Global Custodian Fall 2018 | Page 78

[ 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 ] Canada RBC Investor Services RBC attracted slightly more responses than its principal rival in Toronto. The obvious strengths of a AA-rated bank with a well-advertised aversion to excessive risk-taking are visible in the details of the scoring of asset safety and risk management. The reputation of the bank for client service is one of equal longstanding, and it is obvious that clients find their day-to-day dealings with the bank more than satisfactory. “Always very responsive to meet our needs,” writes one respondent. A second says his form always receives “great support from [the] client support team,” while a third confirms that “service is good.” A similar appreciation of the quality of contacts is evident in compliance, where a dedicated governance and regulatory solu- tions team is clearly impressing clients. “RBC is pro-active and informs us of any changes in the rules,” says a client. Another notes that the bank is “always communicating relevant informa- tion.” The average scores also conceal the fact that the product and consulting teams are winning plaudits for innovation. The bank can be pleased that its efforts to stay aligned with clients and ply clients the with useful information rather than volumes of data. Even the apparently weaker score for relationship man- agement, in fact, hides a firm belief in the excellence of the RMs. “Always very helpful and informative when contacted,” confirms a respondent. What the detailed scores do indicate is a concern about the quality of the underlying operations, albeit in asset-servicing rather than settlement. Greater investment in technology would help, but investing in the processes by which clients collect their entitlements in Canada would yield richer dividends sooner, and make it easier to transition to technology that improved the client experience as well as cut operational costs and risks. CIBC Mellon These are a robust set of scores that are broadly in line with the overall performance of CIBC Mellon last year. The strong performance evident last year in both client service and rela- tionship management continues in 2018, which is fitting for a bank that seeks as much direct contact with clients as possible. “Contacts are responsive, timely and always available,” writes a respondent, though a quantitatively minded client does add that “we would like to have a SLA/KPI in place for the service we receive.” Even where the averages dip, the details often indicate nuance. The underlying scores suggest that clients are extremely happy with CIBC Mellon as a counterparty – the score for risk management is outstanding – but need reassurance on the de- tails of asset safety. When it comes to investing cash and execut- ing FX transactions, they like the services but would value more transparency into the costs. However, there are areas where the client verdict is unequivocal. They would definitely like more help cutting the capital and collateral costs of doing business. Citi The bank did not attract enough responses to warrant a full assessment. Familiar strengths, such as settlement, credit and technology, are in evidence. WEIGHTED AVERAGE SCORES Market Average Global Average n/a 4.99 5.20 5.77 n/a 5.33 5.40 5.39 n/a 5.27 5.44 5.32 5.36 n/a 5.34 5.68 5.06 6.10 n/a 5.41 5.46 Liquidity management 4.67 5.02 n/a 4.77 4.89 Regulation and compliance 5.42 6.00 n/a 5.38 5.64 Innovation 4.76 5.08 n/a 4.75 5.18 Asset servicing 4.96 5.61 n/a 5.15 5.09 Pricing 4.56 5.62 n/a 4.79 4.82 Technology 5.01 5.85 n/a 5.28 5.28 Cash management and FX 4.18 4.41 n/a 4.31 4.25 Total 5.03 5.57 n/a 5.13 5.24 RBC Investor Services CIBC Mellon Citi Market share (% of responses) 61% 34% 5% Relationship management 4.88 5.53 Client service 5.28 Account management 5.46 Asset safety Risk management 78 Global Custodian Fall 2018