Published: January 01, 2000
With uncertainty and a lack of trust continuing to impact the banking market in Germany, corporate treasurers are seeking a real alternative: a global bank with a proven track record, expertise and a commitment to delivering not only cash management capabilities, but a full banking product suite. With the acquisition of Merrill Lynch, Bank of America gained strong relationships with many of the most innovative and well-respected companies in the world, in addition to the bank’s existing European client base. As a combined company, we have the confidence to put capital behind groundbreaking services to benefit our clients. Since the recent expansion of our Germany-based Corporate Banking team, there is now an even greater opportunity for treasurers based in, or operating in Germany, to leverage these opportunities and access investment and transaction banking solutions from a single bank.
At Bank of America Merrill Lynch, we continue to expand the breadth and depth of our geographic foot print.
The banking landscape in Germany was transformed during the crisis. With high-profile bank mergers and a weakening of the local Landesbanks, the banking environment was destabilised and clients became uncertain about the future strategy and investment capability of their banks. Today, although the situation is calmer, we are seeing banks increasingly re-evaluate their strategy for delivering treasury and payment services, with many smaller banks considering outsourcing these activities. We anticipate this trend continuing, particularly as the Single Euro Payments Area (SEPA) is rolled out, together with further consolidation in the banking industry.
At Bank of America Merrill Lynch, we continue to expand the breadth and depth of our geographic footprint, and provide stability and commitment to companies that are seeking a bank with which they can have a long-term relationship. In Germany, Merrill Lynch had a strong investment banking client base in addition to Bank of America’s corporate banking client base. These companies have welcomed the ability of the combined business to deliver a broader range of services. As the boards of international companies have increasingly recognised the importance of the treasury management function, and seek greater visibility over liquidity and risk globally, an even larger number of corporate treasurers in Germany are approaching Bank of America Merrill Lynch seeking integrated, worldwide solutions to their cash and liquidity management challenges. In the past, these companies have had to work with multiple banks to satisfy their requirements in all the regions in which they do business. Today, the global, cohesive approach to corporate banking solutions, services and technology offered by Bank of America Merrill Lynch is becoming increasingly attractive as treasurers seek to centralise cash flow and rationalise banking partners.
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There are no banks today that have a presence in every country, but Bank of America Merrill Lynch has benefited from the combined network of both legacy organisations, and has an ongoing commitment to building its direct distribution channels globally. For example, we have been able to leverage Merrill Lynch capabilities in countries in which Bank of America did not previously have a significant presence to develop a strong service offering in these locations. In addition to our own distribution capabilities, we continue to work with network banks to deliver the global reach our customers require whilst supporting local needs in each country.
Following a dearth of capital markets activity during the crisis, 2009 saw record corporate issuance of bonds, private placements etc. Consequently, in addition to cash management solutions, companies in Germany and across Europe are looking for financing to fund investment in the business and acquisition activity. As the economy recovers, we are also likely to see more privately-owned firms seeking IPOs. By combining both investment banking and corporate banking capabilities, Bank of America Merrill Lynch is uniquely positioned to support these companies’ needs on an holistic basis. In early 2010, we supported a major German company with acquisition financing, having been selected because of our capabilities and financial strength, and we anticipate these activities growing further during the course of the year.
As a growing number of companies in Germany become aware of Bank of America Merrill Lynch’s local, pan-European and global capabilities in both corporate and investment banking, together with the language and cultural synergies, and financial stability that we bring, we envisage strong continued growth of our client base in Germany and further expansion of services amongst our existing client base. As economic conditions improve and confidence returns, we also see an increasing requirement for an holistic approach to financing and cash management, and we have a major part to play in supporting these companies. The banking sector in Germany remains fragmented with an unsustainable number of banking providers. Over the next few years, triggered by the ongoing effects of the financial crisis, and industry changes such as SEPA, we see continuing consolidation in the banking industry, reinforcing the need for corporate treasurers to seek stable, global partners who can support their current and future financial objectives.
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 […]
