Contributing to Client Performance and Profitability

Transcription

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TMI BAML10 P1 Contents:Layout 1 24/09/2010 17:47 Page 1
A New Era of Corporate Banking
A Holistic Approach to the
Needs of Corporate Treasury
Robin Page, Chief Executive, Treasury Management International
hese are challenging days for corporate
treasurers, as they grapple with all the changes
brought about by the financial crisis. Bank
relationships have never been as important as they
are today, and treasurers increasingly expect help and
advice from their banks to guide them through the
maze. In the following articles in this Special Report
on the New Era of Corporate Banking, senior bankers
from Bank of America Merrill Lynch share their
insights and perspective on how to navigate for
success and some ‘real life’ examples of clients that
are leading the way.
Matthew Davies and John Harris point out that
“treasurers are and should be looking to banks to
evolve their offering to support the growing demands
of their business”; their client eBay, for example,
depends on its banks’ local expertise to assess the
risks inherent in expansion into new markets. Jennifer
Boussuge and Ciarán Brady explain how the Campbell
T
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Accounts
Soup Company conducted a thorough review of its
outsourcing arrangements and recommend “looking
for a partner with the comprehensive global expertise
and a platform to deliver best practices across the
board.”
Carole Berndt and Ivo Distelbrink discuss the
merger between Bank of America and Merrill Lynch,
while the bank’s emphasis on a single point of
contact is, as Pierre De Montessus, Dhiru Tanna and
June West point out, “the embodiment of the
service delivery model” and has been of great value to
Nokia. Another satisfied client is Diageo Plc, which, as
Alex Verbaeten and Simeon Stevens demonstrate, is
an example of a corporation that has a number of
banking requirements across the globe where the
value of a solutions driven approach can be helpful.
This is indeed a new era in corporate banking, and
the following articles will provide a valuable guide
through what can be quite a bewildering maze. ■
Richard Benwell
Contents
2
Contributing to Client Performance and Profitability
Carole Berndt, Global Corporate Banking, Head of Global Treasury Solutions EMEA,
Bank of America Merrill Lynch, and Ivo Distelbrink, Global Corporate Banking, Head of Global Treasury
Solutions Asia Pacific, Bank of America Merrill Lynch
Karen Roberts
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TMI | Special report
6
Treasury Centre Stage
Matthew Davies, Global Treasury Solutions, EMEA Corporate Sales Head, Bank of America Merrill Lynch,
and John Harris, Global Treasury Solutions, Senior Treasury Management Sales Officer,
Bank of America Merrill Lynch
8
Case Study: Out with the Old, In with the New
Alex Verbaeten, Global Treasury Solutions, Senior Vice President, Bank of America Merrill Lynch, and
Simeon Stevens, Global Corporate Banking, Principal, Consumer and Retail, Bank of America Merrill Lynch
11 Optimising Treasury through Outsourcing
Jennifer Boussuge, Global Corporate Banking, International Subsidiary Banking (ISB) Treasury Sales
Executive, Bank of America Merrill Lynch, and Ciarán Brady, Global Corporate Banking, Managing
Director, Head of International Subsidiary Banking (ISB) EMEA, Bank of America Merrill Lynch
14 Delivering the Relationship
Pierre De Montessus, Global Treasury Solutions, Senior Vice President and Senior Sales Officer,
Bank of America Merrill Lynch, Dhiru Tanna, Global Treasury Solutions, Senior Vice President and Senior
Account Manager, Bank of America Merrill Lynch, and June West, EMEA Branch Operations & Client
Services Executive, Bank of America Merrill Lynch
1
TMI BAML 5 Interview:Layout 1 24/09/2010 17:54 Page 2
Contributing to
Client Performance
and Profitability
by Carole Berndt, Global Corporate Banking, Head of Global Treasury Solutions EMEA,
Bank of America Merrill Lynch, and Ivo Distelbrink, Global Corporate Banking,
Head of Global Treasury Solutions Asia Pacific, Bank of America Merrill Lynch
It is now almost two years
since the merger between
Bank of America and Merrill
Lynch. What was the initial
market response, and what
has the reality been?
When the merger was first announced,
many people took quite a cynical view of
the new organisation. In particular, they
questioned the logic of an entity formed of
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two companies with such different cultures
and focus, and found it difficult to identify
potential synergies.
Bank of America had been very UScentric in the recent past, despite several
attempts to expand internationally and
attract a more diverse global client base.
Its strength, however, was in the scope,
depth and resilience of its core transaction
banking capabilities. In Asia, for example,
the bank maintained branches in every
major country with direct access to
domestic clearing systems, both high and
low value, to support the needs of clients
across the region. Yet the bank was not
actively promoting or expanding this
service offering. Merrill Lynch, on the
other hand, had developed considerable
global expertise and leadership over many
years, distinguishing itself through the
depth and seniority of its client
relationships with the world’s leading
In today’s market, with significant commoditisation of
treasury management products, a bank’s differentiation
is defined less by the products it delivers than in the
approach it takes to delivering them, from providing
solutions to servicing.
proposition to European and Asian
corporates who would not necessarily have
been attracted to Bank of America’s
services in the past.
As a global bank, how does
distinguish itself from other
banks with global
capabilities?
The combination of Bank of America and
Merrill Lynch presents to our clients new
geographic and best-in-class product
capabilities
across
corporate
and
investment banking, enabling them to
build a strong, global partnership with a
single bank on a single platform. While
there are other banks operating globally,
there is often a lack of cohesion in the
services that they are able to offer. By
taking advantage of our global platform
and integrated corporate and investment
banking coverage model, Bank of America
Merrill Lynch can deliver seamless local,
regional and global services to clients,
providing a more relevant service offering
that addresses a diversity of requirements.
corporations and financial institutions, and
governments.
Bank of America’s strength in
transaction processing, together with
Merrill Lynch’s track record in building
advisory relationships based on longstanding client partnerships, quickly proved
a powerful amalgamation. The combined
organisation is able to deliver a far richer
global service to our US clients and
similarly, provide a unique value
In what ways is the bank
embracing innovation to
benefit corporate clients?
Bank of America Merrill Lynch has a
unique ability to manage our clients’ needs
on a holistic basis, with a single global
processing platform, broad international
experience and a strong commitment to
support clients’ global needs across
advisory, capital raising and financing,
investment, risk management and
transactional processing. By embracing the
entire spectrum of clients’ banking needs
through our integrated model, we are in a
unique position to deliver highly
innovative, bespoke solutions.
In today’s market, with significant
commoditisation of treasury management
products, a bank’s differentiation is defined
less by the products it delivers than in the
approach it takes to delivering them, from
providing solutions to servicing. For
example, by taking a complete view of a
company’s financial position, an objective
such as working capital optimisation is not
treated as an end in itself. Bank of America
Merrill Lynch’s aim is to optimise the
overall balance sheet and capital structure
of our clients, helping to ensure a company
has the funds it requires, when and where
they are most needed, at the least possible
cost.
