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“We mobilized the bankers to gain more of our clients’ business, both flow and strategic” Clive Banks, BNP Paribas |
FRENCH BANKS BNP Paribas and Société Générale have some striking similarities in their approach to corporate FX customers. Both saw the importance of aligning the treasury sales force with the local network.
BNP Paribas has long had a corporate franchise but Clive Banks, the bank’s head of FX and derivative corporate sales, tells Euromoney that the BNP Paribas corporate bankers “had previously not given much consideration to FX. We were able to demonstrate that it had excellent revenue potential… and the possibility of high-level dialogue, which they like. Thus we mobilized the bankers to gain more of our clients’ business, both flow and strategic.”
Didier Latouche, head of FX corporate sales at Société Générale, also harnessed the existing franchise: “One of the main axes of our approach is strength throughout our global network. We’ve increased our headcount in all centres and forged partnerships with the local networks.”
Both banks saw the value in enhancing pricing on the multi-bank platforms. Société Générale is the fifth-largest price-maker to corporate clients on FXall. Latouche found that “volume activities on the platforms increase our visibility to the client base and lead to further business off-platform”. Banks agrees. “We recognized early that performance on e-platforms relates directly to success on more interesting voice business,” he says.
For BNP Paribas’ Banks, more throughput in e-commerce “freed up more time for marketers to concentrate on value-added discussions regarding the hedging of more complicated EM exposures or strategic transactions where, due to size, the method of execution is crucial”.
Société Générale has invested heavily in its proprietary FX platform over the past year. Latouche found it essential to “offer the whole client base consistent access to FX liquidity 24 hours a day”. The bank also established a separate team, FX strategic, to support “one-off trades which require a specific execution mode”.
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“One of the main axes of our approach is strength throughout our global network.” Didier Latouche, Société Générale |
Latouche says that Société Générale made emerging markets, particularly CEEMEA (central and eastern Europe, the Middle East and Africa), a key priority. “We have made a big push in this area; we already have a strong network in eastern Europe and good momentum but there is always room to improve,” he says. “But we have also invested heavily in other areas: we have strengthened our derivatives offering in America and Asia and have made some significant hires, most notably Anna Faustini in New York and Joakim Cimmerbeck in the Asia region. We are also increasing our focus on Brazil.”
With the integration of Fortis continuing, BNP Paribas is busy developing the synergies of its European businesses. The bank already had a substantial presence in European domestic markets; Fortis further strengthened this, particularly in Belgium and Luxembourg, but also gave the bank franchises in Turkey and Poland. Eric Auld, BNP Paribas’ global head of FX and FX hybrid trading, says: “The bank now has significant retail businesses in 10 European markets. Fortis has provided us with good corporate relationships, particularly with small and medium-sized enterprises in Belgium, Luxembourg, Poland and Turkey, which we are continuing to build.”
Auld sums up the bank’s approach. “BNP Paribas was there for clients throughout the crisis and that did not go unnoticed,” he says. “We are set up to provide an integrated approach to client requirements, harnessing the whole bank. Although product complexity is less in favour we still provide a situations-based, needs-based, individual approach and, of course, super-sharp pricing.”
Société Générale’s Latouche sees further gains in the coming years. “Our corporate FX initiative is now in place globally, with the full commitment of the entire bank,” he says. “We will continue to align the platform and treasury sales force with the local networks around the world to deliver optimum service to our client base.”
