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Act, 020212 final


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Act, 020212 final

  1. 1. Chris Skinner
  2. 2. Corporate2Bank Relationships –Brilliant or Broken?
  3. 3. Interactive VoteDo you think that, since the crisis began in2008, the Corporate-Bank relationships you areengaged with are:1. Better?2. Same?3. Worse?
  4. 4. Corporate2Bank Relationships –Brilliant or Broken?
  5. 5. Past• Global platforms • Open Account vs• Payment Factory Letter of Credit• Supply Chain • SEPA Management • e-invoicing• Working Capital • Treasury metrics /• IFRS vs GAAP treasury workstation• Bank consolidation • Standards
  6. 6. Present• Cash management • Regulatory change• FX: Remnimbi v Dollar • Risk management• Eurozone • Cloud services• Hedging strategies • Real-time forecasting• SEPA end-date • XML [1 February 2014 ]
  7. 7. PwC Treasury Survey 2010• Nearly 80% of participants believe that the financial crisis has won them greater boardroom attention.• Nearly 70% of participants believe that the crisis has highlighted the value they create within the business.• Only 20% have secured extra resources as a result of the crisis.• More than 70% of participants are keen to sustain a long- term portfolio-style relationship with their bank, though 60% believe their banks would prefer an individually profitable transactional approach.• The proportion of participants rating cash management and working capital management as highly important has more than doubled (from 35% pre-crisis to more than 70% during and after).• Risk management tops the list of priorities for the future.
  8. 8. Top 10 risks for 2012 (2010 results)1. Macro-economic risk (4)2. Credit risk (2)3. Liquidity (5)4. Capital availability (6)5. Political interference (1)6. Regulation (3)7. Profitability (-)8. Derivatives (7)9. Corporate governance (12)10. Quality of risk management (8)Source: PwC Banking Banana Skins 2012
  9. 9. FuturePolitical Economic Social TechnologicalDodd Frank Eurozone uncertainty Global gossiping MobileVolcker Rule Sovereign debt issues Crowdfunding ContactlessDurbin Agreement Remnimbi vs Dollar Social finance Tablet PCsVickers Report CIVETS / Growth8 Occupy Wall Street etc Social networkingMerkozy Eurozone New Africa Wikileaks Social mediaEast-West China divide Russia WTO Anonymous AppsUS elections (2012) China inflation bubble Global connectivity 1:1 ConnectivityFrench elections (2012) China 2018 or 2047 New economies Chips in everythingUK elections (2014) India post-2020 Virtual currencies Wireless touchChange Boring banking vs casino capitalism Vision • Products are apps, manufactured in such a way New regulations that customers can put them together to suit their New economies lifestyle. Micromoney • Processing is open sourced, offered to anyone to Hybrid value management plug and play with their offerings through APIs. Global currencies (Bitcoin) • Retailing is based upon competitive differentiation through big data analysis to deliver contextual personalisation.
  10. 10. The real issue = complexity
  11. 11. “Even the financiers themselves couldntunderstand the implications or robustness of thefinancial derivatives they were trading, or evenhow to properly price them.”Prophets Against Profits? What Occupy Wall Street Misses
  12. 12. OTC Derivatives
  13. 13. Commercially robust versusspeculative trades?
  14. 14. FX hedging is key
  15. 15. What does a bank need to do?
  16. 16. Barclays Treasury Survey 2011
  17. 17. Barclays Treasury Survey 2011“There is a clear message here for banks: inorder to be the risk management partner ofchoice, banks need to distinguish themselvesthrough more than just price. Corporatetreasurers value ideas and quality of coverage.”
  18. 18. Strategic Long-term CEO Trusted Advisor Self- Actualisation Executive Strategic Partner Esteem Management Preferred Supplier Belonging Supervisory Solutions Provider Safety Staff Product Physiological VendorTactical Short-term
  19. 19. Future• Dealing with • Recognising market uncertainty failures and issues• Finding returns through • Knowing and managing growth markets risks• Managing stagnant or • Getting good advice contracting old markets
  20. 20. Does your bankcare about yourbusiness first and theirs second?
  21. 21. Interactive VoteDoes your bank care about your business firstand theirs second:1. Yes2. No3. Abstain
  22. 22. Chris Skinner