The complexity and diversity of the
global regulatory landscape, the different
business models and the rapid growth rates
that many of our clients are experiencing
in markets from China to Brazil, make this
a dynamic exercise. Best practices in
treasury management are often a
misnomer when exported across borders
and industries. Success is not guaranteed
unless a customised approach is taken to
implementing prevailing concepts of
centralisation, automation and supply
chain optimisation.
As an example, with production in Asia
Pacific, consumer markets worldwide and a
variety of distribution models, one of our
sports manufacturer clients has a highly
complex supply chain. It was vital for the
company to secure its supply chain, from
supplier through to customer, as well as
protecting its own liquidity position. By
introducing a combined supplier finance
and trade solution provided by Bank of
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America Merrill Lynch, the company could
minimise its borrowing requirements while
supporting its suppliers’ and distributors’
working capital needs.
Banks are often inclined to look at their
clients’ business in terms of payables,
receivables and liquidity management,
reflecting their internal product offering,
whereas a client is focused on optimising
shareholder
value
through
its
manufacturing, distribution and sales
activities etc. Consequently, a transaction
bank should be tasked not simply to
facilitate financial processing, but to
provide tools and solutions that redefine
business models to maximise benefits. As
we innovate, we need to focus on
excellence in our people, our processes and
our platform, ensuring we remain relevant
to our clients.
You mention regulation: how
is Bank of America Merrill
Lynch supporting clients’
migration to SEPA?
Despite the benefits that SEPA offers to
corporates operating cross-border, or with
high payment or collection volumes, there
has been little momentum towards
migration so far. This is partly because
companies’ existing cash management
banks have rarely provided a strong lead
towards migration. For example, many
major corporations have sophisticated cash
management structures in place with a
large number of bank accounts. SEPA takes
away the need for much of this
infrastructure and enables companies to
rationalise their euro bank accounts
considerably. Consequently, unless actively
encouraged by a client to support its SEPA
migration project, there is little incentive
for an incumbent bank to do so. Bank of
America Merrill Lynch has a significant role
to play in this respect. We can leverage our
extensive international and transactional
expertise to help clients leverage the
advantages that SEPA presents as part of a
broader European payments opportunity,
and implement innovative, transparent
cash management structures that fit their
current and future needs.
For example, we have worked with one
client to implement a single global
payments processing centre as part of a
4
centralised treasury and in-house banking
infrastructure. This payments factory is the
largest in the world, and therefore took
time and effort to implement. However,
with the client’s vision and Bank of
America Merrill Lynch’s experience, cash
management services and transaction
processing capabilities, the project has
proved a huge success and achieved the
company’s global objectives, at a time
when many companies are still struggling
to implement regional financial shared
services.
What about regulatory change
in regions such as Asia?
While Europe and North America were hit
hard by the global financial crisis, Asia
weathered the storm very well. In fact,
national economies, corporations and
financial institutions in the region are
generally on a stronger footing than they
were two or three years ago, with more
stability and fiscal flexibility, and therefore
greater appetite for growth and continued
reform. This position of strength and
renewed confidence is leading to
continued deregulation across the region.
We indeed see a strong and accelerating
commitment to ongoing reform from China
to India to governments and central banks
across South East Asia.
In China, for example, progress towards
the RMB becoming an international trade
currency is gathering pace, with a
significant positive impact on our clients.
Bank of America Merrill Lynch is closely
engaged with these developing regulations
and has the on-the-ground presence and
expertise to help companies take
advantage of new opportunities. The bank
is increasingly recognised as the bank of
choice both for multinational clients
seeking to optimise their operations in Asia
and for Asian companies seeking to
leverage opportunities outside the region.
How have corporate
treasurers reacted to the
holistic approach to financial
services that Bank of America
Merrill Lynch is able to offer?
The response from both clients and
prospects
has
been
phenomenal,
evidencing the compelling nature of our
value proposition. For example, we had
been the house bank for a leading USheadquartered
telecommunications
company for a number of years, but the
company awarded its EMEA and Asia
business to a competitor through an RFP
process. However, the new relationship
proved challenging and with the new value
proposition that Bank of America Merrill
Lynch was able to offer, the company
reaffirmed and revalidated its relationship
with us.
Bank of America had had a relationship
with a large German chemical firm for a
number of years, but with a limited scope
of activities. The firm’s treasury, based in
Europe, recently awarded Bank of America
Merrill Lynch its global cash management
business, including global payments and
local, in-country cash management
services.
In Asia, while we were always confident
that our value proposition, based on our
extensive geographic reach, comprehensive
A transaction
bank should be tasked not simply to
facilitate financial processing, but to
provide tools and solutions that redefine
business models to maximise benefits.
range of services, expertise and robust
infrastructure, was attractive, we were
surprised at just how positive the market
reaction has been to our renewed focus on
the region. Clients across the region are
desperate for choice, for banking partners
that can service their needs in a consistent
way across the region and across a
complete range of advisory services. Until
now, this choice has been limited, and
Bank of America Merrill Lynch is
increasingly recognised as being uniquely
positioned to fulfil clients’ requirements
across corporate, transaction and
investment banking. We have a rapidly
growing portfolio of clients, leaders in
their respective industries, who have
recognised the value of our approach to
their business.
How do you manage clients’
in-country cash management
requirements where Bank of
America Merrill Lynch does
not have a direct presence?
Historically, in order to deliver an efficient
cash management service in a particular
country, a bank had to establish a branch
presence and become a direct member of the
local clearing system. This was an expensive
and time-consuming strategy, and it did not
necessarily serve clients’ best interests
because of the cost of delivering local
services in this way. The reality is that a
bank can excel in its core markets, but
cannot be an expert or provide full services
in every country in which its clients operate.
However, by adopting leading-edge
technology, a bank can still service its
clients’ needs globally, even when a lack of
critical mass does not justify a physical
presence in a country. At Bank of America
Merrill Lynch, we work with the best incountry local or regional bank so that our
clients benefit from leading products, whilst
leveraging our global platform and service
levels to achieve a consistent and cohesive
global solution. Our clients select Bank of
America Merrill Lynch based on the quality
of information we provide, our integration
capabilities and the confidence that we can
inspire. The partnership approach enables us
to deliver on these expectations while still
accessing in-country payments and
collections products.
How will you continue to
deliver on the success that
has achieved so far?
Key to Bank of America Merrill Lynch’s
ongoing success is the investment in our
people, our processes and our platform. It
is vital to pursue excellence across each
of these, which often includes thinking
beyond the constraints of legacy banking
models. For example, investing in people
with
the
right
experience
and
international expertise is of limited value
if the structure of the organisation does
not allow them to be effective. We are
therefore decentralising authority within
the bank to empower our people to deliver
the best solutions possible that contribute
to our clients’ success. ■
Carole Berndt
Global Corporate Banking, Head of Global Treasury
Solutions EMEA, Bank of America Merrill Lynch
Carole Berndt is the head of Global Treasury Solutions for Europe, the
Middle East and Africa (EMEA), where she is responsible for the endto-end product, business, technology & operations and client sales
management strategy for treasury business in this region. She also has a leading role in
delivering the integrated global corporate banking financial plan and market share
growth.
