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South Africa
RMB Custody
The average scores combine to yield a total outcome almost
unchanged on a year ago. Scoring of the core services is solid,
and often excellent. Value, which was an issue last year, remains
one in 2018. “Too complex fee schedule,” writes one respond-
ent. Clients also indicate they would like to see tighter spreads
on cash and FX, and a more innovative approach to treasury
services in general. The responses to a number of questions hint
at a something more inchoate: a longing to understand and be
understood. “Quality of newsflashes could be improved,” is the
example offered by a client.
Standard Bank
Standard Bank remains the incumbent here, offering a major-
ity of the major network managers a route into sub-Saharan
Africa, as well as the Johannesburg Stock Exchange. They trust
the balance sheet, and expect trades to settle more often than
not, but are not yet convinced of the quality of asset servicing.
“Corporate action notification fields are not correctly populat-
ed,” writes a client. Asset-servicing was an issue last year too.
The 2017 concerns about value and cash management have not
disappeared either. The details of the average scores point to
too much paper and not enough information, less-than-effective
management of costs, and an appetite for increased disclosure.
Standard Chartered Bank
SCB enlarged its presence here with the acquisition of the
mostly domestic custody business of Absa in 2013, which the
bank added to its 2010 purchase of the African custody network
of Barclays, giving it reach across the Continent from a Johan-
nesburg hub. The bank has secured a small number of responses,
which suggest the core custody and settlement services are
sound, but safekeeping and treasury services would benefit from
greater openness and keener pricing.
Société Générale Securities Services
There were not enough responses to make definitive judgments
about the quality of the work of the Johannesburg operation
of the French bank. Although the data received places Société
Générale within one basis point of what happened in 2017, the
issues that were evident then – namely, settlement and reporting
– are no longer apparent.
Nedbank Investor Services
Nedbank did not attract enough international responses to be
assessed properly, but it cannot be faulted for commitment to
this market (and the adjacent Namibia and Swaziland as well).
Judging by the improved scores this year, the quality of the core
services – settlement, custody and asset servicing – is also excel-
lent. However, the averages also suggest there is still work to do,
as there was in 2017, on client services and treasury functions.
Citi
Citi began to provide a direct clearing and custody service here
in 2011. It has not attracted enough responses to be assessed.
WEIGHTED AVERAGE SCORES
RMB
Standard Bank
Société Générale
Standard Chartered
Market Average Global Average
Share of validated responses (%) 32% 36% 11% 11% Relationship management 5.73 5.19 n/a n/a 5.26 5.30
Client service 6.00 5.50 n/a n/a 5.31 5.56
Account management 5.86 4.82 n/a n/a 5.28 5.14
Asset safety 5.56 4.28 n/a n/a 4.67 4.60
Risk management 5.61 5.00 n/a n/a 4.99 5.50
Liquidity management 5.11 5.12 n/a n/a 5.12 5.14
Regulation and compliance 4.53 4.29 n/a n/a 4.17 4.84
Innovation 5.07 4.50 n/a n/a 4.59 4.75
Asset servicing 5.83 4.60 n/a n/a 5.42 5.52
Pricing 5.40 5.57 n/a n/a 5.01 5.28
Technology 5.33 5.24 n/a n/a 5.22 5.41
Cash management and FX 5.59 5.17 n/a n/a 5.49 5.42
Total 5.54 4.71 n/a n/a 5.10 5.23
Winter 2018
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