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Korea
Standard Chartered Bank
This is a strong performance by Standard Chartered in Korea,
where the bank has maintained its commitment despite the
challenges that followed the Korea First Bank acquisition of
2005. The scoring is also consistent, and consistently abreast or
ahead of local rivals in all but one service area. In asset-servicing
alone are there signs of a systemic dissatisfaction. But hidden
in the underlying questions lie further promptings about cash
management, foreign exchange, pricing models and product de-
velopment that Standard Chartered would be wise not to ignore
if it is to maintain its hold here.
HSBC
HSBC is well entrenched in Korea, providing fund adminis-
tration and global custody to local fund managers as well as
sub-custody for inbound investment and trading in Seoul. The
averages are not outstanding, but nobody is complaining about
the efficiency of settlements, or income collection, or asset
safety. Where there is room for improvement is in asset ser-
vicing and treasury services such as cash management and FX
execution. In principle, respondents are pleased with the client
service and the RMs, but they are less convinced that third par-
ties – including colleagues – would agree with them.
Deutsche Bank
These are average scores that Goldilocks would recognise.
But what constitutes the averages is more interesting than the
averages themselves. Clients say that that Deutsche gets the job
done, but prices are high, client service is poor, and they would
value a more imaginative approach to operational shortcomings
and day-to-day problem-solving. Assets are regarded as safe
with Deutsche, but clients are not un-worried by the quality of
the bank as a counterparty. More transparency into the wherea-
bouts of their collateral, and the costs of cash, credit and collat-
eral, would also be welcome.
Citi
If it was possible to characterise a typical broker-dealing client
of the bank by what they like and dislike about the services
supplied by Citi, its preferences and problems would probably
unfold rather like the average client of Citi in Seoul. It is easy
to open and close accounts. Trades settle on time. They like the
technology. The bank is safe and compliant. But Citi issues too
much paperwork, offers insufficient value in cash, FX and col-
lateral, charges too much and ought to be more innovative.
Kookmin Bank
A powerful domestic franchise has enabled Kookmin to compete
for the sub-custody business of international banks for a number
of years now. Naturally, its domestic strengths make the bank an
attractive partner, especially in the $500-billion Korean mutual
and funds of funds markets. Not enough have responded to this
survey to gauge accurately the success of Kookmin in its ambi-
tion to look after global custodian banks, but those that have are
unequivocally enthusiastic about the services.
WEIGHTED AVERAGE SCORES
Standard
Chartered Bank HSBC Deutsche Bank Citi Kookmin Bank
Market share (% of responses) 35% 32% 19% 10% 3%
Relationship management 5.58 4.55 5.82 n/a Client service 5.77 5.40 5.66 Account management 5.69 5.10 5.49 Asset safety 5.63 5.47 Risk management 5.34 4.95 Liquidity management 5.47 Regulation and compliance 5.60 Innovation Asset servicing Market Average Global Average
n/a 5.04 5.20
n/a n/a 5.44 5.40
n/a n/a 5.30 5.44
5.79 n/a n/a 5.63 5.68
5.09 n/a n/a 5.16 5.46
4.54 5.48 n/a n/a 5.08 4.89
5.33 5.77 n/a n/a 5.55 5.64
5.56 4.69 5.72 n/a n/a 5.03 5.18
4.90 5.06 5.16 n/a n/a 5.06 5.09
Pricing 5.16 4.49 3.91 n/a n/a 4.61 4.82
Technology 5.71 4.94 5.58 n/a n/a 5.33 5.28
Cash management and FX 5.03 3.65 4.37 n/a n/a 4.21 4.25
Total 5.39 4.87 5.40 n/a n/a 5.12 5.24
90
Global Custodian
Fall 2018