Global Custodian Fall 2018 | Page 80

[ 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 ] Denmark SEB No bank received more responses in Copenhagen than SEB. There are good scores for client service and, in the details at least, for settlement and technology – which is reassuring in a country that remains the only Nordic market to have transi- tioned successfully to TARGET2-Securities (T2S). Like most banks in most markets in this survey, SEB could do better in helping its clients trim costs, especially of cash, capital and col- lateral, but also of the core operational services. Only asset ser- vicing looks problematic. “SEB are becoming very disappointing in the corporate action area,” writes a client that uses the bank on a regional basis. “Everything is black and white with them. It can be challenging to get them to action anything that does not conform to market practice.” Nordea The inheritor of the Unibank franchise in Denmark has collect- ed an ordinary set of scores in which appreciation of the client service, confidence in the quality of a AA-rated bank, a belief in the long-term future of the relationship and satisfaction with the core services of settlement and asset servicing are offset by concerns about the details of asset safety, the pricing of the services and the costs of capital and collateral. There is one curious finding. Nordea has embarked on a well-advertised but nevertheless daring journey to digitise all of its operations and is investing heavily to make a reality of this ambition. Yet this does not show up in the scoring of the bank for either innovation or technology. Handelsbanken Securities Services The Swedish bank has rededicated itself to Nordic custody, replacing a hotchpotch of 13 systems with a new, integrated and pan-Nordic technology system, settling on a combination of cen- tralised transaction processing in Helsinki and local asset-ser- vicing off a joint regional platform. Unlike the other Nordic markets, where Handelsbanken seeks domestic as well as in-bound business, the bank is focusing for now on sub-custody only in Copenhagen. That proportion of a relatively small client base in Denmark that responded to the survey are happy with the settlement service and the asset ser- vicing, and clearly think their relationship with Handelsbanken has a mutually rewarding future, though there were not enough to pass a comprehensive verdict on progress towards fulfilling renewed ambitions. Danske Bank The Danish universal bank has long defied the odds against single market providers, though a substantial domestic client base willing to outsource their operations to a domestic bank certainly helps. There were just enough responses from inter- national clients to gauge the quality of the sub-custody services Danske continues to supply. Clients evinced few doubts about the quality of the (single A-rated) bank as a counterparty. Clearly they love the people that they work with in client service and relationship management and have confirmed a reputation Danske has earned elsewhere for providing excellent services in cash management. WEIGHTED AVERAGE SCORES Market Average Global Average 4.09 5.07 5.20 SEB Nordea Bank Danske Bank Handelsbanken Market share (% of responses) 44% 29% 15% 12% Relationship management 5.61 4.83 5.20 Client service 6.02 5.54 6.18 4.09 5.55 5.40 Account management 5.90 5.63 5.43 5.40 5.69 5.44 Asset safety 5.89 5.47 5.41 4.56 5.65 5.68 Risk management 5.58 5.40 5.56 2.88 5.34 5.46 Liquidity management 4.55 4.14 4.47 n/a 4.38 4.89 Regulation and compliance 5.44 5.89 5.71 4.63 5.60 5.64 Innovation 5.47 4.74 5.35 4.45 5.07 5.18 Asset servicing 4.99 5.11 5.49 3.73 5.01 5.09 Pricing 4.51 5.03 4.04 n/a 4.62 4.82 Technology 5.61 5.01 4.67 4.80 5.22 5.28 Cash management and FX 4.21 4.34 3.95 4.44 4.22 4.25 Total 5.39 5.19 5.15 4.23 5.21 5.24 80 Global Custodian Fall 2018