Global Custodian Spring 2019 | Page 59

[ S U R V E Y Table 2: Overall scores by market Market Average score Average Score 2018 Difference Albania 6.52 n/a n/a Bosnia & Herzegovina 6.52 5.32 1.20 Bulgaria 6.49 5.48 1.01 Cyprus 6.33 5.70 0.63 Ivory Coast 6.00 4.75 1.25 Lebanon 5.93 4.72 1.21 Kuwait 5.82 5.48 0.34 Ukraine 5.81 4.98 0.83 Bahrain 5.66 5.21 0.45 Panama 5.46 n/a n/a Kazakhstan 5.33 4.66 0.67 Vietnam 5.30 5.64 -0.34 Estonia 5.29 5.31 -0.02 Latvia 5.29 5.07 0.22 Lithuania 5.17 5.40 -0.23 Bangladesh 5.16 4.92 0.24 Jordan 5.13 5.37 -0.24 Oman 5.13 5.28 -0.15 Ghana 5.12 4.81 0.31 Romania 5.11 5.54 -0.43 Sri Lanka 5.11 5.39 -0.28 Serbia 5.09 5.73 -0.64 Nigeria 5.08 4.86 0.22 Croatia 5.06 5.30 -0.24 Botswana 4.99 4.96 0.03 Slovak Republic 4.91 5.32 -0.41 Morocco 4.90 5.06 -0.16 Mauritius 4.89 5.16 -0.27 Zambia 4.88 4.66 0.22 Kenya 4.80 5.14 -0.34 Slovenia 4.55 5.33 -0.78 Argentina 4.33 5.07 -0.74 Zimbabwe 4.33 4.80 -0.47 Iceland 4.26 4.85 -0.59 Venezuela 4.08 n/a n/a have played a role, five markets have recorded average scores above 6.00, outperforming many of their larger peers from a client perception perspective. One possible explanation is that lower volumes allow for a more personalised service. It will be interesting to see whether, as these markets grow, they retain the positive ratings achieved this year. | A G E N T B A N K S I N F R O N T I E R M A R K E T S ] METHODOLOGY In 2018 respondents were asked to rate their providers on the basis of just six categories, covering Settlement, Asset Servicing and Safety, Relationship Management and Client Service, Technology, Ancillary Services and Value Delivered. In 2019, by contrast, users of agent banks in frontier markets were invited to complete the full 83-question questionnaire common to all three agent bank surveys. This asked 75 questions across Account Management (6), Asset Safe- ty (6), Asset Servicing (10), Cash Management and FX (5) Client Service (4), Innovation (5), Liquidity Management (4), Risk Management (9), Liquidity Management (4), Pricing (9), Regulation and Compliance (7), Innovation (5), Asset Servicing (12), Pricing (10), Technology (7) and Cash Management and FX (11). It also provided space within each service area for respondents to make written comments about their service providers. The questionnaire did allow respondents to skip any question or service area in its entirety or rate an entire service area by answering a single question. This made it possible to assess a provider in all 12 service areas by answering just 12 questions. In addition, the 2019 questionnaire allowed respondents to divide the providers they wished to rate into two groups: those they wish to assess country-by-country and those they wish to assess as a group. The intention was to give respondents the maximum degree of flexibility in how they completed the questionnaire. The format as well as the length of the questionnaire was also changed by comparison with 2018. Respondents were asked not to score their agent banks directly on particular aspects of a service area, but to agree or disagree with a series of propositions about a service area. The extent to which a re- spondent agreed or disagreed with a proposition ranged from Strongly Agree to Strongly Disagree on scale of 20 points. For publication, however, results were converted to the 7-point scale (where 1=unacceptable and 7=excellent) familiar to readers of Global Custodian. This matched the methodology used in the ABMM and ABEM surveys. The publication of the ABFM surveys also marks the end of the first annual survey cycle in which the magazine has worked with AON McLagan invest- ment Services (McLagan) to create, distribute, collate and analyse all the surveys published in the magazine. Global Custodian has now worked with McLagan on all of the surveys it publishes. This has enabled the surveys to proceed on the basis of a fully refreshed survey platform, and to ensure that all of the data collected in the surveys remains fully compliant with the data privacy provisions of the General Data Protection Regulation (GDPR) of the European Union (EU), which came into force in May 2018. The ABFM survey was conducted between November 2018 and February 2019. Its goal is to assess the quality of services as judged by cross-border responses only (in which a respondent in one country is assessing an agent bank in another country) rather than including domestic responses (in which a respondent in one country is assessing a respondent in the same country) or affiliated responses (in which the respondent is linked to the agent bank being assessed by ownership, joint venture or other form of partnership or alliance). Of the 592 responses received, 65 failed the validation process and 37 were excluded as domestic, leaving 493 responses for the final survey calculations. We remain mindful of the time and effort required to complete a lengthy questionnaire and take this opportunity to thank the clients of the agent banks that took the time and trouble to do so. Spring 2019 globalcustodian.com 59