No No No No No No

Reporting Real time/Intra-day reporting: Yes Yes Yes Yes No No No Yes End of day reporting: Yes Yes Yes Yes No No No Yes Payment/Cashflow reporting customization tools: Yes Yes Yes Yes No No No Yes


Yes Yes Yes Yes No No No Yes Yes Yes Yes Yes No No No Yes No No No No No No No No Yes Yes Yes Yes No No No Yes

Nordea Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


13

2

5

4

1

0

0

0

1

13

2

5

4

1

0

0

0

1


13 2 5 4 1 0 0 0 1 13 2 5 4 1 0 0 0 1

Products/Services offered General coverage/Products & Services Number of branches: 2 222 475 18 0 0 0 1 Clearing/Payment Services: Yes Yes Yes Yes No No No Yes Payment/Card Services: No Yes Yes Yes No No No Yes

Sweeping Intra-day: Yes Yes Yes Yes No No No Yes Overnight: Yes Yes Yes Yes No No No Yes


0 0 0 0

0 0 0 0

1 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Investment of excess cash Money market funds: No Yes No No No No No No Automated sweeps: No Yes No No No No No Yes

Reporting Real time/Intra-day reporting: Yes Yes Yes Yes No No No Yes End of day reporting: Yes Yes Yes Yes No No No Yes Payment/Cashflow reporting customization tools: Yes Yes Yes Yes No No No Yes


www.euromoney.com

Yes Yes Yes Yes No No No Yes Yes Yes Yes Yes No No No Yes No No No No No No No No Yes Yes Yes Yes No No No Yes


Bank directory Skandinaviska Enskilda Banken Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


16

3

4

5

3

1

16

3

4

5

3

1


16 3 4 5 3 1 16 3 4 5 3 1

Products/Services offered General coverage/Products & Services Number of branches: 3 4 5 3 1 Clearing/Payment Services: Yes Yes Yes Yes Yes Payment/Card Services: Yes Yes Yes Yes Yes



3 1 0 0

4 4 1 1

4 4 4 4

2 0 0 0

1 0 0 0

Investment of excess cash Money market funds: Yes Yes Yes Yes Yes Automated sweeps: No Yes Yes Yes Yes



Yes Yes Yes Yes Yes Yes Yes Yes No No No No No No No No

Yes Yes No No

Société Générale Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


49

6

11

2

12

0

5

12

1


0 0 0

Products/Services offered General coverage/Products & Services Number of branches: 6 11 2 12 0 5 12 1 Clearing/Payment Services: Yes Yes Yes Yes No Yes Yes Yes Payment/Card Services: Yes Yes Yes Yes



3 2 2 2

6 3 3 3

2 1 1 1

3 2 2 2

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Investment of excess cash Money market funds: Yes Yes No Automated sweeps: No No No

Reporting Real time/Intra-day reporting: Yes Yes Yes Yes No Yes Yes End of day reporting: Yes Yes Yes Yes No Yes Yes Yes Payment/Cashflow reporting customization tools: Yes Yes Yes Yes No Yes Yes Yes




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Standard Chartered Bank Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


43

18

1

1

0

1

7

14

1

44

18

1

1

0

0

7

16

1


41 16 1 1 0 0 7 15 1 30 13 1 1 0 0 2 12 1

Products/Services offered General coverage/Products & Services Number of branches: 843 1 1 0 1 140 225 2 Clearing/Payment Services: Yes Yes Yes No No Yes Yes Yes Payment/Card Services: Yes Yes Yes No No Yes Yes Yes

Sweeping Intra-day: Yes Yes Yes No No Yes Yes Yes Overnight: Yes Yes Yes No No Yes Yes Yes


11 11 16 16

1 1 1 1

1 1 1 1

0 0 0 0

0 0 0 0

6 6 7 7

12 12 14 14

1 0 1 0

Investment of excess cash Money market funds: No Yes No No No No No No Automated sweeps: No Yes No No No No No No

Reporting Real time/Intra-day reporting: Yes Yes Yes Yes Yes Yes Yes Yes End of day reporting: Yes Yes Yes Yes Yes Yes Yes Yes Payment/Cashflow reporting customization tools: Yes Yes Yes No No Yes Yes Yes


Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Svenska Handelsbanken Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


17

3

9

3

1

1

15

3

6

4

1

1


16 2 7 4 2 1 15 1 7 4 2 1

Products/Services offered General coverage/Products & Services Number of branches: 3 79 750 1 1 Clearing/Payment Services: Yes Yes Yes Yes Yes Payment/Card Services: Yes Yes Yes Yes Yes



2 2 2 2

4 1 4 1 4 4

1

Investment of excess cash Money market funds: Yes Yes Yes Yes Yes Automated sweeps: No No No No Yes



www.euromoney.com

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No No

Yes Yes Yes No


Bank directory UniCredit Worldwide Asia Pacific Eurozone Rest of CEE LatAm MENA Rest of North W Europe Africa America


21

3

5

0

12

0

0

0

1

21

3

5

0

12

0

0

0

1


21 3 5 0 12 0 0 0 1 21 3 5 0 12 0 0 0 1

Products/Services offered General coverage/Products & Services Number of branches: 5 5248 3420 1 Clearing/Payment Services: Yes Yes Yes Yes Payment/Card Services: No Yes Yes Yes

Sweeping Intra-day: No Yes Yes Yes Overnight: Yes Yes Yes Yes


0 0 0 0

5 1 0 0

8 1 2 0

0 0 0 0

Investment of excess cash Money market funds: No Yes Yes Yes Automated sweeps: No Yes Yes Yes

Reporting Real time/Intra-day reporting: Yes Yes Yes Yes End of day reporting: Yes Yes Yes Yes Payment/Cashflow reporting customization tools: No Yes Yes Yes

Reporting Channels available Swift: Yes Yes Yes Yes Online portal: Yes Yes Yes Yes Email: Yes No Yes Yes Mobile applications for liquidity/treasury monitoring: No Yes Yes No

On euromoney’s transaction services channel: Weekly features on key trends in global transaction services and interviews with the industry’s leading players Sibos 2015: Previews of the key Sibos topics in the run-up to the annual meeting in Singapore, plus our special euromoney.com/transactionservices

Sibos report, published in October October 2015: Euromoney’s benchmark cash management survey, which last year received votes from more than 20,000 global TS clients


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