This document outlines an approach for global corporate banking in Mexico. It discusses key aspects such as understanding the client's business and decision-making process, having expertise in available banking products, and ensuring excellent collaboration between coverage, product, and execution teams. The approach emphasizes gaining an in-depth understanding of the client and local market to provide strategic advice tailored to the client's needs. It also stresses maintaining knowledge of new digital products and tools to improve client services.

1. Global Corporate Banking in Mexico | Framework and approach
A Glimpse into smart origination and effective execution
By Pablo Casarrubias López

2. EXCELLENTPRODUCERSWHOGENERATEBUSINESS
Market Judgement
•Deep study of the markets. Including
sell-side and buy-side.
•Really understand the business in
the industry you cover
•Intuitive sense and deal experience
1 Understanding your Clients business
•Understand your clients decision making
process. Board controlled or family
controlled.
•Understanding what your client’s
concerns and needs are.
•Advise based on what make sense for
their business.
•Who to talk to. Understand with whom to
develop the relationship.
2
Outstanding knowledge of the Products we
offer
•Continuous communication with product
specialists to obtain a good grasp on how
to oversee the execution.
•Collaborates with product specialists in
the design and delivery of such products
3Excellent Team execution
•Understands the heavy interdependence
among coverage and product teams
•Have a clear understanding of each role from
analyst to MD
•Abide to the firms culture, do not impair the
internal culture and keep the integrity of the
business process.
4
M-C-P-T
coverage
framework

3. I.MARKETUNDERSTANDINGANDJUDGEMENT
 To really understand the business in the industry we cover, we must impregnate the
analysis with vast amount of insights and sector research. Knowledge is king.
 Understanding the position of our clients in the value chain will give us a clear view
whether vertical or horizontal integration is the next strategic step for inorganic growth.
 In general, many industries are starting to converge. Most notably those related with
Artificial intelligence and digital transformation.
 Understanding the economic environment is one part. Other key aspect to have market
judgement is to know the investor’s base and appetite very well.
 Taking into consideration the investors constraints in terms of: liquidity, legal, risk
aversion, tax situation, time horizon (or duration) and return expectations will help
designing the appropriate product to the target market.
 An effective market judgement will provide enough information to discern whether a
public or private transaction is more appropriate to our clients in a particular moment.
Industry Coverage
Understanding
Investors
Macroeconomic
Research
 As obvious as it may seem, having a good understanding of the global economy and its
trends allows us to visualize the stage of the economic cycle in a given country or
region, as well as the reasons behind some actions of fiscal or monetary policies, and
its effects.
 Our approach with clients must consider the impact that consumption, investment,
government spending, and openness for international trade will have with them in a
particular stage.
 Once we understand where our clients stand in terms of macroeconomics we will be in
a better position to provide strategic advisory

4. II.CLIENTAPPROACH.ASNAPSHOTOFLOCALCORPORATES
Mainly
Institutional
ownership and
strong
Corporate
Governance
Local
Geographical Reach
Cross border Multiregional
Small Caps or
Private
Companies
controlled by
key man or
family.
Fair Corporate
Governance
Control and
Independence
Control is kept
by key family
members but
open to
institutional
investors.
Good Corporate
Governance

5. II.CLIENTAPPROACH(CONT.)
 Client segmentation based on size or scale is useful to understand market share in their industry which
translates to higher margins and profitability. That notwithstanding, some local corporates in Latam may yet
need to develop a strategic view and have a conservative capital structure regardless of their large scale.
 Family owned or private companies sometimes control their business closely and are reluctant to
leverage its balance sheet for major expansions.
 Other companies center their decision making process within the controlling family(ies) and even though
they could set out to grow inorganically, it is based more on opportunistic targets, i.e. low multiples
 Building a longstanding relationship with the client requires the RM to truly understand what the client’s needs
are and build enough confidence so they’ll tell the RM what their real concerns and needs are.
 Not just go out and pitch business that we already know about or that the clients has directly requested
to its relationship banks.
 Even when the client says they don’t have any needs, a top performer can create a product or solution
that the client didn’t even thought they needed. By creating a need and therefore the product to cover
it, the relationship building is way more robust than just being good at sales.
 Once we understand how our clients operate both in terms of geographical reach and their decision making
process we can assess what segment fits best concerning relationship management.

