WORLD'S BEST TREASURY PROVIDERS

Global Finance, Mar 2005 by Platt, Gordon

TREASURY/CASH MANAGEMENT

Global Finance selects the best treasury and cash management banks, globally and by region, and the best providers of treasury management systems and services by category.

In a period of relatively low interest rates, treasury and finance officials at corporations and financial and public institutions are being called on to maximize returns on short-term investments with acceptable risk. They also are being asked to reduce operating costs by improving efficiencies.

By partnering with the right banks, they can make their jobs a lot easier. The growing use of Swift messaging and Internet access to bank services has brought global cash management to a wider audience of corporate users at a reasonable price. Meanwhile, the more arduous tracking and reporting requirements being introduced in the US and elsewhere make the outsourcing of some treasury processes appealing.

In selecting award winners, Global Finance editors used a variety of subjective and objective criteria. Factors considered include market leadership, customer service, competitive pricing, and innovative technologies and products.

This year we added two new regions-Central and Eastern Europe, and the Middle East and Africa-for a total of six regions. We also broadened the Best Treasury Management System award by including services and offering 11 separate awards instead of one, in recognition of the growing role of non-bank providers.

BEST OVERALL BANK FOR CASH MANAGEMENT

GLOBAL WINNER

Citigroup

Citigroup offers treasurers worldwide a real-time view of their global cash positions. It also provides the tools for treasurers and finance officials to manage their global cash flows and short-term investments, within and beyond national borders. Transparency and control are critical for corporate treasurers to do their jobs successfully under the increasing scrutiny of regulators worldwide.

By deploying funds effectively, companies can boost returns and get the most out of their working capital. Citigroup's cash-management products streamline treasury processes and provide automated record keeping, with the support of experienced staff.

With more than 6,000 employees in 102 countries, Citigroup Global Transaction Services delivers cash-management and payment services to remote corners of the globe. Sometimes this requires innovative services, such as partnering with local convenience stores.

Meanwhile, as the bank's clients seek to reduce their operating costs, they are moving many business processes to services accessed over the Internet and outsourcing others. As globalization continues, more and more companies want to manage their working capital on a worldwide basis.

Citigroup is developing a secure, Web-based platform that will enable its customers to aggregate cash and investment information from multiple banks. Meanwhile, industry groups are beginning to converge toward the SwiftNet standard for financial communication. Citigroup was the first bank to provide access to its US dollar clearing services and CLS settlement services in foreign exchange via the browser-based system. Citigroup's own online banking service, CitiDirect, is available in 23 languages and is used by 220,000 customers globally.

The bank has formed alliances with suppliers of treasury workstations to integrate its services into those specialized systems. Citigroup provides a global payment channel for sending mass payments and collection transaction files to clients' systems. By integrating its global platforms with its customers' supply chains, the bank is able to help them manage cash and increase their revenues.

REGINAL WINNERS

NORTH AMERICA

JPMorgan Chase

JPMorgan Chase processed $2.7 trillion in dollar-denominated wire payments on December 15, 2004, a record for a single day. The bank has been the leading originator of ACH payments since the automated clearing-house system was created 28 years ago. It continues to build its lead in overnight investment sweeps.

Ils recent merger with Chicago-based Bank One has made JPMorgan Chase an even stronger provider of treasury and cash-management services, with a broader range of products and improved technology. The bank continues to invest heavily in systems, software and development, resulting in inrfovative processes. This enables it to help customers increase their efficiency, profits and competitive abilities. JP Morgan Chase has 13 patents issued for treasury services, including check imaging, collections and supply-chain financing, with another 31 patents pending.

WESTERN EUROPE

Deutsche Bank

Deutsche Bank's new strategic partnership with Barclays demonstrates why it is the leader in European cash management. The German bank has the scale and technology platforms that enable it to thrive in a business that requires big investments and offers low margins. UK-based Barclays will gain the ability to offer a full cash-management product line to its biggest corporate clients.

Deutsche Bank offers numerous global cash-management products, including online access, payment and collection services, information and account services, liquidity management, as well as electronic bill presentment and payment solutions. Cash management is a core business for Deutsche Bank, which has made a commitment to Internet-based technology to meet its clients' growing needs for efficient processing. The bank's cash management unit gained market share across customer segments in the fourth quarter of 2004.