BII Maybank One Stop Transaction Banking & Treasury Solutions

Transcription

1 BII Maybank One Stop Transaction Banking & Treasury Solutions Euromoney Workshop April 2 nd, 2014 Page 1

2 Growing market potential for trade business in Asia, particularly in Indonesia Rising trend on Indonesia s economic potential Despite slower global growth and continued uncertainty in the global financial market, Indonesia s economic growth remained strong - annual GDP growth of over 6% in all 3 past year ( ) Emerging importance of intra-region trade in Asia - Growth in emerging market economies in Asia is expected to lead the recovery in global demand over the next few years Emerging market volatility Trade Finance Market Trends in Indonesia Development of Trade solution beyond traditional plain vanilla Achieving sustainable competitive advantage via traditional trade products (LC, shipping guarantee, relevant document preparation) alone is getting extremely difficult Intensifying competition pushes for more innovative product development, i.e. estimated over 80% of global trade is conducted on an open account basis Increasing client demand for trade partner Today s price sensitive and market savvy clients are increasingly looking for value beyond traditional banking products to a more trusted trade advisory partner based relationship Involves differentiated client relationship management via dedicated Trade Sales Team Distribution network for ease of doing business Vast geographic distribution in Indonesia necessitate the need for a wide network of sales touch points for convenient, personalised and responsive client servicing Town hall Meeting 2

3 Challenge of Global Trade Succeeding in business, as an entrepreneurial venture or a large corporation, increasingly involves the imperative to "Go Global." Often, this includes identifying international sources for merchandise and raw materials, and opening new export markets for goods or services that have been developed to compete beyond domestic borders. Doing business internationally, however, involves much more than simply transplanting a business model, or shipping a product overseas. Trade import or export involves complexities and risks which can challenge the most seasoned executive or the most determined entrepreneur. International business can also be very enriching, and extremely profitable for those who can seize the opportunities while effectively managing the risks. - Are you a company that is ready to take its business global? - Are you already enjoying success in the international marketplace, and are in need of a world class Trade Finance, Cash Management and Treasury Team to help with current financing needs, or to take business to the next level? - Are you looking for support in the most complex aspects of structured trade finance? BII Maybank, we are your partners in meeting these challenges Page 3

4 Challenges of Global Corporate Treasurer Cross border transaction Inadequate visibility and control over global cash No effective cash concentration Local tax impacts and regulator risk Foreign exchange exposure w/ potential currency restriction No holistic solutions offered by the banks GLOBAL CORPORATE TREASURY CHALLENGES Low STP (Straight Thru Processing) rate Limited control over payment & collection process Lot of bank accounts and banks Idle cash balance among the business unit

5 Case Study: Wide Local Coverage with Regional Access A multi-national company focusing in agricultural business is located remotely in Sumatra Island. The company sources the raw materials from various local farmers and make payments in IDR under COD and exports to several countries in USD with term payments ranging from 60 days 90 days for their sales. The company imports machinery for their processing factory in USD with 9 12 months partial payments. The following are challenges that the company encounters in managing their operations: Timely handling of export transactions and documents. Timely issuance of Import LC with strict drawdown conditions to satisfy partial payments requirements Transaction approvers are mobile and remote 50% - 60% of their operations costs are in IDR whilst their income is 100% in USD with mismatch tenor Robust management of risk on foreign exchange exposure Comprehensive visibility on liquidity and cash flow in various currencies Efficient cash management on idle cash or cash shortage 5

6 Case Study: Wide Local Coverage with Regional Access Buyer/Importer - Foreign exchange exposure - Engage with many suppliers - Timely service required Buyer/ Supplier Importer Supplier/Exporter - Located in rural area - Limited access to banking - Timely service required - Foreign exchange exposure Importer Exporter Buyer/ Supplier Page 6

7 How To Address The Challenges: Trade Perspective Trade Online System Import Trade On line Transaction Documents upload Transaction Inquiry Market Trade Info advice Export LC/SKBDN LC import sight/usance Incoming Collection LC UPAS/UPAU Non LC/SKBDN Document Collection against Payment (D/P) Document Collection against Acceptance (D/A) Importer Trade Online System Exporter LC/SKBDN LC Advising Outgoing Collection Non LC/SKBDN Document Outgoing Collection against Payment (D/P) Document Outgoing Collection agaisnt Acceptance (D/A) Financing Invoice Financing (Import) Pre-Shipment Financing agianst LC or PO LC Financing Against TR D/A or D/P financing Bank Guarantee Bank Guarantee/SBLC Financing Invoice Financing (Export) Post-Shipment Financing LC Discounting or Negotiation Off shore Financing or On Shore Financing Bid Bond Performance Bond Custom Bond Payment Bond Advance Payment Bond Shipping Guarantee Page 7

