Best global transaction services house:
Bank of America Merrill Lynch
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Also shortlisted: |
Bank of America Merrill Lynch has held on to the best global transaction services house for the second year running.
It took the prize last year based on an impressive merging of cultures to create a collaborative operating approach and strategic targeting of its prime customer base. But in the ever-evolving transaction banking market, merely continuing a pattern of success would not be enough to scoop the prize again.
BAML needed to produce something impressive to remain ahead of some very stiff competition – and it delivered. The scope of innovation and the bank’s success at winning new business made it hard to beat. While many banks say they are putting clients at the heart of their operations, BAML is building its operations around customer needs.
BAML has very effectively continued its selective approach to its client base. Rather than attempting to cover every business in every geography, it targets larger US-based businesses. It deliberately does not seek out smaller companies that could be better served by local banks. This concentrated approach means it can go deep into a business; indeed BAML aims to understand what global corporates really need.
Focusing on this defined clientele has resulted in some impressive business wins across a range of products – from corporate card services to cash management and receivables financing – for a number of truly global corporates. Even more interesting is the list of names BAML has won this business from. With some banks losing out to BAML time and again in bidding to win new business, it may serve as a wakeup call to rethink their approach.
BAML’s revenues are on the up, with the global transaction services business for 2014 reporting a full year result of $7.09 billion, a 4% increase on 2013.
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The new Swiss branch is a reflection of how we cover key clients in key countries where they have cash management needs
Ather Williams, |
Why is BAML winning business time and again? Its skill lies in its agility in developing specific products. Once created, they can be used by other companies facing similar issues, or can demonstrate the team’s ability to think beyond its existing product suite.
Innovation comes in the shape of new payments systems that leverage on the development of new technology and solve industry problems, both are solutions that can be replicated across other industries and regions.
BAML’s digital disbursements payments method made it the first bank in the US to offer corporate payments through an alias-based platform, eradicating the need for individual cheques to be sent out to customers, reducing the cost of making a payment by 75%. Customers, in turn, receive payments much faster though the mobile e-payment platform. Insurance company Allstate has already adopted the system following a successful trial period.
BAML’s client support extends beyond product development. The introduction of the Virtual Account Management system in the EMEA region took away the need for multiple disjointed accounts. Under a single international bank account number (Iban) a number of sub accounts can be created. The Iban itself is recognised by clearing systems, making them identifiers that do not become truncated as they pass through clearing house systems.
The bank established a client support model so global clients do not have to contact multiple representatives for different banking needs, but now have a streamlined service. BAML has created a specific service director role to give individual advisory support. So far, 4,500 clients in the US have started to use the platform.
Fraud prevention
In response to growing client concerns, in the last year BAML has increased its work on fraud prevention, developing an online education portal to help clients stop fraud at source. The portal has a selection of white papers, videos and podcasts to keep them up to date with the changing risks.
Ather Williams has recently taken up the role of head of global transaction services at the bank. “We know our strategy,” he says. “It’s the same one we’ve had in place for several years. We also haven’t left one country. In fact, we’ve just launched local transaction services in Switzerland. The new Swiss branch is a reflection of how we cover key clients in key countries where they have cash management needs, and where we can make a material difference in simplifying their lives.”
Williams is the former head of global payments, and brings hands-on experience of client payment needs. He may be just the person to help BAML’s global transaction services business retain its award for a third year in 2016.
