WHAT makes a great transaction banking partner? Billing transparency? Regular Communication? Customization? No. Speed.

That’s according to the latest data snapshot from Asset Benchmark Research’s (ABR) ongoing Treasury Review 2018, which has so far canvassed the views of 258 corporate treasurers and CFOs in Asia.

Respondents told ABR that the speed of implementation (of a solution) is the number one quality that makes a great transaction banking partner. The second-most rated quality is also speed-related – response time to queries. This was followed by the bank’s understanding of their business. In other words, implement quick, respond quick, and understand our needs.

Source: Treasury Review 2018, Asset Benchmark Research

For one treasury director at a Southeast Asian corporate, the early bird really did get the worm: “The bank we awarded was the first one to propose this distributor financing solution to me. They were really fast at the time, compared to the other two banks. They were given the opportunity and appreciated it,” he says.

One CFO explains that the speed of implementation was key in choosing a banking partner for a solution to enhance their cash visibility: “Once we tested it, go live was very quick,” he says.

“Many banks do a lot for you without understanding what the end goal of the business is,” says another CFO at a mid-cap based in Singapore. For him, the bank’s knowledge of his operations was critical in deciding whom to partner with for his company’s float management and reconciliation solution.

“I would like a bank to tell me how they can deliver the solution and whether they can or not,” he explains. “Basically, I have this problem, now please go away and solve it.”

When the responses are broken down by company size and location, ABR found that another factor appeared frequently among the top three: customization. Both SMEs and large companies rank the bank’s readiness to customize as high on their list of priorities, as the second most important for SMEs, and the third for large companies. Readiness to customize was also the number one consideration among Indian companies.

Source: Treasury Review 2018, Asset Benchmark Research

Source: Treasury Review 2018, Asset Benchmark Research

“There was nothing off-the-shelf that they could provide. They had to cater a solution to our vision,” says a treasury director at a large UK-headquartered multinational, regarding to a notional pooling structure implemented by their transaction bank.

These data are part of ABR’s ongoing Treasury Review 2018. To participate, please click here.

Find out more about The Asset 4th Asia Treasury & Trade Summit please click here

Background
Since 2014, Asset Benchmark Research has gathered the views of corporate treasurers and CFOs in Asia on their current and planned treasury activities in the annual Treasury Review.

The survey asks about a range of topics such as their treasury set up, bank relations; risk management; review of treasury solutions and their outlook for the year ahead. Corporates are asked about the challenges they face in their treasury operations both from a daily operational and long-term strategic perspective.

There is also an emphasis on reviewing how corporates leverage technology in their business either to automate payables, improve reconciliation or rationalize banking connectivity. The review is conducted in the first half of the year.