Welcome!
From left to right: Roemer Paquay, Head of Sales Cash & Liquidity Management International Clients, Karin Kersten, Managing Director
Transaction Banking, Corporate Banking and Juan Aguilar Aguilera, Capital Markets Solutions International Clients Sales.
We would like to give you an update on the latest developments at ABN AMRO
from a Cash & Treasury management perspective.
We are delighted to be able to kick off our newsletter with
an interview with Mr. Alessandro Griselli, Group Controller at
Scorpio Group. He describes the specific cash management
characteristics of his global cash management business,
the key values he would expect from his cash management
bank and his assessment of ABN AMRO’s performance.
As examples of our continuous drive for innovation, we are
happy to update you on various developments such as Instant
Payments and Blockchain, where ABN AMRO is exploring the
potential for a variety of applications and services.
In addition, we are confident that the opportunities that PSD2
creates, will enable us to show our entrepreneurial spirit,
creating value for our clients.
ABN AMRO’s new Corporate Banking Portal is a nice example
of a recently introduced enhancement. So is our latest
Cross-Currency Notional Pooling proposition, which will be
launched before year end.
We are also happy to inform you about our joint venture
European Merchant Services (EMS), our one-stop-shop service
for a very demanding merchant acquiring payment market.
ABN AMRO Insights is our daily information platform, where
we inform you about relevant economic topics and the
consequences for specific sectors. In this newsletter, our
economists share their view on the UK’s vote to leave the EU.
Sustainability is an integral part of ABN AMRO’s long-term
strategy. Therefore, we want to illustrate it with some initiatives.
In the most recent Greenwich Associates Survey on Large
Corporate Cash Management, ABN AMRO has been awarded
‘’Quality Leader”. It is our ambition to be your best Transaction
Bank. Through our personal approach, short communication
lines and ‘can do’ attitude. All underpinned by an ability and
willingness to deliver solutions tailored to your specific needs.
ABN AMRO Newsletter >> 1
“In the era of digitisation, people
still make the difference.…”
An interview with Mr. Alessandro Griselli,
Group Controller at Scorpio Group
Scorpio is a leading global service provider in the seaborne transportation of commodities, providing full technical and commercial
management services. With headquarters in Monaco and operational since 1926. Scorpio currently manages more than
200 ocean-going vessels commercially and 150 technically.
Mr. Griselli, what are the specific cash management
characteristics of your business?
“As we service a lot of very demanding clients worldwide, we
have to run a global cash management business, which comes
with large volumes of impressive high value transactions,
mainly in USD. Timing and flawless execution of the cash
management business is everything, as our own service
performance to our clients is dependent on it.
a real partnership, based on a highly integrated way of working
together.
At the front end, accuracy, information and timing are crucial.
At the back end, the system has to be integrated with our
Accounts Payable and Accounts Receivable side.”
Do you see your cash management relationship with
ABN AMRO as a happy marriage?
“Yes definitely, because cash management is an ongoing daily
business, which means your partner must be willing to prove
his worth on a daily basis.
What are the key values you would expect from your bank?
“Our own key values in respect of our clients are transparency,
trustworthiness and experience. We are recognized among our
clients for these qualities and challenge ourselves every day to
deliver the promise we’ve made.
You will appreciate that we feel our cash management bank
should aspire to the same values. The collaboration should be
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The bank must be willing to share relevant information
proactively, eager to build a trusted relationship, and have
the right people with the necessary skills, expertise and
experienced market knowledge. In my view, these are the
ingredients for a happy marriage.”
Apart from the values I already mentioned, two elements are
fundamental in this relationship. First, the willingness to listen,
which is crucial in order to understand our priorities and
needs. And secondly, the right attitude. We cannot afford to
lose time on bureaucracy. Short communication lines and an
entrepreneurial spirit are key.”
From left to right: Daniela Fouque, Group Chief Accountant at Scorpio, Alessandro Griselli, Group Controller at Scorpio,
Ed Gonlag, Senior Consultant Cash & Liquidity Management at ABN AMRO, Nienke Blans,
Head Transportation Southern Europe at ABN AMRO, Monica Franzini, Chief Accountant at Scorpio.
How would you describe your cash management relationship
with ABN AMRO?
“We have a very good relationship with ABN AMRO’s team.
They have been helpful from the outset. Our company has
changed significantly over recent years and it was great to see
how ABN AMRO was able to follow these changes and act
proactively on them.
How would you assess ABN AMRO’s performance?
“On a scale of 1 to 10, we’d give you a 9 for sure! ABN AMRO
performs very well in a demanding and highly competitive
environment. Giving you a 9 of course means that we’re a Net
Promotor. But to be honest, we’ve already been promoting your
services to some of our clients!”
