Global Custodian Fall 2018 | Page 97

[ 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 ] Sweden SEB SEB gets easily the most responses of any provider in Stock- holm. Its characteristic strengths (notably in settlement) are evident here as are its weaknesses in asset servicing functions (corporate actions, proxy voting and tax reclaim). The client service is appreciated and the RMs do a good job of keeping in touch and adapting services where possible. The desire for lower prices, cheaper credit, more choice and transparency in cash and FX, and help with more efficient management of capital, cash and collateral, are universal. But these are things that make a difference to sell-side clients and SEB will be mindful that a rival for the business of broker-deal- ing clients has emerged in the shape of Citi. The American bank, which announced a Swedish service as long ago as 2006, added Denmark two years ago as part of its strategy to cover all mar- kets using T2S. Nordea The averages the bank earns here are for the most part in superi- or to those earned elsewhere in the region. Nordea is also doing well in the areas where it would expect to excel: credit quality and asset safety and especially the core services of settlement and (unusually) asset-servicing. But the bank has also embarked on a bold technology strategy, and one way to judge the success of the digitalisation initiative is by its impact on innovation (Have clients noticed the commitment?) and relationship man- agement (Has it helped to bridge the gaps with clients?). On both fronts, the average scores are encouraging. If Nordea was doing more to use technology to help its clients in Sweden cut their capital costs, it would taste perfection in client perceptions of its approach to innovation. The scoring of relationship management is effectively perfect. The only puzzle is the scoring of technology, where the details indicate respond- ents have yet to be informed about the digitalisation programme or (more understandably) experience its benefits. Handelsbanken Securities Services Handelsbanken has emerged from a three-and-a-half-year sab- batical with a clear commitment to Nordic sub-custody. It aims to centralise the processing of what the four markets have in common while servicing their peculiarities locally. The strategy enjoys management backing, evident in a new technology plat- form and the recruitment of fresh faces. The responses here are common to the other markets so there is no home premium – or enough data to offer a definitive verdict on how well the new approach is playing with clients. However, the bank will be encouraged to learn that the aver- age respondent is excited about the future. The next task is to sell it to prospective clients in a region that is consolidated but competitive, and where variation persists, not least in the shape of currencies. The bank is by origin Swedish so, unlike much of its client base in Denmark, Finland and Norway, it owns relationships in Stockholm that are not pan-Nordic. These will provide a useful foundation for growing the franchise throughout the region. WEIGHTED AVERAGE SCORES Market Average Global Average 4.09 5.26 5.20 6.11 4.09 5.62 5.40 5.81 5.40 5.59 5.44 5.46 5.71 4.56 5.47 5.68 5.77 5.72 2.88 5.52 5.46 Liquidity management 4.14 5.42 0.00 4.33 4.89 Regulation and compliance 5.69 5.97 4.63 5.65 5.64 Innovation 5.11 5.48 4.45 5.11 5.18 Asset servicing 5.04 5.92 3.73 5.05 5.09 Pricing 4.66 4.90 0.00 4.67 4.82 Technology 5.07 5.53 4.80 5.16 5.28 Cash management and FX 3.83 5.91 4.44 4.06 4.25 Total 5.22 5.80 4.23 5.22 5.24 SEB Nordea Bank Handelsbanken Market share (% of responses) 68% 18% 14% Relationship management 5.32 6.34 Client service 5.89 Account management 5.56 Asset safety Risk management Fall 2018 globalcustodian.com 97