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Implementation: moving towards a collaborative approach

by Brendan Reilly, Managing Director, Global Head of Client & Market Execution, Barclays

Once a company has decided to adopt a multi-banking approach, a number of decisions will need to be taken about the banking group and how the company should go about implementing the new structure.

When choosing a banking group, companies will focus first and foremost on the capabilities that banks can offer in a particular country or region. In contrast to a mono-banking arrangement, the object of the exercise is to choose the most suitable bank for each market, so the company will need to assess the banks’ capabilities individually while also considering how effectively the banks under consideration will complement each other to form a complete solution.

The company will also look at factors such as economies of scale which could lead to favourable pricing, as well as the ability of particular banks to comply with industry standards (e.g. XML or SWIFT) around format and connectivity. The strategic commitment of the bank to a particular country or region will need to be evaluated closely.