Oct 20, 2010
Study looks at more collaborative, value-based partnership "manufacturer-distributor" model
LONDON and NEW YORK, October 20, 2010 — Financial sector executives and their clients globally are increasingly considering strategic partnerships and alliances when developing global transaction banking solutions, according to a new BNY Mellon study of 300 leading treasury professionals.
The study, "Global transaction banking, evolution through collaboration" found that a client-driven, mutually beneficial partnership approach, evolving into a globally-reaching ecosystem of capabilities and value, is a model well-suited to the circumstances of the global business environment – and even better suited to the post-crisis realities as they are taking shape today. At the same time, traditional partnership approaches no longer fully respond to evolving end-user needs, as they do not capitalise on the value that local banks can bring to a modern working capital cycle.
Survey highlights included:
Dominic Broom, Head of Market Development for BNY Mellon Treasury Services in Europe, Middle East and Africa, commented, "This study demonstrates the importance of striking the right balance between global-standard technology and enhanced processing, and local market expertise, which is why BNY Mellon advocates collaborative partnerships between local and global institutions – with local knowledge as the key constituent."
Aneish Kumar, Head of Treasury Services, Indian sub continent, added, "Corporate clients recognise the value that such partnerships can add, and they provide a way for their domestic banks to offer client oriented global solutions at local level. Furthermore, as BNY Mellon operates on a non-compete basis, local banks that enter into partnerships with us can be sure that doing so is no threat to their local corporate business."
By collaborating, smaller institutions can make use of a global provider's capabilities, in a way that is tailored to the evolving needs of their end-user clients. This joint approach also goes a step further to combine local and global best practice solutions to overcome the ongoing consequences of the global economic crisis.
While partnership between financial sector services providers is not a new concept, the study sets out to establish if a more collaborative, value-based partnership model, called the "manufacturer-distributor" model, has the potential to generate greater value for participating institutions, while remaining directly linked to the evolving needs of end-clients worldwide.
This model is predicated on the concept of local financial institutions, "distributors", who have a sound knowledge and understanding of their domestic market and their local corporate clients, leveraging the global transaction processing capabilities and extensive geographical reach of specialist global "manufacturer" institutions.
Some of the key findings across different geographies included:
With locations in 34 countries on six continents and a network of more than 2,000 correspondent financial institutions, BNY Mellon's Treasury Services group delivers high-quality performance in cash management, global payments, trade services, capital markets, foreign exchange and derivatives. It helps clients optimize cash flow, manage liquidity and make payments more efficiently around the world in more than 100 currencies. Processing more than $1.8 trillion in payments transactions on a daily basis, the company is a top-five participant in both the CHIPS and overall funds transfer markets, and is a recognized leader in the delivery of white-label treasury services solutions for banks and other large institutional clients. BNY Mellon ranked top in four categories and second in two in the 2009 Trade and Forfaiting Review (TFR) Magazine's Annual Trade Finance awards, including Gold for "Most Innovative Trade Bank".
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $24.4 trillion in assets under custody and administration and $1.14 trillion in assets under management, services $12.0 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available at www.bnymellon.com.