Sponsor interview
Alice Gregoriadi
Regional Product Executive, Treasury Services
How important is it for corporate clients to have the choice of both pan-regional and local cash
management solutions?
It’s vitally important, because a corporate treasury’s need for local or regional solutions depends on a variety of factors,
such as the type of business and the industry sector that the corporate operates in, and the distribution channels used. For
example, a corporate operating in the B2C market may require sophisticated in-country collection capabilities.
However, a retailer leveraging the internet for sales throughout Europe may have more regional cash management
requirements. Another consideration is the purpose behind the payment. For example tax-related payments, in certain
countries at least, must originate from a local account. Such factors will of course influence the corporate’s selection of a
local or regional cash management model.
Another consideration is the degree of centralisation of the corporate’s business, in particular the treasury and purchasing
units. If the model is centralised, pan-regional cash management solutions will usually be favoured, whereas a decentralised
business model will often call for more localised solutions. At J.P. Morgan, we believe that it is very important for corporate
clients to have choice and flexibility of cash management solutions that cater not only for their existing needs but also for
their evolving requirements as the market and infrastructures change.
Do you think that corporate clients have enough choice between cash management solutions today?
There are certainly many institutions at a local level that provide a choice of domestic services. But how many of those
institutions are equipped to provide regional or global services as well? In the last couple of years we’ve witnessed some
consolidation amongst the major regional and global cash management providers. Much of the market has been preoccupied with broader financial pressures, but at J.P. Morgan, we have maintained substantial investment flows into our
cash management product range. This investment has helped us enhance our wide choice of local, regional and global cash
management solutions for corporate clients.
SEPA of course helps level the playing field somewhat. As far as electronic payables and receivables in euro are
concerned, a bank with just a small local presence could potentially leverage SEPA to deliver a seamless pan-European
payment and collection service to a client. That said, we frequently leverage our European branch network to extend
highly localised solutions to meet client needs.
“
As far as electronic payables and receivables in euro are concerned, a bank with just a small local presence
could potentially leverage SEPA to deliver a seamless pan-European payment and collection service to a client.
That said, we frequently leverage our European branch network to extend highly localised solutions to meet
client needs.
”
Over time I expect corporate treasury to adopt these cost-effective pan-regional solutions in greater numbers. Indeed, J.P.
Morgan has been a solid supporter of SEPA since inception and our new global payments platform supports a full range of
SEPA solutions for corporates and other banks.
What level of uptake are you seeing on SEPA from the corporate side? Is it starting to grow?
Yes - uptake has certainly started to grow, but volumes are still not as high as anticipated. However, with the introduction of
the European legislation 924/2009 on cross-border payments in the European Community, usage is expected to increase.
The legislation should ensure that all Eurozone banks are equipped to process SEPA Direct Debits (SDD) by November 2010.
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Sponsor interview
How has J.P. Morgan expanded its cash management footprint and products across Europe?
J.P. Morgan has leveraged the latest technology to roll out a new global account platform and a new global payments platform
offering a range of service enhancements that clients will experience worldwide.
Our European network covers 23 countries from which we offer a range of cash management services. Globally, that figure
rises to 41 countries and we plan to add several more in 2011 as we extend our cash management services across subSaharan Africa and into the Middle East.
As the firm expands, how will consistency of service be maintained across all these new territories?
Service excellence and consistency is a critical part of J.P. Morgan’s culture. Clients have learned to expect it, and we are
proud of that. Having created a global infrastructure, we need to maintain consistency and quality of service and operations.
The technological ‘backbone’ is really the key to providing a homogenous service to our clients. It enables us to create a
common experience globally in terms of service and user interface.
This technology also helps us to insulate clients from the intricacies of each of the markets. With the platform, we have
the ability to present a standardised offering to the client, which we are able to integrate with the client’s own back-office
via a proprietary host-to-host link which can easily be tailored to their exact formatting requirements. Essentially, what
our platform offers is the same kind of experience and the same kind of look-and-feel across all jurisdictions, with minimal
implementation requirements.
To what extent is technology the key to achieving efficient cash management?
Technology is certainly an enabling factor, but I don’t think it’s the only factor. I think corporates must strive to design their
overall business architecture in an optimal way. The more streamlined the overall business architecture, the easier it will be
for technology to enable even greater cash management efficiency.
“
I think corporates must strive to design their overall business architecture in an optimal way. The more
streamlined the overall business architecture, the easier it will be for technology to enable even greater cash
management efficiency.
”
Banking partners have a vital role to play in helping corporates to achieve that improved architecture. At J.P. Morgan we
adopt a consultative approach, working with our clients, trying to help them to improve their business processes. We are
known in the market for our well developed, integrated solutions. This includes our trade and logistics capabilities that cater
for the physical supply chain as well as the cash and liquidity capabilities that cater for the financial supply chain. I believe
that the more we can couple the two together, the more efficiencies we can provide and the more we can help our clients to
streamline their processes and maximise the benefits of their banking solutions.
Finally, what has been your most notable accomplishment since your arrival at J.P. Morgan?
I would say that the most significant accomplishment is having managed a seamless transition to the status of direct
participant in CHAPS. This strategic change enables J.P. Morgan to assume full control of the end-to-end sterling settlement
process and it also allows the firm to apply its own unique service signature to our sterling proposition.
I am also thrilled to be part of such ambitious and exciting expansion plans for cash management services across Central
and Eastern Europe, Scandinavia, the Middle East and sub-Saharan Africa. What’s more, having settled so quickly into
this talented team, I have every confidence that we will deliver a truly global transaction bank to our valued clients on
schedule.
Biography
Alice Gregoriadi is the Treasury Services Regional Product Executive for core cash services, leading a team of payment
and cash management specialists to serve the needs of financial Institutions, corporate and public sector clients across
Europe, the Middle East and Africa.
Alice joined J.P. Morgan in the spring of 2010 having served in the corporate and transaction banking units of RBS, ABN
Amro and Citibank in a variety of global and regional product management, relationship management, sales and client
service business design roles. Having pursued an education in Greece, the UK and the US, Alice studied for her MBA at
Manchester Business School after having earned her degree in Marketing and Corporate Finance.
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