Before joining Bank of America Merrill Lynch, Berndt worked for Citigroup in New
York where she led the Client Delivery team, with global responsibility for the end-toend delivery of implementation, service and client technology for its global treasury
products portfolio. Berndt has also worked in Corporate Banking for Citigroup in Hong
Kong where she held various roles ranging from product management and reengineering
to business management and client delivery. Prior to Citigroup, Berndt worked at
American Express, where she managed the Merchant Service eCommerce strategy for
Asia, working across the key markets of Japan, Singapore, Hong Kong and Australasia.
Berndt is a 20-year veteran of the financial services industry. She began her career in
the insurance industry, where she held roles in finance, risk management, business
development and technology. She then held senior roles with Allianz and ING in
Australia and was instrumental in establishing the industry’s eCommerce strategy for the
corporate insurance market. While based in Australia, Berndt completed assignments in
Indonesia, Singapore and worked with industry associations in Europe and the US.
Berndt has a degree in Information Technology and a Masters of Business
Administration in International Business.
Ivo Distelbrink
Global Corporate Banking, Head of Global Treasury
Solutions Asia Pacific, Bank of America Merrill Lynch
Ivo Distelbrink is a managing director and head of Global Treasury
Solutions Asia Pacific at Bank of America Merrill Lynch. In this role,
he is responsible for developing and executing the integrated strategy
for the full end-to-end regional treasury business in the Asia Pacific, including Treasury
Product Delivery, Trade Finance, Fulfillment & Service, Technology & Operations and
Product Innovation. He also plays a leading role in delivering an integrated global
corporate banking platform in conjunction with all his debt, trade and other partners,
for building market share in the region.
Before joining the bank in March 2010, Ivo had an extensive career at Citibank,
where he held various senior positions including head of Client Sales Management for
Treasury and Trade Solutions in Asia Pacific and Japan, head of GTS in China, and CEO
and head of Corporate Banking for Citibank in New Zealand.
Ivo has an MBA specialising in international finance from the University of
Michigan.
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TMI BAML 1 Davies Harris:Layout 1 24/09/2010 17:59 Page 6
Treasury
Centre Stage
by Matthew Davies, Global Treasury Solutions, EMEA Corporate Sales Head,
Bank of America Merrill Lynch, and John Harris, Global Treasury Solutions,
Senior Treasury Management Sales Officer, Bank of America Merrill Lynch
The treasury function can make or break the company and the pressure
is on to have in place best-in-breed systems and controls.
A
lthough globalisation has forever
altered the rules of the game for
corporate treasury, the recent financial
crisis has raised the stakes that define success
or failure for the department – and ensured
that the demand for increasing transparency,
operational adaptability and comprehensive risk
management will only continue to increase. The
functions, controls and processes that fall
under the purview of the treasurer are set to
further increase in complexity and the need to
manage cash and liquidity aggressively will
continue, for the foreseeable future, to define
the ability of the corporation to weather
economic cycles and take advantage of
expansion opportunities.
The global financial crisis has brought the
role of treasury to centre stage with increasing
importance placed on its core functions,
controls and processes. As the crisis deepened,
it became apparent that a company’s ability to
answer basic questions around cash visibility,
access to internal funding and managing
counterparty risk was dependent on the very
systems and processes that sit at the heart of
the treasury function. For some companies, this
highlighted gaps that are causing a rethink of
the operating model, technology and banking
providers, and of how a more integrated model
eliminating silos is set to prevail.
All about visibility
As these challenges and opportunities have
become increasingly more prominent, boards
and executive teams have also been looking
The global financial crisis has brought the role of treasury
to centre stage with increasing importance placed on its
core functions, controls and processes.
6
to treasury for new and creative ways to
support and advance the overall strategic
business objectives of the company.
Whether it is positioning the company for
growth or streamlining to protect the bottom
line, treasury needs to be able to contribute
to the discussion by providing credible insight
to the cash position of the organisation, and
then remain nimble to act swiftly. This needs
to be done within the context of a more
heavily regulated environment, where
resources remain tight and there may be
limited appetite for investment in new
systems.
Ultimately, a company’s ability to answer
basic questions about cash visibility and meet
all the related challenges is often dependent
on the systems and processes that treasury
has in place. But what the current business
financial crisis has underscored is that those
systems and processes previously deemed
acceptable may not be enough in today’s
dynamic environment or during a crisis.
“Having better visibility is critical for
today’s global enterprise,” confirms Jennifer
Ceran, vice president and treasurer with eBay
Inc. “Treasury has to be far more vigilant in
understanding and managing capital flows
and maximising liquidity. This has been
particularly important for us as we continue
to expand into new markets.”
Despite having operations all over the
world, including treasury headquarters in
TMI BAML 1 Davies Harris:Layout 1 24/09/2010 17:59 Page 7
North America and regional treasury hubs in
Europe and Asia, eBay is implementing the
systems to know exactly how much cash is
available at any given time. That’s no small
challenge. Part of this is accomplished by
leveraging SAP’s cash management
functionality with SWIFT, as well as using just
a few key banks to centralise liquidity on a
daily basis. eBay manages FX risk by
converting currencies frequently, in some
cases through negotiated FX margins with the
liquidity concentration banks and strategically
hedging long-term foreign currency risks.
Bank managed treasury and liquidity
services groups can be the key to a company
like eBay meeting many of these challenges.
Tapping into a pre-existing network that can
pull surplus and debit cash balances from
third party institutions around the globe, and
when necessary, offset positions through
multi-currency notional pooling structures can
mean the difference between borrowing to
fund expansion or leveraging internal working
capital to do so.
Another challenge that many global
companies face is accessing cash balances
that are trapped in a certain jurisdiction and
cannot be moved due to exchange controls or
other local regulations. Banks can help address
this challenge through the provision of
interest optimisation structures that can
enable the company to improve the yield
curve across their various currency positions.
Taking advantage of
opportunities
For some growing organisations having quick
access to the necessary capital to fund
expansion is a new challenge, but one that is
likely to remain for the foreseeable future.
That reality was driven home early in the
financial crisis when companies without
access to internally generated working capital
could not take advantage of strategic
acquisitions and other opportunities. In
contrast, eBay was well-positioned to weather
the storm and continued with strategic
acquisitions when others were stymied.
In 2008, eBay acquired a company called
Bill Me Later. This acquisition was a good fit
with eBay as it provided an alternative way to
make purchases on credit, either online or over
the phone, but without using a credit card.
The timing of this acquisition required
eBay to look at alternative ways to finance
their receivables. As one of eBay’s key
banking providers, we were able to analyse
the end-to-end receivables process and
therefore help support eBay’s decision to
draw on their line of credit as an efficient
funding mechanism for their strategic
acquisition. This also offered the company the
flexibility to pay it down at their own
discretion.
