Global Custodian Winter 2018 | Page 71

[ 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 ] Indonesia Standard Chartered Bank A new client records that the “global relationship team is a pleasure to work with as well as the onboarding team.” They had to get it right, because this is an important market for Standard Chartered. The bank has a long history in Indonesia, entrenched itself by acquiring PermataBank 12 years ago, and now runs a sizeable branch network in the country. Of the 70 countries where Standard Chartered operates, Indo- nesia is the sixth biggest contributor. As it happens, admiration of the client-facing people at Standard Chartered is more evi- dent at the level of the questions than at the service area level. The details also show respondents have no complaints about the core services of settlement, safekeeping and asset servicing. Where there is still room for improvement is in cash, collateral, capital and credit. Citi Citi Jakarta has not attracted many responses this year. Those clients that have assessed the bank deliver a collective verdict that is well below the solid performance of 2017. Respondents entertain no doubts about the safety of their cash and securities in bad times as well as good; they take settlement of transactions for granted and like their client service officers. It is in value (and in value-added services) that they want Citi to take a closer look at itself. HSBC Average scores have dipped since last year, when they were also down slightly. Although the bank is beating the benchmarks in areas that have a material financial impact on clearing clients – and clients are not worried that their trades will not settle or that their assets are not safe – they are less convinced about fees and spreads. Where they entertain no doubt is commitment. They know HSBC acquired Bank Ekonomi Raharja here 10 years ago and that the Ekonomi operations were finally merged with the local branch last year, allowing HSBC to expand the range of services it offers in the country. Deutsche Bank “We find Deutsche Bank easy to work with,” writes a client. “They are very responsive to our needs and requests.” Certainly, the scores the German bank collects for client service and relation- ship management are among the best it receives in this market, but there is considerable volatility in the scoring of different ser- vice areas, and the overall outcome is adrift of last year. Indonesia was always one of the larger franchises in the Asian network of Deutsche Bank, which has added a large domestic fund adminis- tration business here to its sizeable custody franchise. Other Data was also received for DBS, Jakarta being one of the four markets where the Singapore-headquartered bank provides direct custody and clearing services. Though the bank did not secure enough responses to be assessed formally, the average scores were flattering. WEIGHTED AVERAGE SCORES Standard Chartered Bank HSBC Deutsche Bank Citi Market Average Global Average Share of validated responses (%) 36% 23% 31% 11% Relationship management 5.22 4.78 5.25 4.77 5.13 5.30 Client service 5.50 4.64 5.44 5.85 5.41 5.56 Account management 5.07 4.76 4.30 4.90 4.77 5.14 Asset safety 4.59 4.67 4.20 2.33 4.12 4.60 Risk management 5.30 5.21 5.25 5.44 5.28 5.50 Liquidity management 5.24 4.14 4.48 5.60 4.91 5.14 Regulation and compliance 4.26 5.38 4.36 3.50 4.29 4.84 Innovation 4.62 5.00 3.95 3.71 4.31 4.75 Asset servicing 5.29 6.17 5.07 4.50 5.21 5.52 Pricing 5.10 4.37 5.19 4.23 4.93 5.28 Technology 5.11 5.82 4.95 5.29 5.13 5.41 Cash management and FX 5.20 5.08 4.89 5.50 5.15 5.42 Total 5.07 4.93 4.77 4.48 4.89 5.23 Winter 2018 globalcustodian.com 71