Communication lines are short and the service team is very
responsive. They understand our business and know what is
essential in order to perform. ABN AMRO’s staff have a very
proactive attitude. The relationship was already good, but I’m
happy to say that it continues to get stronger and stronger!”
What do you value most?
“Of course we expect a bank like ABN AMRO to have the
right systems in place. Access Online, for example, is a great
system. But at the end of the day, it’s all about people.
You see, when we have an urgent question we need a
professional reply instantly. In our business, sometimes we
need to open new bank accounts ‘yesterday’. ABN AMRO’s
staff are eager to get the job done, which is what really
adds value. In the era of digitisation, people still make the
difference!”
Mr. Alessandro Griselli, Group Controller at Scorpio Group.
ABN AMRO Newsletter >> 3
Payments up-to-speed
A welcome change is on the horizon in the area of payments,
with the declared ambition of Dutch banks to deliver an Instant
Payments infrastructure in the course of 2019.
Instant means instant
Instant Payments - also known as ‘immediate payments’ or
‘fast payments’ - will dramatically increase the speed with
which payments are made and received in Euros in the EU.
Today it normally takes one business day for a payment to reach
the beneficiary. With Instant Payments, in the Netherlands this
will happen within 5 seconds - 24 hours a day, 365 days a year with the funds immediately available for use by the recipient.
ABN AMRO is currently preparing its infrastructure for Instant
Payments, though merchants with a cards payments contract
with ABN AMRO already have their accounts credited during
weekends and public holidays.
Psd2 a genuine innovation driver
Change brings opportunities
PSD2 brings along a lot of changes in the payments industry
and ABN AMRO sees it as an opportunity as well. For example,
by leveraging the possibilities created by open API Banking,
whereby developers build applications and services around
a financial institution. This will enable us to create new digital
products and services, and create value for our clients in other
ways.
Less than two years from now, the PSD2 regulation will seriously
impact banks’ business models and create opportunities for
emerging new players.
PSD2 is an EU Directive that must have been enshrined in
national law by 13 January 2018 at the latest. The Directive is
designed to open up the European payment services market to
newcomers, including non-banks, and has the two-fold aim of
increasing competition and encouraging innovation.
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PSD2 will allow us, for example, to retrieve - only with client
consent, of course - account information from other banks.
Enabling ABN AMRO to offer enriched propositions to merchant
customers.
We are currently developing and exploring various initiatives
through multidisciplinary teams that include specialists from IT,
Sales, Product Management, Risk, Marketing and our Innovation
Centre, while working together closely with our clients.
Exploring the huge potential of blockchain
Blockchain is a hot topic right now. Many believe this
technology, which allows consumers and suppliers to connect
directly without the need for a middleman, may hold the key to
a real step change: increased transparency, validity, security
and cost efficiency in a value chain.
As such, Blockchain offers real possibilities for future business
growth. Which is why, as part of our innovation strategy,
ABN AMRO is investing time, energy and resources into
investigating various facets of the Blockchain phenomenon and
the possibilities it might offer us and our clients.
Trade Finance ideal test case
As well as investing in Digital Asset Holdings (DAH),
a US-based Blockchain technology company, ABN AMRO
Transaction Banking is also exploring the potential of
Blockchain for cross-border payments and Trade Finance.
Trade Finance is an ideal candidate because its transactions
are international, highly complex, involve multiple parties and
are dominated by paper trails that are currently processed
manually.
Focus on collaboration
In collaboration with our partners Port of Rotterdam,
Transfollow and the Dutch logistics companies EVO and
TLN, we are now exploring various financial supply chain
management initiatives. The aim is to develop a so-called
‘Minimal Viable Product’ in which information is shared and
distributed in the Blockchain. This will increase efficiency,
with paperless and straight-through processing; enhance
transparency, with online track & trace of transactions and
physical flow; and improve security, by eliminating risks
throughout the supply chain.
New dashboard
offers insights and overview
ABN AMRO has brought together Access Online, i-Markets,
Extradeal, DealStation and the Cash Pool Engine into one
personalized digital environment.
From product-based to client-based service
The dashboard displays all your accounts, and allows you to
see and complete all your domestic and international banking
transactions, on a single user-friendly platform. Users are
also sent relevant notifications and can quickly locate the
appropriate contact details at the bank.
This is just the first phase. We will be continuously enhancing
and extending the dashboard over the coming months and
years to ensure we are providing our clients with the optimal
digital user experience.
