Global Custodian Fall 2018 | Page 91

[ S U R V E Y | A G E N T B A N K S I N M A J O R M A R K E T S ] Netherlands BNP Paribas Securities Services BNP Paribas has deep roots in this market, adding the 2009 Fortis acquisition to its inheritance from J.P. Morgan. Scoring of settlement is as solid as it is anywhere, and there are scores to match in straightforward asset-servicing tasks such as income collection and corporate actions notifications. Client service and relationship management both attract handsome scores, and individual RMs are name-checked as “competent and client service-minded persons. We appreciate to work with them.” Respondents value the quality of BNP Paribas as a counterparty, though they do wonder how much control they have over assets in custody, and how quickly they access them in a crisis. They would like a fuller story on the costs of liquidity and FX, more choice in both, and help economising on capital and collateral. ABN Amro Clearing ABN Amro was a name that had disappeared from custody cir- cles after the bank sold its half of a global custody joint venture to its partner BNY Mellon back in 2007. It had sold its direct custody and clearing businesses, including those in the Nether- lands, four years earlier. Today, in a landscape re-shaped by the financial crisis, the revivified Dutch bank is providing settle- ment and custody services once again, but not enough clients have responded to the survey to judge their quality. What is clear is that delivering global derivatives clearing and financ- ing services to proprietary trading houses, fund managers and corporates puts ABN Amro in an excellent position to exploit capital and collateral synergies for its clients. Deutsche Bank Respondents insufficient in number to gauge service quality offer a middling verdict in which excellent scores in risk and liquidity management and parts of asset-servicing are offset by less impressive returns from client service, pricing and innova- tion. KAS Bank The 212-year-old independent Dutch custodian and fund administrator has re-oriented its strategy towards technology and data-driven services to domestic pension funds and fund managers. The bank reckons the securities clearing and settlement busi- ness is now commoditised but continues to look after some bank and brokerage clients. Not many have responded to this survey, but if there are issues in client service and relationship management (“frequent change of RM,” notes a client, who adds it is “seen as nega- tive”), KAS does shine in the areas its new model dictates that it should: settlement and asset-servicing. Citi The under-representation of Citi in this survey continues in Am- sterdam, but those clients that have responded could scarcely be more pleased with the settlement efficiency, client service, com- pliance advice, risk management and technology. What doubts they have centre on the level and the disclosure of the costs of credit, cash and FX. WEIGHTED AVERAGE SCORES BNP Paribas ABN Amro Clearing Deutsche Bank KAS Bank Citi Market share (% of responses) 66% 10% 10% 7% 7% Relationship management 5.58 n/a n/a n/a Client service 5.67 n/a n/a Account management 5.49 n/a n/a Asset safety 5.42 n/a Risk management 5.59 n/a Liquidity management 5.21 Regulation and compliance 5.69 Innovation Asset servicing Market Average Global Average n/a 5.40 5.20 n/a n/a 5.41 5.40 n/a n/a 5.50 5.44 n/a n/a n/a 5.55 5.68 n/a n/a n/a 5.68 5.46 n/a n/a n/a n/a 5.14 4.89 n/a n/a n/a n/a 5.61 5.64 5.65 n/a n/a n/a n/a 5.57 5.18 5.11 n/a n/a n/a n/a 5.17 5.09 Pricing 5.03 n/a n/a n/a n/a 5.03 4.82 Technology 5.26 n/a n/a n/a n/a 5.35 5.28 Cash management and FX 4.30 n/a n/a n/a n/a 4.15 4.25 Total 5.35 n/a n/a n/a n/a 5.33 5.24 Fall 2018 globalcustodian.com 91