Managing counterparty risk
The financial crisis propelled the issue of risk
management to the top of the agenda
demanding robust and speedy action to
improve risk management and operational
controls. Consequently, management of
counterparty risk has become a daily issue for
treasurers as both financial institutions and
corporates manage their exposures and strive
to achieve more stringent processes in their
counterparty limit management to mitigate
the impact of potential defaults.
For a global leader such as eBay, which
continues to execute its growth strategy in a
difficult macro environment, this continues to
be a significant challenge. As eBay expands
internationally and pushes its brands out to
new markets, it has also acknowledged the
very real risks of doing business with new
customers and new banks in foreign
countries. To mitigate those risks, eBay is
looking to leverage its banks’ local expertise
and capabilities in new markets, and then
assess the risks and implement best practices.
By understanding which providers it can trust
and having the necessary procedures in place,
eBay is better able to manage its
counterparty risk accordingly.
A new level of importance
As the treasury function’s rise to prominence
continues in what looks like a very different
world post crisis, so too are the needs of the
treasurer evolving. In order to meet the
changing requirements of increasingly
globalised businesses, greater improvements
to process and more stringent risk
management, treasurers are and should be
looking to banks to evolve their offering to
support the growing demands of their
business.
It’s more than just systems and better
accounting software. It’s about building
relationships and trust and sharing that
invaluable local knowledge with the client.
Our own experience with multinational
clients has taught us that large corporations
are looking for greater support from their
banks to manage their treasury function.
Banks are no longer just a service provider
but an enabler for treasury to enhance their
core processes, improve their cash efficiency
and better manage their risks. ■
Matthew Davies
Global Treasury Solutions, EMEA Corporate Sales Head,
Matthew Davies is the EMEA Corporate Sales Head for Global
Treasury Solutions at Bank of America Merrill Lynch. Matthew
joined Bank of America Merrill Lynch in August 2010 from Citi
where he had spent 12 years working in a number of roles within transaction services
in the UK, US, The Netherlands and more recently the Middle East where he was the
regional sales head.
John Harris
Global Treasury Solutions, Senior Treasury Management
Sales Officer, Bank of America Merrill Lynch
John Harris is a Senior Treasury Management Sales Officer and is
responsible for selling treasury management and liquidity solutions
primarily to clients in the high tech, media and telecom sector.
John started his career with the bank in 1974 working in Operations and Client
Services. Before joining the sales team in 1998, he was responsible for creating and
managing the European Implementation Team.
John is married with four children and has a BSc Hons in Social Sciences and a
Diploma in management from the Open University.
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TMI BAML 2 Verbaeten Stevens:Layout 1 24/09/2010 17:56 Page 8
Case Study:
Out with the Old,
In with the New
by Alex Verbaeten, Global Treasury Solutions, Senior Vice President, Bank of America Merrill Lynch,
and Simeon Stevens, Global Corporate Banking, Principal, Consumer and Retail,
Why leading global companies need to rethink the definition
of an integrated treasury platform.
I
f we accept the premise that there is
no going back – that the role of global
treasury was forever changed by the
financial crisis, then it isn’t a big leap to
recognise that the way we used to do
things may no longer be the way we
should be doing things. ‘One-dimensional
banking’ – or the reliance on individual
products to address specific needs – may
have worked even three short years ago,
but today, it feels a bit like mailing a
paper letter to convey time-sensitive
information. Why would you do it?
What’s behind this new imperative?
Time – or rather, the lack of time – which
pushes a treasurer to have more solid
solutions and bank relationships in place.
Treasury’s ability to rely on the luxury
of lead time to adjust to the implications
of an emerging risk, or to react to a new
opportunity or expanding market is gone
– probably forever. Responding in the
little time allotted isn’t helped by the
existence of siloed operating components,
or disconnected expertise.
Today’s
treasurer needs solutions that are
interconnected
and deliver specific
8
capability – but without excessive hard
wiring – so they can be modified, added
onto, or replaced quickly to respond to a
new imperative – without upsetting the
operation of the greater whole. Just as
important, today’s treasurer needs access
to a wealth of expertise that isn’t limited
to a single individual or source. They
can’t be shopping around for that
expertise when it’s needed. They need a
speed dial. And they need expertise that
is based on a deep knowledge of the
company itself – its strengths, limitations,
goals and objectives.
What today’s
treasurer needs is access to a full scale
consultancy practice – so that regardless
of the actual immediate need they can
get at it with one phone call.
Today’s treasurer needs access to a wealth of expertise
that isn’t limited to a single individual or source.
Perhaps what used to work may still be
adequate for smaller, single-region
companies. But for a global enterprise,
with diverse operations, and even more
diverse aspirations, we say, out with the
old, in with the new!
To keep pace with the pressure to fuel
corporate growth and protect corporate
assets, treasurers need to ‘leverage the
interdependencies’ in a way that would
not be possible if they had to manage via
disconnected solutions. Take, for example,
that transaction banking typically focuses
on the task of optimising the collection
and payment of funds, while making the
most efficient use of excess cash.
Maximising the efficiency and accuracy
of repetitive payment and collection
transactions can generate impressive
savings, but looking at this through the
lens of a truly integrated treasury model
can yield much greater benefits. In that
scenario, transaction banking can become
the vehicle for gaining access to cash,
which in turn can lead to a host of more
powerful and long-lasting benefits, such
as faster debt reduction, improved risk
management and stricter adherence to
treasury and risk policies. The benefits are
obvious. The question is – how does a
company achieve this level of integrated
management quickly?
A truly integrated bank model – one
that has expertise and talent across
multiple business lines – can be
invaluable in helping to navigate the
financial landscape. In many respects
such a banking provider has become a
necessity in this era of globalisation.
What is clear is that key banking
providers need to have a full service
offering. However, simply offering a long
list of products is not always the answer.
A banking provider needs to understand
the client need, and have the ability to
tailor solutions appropriately. This is best
achieved
with
an
appropriately
constructed coverage model, but it takes
a lot to get it right.
Integrated treasury services why the fuss?
The tide has turned as banks search for
new ways to better respond to the
changing needs of global treasury
functions. Most corporations now realise
A banking provider needs to understand the client need,
and have the ability to tailor solutions appropriately.
that post-crisis, priorities have changed.
What is now required is an integrated
solution that mirrors the geographical
footprint of a company, blending a mix of
local knowledge with global know-how,
and accessible via a single interface.
The optimal integrated bank operating
model begins with an integrated approach
to investment and corporate banking –
integrated from coverage through
deployment of solutions. Having the
capabilities to deliver a broad array of top
tier financing and advisory solutions
opens the door to a wider range of
powerful operational benefits (e.g., in
transaction banking). Such an holistic
approach, where the bank can truly
provide for the client and seamlessly
deliver a range of integrated solutions,
helps overcome and anticipate challenges.
With a broad geographic reach, Diageo
is an example of a corporation that has a
number of banking requirements across
the globe where the value of a solutions
driven approach can be helpful. “Sure,
there are many ways in which banks can
suggest single solutions or help us address
specific transaction-based challenges,”
confirms Alberto Ibeas, assistant treasurer
at Diageo Plc, the world’s leading
premium beverage company. “But we look
for support from our banking providers on
a global basis and across multiple areas.