ABN AMRO Newsletter >> 5
Joint venture
delivers early fruit
Big data, big gains
EMS’s added value is to offer the optimal tools to best leverage
data produced at the various touchpoints on the customer
journey, such as online, mobile, social media and in physical
stores. EMS also specializes in ways to improve online
conversion, by supporting clients with a checkout strategy that
guides the consumer from the entrance through the shop to the
exit with a purchase.
In September 2015, ABN AMRO and First Data created the joint
venture European Merchant Services (EMS). Then just a few
months later, in the first quarter of 2016, ABN AMRO and EMS
together launched a unique end-to-end omnichannel payment
services proposition, which is designed to give large corporate
merchants a best-in-class experience in every channel.
Dynamic market
The merchant acquiring payment market is an extremely
dynamic and demanding one. We recognize that we therefore
need to be continuously developing and adjusting our
omnichannel payment services proposition to meet clients’
current and future requirements.
In December 2016, EMS will be launching “MY EMS portal”,
which will allow you full insight into all your brick and non-brick
transactions, as well as providing tools to analyze the data.
Sharp insights
probing analysis and lively discussion
As a service to our clients, ABN AMRO conducts research on
the economy, financial markets and international developments,
in areas such as commodities. On our ABN AMRO Insights
platform you can access our views on a range of relevant
topics. From analysis of the rise or fall of the US Dollar to
developments in the metals market to macro-economic trends
in China or other rising markets.
To find it all, including blogs on developments in Transaction
Banking, simply visit https://insights.abnamro.nl/en
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Transparent and flexible
Why cross-currency notional pooling still makes sense
Although Basel III regulations have been the source of much
speculation recently, ABN AMRO feels it can still be an
elegant and cost-effective way for certain clients to manage
their liquidity in all major currencies.
Which is why we continue to invest in this area.
Our newest Cross-Currency Notional Pooling proposition
includes full transparency in real funding costs, more flexibility
on benefit allocation, multi-level options and full insight via the
ABN AMRO Corporate Banking Portal, which was launched
earlier this year.
Let us know your needs
The new Cross-Currency Notional Pooling proposition will be
launched before year-end and in the meantime we would be
delighted to discuss your specific Cross-Currency Notional
Pooling requirements and circumstances.
Cross-Currency Notional Pooling - the benefits at-a-glance:
>> Optimal interest result by off-setting (cross-currency)
balances
>> Transparent funding costs
>> Local autonomy of subsidiaries
>> No inter-company loans or loan administration
>> Reduced FX transactions
AABN AMRO Newsletter >> 7
Brexit
the macro-economic perspective
Prophets of doom…
The UK’s vote to leave the EU was meant to be a cataclysmic
event for the UK economy, which would send serious ripples to
the eurozone and the rest of the world.
…proved wrong…
In the event, financial markets stabilised relatively quickly.
Although the UK economy has slowed sharply, it looks as if it
will escape a recession. The eurozone economy has lost some
momentum, but it is facing many challenges apart from Brexit
and was always going to see a rather sluggish recovery in any
case.
What explains this relative resilience? It could be that the
uncertainty shock that was expected was less severe because
the actual Brexit looked like a distant prospect.
…for now
Of course the adverse effects could come at a later point
depending on the negotiations and whether the UK and EU will
still maintain free trade. If the UK loses access to the single
market, that will have real economic consequences. Indeed, the
UK has recently made it clear that Article 50- triggering the exit
negotiations - will be triggered by March of next year, so it will
become a live issue before long.
Another aspect of Brexit that should not be underestimated
is that it is indicative of a wider political trend we are seeing
throughout Europe. Support for anti-EU, anti-establishment,
populist parties is on the rise in virtually every European
country. This political risk could manifest itself into serious
economic risk eventually. There are various polls and elections
coming up over the next year, which deserve close attention.
For more information please visit our website:
https://insights.abnamro.nl/en/category/economy/
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Brexit
facts, fears and implications
A lot of ink, airtime and megabytes have been used up in recent weeks with speculation - much of it politically-tinted or
sensationalist - on the implications of the Brexit. Here we give our, hopefully less hot-headed, summary of where things
stand today.
The facts
To recap: on 23 June 2016, the UK held a referendum on
whether it should remain a member of the European Union (EU).
There was a high turn-out and the electorate, with 51.9% of
eligible votes cast, instructed Her Majesty’s Government (HMG)
to leave the EU. While the referendum result is not legally
binding and has no immediate legal consequences, HMG has
indicated, both before the referendum and since, that a vote to
leave the EU would result in the serving of a notice to withdraw
under Article 50 of the Treaty on the European Union.
The broader consequences…
The consequences for the UK itself are likely to be profound.
Just how profound depends on the exact outcome of
withdrawal negotiations. As formally serving the Article 50
notice would start the clock running on a two-year exit period,
HMG has sought to delay giving the notice to allow more time
for preparations to be made and a strategy to be developed.