8 How To Address The Challenges: Treasury Perspective PROPER RISK APPETITE Regional capacity (Asian Centric) Foreign currency exposure management (Translation, Hedging, etc) TAILOR-made solution strong & professional team Page 8

9 How To Address The Challenges: Cash Management Perspective Inadequate visibility and control over global cash Limited control over payment & collection process ACCOUNT & REPORTING INTEGRATED PAYMENT SOLUTION INTEGRATED COLLECTION SOLUTION No effective cash concentration Lot of bank accounts and banks Idle cash balance among the business unit No holistic solutions offered by the banks CASH PROJECTION EFFECTIVENESS MANAGE BANK RELATIONSHIP INTEGRATED LIQUIDITY SOLUTION MAXIMIZE ACCOUNT UTILITIES CASH INVESTMENT ONE STOP SOLUTION SERVICES REGIONAL CASH SYSTEM Foreign exchange exposure Local tax impacts and regulator risk FOREIGN EXCHANGE HEDGING RISK FUNCTION & CAPABILITY RISK MONITORING & CONTROLING Low STP (Straight Thru Processing) rate Cross border transaction AUTOMATION PAYMENT FACTORY HOST TO HOST BANK SYSTEM REGIONAL SYSTEM CAPABILITY

10 Scope of Regional Cash Management System Account Management Account Balances & Statements Account Portfolio Advice Printing Transaction Inquiry MT940/950 Statement Tax Report ACCOUNT LIQUIDITY Liquidity Management Sweep In/Out Sweep Balance Schedule Transfer Notional Pooling Receivables Management Domestic Fund Transfer Inward Book Transfers Inward SKN Inward RTGS Collection Service Multi Debit Cash Pick Up Electronic Data Capture (EDC) Machine Payment Gateway Facility E-Commerce Facility Virtual Account Cross Border Inward Telegraphic Transfer RECEIVABLE REGIONAL CASH SYSTEM PAYABLE Regional Cash Management System with regional connectivity and capability Payables Management Domestic Fund Transfer Book Transfer SKN RTGS Cross Border Outward Telegraphic Transfer (Commercial Payment Service) Disbursement Service Multi Payment Cash Delivery Payroll/Paylife Tax Payment Beneficiary Advice Page 10

11 BII Maybank s Domestic and Global footprint Uzbekistan (1) 1 Office via Uzbek Leasing International China (2) 2 Branches Saudi Arabia (1) 1 Office via Anfaal Capital Hong Kong (3) 1 Branch 2 Branches via Kim Eng Bahrain (1) 1 Branch Pakistan (1,138) 1,134 Branch via MCB Bank 4 Branches via Pak-Kuwait Takaful Company Laos (1) 1 Branch Vietnam (152) 2 Branches 139 Branches via An Binh Bank 11 Branches via Kim Eng Cambodia (11) 11 Branches India (1) 1 Branch via Kim Eng Thailand (45) 45 Branches via Kim Eng Philippines (55) 52 Branch 3 Branches via Kim Eng Malaysia (401) 401 Branches 2 Branches via Kim Eng Singapore (26) 22 Branches 4 Branches via Kim Eng Brunei (3) 3 Branches Indonesia (427) 1 Branch via Maybank Syariah Indonesia 422 Branches via BII 6 Branches via Kim Eng Papua New Guinea (2) 2 Branches Page 11

12 Case Study: Wide Local Coverage with Regional Access BII Maybank has managed to provide multi dimension of solutions to the company in managing various challenges encountered. The strategic capabilities being a regional bank with wide local coverage in many countries and strong regional access have allowed BII Maybank to present the suitable solutions to the customer: Challenges On time service to their export financing Ensuring compliance of term and conditions on goods purchased Cash management complete solution (for customer operational needs and liquidity management needs) Exposure Foreign Exchange Risk in managing different currency of costs and income Trade checking on trading counterparties in different countries in Asia Solutions TradeConnex: regional trade electronic channel UPAS LC combined with strict compliance documents Regional Cash Management System (RCMS): regional cash electronic channel Hedging facility to manage the mismatch of currency and tenor Maybank s wide regional and international network provides access to valuable information 12

13 Thank You Page 13