by Peter Jameson, Co-head of Product Management, Global Transaction Services EMEA, Bank of America Merrill Lynch
As corporations expand overseas, they may enter markets in which their global banks are not physically present. Some banks support their clients in such cases by creating different coverage models. Bank of America Merrill Lynch has pioneered the strategic alliance model, enabling corporations to maintain their technical integration and relationship continuity with their primary global bank, while gaining access to domestic expertise and services via a trusted local provider.
As companies seek to access additional markets, a key question is how their banking needs will be served. No global bank has an on-the-ground presence in every country – so in some cases, it may be necessary for corporations to work with local banks. However, by setting up local banking relationships, treasurers may find themselves introducing additional complexity into their banking processes. The use of disparate platforms and processes can result in inefficiencies, and limited visibility over cash flows increases their risk exposure.
The use of disparate platforms and processes can result in inefficiencies, and limited visibility over cash flows increases their risk exposure.