In this respect, we appreciate the
integrated, seamless and efficient
approach that Bank of America Merrill
Lynch takes. The difference is not only the
capabilities, but also the coordinated
global client coverage.”
Diageo: a more holistic
approach
As the bank-client relationship grows,
there are ways that a provider bank with
an end-to-end coverage model can help
with
broader
corporate
strategic
objectives. The Diageo story is an
excellent example. Diageo selected for
this joint venture one of its relationship
banks and made the selection based on
our bank’s history of providing services
across a number of areas within
investment banking and capital markets,
as well as significant treasury
management services and solutions
delivered throughout Europe. The valueadded proposition of such a bank-client
relationship is evidenced in the ability to
tap into the bank’s institutional
knowledge base to help solve a wider
array of problems using a combination of
products offered by the bank.
In this case, Diageo had a specific
focus on global cash visibility and
mobilisation. Based on best practices
learned through our global experience, we
helped the client analyse many of the key
challenges it faced. Some of the solutions
and process improvements implemented
have helped Diageo better understand,
manage and optimise its daily cash
positions. In addition, we were able to
help Diageo gain a better handle on its
counterparty risk exposure and take the
necessary steps to mitigate that risk.
The end-to-end coverage model, as a
result, leveraged in this scenario
facilitated the comprehensive review of
9
Diageo’s global structures and processes.
The banking team assembled to work with
Diageo spanned product lines including
the lead corporate banker and treasury
management experts as working capital
and business process improvement
consultants.
“The fact that Bank of America Merrill
Lynch is involved in so many areas of our
business gave them a deep understanding
of our broader strategic objectives,”
explains Alberto Ibeas. “Beyond that, the
ability to bring in expertise from so many
different areas was illustrated by the
solutions they were able to craft
specifically for our situation and fit our
needs.”
Extending the benefits
How else does this dual coverage model
potentially extend benefits in the real
world? If a company wants to ensure that
it is optimising its free cash flow
generation – and who doesn’t in this
credit-restricted environment? – a bank
that has a broad platform can look at a
wider variety of potential solutions. These
solutions might include improving
working capital and cash management
techniques.
Looking at this through the lens of the
integrated banking model, transaction
banking becomes the vehicle for gaining
greater visibility and access to cash, to
optimise paying down debt, and for
reducing the overall cost to the company.
Such was the case, recently, when
Diageo completed a sale-leaseback deal
on its vineyards and facilities in Northern
California. Bank of America Merrill Lynch
played an important role in helping
execute the transaction, valued at more
than $250m. The transaction was
strategic in nature, and it is estimated
that the benefit to free cash flow was
approximately $200m for the fiscal year
ended June 30 2010. The transaction
should also improve the return on
invested capital for Diageo’s wine
business.
This not only exemplifies the unique
and extensive client-bank relationship
between Diageo and its bank provider,
Bank of America Merrill Lynch, but it also
illustrates the power of the integrated
bank model.
10
Dual coverage a necessity
Any silo-operated bank that does not have
the ability to offer a broad enough range
of products and services will naturally
limit the depth of the bank-client
relationship. In turn, that will also limit
the potential benefits that a client can
leverage from its bank.
But it’s not just about having the broad
service offerings. It’s also about having the
talent and technical expertise, not only
across both corporate and investment
banking, but also on the ground in local
markets. And most importantly, it’s about
being able to structure and deliver
coordinated solutions, recognising which
services make sense, and delivering those
in a manner that advance the client’s
strategic initiatives. ■
Transaction banking
becomes the vehicle
for gaining greater
visibility and access
to cash, to optimise
paying down debt,
and for reducing the
overall cost to the
company.
Alex Verbaeten
Global Treasury Solutions, Senior Vice President,
Alex Verbaeten is Senior Vice President within the Bank of America
Merrill Lynch Global Treasury Solutions Group in London. He has over
20 years of experience in treasury management and joined Bank of
America from Standard Chartered Bank in Singapore, where he was global director of
sales strategy and business planning for Transaction Banking.
Before this, he spent ten years at Bank of America as Senior Vice President, Global
Treasury Solutions Group.
He is a treasury management professional with vast experience of both global banking
and corporate treasury. Alex is an innovative leader with strong planning, consultative
business development, profit enhancement and credit/risk management skills. He is
passionate about client relationship development and is solution-oriented, with strong
cultural awareness and understanding.
His specialities include consulting on global cash, trade and liquidity management
solutions for multinational companies. His focus is on working capital optimisation, bank
consolidation, funding needs, and integrated reporting. Alex holds a BA in Tax and a
Masters degree in Treasury Management from the University of Antwerp.
Simeon Stevens
Global Corporate Banking, Principal, Consumer and Retail,
Simeon is a Principal in the Consumer and Retail Group, with coverage
responsibility for a number of the key strategic names within EMEA.
With a background in equities, capital markets and corporate finance
advisory, his primary focus has been on advising clients on financing, capital structure
and risk management matters. In 2008 he helped clients raise in excess of $25bn in a
number of strategic financing initiatives.
Before joining Bank of America, Simeon worked at Dresdner Kleinwort where he held a
number of roles within the capital markets origination group and, prior to that, within
corporate finance and equity advisory. He joined Bank of America in 2006.
He has an MA in Philosophy, Politics and Economics from Pembroke College, Oxford.
TMI BAML 3 Boussuge Brady:Layout 1 24/09/2010 17:57 Page 11
Optimising
Treasury through
Outsourcing
by Jennifer Boussuge, Global Corporate Banking, International Subsidiary Banking (ISB) Treasury Sales
Executive, Bank of America Merrill Lynch, and Ciarán Brady, Global Corporate Banking, Managing
Director, Head of International Subsidiary Banking (ISB) EMEA, Bank of America Merrill Lynch
Is treasury outsourcing the answer to a dynamic and
challenging global business environment?
I
t wasn’t all that long ago that the
thought of outsourcing something as
important as the treasury function of a
large
multinational
organisation
contradicted conventional wisdom. Why
would a company decide to relinquish
control of vital treasury functions, including
tracking and directing the flow of precious
capital through the organisation? After all,
cash flow and liquidity, properly managed,
are core to the financial well-being of an
enterprise.
But times have changed. Today,
companies operating in many locations and
under different jurisdictions need access to a
greater degree of local expertise. Regulatory
pressures, scrutiny from boards and
increased counterparty risk put even more
pressure on treasury. This is the new normal.
In this environment, treasury outsourcing
may not only be the answer, but it may also
be the fastest way to achieve treasury
optimisation.
In the beginning
Business Process Outsourcing first appeared
in the form of payment factories and the
centralisation of accounts payable to take
advantage of economies of scale and tap
into best practices. It was easy to see how
Today, companies
operating in many
locations and under
different
jurisdictions need
access to a greater
degree of local
expertise.
these functions could be automated and
streamlined by a specialist without
sacrificing control and the decision to move
transaction-based activities to an external
provider could be justified by cost savings
that were easy to sell internally.
