Global Custodian Fall 2018 | Page 99

[ 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 ] United Kingdom BNP Paribas Securities Services A decade on from opening in London, BNP Paribas seems more at home in the London market than any other provider. As it happens, these scores are more comfortable than compelling, but clients are convinced where it matters. They believe their assets are safe, their trades will settle on time, income will be credited, and even that the corporate action notifications are better than average. Above all, they are working happily with the BNP Paribas people. “BNP Paribas provide direct access to their operations teams rather than a single point of contact,” writes a client. “This works very well for us and speeds up the turna- round in responses where time is crucial.” The comments about the RMs are a better guide to their quality than the score. “It is of great benefit that the RM has been running our account for several years, and this continuity of service means they have a deep understanding of our business,” writes one client. “The RM is always available and delivers an exceptional service.” A second adds that it advantageous to have a London-based RM oversee their global business with BNP Paribas. “The RM is technically very experienced, plus also demonstrates a good understanding of our business,” he says. HSBC In this habitually under-scoring market, a patchy performance is good enough to put HSBC ahead of the local benchmarks in most areas, but the bank shines in no operational sphere. “Too slow return [of calls],” says a respondent. “Responsibility prob- lems!” These scores suggest it is chiefly the strength of the bank as a counterparty and the size of its compliance machine that are keeping clients engaged. Deutsche Bank Deutsche did not impress here last year, and there are more signs of regression than progress this year. Positive points include the commonplace (assets are safe) and the unusual (efficient liquidity management), and clients value an ability to keep them on the right side of law and regulation. But the basic settlement and asset-servicing products are not admired by the average client. Citi There is not enough information to make truly confident judg- ments, but a limited quantity can be illuminating. Many of the findings are familiar. Citi is good at settlement and credit and financing, for example, but not so good at asset-servicing or collateral management. Its prices are competitive but ought to be lower. Respondents are convinced their cash and securities are safe and can easily be retrieved, but worry about where their collateral is held and are unsure what would happen to assets if the bank failed in this jurisdiction. BNY Mellon The global custodian has attracted respondents here since it acquired the RBS Trust business in London in 1999. There are not enough to assess the quality of its work properly. WEIGHTED AVERAGE SCORES BNP Paribas Citi Deutsche Bank HSBC Citi BNY Mellon Market share (% of responses) 37% 9% 19% 21% 12% 5% Relationship management 5.43 4.18 4.41 4.49 n/a Client service 5.12 4.85 4.42 5.10 Account management 5.39 4.24 4.98 5.57 Asset safety 5.61 5.19 5.40 Risk management 4.78 5.20 5.64 Liquidity management 4.67 4.76 Regulation and compliance 5.13 4.63 Innovation 5.41 Asset servicing 4.86 Pricing Technology Market Average Global Average n/a 4.80 5.20 n/a n/a 4.93 5.40 n/a n/a 5.12 5.44 5.71 n/a n/a 5.52 5.68 5.38 n/a n/a 5.14 5.46 5.71 4.55 n/a n/a 4.78 4.89 5.04 5.91 n/a n/a 5.19 5.64 4.50 4.25 3.81 n/a n/a 4.72 5.18 4.68 4.34 4.71 n/a n/a 4.69 5.09 4.53 4.30 4.12 5.29 n/a n/a 4.68 4.82 5.08 5.37 5.30 5.16 n/a n/a 5.17 5.28 Cash management and FX 3.92 4.90 4.13 4.21 n/a n/a 4.14 4.25 Total 5.04 4.71 4.78 5.05 n/a n/a 4.93 5.24 Fall 2018 globalcustodian.com 99