World's best treasury and cash management providers

Global Finance, Apr 2003 by Platt, Gordon

ANNUAL SURVEY

TREASURY/CASH MANAGEMENT

Global Finance selects the world's best.

The real-time global settlement process took a major leap forward in September 2002, when the CLS Bank went live, netting positions in a five-hour window in each 24-hour period. CLS, or continuous linked settlement, promises to reduce so-called Herstatt risk in the foreign exchange market when trades take place across various time zones.

In today's difficult global economic environment, risk reduction and cash-management efficiencies are critical to corporate success.With input from industry analysts, corporate executives and technology experts, Global Finance selected the best providers of treasury and cash-management services, globally and in 10 categories across four regions.

A variety of subjective and objective criteria were used for choosing the winners. Factors considered included market leadership, customer service, competitive pricing and innovative technologies.*

BEST OVERALL BANK FOR CASH MANAGEMENT: Global Winner

Global Winner: Citigroup

"The Citi never sleeps" is an apt advertising slogan for Citigroup, the world's first truly global financial institution, with 200 million customers in 100 countries. As the sun races across the world's time zones, Citigroup's legions of bankers are making sure that its customers' money circles the world just as quickly.

The key to effective cash management is having your money where you need it when you need it. The CitiDirect online banking service offers seamless access to all of its business banking products via the Internet, just about anywhere in the world.

In January the People's Bank of China authorized Citigroup to offer Internet banking services in China to domestic and international companies and to consumers. Citigroup is the first foreign bank in China to offer these services to both groups simultaneously.

The bank not only will offer its CitiDirect service for corporate cash management, but it also has developed an Internet-based system specifically for the Chinese retail market. The Citibank Easy Payments system will allow customers to make local currency payments to beneficiaries throughout the country from 7,000 locations.

Elsewhere in Asia, Citigroup has expanded its payments networks in Indonesia and Thailand. Union Bank of Taiwan is the latest bank to sign up to Citigroup's continuous linked settlement, or CIS service, to reduce settlement risks in foreign exchange.

Citigroup's worldwide pooling and concentration services are important liquidity-management tools for corporate treasurers and financial institutions.The bank has the people and systems in place to enable clients to make their money work harder and smarter.

BEST OVERALL BANK FOR CASH MANAGEMENT: Regional Winners

North America

Bank of America

Bank of America, the first coast-to-coast bank in the United States, with 4,200 domestic locations, gets high marks from corporate treasurers for understanding their needs and coming up with sensible and innovative solutions to their problems.

Corporate treasurers praise Bank of America for its integrated systems, which help them to streamline operations and automate processes. They also commend the bank for its financial advice and unequaled execution of treasury strategies, as well as its risk-management capabilities.

Six months ago, the bank's Global Treasury Services division formed Aerarium, a forum on working capital. Its membership includes executives from large multinational companies and financial institutions who debate innovations and policy recommendations on working capital issues.

Europe

Deutsche Bank

Deutsche Bank's stated goal, admittedly ambitious, is to become the best financial services provider in the world. Germany's pre-eminent bank may not have the global reach of Citigroup, but corporate and institutional treasurers are in general agreement that it is the best cash-management bank in Europe.

Deutsche Bank offers a comprehensive range of services to help treasurers improve their cash flow and streamline their processes, including payment and collection services, liquidity management, information and account services, and electronic bill presentment and payment solutions.

The bank's 'db-direct internet' service provides online tracking and monitoring of global cash positions. DB-direct offers such added-value services as global cash pooling reporting and indicative foreign exchange rates. Within two years of release, 8,000 corporations and institutions are using the service.

Deutsche Bank's 'db-cinq' application for its cashmanagement clients offers access to historical payment information in both US dollars and euros via the Internet. The service enables faster inquiry resolution and provides extensive online help.

LatIn America

Banco do Brasil

Banco do Brasil, the largest bank in Brazil and Latin America, operates an efficient collection and payments system. With 3,585 branches in Brazil and offices in 30 countries, the bank serves 1 million corporate clients, as well as 14 million retail customers.