1. 9/20/2016 RBS stops cash management services for thousands of businesses — FT.com
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Royal Bank of Scotland
RBS stops cash management services for thousands of businesses
State-backed bank will refer some international businesses to BNP Paribas
Royal Bank of Scotland headquarters
by: Emma Dunkley in London and Michael Stothard in Paris
JULY 2, 2015 8:35 AM
Royal Bank of Scotland is closing its global cash management division and referring
thousands of businesses to BNP Paribas as part of a major restructure to focus on the UK
market.
The state­backed bank is shutting down its Global Transaction Services unit, which at its
peak provided 7,000 businesses with cash management services from overdraft facilities to
trade finance products.
Thousands of international businesses will have to find an alternative provider. RBS has
formed a “referral” partnership with BNP Paribas, the French bank, in a deal signed late on
Wednesday, as an alternative for existing customers.
RBS’s decision to close the division is part of a large­scale restructuring unveiled at the start
of the year to refocus on UK retail banking (http://next.ft.com/content/c873761c­bd88­11e
4­8cf3­00144feab7de)after suffering seven successive net annual losses.
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2. 9/20/2016 RBS stops cash management services for thousands of businesses — FT.com
https://www.ft.com/content/23e94104­2010­11e5­aa5a­398b2169cf79 2/3
RBS is pulling out of 25 markets globally, making it untenable for the bank to continue to
provide cash management services internationally.
The bank said in its full­year results that GTS was “not essential” and the returns it made
“not sufficient to justify an exception”.
However, the bank will continue to offer cash management and trade finance services to
businesses based in the UK or Republic of Ireland, as well as overseas companies with
“significant links” to the UK.
The tie­up with BNP Paribas is intended to provide a smoother transition for international
clients that need cash management services but can no longer be serviced by RBS, the bank
said.
Jean­Laurent Bonnafé, the chief executive of BNP Paribas, said the deal showed how the
French bank was benefiting from the “wave of adaptation” in the sector.
“Both cash management and trade finance are two core businesses for the group,” he said.
When some banks are concentrating on certain markets, it shows how there can be “some
positive effects” for those with an international network.
BNP will ultimately have the power to decide whether or not it accepts RBS’s business
customers, many of whom might choose to go elsewhere.
Marc Townsend, head of RBS’s GTS division said BNP had the “people, country coverage,
strong global product capability and infrastructure in transaction services to be an
attractive alternative for our affected customers.”
RBS said it would be contacting the head offices of its affected business customers to
explain their expected contract termination date and to flag its tie­up with BNP Paribas as
an alternative.
Print a single copy of this article for personal use. Contact us if you wish to print more to
distribute to others. © The Financial Times Ltd.
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3. 9/20/2016 RBS stops cash management services for thousands of businesses — FT.com
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