ANNUAL SURVEY TREASURY & CASH MANAGEMENT BY ANITA HAWSER WORLD’S BEST TREASURY PROVIDERS 2009 ith the continuing turmoil in In light of the turmoil in global incorporates the cash manage- the world’s financial mar- financial markets over the past 12 ment and transaction services Wkets and an ongoing in- months, judging this year’s business lines of most banks, is crease in risk aversion, the face of awards was more challenging expected to emerge from this cri- the treasury and cash management than usual, given the uncertainty sis in much better shape as banks industry is changing rapidly. The surrounding those banks that look to solidify their position by crisis has certainly leveled the play- have been nationalized, partly na- facilitating the cross-border ing field in terms of those banks tionalized or the subject of ongo- movement of funds between trad- less exposed to the subprime crisis ing government bailouts. While ing counterparties and to help being able to capitalize on the flight the financial crisis has sorely companies achieve greater visi- to quality that is taking place as tested the investment banking bility over their working capital customers review existing credit model and found it to be wanting, and liquidity. lines and banking relationships. global transaction banking, which While scale and transaction vol- 38 MARCH 2009 G LOBAL G F INANCE ANNUAL SURVEY F TREASURY & CASH MANAGEMENT Corporations are focusing ever more intensely on their cash and liquidity management operations. In these credit-challenged times, selecting the best treasury and cash management provider is more important than ever. umes are important in terms of processes. Commitment to the ing beyond core treasury and cash being able to re-invest in technol- business and the ability to service management services to provide ogy and delivering economies of customers’ needs no matter where real value-added solutions to their scale, in the wake of the crisis ef- they are located are essential for banking and corporate customers. fective treasury and cash man- banks to retain customer loyalty. Regions covered in the awards agement is more about providing That requires a combination of lo- include North America, Western both banking and corporate cus- cal market knowledge and exper- Europe, Asia, Latin America, Cen- tomers with a wider range of val- tise and ongoing investment in tral and Eastern Europe, the ue-added services around trans- technology to make the cus- Nordic region, Africa and the Mid- action reporting, account tomer’s experience a consistent dle East. We also selected the visibility and risk management. one, whether doing business with best overall cash management And as existing relationships be- a bank in Asia, Western Europe or banks in each region and across tween treasury and cash manage- the Middle East. five regional categories encom- ment banks and their customers Global Finance has picked the passing payments and collections, are tested by the current crisis, cash management banks and liquidity management, risk man- those banks and software ven- treasury management software agement, CLS-linked offerings dors with healthier balance providers we believe have suc- and money market funds. sheets have the opportunity to cessfully combined geographical A best overall global cash man- shine and gain market share over reach, product innovation, invest- agement bank was also chosen, their competitors. ment in technology and local mar- and—in recognition of the in- An increasing differentiator will ket knowledge to meet the needs creasing popularity of the pri- be the ability of treasury and cash of their customers. Winners were vate white-labeling business, management providers to service selected using a range of subjec- where cash management banks the needs of those companies in tive and objective criteria includ- that have made the upfront in- the lower to mid-tiers as they are ing companies’ investment in new vestment in global payment net- the ones that are hurting the most and innovative technologies, prof- works, platforms and solutions as credit becomes scarcer and itability, product depth and provide their technology for oth- they seek to unlock capital breadth, market share and region- er banks to use—we have award- trapped in inefficient accounts re- al coverage. Our winners reflect ed Best White Label System ceivable and accounts payable those companies that are innovat- Provider. bank”—commercial, retail and investment banking constituting BEST OVERALL BANK the “good bank,” and the “bad bank” encompassing brokerage, FOR CASH MANAGEMENT retail asset management and riskier assets. However, Citi’s Trans- action Services business line remains a profitable business, with GLOBAL WINNER net revenues and income