WORLD'S BEST TREASURY PROVIDERS 2007

Global Finance, Mar 2007 by Hawser, Anita

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.

Treasury and cash management is becoming an increasingly global business, and customers are looking for banks and treasury management software providers that can provide seamless, standardized service spanning multiple geographies. As the titans of the corporate world streamline their treasury and cash management operations by establishing shared service centers and payment factories, they are looking to rationalize the number of banking relationships they maintain. That places an onus on banks to prove their value in the financial supply chain, not only by getting the fundamentals-payments and collections, liquidity management and financing-right across multiple jurisdictions, but also by adding something extra that makes them stand out from competing providers. "Clients are looking not only for payments and receivables solutions delivered on global platforms, but also for an information overlay that allows for control and informed decision-making," observes Paul Galant, global head, cash management, Citigroup.

One of the most significant initiatives in the cash management industry is the introduction of the single euro payments area (SEPA), which is due to go live in 2008. "Banks will have to strategically position themselves as either a true transaction bank, offering the full range of transaction banking products and services, or establish themselves as a distribution bank in which non-core payment functions are carried out in the most cost efficient manner," says Werner Steinmueller, head, Global Transaction Banking, Deutsche Bank.

In the following pages Global Finance identifies the banks and treasury management software providers that have successfully combined geographical reach and market presence with product innovation, investment in technology and local market knowledge to meet the needs of their customers. Winners were selected using a range of subjective and objective criteria such as investment in new and innovative technologies, product depth and breadth, market share and geographical reach.

The provision of treasury and cash management services is not just about size. Award winners are those companies that have leveraged technology in innovative ways to meet customers' evolving needs as well as customizing solutions where needed to take account of local requirements. The Treasury Management Systems & Services awards include 11 categories in recognition of the growing role non-bank providers play in the provision of transparency, connectivity and inter-system communication to help companies better manage their business, reduce costs and increase efficiency.

BEST OVERALL BANK FOR CASH MANAGEMENT

GLOBAL WINNER

Citigroup

Being the leading global cash management provider is becoming an increasingly difficult position to defend as the competitive stakes are raised by banks such as HSBC. Nevertheless, ongoing investment in technology, product innovation and standardization across its core banking and cash management applications continues to pay off for Citigroup.Citigroup's Global Transaction Services business continued to perform strongly last year. Assets under custody increased by 14% year-on-year, and total revenue for the first three quarters was $4.4 billion, an increase of approximately 22% on the previous year. It continues to innovate, with notable advances including its award-winning TreasuryVision platform, used by major global companies such as PepsiCo to gain greater visibility and enhanced risk management across more than 1,000 bank accounts. It has also forged ahead in the burgeoning area of identity management using digital signatures and certificates for interoperability of ID management across banking providers.

REGIONAL WINNERS

NORTH AMERICA

JPMorgan Chase

The North American market is becoming increasingly competitive, with local providers and international banks vying for market share. The top end of the market, however, is saturated, and an increasing number of banks are focusing on bringing greater cash management efficiencies and benefits to mid-tier corporates and banks. JPMorgan Chase's acquisition of Bank One gave it a strong middle-market focus. It processes on average $3.2 trillion in US dollar wire payments daily and is the leading originator of US dollar ACH transactions. It has invested in remote check deposit capture to help companies eliminate the inefficiencies and risks associated with transporting paper checks. Its Receivables Edge solution is highly regarded by analysts, as is its Order-to-Pay solution, which leverages a partnership with Xign on the e-invoicing side to help companies streamline their accounts payable and better manage supplier terms.

WESTERN EUROPE

Deutsche Bank

Deutsche Bank's Global Transaction Banking business is highly regarded in terms of qualitative market indicators. The German bank is the top euro clearing bank globally, and with the banking landscape in Europe predicted to change dramatically as a result of the single euro payments area (SEPA), Deutsche Bank is well positioned to take advantage of the new operational paradigm that will emerge from January 1, 2008. It has invested heavily in its SEPA platform to better service its corporate and financial institution customers via a single offering. It has also streamlined its back-office infrastructure to provide a single global platform for multi-currency payments.