The debate, too, around treasury
outsourcing has evolved. Now it
encompasses benefits like operational
control, cash optimisation and ‘bestpractice’ risk management. The emergence
of this dialogue is a reflection of the
growing relevance of the treasury function
and its increased responsibility with regard
to corporate finance. This has been driven, in
large part, by the continuing trend toward
globalisation.
Adolfo Jimenez, Manager of International
Finance with Campbell Soup Company,
explains that his company has been
outsourcing its day-to-day European
treasury and cash management activities for
years. Jimenez confirms that the initial
11
driver of this strategy was all about cost
reduction, particularly as they were
operating in an environment where it was
essential to continually add efficiency to the
system. Now, however, Jimenez and
Campbell’s have implemented new forms of
outsourcing for additional advantage.
The ability to outsource the treasury function to a
trusted and capable banking provider enables a
company to take advantage of the integrated
framework – innovative technologies, global footprint,
local market expertise –without creating the
integrated end-to-end solution and expertise
in-house.
The bigger picture
Processing efficiency is a very narrow benefit
which a company can gain by outsourcing
its treasury function. Jimenez, and others
like him, are increasingly leading their
organisations in the discussion on what can
be outsourced and when.
Considering the extent to which treasury
administration can be outsourced requires
an open mind. The first thought is often to
focus on the back-office components and
operational items, but this misses the
strategic picture and limits the realisable
benefits of outsourcing. It pays to think
more broadly. Treasurers should ask
themselves: how can treasury align itself to
the overall objectives of the company or will
our growth strategy overburden our current
treasury infrastructure and expertise rather
than toiling with the administrative
headaches of day-to-day execution?
A company’s decision to outsource begins
with an open dialogue about these and
other strategic questions. During that
discussion it will become clear how the
interplay between all the various treasury
and corporate finance functions calls for a
broader approach. Cash and liquidity
management strategies, for example, also
impact FX exposure. Repatriating capital
could also impact how a company decides to
fund an intercompany loan or expansion into
a new market.
There are many different types of
providers in the treasury outsourcing space –
everything from generic Business Process
Outsourcing to treasury specialists.
Choosing to outsource a vital function such
as treasury to a bank seems natural – banks
by their nature are experts at managing
confidential relationships and process
treasury transactions in volumes daily;
however, the true value of a bank provider
will be its ability to integrate the client’s
cash management structure with its
outsource treasury expertise.
The ability to outsource the treasury
function to a trusted and capable banking
12
provider enables a company to take
advantage of the integrated framework –
innovative technologies, global footprint,
local market expertise –without creating the
integrated end-to-end solution and expertise
in-house. This allows the company to
concentrate on its core competencies and
tap into the economies of scale and best
practices afforded by an established fully
integrated global bank.
So, what functions should large corporates
seeking to achieve treasury optimisation
consider outsourcing?
●
●
●
Cash and liquidity management: The
administration of cash resources to
minimise idle cash balances or minimise
the cost of debt is administratively
burdensome and can be time consuming.
When outsourced to a large-scale
provider, this can result in automation
and operational efficiency, particularly
where a cash concentration structure is
employed.
Intercompany loan administration: The
outsourced provider administers the
client’s dedicated finance vehicle or inhouse bank which lends funds to, and
borrows funds from, the client’s group
companies. If the provider has a wellintegrated treasury management system,
this could radically reduce the traditional
headache of month end reconciliation.
FX exposure management: Banks are
experienced at managing FX hedging
activity. Typical advantages derived from
outsourcing FX exposure management
include aggregation of exposures,
●
●
improved execution of trades and
improved control.
Multilateral multicurrency netting: The
administration of a periodic intercompany
netting cycle by the outsource provider
can eliminate the pure administrative
effort for the treasury and the
considerable FX execution risk. For those
that have not implemented such
disciplines, the occasion of outsourcing
can introduce the opportunity to gain the
traditional benefits of eliminating nonessential FX trading, tighter dealing
spreads and lower payment volumes.
Accounting and reporting: The production
of management and annual statutory
reporting, as well as additional reports
defined in accordance with clients’
accounting policies and standards, can
result in valuable efficiencies and savings.
In the case of Campbell Soup Company, to
ensure that it was employing the most
effective treasury strategy to address its
current treasury challenges, Jimenez led the
evaluation of just such a holistic approach
and conducted a thorough review of its
complete treasury outsourcing arrangements.
For others that are selecting a provider,
Jimenez recommends looking for a partner
with the comprehensive global expertise and
a treasury platform to deliver best practices
across the board. “The relationship with the
team is critical,” explains Jimenez, “and the
more proactive and collaborative the
relationship between the outsourcing
provider and the corporation the more
positive the experience.”
Avoid the traps
Outsourcing the treasury function is a
significant decision not to be taken lightly,
and there are traps and pitfalls to be avoided.
For one, cost should not be the only driver in
selecting a service provider. Yes, it’s
important, but it’s better to choose a
legitimate expert in the field that can do
more than just automate transaction
processes.
Another common error is setting out to
replicate what is already in place. It’s better
to step back and evaluate the overall goals
and relationship between functions, and then
implement best practices, not replicate
existing practices.
Do not underestimate the degree of
communication required between all the
moving parts and all impacted stakeholders,
especially when implementing large-scale
changes and reconfiguring processes. An
outsourcing provider that leverages the best
technologies and offers web-based solutions
to connect all parties to view and understand
activity achieves ownership of the new model.
Finally, it can be a mistake to outsource
to a provider who organises strictly along
functional lines, such as liquidity, FX trading,
or netting. This makes it difficult to bring
about the richer benefits achieved when the
outsourcing team is more closely aligned
with the overall treasury strategy.
Modern outsourcing for
modern problems
Today’s corporate treasurer is facing
numerous new challenges that no one could
have anticipated even a few short years ago.
The last three years have illustrated acutely
the need to manage liquidity and
counterparty risk effectively. Increased
currency volatility wreaks havoc with
quarterly results, and a host of other
challenges like the funding of subsidiary
companies underscores the need to optimise
internal treasury processes.
In the end, it’s best to take a more holistic
approach to treasury outsourcing as opposed
to parceling out singular processes. Although
that might push you away from your
immediate comfort zone, considering the
wider spectrum of services from a provider
with a comprehensive treasury platform will
also open the door to a greater array of
long-lasting benefits. ■
Today’s corporate treasurer is facing numerous new
challenges that no one could have anticipated even a
few short years ago.
Jennifer Boussuge
Global Corporate Banking, International Subsidiary
Banking (ISB) Treasury Sales Executive,
Jennifer Boussuge is the International Subsidiary Banking (ISB)
Treasury Sales Executive for Global Corporate Banking. In this role,
Boussuge is responsible for setting and executing the bank’s global treasury
management strategy for international subsidiaries of multinational corporations. She
also manages treasury and liquidity sales teams dedicated specifically to the ISB space.