6. III.UNDERSTANDINGTHEPRODUCTS
Treasury Services and Trade
Product segmentation
Investment Banking Financing and Markets
Franchise
Value
 Cash Management is the bread and
butter of any company. That’s why an
effective and efficient banking solution
is key for both the client’s and the
bank’s business.
 TS are the less commoditized products
in banking, therefore adding remarkable
franchise value
 Trade and supply chain financing
solutions provide high exit barriers due
to the link built in IT and procurement
processes.
Digital
Innovation
 A global financial institution with such a robust platform of products and track record can leverage from
different angles in order to produce business. And as time goes by, recurrent revenues from business link with
clients provides a long term shield in the relationship management.
 Competition is fierce among financial institutions and markets are constantly volatile, therefore the RM should
focus on both, new business generation to foster growth and excellent service in recurrent business to armor
the client portfolio. The nexus of these two is the foundation of Franchise value.
 Mobile applications and Digital
platforms provide an excellent
differentiation from the competition
 Keeping the innovation process with a
focused commercial sense and listening
to clients needs (or complains) will
foster continuous improvements and
prevent giving ground to other players.
 The main door to start a
strategic dialogue with clients
 A true advisory role and
execution/distribution
capabilities are key to win
mandates.
 Understanding the markets and
client’s long term view will allow
the RM to judge when DCM,
ECM or M&A deals are
appropriate.
 Even though the execution of IB
deals are still heavily dependent
on human judgement
(negotiation and complex
structures), other tools such as
data collection and trading
processing are more automated
everyday.
 A strategic use of the balance
sheet, i.e. acquisition finance
or funding CAPEX investments
helps to ensure a more
profitable asset allocation as
well as leverage for more
ancillary business.
 Market judgement, excellent
research and continuous
tracking allows the RM to find
the right hedge at the right
time.
 Timing is everything when it
comes to Global Markets, and
artificial intelligence is
providing exactly that.
 Blockchain technology, big
data, machine learning and
bots improve the efficiency to
serve more clients with
financing products.

7. IV.EXCELLENTTEAMEXECUTION
 Working with clients is one part of the job, Corporate Bankers are also heavily interdependent with other
professionals within the bank. Mainly product and markets specialists with coordination and holistic view.
 If the RM only drag the product specialist to the client, the deal doesn’t always happen. Product
specialists not necessarily understand the client’s business in the same depth, they understand their
product. Similarly, if the RM brings people from the markets side out to listen to the client and get a
fuller understanding of the market , they don’t always get the business because they don’t understand
the client, and they don’t necessarily understand the product, they understand markets.
 The art of doing business effectively in this industry implies a client centered view, a “One Team”
framework and clear understanding of roles.
Analyst
Acquires hard skills
(finance) to analyze data
and strives to understand
the client’s problems and
solutions proposed
Associate VP ED
Understands financial
techniques, contribute to
the definition of
problems and creative
solutions
Relates well with client
counterparts and
establishes good working
relationship
Relates well with clients
when appropriate
Thorough knowledge of
IB, financing and markets
products. Respected
analytical abilities. Skillful
and respected
professional
Relates well with clients
at all levels and has
influence with them
Functions well as Team
Leader
MD
Masters IB techniques
and analyze complex
problems skillfully. Has a
wide perspective of the
banking business.
Commands respect with
clients, is persuasive and
develop strategies to
strengthen relationships
in the long term
Team supervisor and
leader of a product or
industry
Highest level of expertise
in Corporate Finance.
Remarkable track record
solving complicated
problems. Strong
planning and organization
skills.
Able to persuade and
influence in the
organization. Clients will
have complete
confidence. A reference
in the market
Displays leadership by
clearly, credibly and
consistently articulating
departmental visions and
strategies.
Execution perspective Management perspective

8. V.CONCLUSIONS
Bringing It All Together
 The MCPT coverage framework helps to simplify the process of originating new
business opportunities in the Corporate Banking industry
 As long as Client Coverage professionals maintain the appropriate discipline of Market
Judgement, Clients focus, Product Understanding and Team Execution, the origination
process will flow steadily and clients will notice a differentiated value proposition.
 The corner stone of effective execution is the interdependence among product
specialists, relationship bankers and market specialists.
 Provided that these three areas center the design, structure, pitch and execution of each
transaction to the benefit of the clients needs and to provide solutions to their concerns,,
the odds of wining mandates increase exponentially.
 Financial Institutions are increasingly more aware that capital is a commodity;
therefore, the main differentiator to add real value with clients is the talent a firm
attracts versus the competition.
 Attract a network of stars-people who communicate and cooperate but are entrepreneurial
and stand out as quality individuals.
 Quality people must be managed with customized approaches. Create a hothouse where
young talent is nourished by the firm’s culture and people are encouraged to think
creatively, think deeply and think about the long-term client relationship.