Global Custodian Winter 2018 | Page 69

[ S U R V E Y | A G E N T B A N K S I N E M E R G I N G M A R K E T S ] Hungary Raiffeisen Bank International This is home territory for the rising force in CEE custody and clearing, and not just in the historical sense. RBI has one of the largest banking businesses in its entire regional network in Hungary, and its securities services operation aims to shine. A sizeable but demanding group of clients will not disappoint them when it comes to their assessment of the quality of their core services and, if the ordinary scores earned by the RMs are counter-intuitive, the exceptional score for client service is not. BNP Paribas Securities Services The French bank added securities services to its Budapest business a decade ago. It was always going to be hard to match the stellar performance of a year ago, but the relatively small number of clients that have responded for BNP Paribas in 2018 still deliver an overall average score that is outstanding, faltering in only a couple of service areas, including on the consistent and predictable matter of price. Citi Average scores are down again this year for Citi Budapest. As in 2017, the chief point of vulnerability is price, but the scores are ordinary across a range of service areas. The bank can be pleased that its RMs and its technology win plaudits, and that confidence in its balance sheet strength is high. Citi also owns the sort of clientele that is hard to please – one does acknowledge “good ser- vice” – but, on this evidence at least, the bank is not keeping pace with industry standards at the local or the global level. UniCredit The bank has halted the slides in scores that was apparent here a year ago, but the averages across almost all service areas lack the enthusiasm that characterised the work of the CEE regional custodian in its heyday. Curiously, UniCredit has not matched the zest of the Hungarian stock market over the last few years. Deutsche Bank It is a pity that the German bank did not garner quite enough responses to be rated here, because the respondents that have assessed the quality of its services are clearly impressed – es- pecially by a relationship management model that is obviously working well at the local, regional and global levels. Earthier fields, such as onboarding and safekeeping, do not elicit the same degree of enthusiasm. Others KBC Securities received a number of responses, though an insufficient quantity to be assessed in full. The firm, which used to offer the same integrated DMA brokerage and custody service in Budapest as it did in Brussels, was this year merged with K&H Bank following the decision by the management of the Flemish bank to concentrate on investment banking. Data was also received for CIB Bank, the Hungarian subsid- iary of Intesa Sanpaolo Group, also in insufficient quantity to make meaningful judgments about the quality of its custody services. WEIGHTED AVERAGE SCORES Raiffeisen Bank International BNP Paribas Citi UniCredit Bank Deutsche Bank Share of validated responses (%) 29% 16% 23% 16% 10% Relationship management 6.14 5.64 4.94 4.88 n/a Market Average Global Average 5.32 5.30 Client service 6.43 6.88 5.19 4.56 n/a 5.47 5.56 Account management 6.17 5.00 4.38 4.72 n/a 5.08 5.14 Asset safety 4.63 5.62 4.15 4.62 n/a 4.68 4.60 Risk management 6.47 5.79 4.95 5.17 n/a 5.58 5.50 Liquidity management 6.06 4.25 4.74 4.53 n/a 4.96 5.14 Regulation and compliance 5.13 6.33 4.50 5.06 n/a 5.11 4.84 Innovation 5.00 4.11 4.12 3.79 n/a 4.45 4.75 Asset servicing 5.19 6.60 5.10 4.79 n/a 4.91 5.52 Pricing 5.38 6.00 5.23 4.87 n/a 5.26 5.28 Technology 6.10 6.89 5.11 5.48 n/a 5.64 5.41 Cash management and FX 5.95 6.71 5.45 4.71 n/a 5.42 5.42 Total 5.73 5.60 4.83 4.76 n/a 5.16 5.23 Winter 2018 globalcustodian.com 69