Boussuge has worked for Bank of America Merrill Lynch for the past 15 years.
Previous assignments include client manager for the Global Commercial Banking H&I
group; senior treasury sales officer for the International Government division; and,
client manager in the International Corporate group. Most recently, she managed the
US Large Corporate Treasury Healthcare and Consumer & Retail East teams, where she
led the oversight and delivery of global treasury and liquidity management services to
large corporate healthcare and consumer and retail clients throughout the US.
Boussuge has worked in the banking industry for 23 years. Previously, she worked
at Riggs National Bank and Citibank in Washington, D.C.
Boussuge graduated from Mary Washington College with Bachelor of Arts degrees
in Political Science and French. She completed her graduate studies in French at the
Sorbonne University in Paris, France and business administration studies at the George
Washington University in Washington, D.C. She is on the board of directors of the
ArtCenter South Florida and a member of the Miami Chamber of Commerce.
Ciarán Brady
Global Corporate Banking, Managing Director,
Head of International Subsidiary Banking (ISB) EMEA,
Ciarán manages a team of associates which focuses on the provision
of working capital and cash management solutions to EMEA
subsidiaries of US multinationals. Previously he was a Treasury Management Sales
Manager within EMEA Global Treasury Services (GTS) where he was responsible for
the delivery of treasury solutions to Bank of America’s Global Commercial Banking
clients and Treasury Outsourcing clients.
Ciarán joined Bank of America’s GTS division in London in 1995 as an
Implementation Officer. He was appointed a Treasury Management Sales Officer within
the US Multinational Team in 2000, selling GTS services to US MNCs headquartered on
the East Coast of the USA, and was promoted to Senior Vice President in 2005.
Before joining the bank, Ciarán was Treasury Manager at Ford Motor Company,
London, with whom he worked for nine years. In that capacity he was responsible for
Treasury Systems Development and Long-and Short-Term Debt Management.
13
TMI BAML 4 De Montessus Tanna:Layout 1 24/09/2010 17:58 Page 14
Delivering the
Relationship
by Pierre De Montessus, Global Treasury Solutions, Senior Vice President and Senior Sales Officer,
Bank of America Merrill Lynch, Dhiru Tanna, Global Treasury Solutions, Senior Vice President and
Senior Account Manager, Bank of America Merrill Lynch, and June West, EMEA Branch
Operations & Client Services Executive, Bank of America Merrill Lynch
Service model - a central point of contact
T
he onset of the credit crunch has
changed the global banking landscape
and the fall-out has changed the way
banking is executed. Corporates have had to
change the way they approach things from
strategy, to long-term structural changes, to a
change of focus from more traditional home
markets to rapidly expanding emerging regions
that offer unparalleled opportunities for
growth. These changing parameters provide a
host of challenges from a treasury perspective.
Before the financial crisis, large companies
could look to their corporate bankers strictly as
support functions – there to deliver a discrete
or specific service. As companies diversify and
expand geographically, their treasury function
and needs become more complex. And it’s not
just additional regulatory frameworks to
navigate cross-border transactions, or currency
and tax issues, or technology and liquidity
issues – all of which one would expect. There
are also the simple practicalities of accessing
talent in new markets, understanding local
business cultures, and even adapting to the
realities of managing and controlling risk
across time zones.
As a result, a centralised treasury team at
corporate headquarters cannot keep abreast of
every moving part at the local operating level,
at least not every minute of the day. For global
organisations (or those that have global
14
aspirations), navigating the landscape today
often demands that treasury employ a
decentralised operating structure – one that
reliably supports the risk management
framework, and also meets the demands to
collect, disburse and fund locally.
While both internal and external
localisation can meet the short-term
organisational need to establish an operating
presence quickly – it will both complicate
control and governance, and make it more
challenging to know where to go to get
answers swiftly and to resolve problems. This
As companies
diversify and expand
geographically, their
treasury function
and needs become
more complex.
reality is leading treasurers to consider the
integrated operating model that covers all
aspects of their requirements from meeting
their business needs, their day-to-day
operational queries, customer queries, billing,
legal and documentation. This complexity
leads companies to demand a single point of
contact from their bank as a necessary
ingredient to help them manage an
increasingly complex operating structure
across different locations.
Of course, to add value, this central point of
contact must have a deep understanding of
the client, its strategy and its transaction
flows, and understand those dimensions both
locally and globally for the enterprise. That
means that treasurers aren’t just looking for
the right individual to work with them. They
are asking that the bank has the service
infrastructure and capabilities to effectively
support their operations in different parts of
the world.
Understanding all moving parts
Many of today’s leading corporations are
centralised from a treasury perspective, and
with operations on multiple continents they
often struggle to get an accurate and
comprehensive picture of what’s happening in
each location. This is particularly true for
companies that have centralised and
consolidated both their treasury and cash
management operations in an effort to
increase efficiency and overall visibility.
Although this may help drive down operating
costs, one of the ramifications can be losing
quick access to country and market specific
information. Having access to the local
knowledge and market updates is crucial to
the treasurer – eliminating their local offices
(or downscaling their in-country operations),
as they need their bank to be able to provide
this information and comfort to centralised
treasury function.
This not only challenges the treasurer’s
ability to keep abreast of local subsidiary
activity, but can also complicate risk
management, and the oversight required to
ensure that subsidiary companies adhere to
corporate treasury policies. For example, this
‘blind spot’ might manifest itself in unexpected
payments processed by a local entity outside of
normal payment protocols, possibly resulting in
a short or overdrawn position. By leveraging
an integrated operating structure, supported
by a single point of contact, activity such as
this can be flagged quickly and brought to the
attention of the corporate treasury.
Or, for clients leveraging a shared service
centre, many will start with multiple queries
that need to be brought to the attention of
the service provider. One common frustration
voiced by clients without a single point of
contact is trying to co-ordinate informationgathering activity across multiple regions.
“Audit and risk management is a daily activity
in treasury and when you have several
hundreds of accounts across the world,
maintaining an up-to-date list of
documentation and authorised signatories can
easily become a full-time job. The central point
of contact becomes a key element in risk
management, ensuring documentation is kept
updated on a regular basis and across all
regions,” said Markus Kortmann, Senior
Manager Cash Management, Nokia Treasury in
Geneva. “The same also applies to the annual
audit. A simple request, made directly by our
auditors, can become very cumbersome when
dealing with numerous different countries in
the world. The central point of contact ensures
completion in a timely manner whilst trying to
resolve any potential local hold-ups or
requirements to avoid undue pain for our
people at the shared service centre.” There will
be differences in procedure from different
branches even within the same banking
Having a single person available to navigate the bank on
the client’s behalf, ideally in the client’s preferred time
zone, is the embodiment of the service delivery model.
organisation, sometimes solely due to local
regulations. However, having a central contact
helps alleviate this frustration. That central
contact can navigate the bank on the client’s
behalf, gathering information from the
different regions and reporting it in a
consolidated, consistent format for the client.
