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C L I E N T
C E N T R I C I T Y ]
“W
e have a client-centric
focus” or similar wording
is now part of all corpo-
rate mission statements. Intellectually,
most people get it. Practically, we all have
experience engaging with organisations
that appear to have limited knowledge of
how to actually be client centric.
Think of all those times you hear, “your
call is important to us”, after you have
been waiting 20 minutes to get an answer.
Think of all those chief executives or
senior managers you have worked with
that hardly ever see a client and when
they do, you worry about what they might
say. These are the very people behind
the drive for the client centricity cited in
those mission statements. Yes, it’s scary.
If you put a statement in the market,
you need to be confident the clients will
believe it or you will have a problem. A
big one. If it is in the DNA of your com-
pany, as it is with many,
you have an advantage. A
“If you put a statement in the
big one.
In the early part of
market, you need to be confident
my career in securities
the clients will believe it or you
services, the range of
will have a problem.”
products was limited and
the difference in overall
quality of service could be significant be-
tween one provider and another. Despite
those differences, the selection process
for a new provider was not as rigorous
and, in some cases, contracts were won
on the basis of overall relationship with
the firm or individuals. As a result, good
relationship managers were very focused
on building a strong understanding of
the client and developing a position of
trust with individuals as this could prove
critical in overall decision making. Fewer
regulatory barriers and a less structured
environment made frequency of access to
clients much easier then and the relation-
ships were often very strong. Not always,
but often.
A different world
In my view, a strong client relationship
can be defined by the client and the
provider being able to access each other
whether it’s to discuss a major problem or
28
Global Custodian
Summer 2017
“Despite all of the
advancements in securities
services, clients may
say there is not much to
differentiate providers.”
to offer congratulations and everything in
between on the basis of relationship and
mutual trust. That should be the goal at
all levels of client engagement from the
C-level to day-to-day operations. That ap-
plied historically as well as now but some
organisations find it difficult to achieve.
Though it must be the ultimate objective
of a client-centric model.
Clearly the dynamics of the business
have changed dramatically. The range of
securities services available to clients is
large and diverse with many providers
delivering multi product solutions across
multiple geographies. The selection
process has tremendous rigour with the
completion of RFIs, RFPs, due diligence,
legal negotiation, fee reviews and other
elements being integral to decision mak-
ing.
The drive for operational efficiency and
risk mitigation through standardisation,
common infrastructure and ever ad-
vancing technology has transformed the
industry.
So are securities services banks actually
more client centric than in the past? At
one level, the answer can only be yes. The
ability to deliver multi-product solutions
tightly integrated to a client’s specific
requirement from front to middle to back
office is, of course, terrific. Supporting
clients through the impact of changes in
regulation, tax, law, local settlement, mar-
ket infrastructure, new technology and
many other areas to the extent required is
light years ahead of the past.
A differentiator
At another level, the answer is maybe.
Yes, we can look at the approaches of the
past through pre-historic lenses but do
we know our clients as well, are we as
responsive as they want us to be and do
they trust us? I think each organisation
and individual will assess that differently.
Despite all of the advancements in secu-
rities services, clients may say there is not