Moreover, though frowned upon by EU institutions and many
member states, negotiations of the withdrawal agreement
may be run in tandem with negotiations for the future trade
arrangements.
…and the implications for our clients
For now, the impact of the referendum is limited with respect to
any financial markets master agreements that ABN AMRO has
with our client base.
But obviously ABN AMRO will be closely monitoring any impact
withdrawal negotiations will have on jurisdictions clauses and
provisions governing non-contractual obligations, as well as
any other provisions in master agreements with our clients.
Ultimately, any changes will depend on the model that HMG
intends, and is allowed, to pursue post-membership. Various
scenarios are being explored and each would impact in a
variety of ways on cross-border trade.
If you’d like to discuss the specific implications of the Brexit for
your business, please feel free to contact our Capital Market
Solutions specialists.
ABN AMRO Newsletter >> 9
Completing
the circle
As part of our efforts to help accelerate the transition to a
more sustainable society, we have been preparing our office
buildings for a greener future. We are proud that, as a result,
we have won several BREEAM quality certificates. But our
next step will take things to another level again, with the
new ‘circular designed’ Pavilion on Gustav Mahlerplein in
Amsterdam’s Zuidas business district.
ABN AMRO’s revolutionary new building.
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What comes around goes around
Like the circular economy, which strives to be waste-free,
circular design aims to create a building that minimum use of
new raw materials and maximum use of recyclable materials.
The ultimate example of our sustainability efforts, the pavilion
will be circular from foundations to roof and design to
operation. Created by Architekten Cie, it will be the first circular
building designed in the Netherlands. Indeed, when it opens
its doors in 2017, the Pavilion may well be one of the most
sustainable new buildings in the entire world.
Digitisation of contracts
a sustainable solution
ABN AMRO Transaction Banking has begun a project to
digitalize the large numbers of contracts we have with clients.
Working in close partnership with well-known specialist
companies, our two main challenges will be first to find a
solution for accepting digital signatures instead of a traditional
one; and secondly, how to be confident that the contacts have
been signed by an authorised signatory.
Good for our clients, good for our planet
We have already received much positive feedback from clients
about this initiative, which will enable us to speed up various
processes, such as opening an account, while also making
the overall process much easier for our clients. The project
has the added benefit of being fully in line with ABN AMRO’s
sustainability objectives.
Greenwich associates
survey ranks ABN AMRO ‘quality leader’
In the most recent Greenwich Associates Survey on Large
Corporate Cash Management, ABN AMRO has been ranked top
and awarded the status ‘Quality Leader’.
ABN AMRO Cash & Liquidity Management achieved a leading
position in several quality rating criteria, including Overall
Relationship, Customer Service, Sales Specialist Quality and
Net Promotor Score.
In addition, Capital Market Solutions is ranked #1 for the Large
Corporates segment for Interest rate hedging according to the
annual Greenwich survey.
Our high rankings are a welcome affirmation that we are on
the right road to achieving what we set out to achieve through
our strategy: to combine offering the appropriate products and
delivering the right solutions with the people who can really
make the difference.
ABN AMRO Newsletter >> 11
ABN AMRO Newsletter
Disclaimer
This document has been prepared by ABN AMRO. The information in this document is strictly proprietary and is being supplied to you solely for your information.
It may not (in whole or in part) be reproduced, distributed or passed to a third party or used for any other purposes than stated above. This document is informative
in nature and does not constitute an offer of securities to the public, nor a solicitation to make such an offer.
No reliance may be placed for any purposes whatsoever on the information, opinions, forecasts and assumptions contained in the document or on its
completeness, accuracy or fairness. No representation or warranty, express or implied, is given by or on behalf of ABN AMRO, or any of its directors, officers,
agents, affiliates, group companies, or employees as to the accuracy or completeness of the information contained in this document and no liability is accepted
for any loss, arising, directly or indirectly, from any use of such information. The views and opinions expressed herein may be subject to change at any given time
and ABN AMRO is under no obligation to update the information contained in this document after the date thereof.
Before investing in any product of ABN AMRO Bank N.V., you should obtain information on various financial and other risks and any possible restrictions that you
and your investments activities may encounter under applicable laws and regulations. If, after reading this document, you consider investing in a product, you
are advised to discuss such an investment with your relationship manager or personal advisor and check whether the relevant product – considering the risks
involved – is appropriate within your investment activities. The value of your investments may fluctuate. Past performance is no guarantee for future returns.
ABN AMRO reserves the right to make amendments to this material.
© 2016 ABN AMRO Bank N.V. and affiliated companies (“ABN AMRO”).
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