“The central point of contact works very
well for us,” confirms a senior executive with a
global energy company. “Just recently, we had
cargo waiting for delivery pending the arrival
of funds. We were able to call our client
services contact, who was able to check their
systems and confirm that the payment had
been received. We were able to deliver the
cargo without any impact to the client. This is
very important. At the same time that
individual – our single point of contact – was
able to confirm a second separate query,
involving a cancelled transaction due to the
beneficiary account being closed. The cases
were in different parts of the world, but both
were effectively handled by calling one
individual in London.”
Having a single person available to navigate
the bank on the client’s behalf, ideally in the
client’s preferred time zone, is the embodiment
of the service delivery model. The right
individual, supported by an integrated banking
infrastructure, can manage preferences and
maintain a global view of all client company
activities.
Vital for project implementation
In addition to the concept of a single contact
for all client-servicing queries, a bank may
provide a single contact for project
implementation. That person monitors and
reports on all in-progress projects and helps
co-ordinate across all local bank teams. This
allows the bank to preemptively identify issues
that may impact important target dates and
project deliverables. By streamlining all
reporting and maintaining regular review
meetings with the client, the central contact
can help the client access resources quickly.
In the case of Nokia, the Finnish global
telecommunications leader, before its bank
implemented a single point of contact Nokia
had to track down individuals in many
different countries as various issues arose. So
when Nokia expanded its XML payments
formats to other currencies in Asia, the central
point of contact facilitated the implementation
and testing, liaising with the different regions,
and ultimately enabled the client to go live
with multiple countries and regions
simultaneously. Collating feedback from the
local teams; supplying feedback from the client
in a consolidated format; and tracking the
overall project status across the bank are some
of the ways the central contact ensures that
project deadlines are achieved.
“Prior to the bank introducing a central
contact for implementation, projects were
primarily managed regionally,” says Markus
Kortmann. “We could be implementing a new
file format in Asia, opening new accounts in
EMEA, and setting up automated reconciliation
for our Merchant Card service in the US at the
same time.
Different topics, different
expertise, different regions and time zones.
Bank of America’s answer to the complexity
and demands of our projects was the creation
of this new role. It’s really all about better coordination, and it has helped us manage
change more efficiently.”
A central contact can also play a vital role
in mitigating risk inherent to complex
implementation projects. When a company
migrates to a new bank reporting platform, for
example, it is important to follow a structured
project plan. Someone is needed to take the
15
lead and communicate across impacted users
as each production change is implemented.
That central contact not only needs to hold a
deep relationship with the client company, but
he or she must also be able to access and
deploy the necessary resources from anywhere
across the bank’s comprehensive platform to
get the job done. The central contact for
implementation and the central day-to-day
client servicing contact are key functions to
the management of the client relationship.
They provide real-time information to the
relationship manager on the status of each
project wherever they happen, enabling him to
be proactive instead of reactive.
Developed out of necessity
In this post-crisis era, where a treasurer
needs to maintain central control but may
also need to gain access and efficiency
though a decentralised operating model, a
single point of contact at his bank is almost
a necessity. For those companies continuing
Pierre De Montessus
Global Treasury Solutions, Senior Vice
President and Senior Sales Officer,
Pierre joined Bank of America in 1990. In his
current position, he is Senior Vice President and
Senior Sales Officer within the GPS organisation, responsible for
France, Benelux and the European healthcare industry.
He joined from La Compagnie Financière Edmond de
Rothschild where he spent six years as a consultant and
ultimately as Sales Manager of Financière Saint Honoré, the
finance consulting firm of the group. Before this he spent seven
years as Group Treasurer of Factofrance Heller, the largest French
factoring company, which he joined from Banque de l’Union
Européenne where he was a corporate trader.
In addition to his current GPS position, Pierre is a member of
the Local Management Team of the Paris branch and a member
of the board of directors of the French Foreign Bank Association.
Pierre graduated from the EDC business school in Paris.
Dhiru Tanna
Global Treasury Solutions, Senior Vice
President and Senior Account Manager,
Dhiru Tanna is Senior Vice President and Senior
Account Manager with Bank of America’s
Global Treasury Services group based in London. Dhiru is
responsible for providing treasury management solutions to
global multinational corporations, focusing on a portfolio of
clients in natural resources and mining and European GIG names
to provide integrated global solutions to meet their unique needs.
Before this, Dhiru was Head of Product Management for
EMEA, where he was responsible for product management,
development and product consultancy for all corporate and non
FI clients. He worked closely with key clients to deliver a worldclass working capital management product set to Bank of
America clients.
Dhiru joined Bank of America in July 2002 as International
Product Management responsible for Bank of America Direct. He
was promoted to the Team Lead for the eBanking Program
Innovation team in 2003. He worked in eChannel Management
16
to push into new markets and regions,
successful
bank
relationships
will
increasingly be defined by the quality and
differentiation of service provided.
Conversely, for companies needing to wring
efficiencies out of mature operations, the
right coverage model can reduce their own
internal infrastructure costs - dramatically.
In both cases, the more ‘gaps’ the bank
provider can fill to help bridge the client to
the desired end state, the closer and the
more valuable the relationship becomes. ■
until 2005 when he was promoted to become Head of EMEA
Product Management.
Before joining the bank, Dhiru was Senior Vice President at
Citicorp in the UK, working in different parts of Citibank for nine
years in many locations including a four-year overseas
assignment in Egypt where he was head of GTS responsible for
all cash management, trade and securities business.
Dhiru graduated from the University of Essex where he
majored in Economics. On leaving university, he worked with the
Economist Group as a development economist and statistician
specialising in Third World debt.
June West
EMEA Branch Operations & Client
Services Executive, Bank of America
Merrill Lynch
June West, EMEA Branch Operations & Client
Services Executive, is based in Bromley, UK.
June has a combined team of 276 associates and is responsible
for Client Fulfillment & Servicing along with Branch Operational
Support.
Operational Support is made up of 121 associates based in
Amsterdam, Antwerp, Frankfurt, Athens, Madrid, Milan, Paris
and the Shared Service Centre in Bromley which now includes
the Accounting Services Team recently transferred from
Commercial Credit Operations.
Client Fulfilment is made up of 58 associates, with a further 85
in Client Servicing all of whom are based in Bromley. Another
12 associates perform servicing roles based in Antwerp, Athens
and Madrid.
June joined Bank of America in 1989 in the Payments Group
and has subsequently held various managerial roles throughout
Operations, assuming her current role in December 2009.
Throughout her career at the bank, June has been involved in a
number of key projects and initiatives including our branch
build-out into 11 new European countries, and the
implementation of the Single European Currency. Currently
Global Expansion initiatives across International are a primary
focus, inclusive of new country build-outs and leveraging new
technology to enhance our servicing and fulfilment capabilities.
June is Black Belt certified and sits on the EMEA Council for
Women in Technology & Operations.
48269_A1_C1p2-2
09/22/10
BRD
BOA
48269_A1_C1p1-2
09/22/10
BRD
BOA

Contributing to Client Performance and Profitability

Transcription

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