showing double-digit percentage in- Citi creases across North America, EMEA,Asia and Latin America in 2008. Citi continues to benefit from its early vision, leadership The past 12 months have been tough for Citi, with government and investment, which according to some analysts means many bailouts and talk of it being split into a “good bank/bad of its competitors are still catching up. CitiDirect Online Bank- 2009 MARCH 39 G LOBAL G F INANCE ANNUAL SURVEY F TREASURY & CASH MANAGEMENT ing and Citi’s TreasuryVision and Online Investment platform market position as the flight to quality continues.According continue to set the standard when it comes to integrating on- to analysts, HSBC remains the cash management provider of line cash management, investment and web-based treasury man- choice in Asia.They are also impressed by its efforts to en- agement.Citi’s global presence in 140 countries is unrivaled,and hance bank/client connectivity via its partnership with ERP the bank is able to deliver greater economies of scale based on provider SAP.HSBC is present in 20 markets across the re- the more than 1.9 billion transactions it processes annually. Citi gion and is committed to servicing all segments of the mar- has access to clearing systems in all of the markets in which it ket, including SMEs, with strong growth in that market seg- operates and boasts more than 300,000 cash and payment col- ment in both China and India. The bank has expanded its lection points globally. branch network in the past 12 months, particularly in Chi- na, where it claims to be a leader among foreign banks in terms of having the most “own-branded” branches. HSBC BEST BANK FOR CASH MANAGEMENT also has a strong track record in delivering tailor-made solu- tions to suit the specific needs of customers doing business NORTH AMERICA in the region. JPMorgan Chase According to analysts, JPMorgan Chase is among the leaders LATIN AMERICA in supporting its US-based corporate clients’ migration away Citi from checks to electronic payments.As a leading ACH proces- sor, JPMorgan continues to innovate in this space. Last year the Citi has a formidable presence in the region, encompassing 23 bank also announced a $1 billion investment in its treasury markets with its base of more than 6,500 corporate clients. services business to help position the bank as a major global Across Mexico, Latin America and the Caribbean, Citi boasts player. JPMorgan Chase also appears to be benefiting from the more than 1,800 proprietary branches. Latin America was one “flight to quality”:A survey by research firm Greenwich Asso- of Citi’s strongest-performing regions in 2008: Cash manage- ciates indicates that 47% of corporates believe JPMorgan ment revenues increased 25% year-on-year, liabilities in- strengthened its reputation among US companies during the creased 22%, and local payment transaction volumes increased current economic crisis. The bank is expanding its footprint by 30%. Citi has also assisted in the development of markets across the United States, and as a leading US dollar clearer JP- in the region, with its participation in projects for imple- Morgan Chase processed in September 2008 a record $5.05 menting Real Time Gross Settlement payment systems and trillion US dollar payments in a single day. automated clearinghouses. WESTERN EUROPE CENTRAL & EASTERN EUROPE Deutsche Bank RZB/Raiffeisen International Analysts say that 2008 was the year that German banking group With more than 40% of its assets in the region, RZB’s com- Deutsche Bank became the “undisputed leader” in European mitment to Central and Eastern Europe is unwavering. In the cash management, and 2009 will be the year that Deutsche first nine months of 2008, Raiffeisen International recorded Bank looks to consolidate its position, with balances increasing €861 million in consolidated profit, an increase of 37.7% on by 60% in the past few months as the bank benefits from the 2007. Its corporate customer segment saw profit before tax flight to quality. On the back of increased cash management increase by 35% to €698 million in the nine months to Sep- volumes, Deutsche Bank’s global transaction banking net rev- tember 2008. RZB ranks among the top three banks based on enues reached €751 million in the fourth quarter of 2008, rep- balance sheet totals in eight of the 17 CEE markets in which resenting an increase of 14% on the same period a year earlier. it operates. RZB services a range of customers, from large Having invested heavily in its Single Euro Payments Area multinationals to medium-size companies.With a strong pres- (SEPA) engine, Deutsche has positioned itself as a leading ence and history in the region, it also boasts a reputation for provider of SEPA Credit Transfers and Direct Debits,