Published: January 01, 2000
As 2011 passes with alarming speed, it is worth pausing to reflect on the year so far and what the remaining months are likely to bring. Natural disasters in New Zealand and Japan dominated the first quarter of the year, reminding us that while there are many things from which we can protect ourselves and our businesses, there are some things that, sadly, we cannot. However, despite the tragedies that we all mourn, 2011 has also brought a renewed sense of optimism amongst the business community, with a focus on rebuilding, growing and investing.
The financial landscape for corporate treasurers no longer resembles pre-crisis days, and we recognise that the new environment we are creating together will not resemble those years gone by. Amongst the corporate community, board members are now astutely aware of the contribution that treasury makes to the business. This has enabled treasurers to take on greater responsibility and invest in projects that have perhaps been on the ‘to do’ list for some time, but which may have lacked a senior management mandate. Consequently, transformation and optimisation projects amongst our corporate clients are at an all-time high. Not only is the number of such initiatives burgeoning, but the type of projects has also changed since the crisis. Until 2008, most corporate activity in which we were engaged was transaction and price-driven. Today, however, information and education are primary considerations. Treasurers want to understand new developments and evolving trends in the market, and subsequently take advantage of innovative tools and processes that enable them to optimise their efficiency and performance. No longer can banks simply deliver transaction services, they now need to be advisers to their clients and implementers of relevant technology and solutions that help reduce counterparty, liquidity and operational risk, achieve efficiencies and enhance business performance.
With corporations around the world taking an increasingly holistic view of their treasury business across financing, cash flow optimisation, M&A and investment, rather than focusing on each element in isolation, banks that have segregated these areas into separate business lines are struggling to respond. A growing number of these companies are approaching Bank of America Merrill Lynch, attracted to our relationship-based model and recognising the value in our approach of gaining a broad-based understanding of each client’s business, and leveraging the full range of our capabilities across investment, corporate and transaction banking and global markets to design appropriate solutions.
Technology plays an important role in delivering on our value proposition, but it is an enabler, not a solution in itself. While we are investing heavily in our technology and integration capabilities to deliver ever-increasing levels of operational and cash management efficiency, we are also focused on how to best implement these tools in practical terms. For example, treasury departments often find it difficult to access internal IT resources, so this is where we help them to reduce project risk and cost by providing the relevant IT and integration resources. Furthermore, we actively advocate bank-independent connectivity and standard interoperability, such as SWIFT Corporate Access and ISO 20022 standards. For Bank of America Merrill Lynch, our differentiation is in our focus on long-term, trusted relationships, a holistic approach to meeting and exceeding client expectations, and an ability to help clients leverage opportunities based on our industry expertise, and not solely on the tools we use to achieve this. The use of bank-independent communication channels and formats can be an important way for our corporate clients to meet their efficiency objectives, so we are keen to support these endeavours proactively.
We deliver practical, holistic solutions and reliable processing backed by robust technology and exceptional industry expertise.
Over the past few years, those who were sceptical about the merger between Bank of America and Merrill Lynch have reversed their view, and today they recognise the value of our unique client offering. We deliver practical, holistic solutions and reliable processing backed by robust technology and exceptional industry expertise. We make it simple for our clients to do business with us, taking responsibility for providing them with streamlined, cost-effective solutions, and with a focus on delivering clear communications, speedy execution and a world-class service. While Bank of America was often seen as a bank for cash management in North America, corporations and commentators alike are becoming more aware of, and impressed by, our true capabilities at a global level. No bank can be all things to every corporation, so we work with those to whom we can deliver the greatest value. In some cases, we provide an entire solution; in others, we work with relationship banks so our clients have access to services in the relevant market. For example, in the Nordics, the regional banks have considerable expertise and capability in servicing these countries, so we want our clients to be able to access these skills and services, whilst benefiting from a single, cohesive channel through Bank of America Merrill Lynch.
Looking ahead, we are unlikely to ever see the financial landscape resemble pre-2008 days. New regulations, new priorities and a new appreciation of risk management have left an indelible impression on how we do business now and in the future. Regulatory change will predominate in the coming few years, but we should not be too pessimistic; rather we must recognise that change brings positive opportunity. Globalisation will continue to progress inexorably, with companies of all types developing new communities of suppliers and customers around the world.
While operating efficiency will remain a priority, treasurers and finance managers recognise that the world is not homogenous. The search for global SSCs and processes is therefore less likely to predominate in the years to come, with a focus instead on aligning rather than replicating processes and co-ordinating local activities through centres of excellence. Banks will also need to evolve to fulfil these changing requirements, to help their corporate clients maintain efficiency, visibility and control whilst working locally with their customers and suppliers in all corners of the world.
How Thought Leadership Can Reduce the Cost of Sales by Patrik Havander, Havander & Partners A focused attention on the costs incurred by the global sales and marketing processes is becoming increasingly important for corporate banks and their transaction banking departments. While the client/bank relationship remains vital, research has shown that in fact relationship selling […]
