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A Collaborative Approach to Correspondent Banking

A Collaborative Approach to Correspondent Banking

by Padmanabha Mishra, Head of Institutional Clients Group, Abu Dhabi Commercial Bank

One of the key customer segments at Abu Dhabi Commercial Bank (ADCB) is our Institutional Clients business, which has flourished to become a sophisticated, highly integrated offering across both correspondent banking and solutions for non-bank financial institutions. Over the past year or so, the future of correspondent banking has become a key discussion topic amongst the financial community, including in the UAE. As this article outlines, ADCB is a key participant in this ongoing debate. The approach we are taking to secure our clients’ cross-border business is becoming widely recognised as a valuable means of addressing some of the risk and uncertainty to which banks, and the institutions that they support, are increasingly subject.

Correspondent banking at the crossroads

Correspondent banking is critical to global trade, facilitating the cross-border flow of goods and services, and connecting banks and their customers worldwide. As the range of organisations involved in cross-border trade continues to grow, and supply chains become more widely distributed, the ability to make and receive international payments has never been more important. Banks cannot – nor would they wish to – build and maintain a global network to support every international payment from end to end. Consequently, banks work together to leverage their products and geographic footprint by establishing correspondent banking networks that enable their clients to trade across the world.