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A G E N T
B A N K S
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E M E R G I N G
M A R K E T S ]
Taiwan
Standard Chartered Bank
Although the result is not as handsome as 2017, these are still
impressive scores, and from a larger group of clients than rivals.
Satisfaction with core custody and settlement is high, and every-
body thinks their assets are safe with SCB. Though clients would
like to see the bank make more efforts to control costs and cut
prices, their enthusiasm really dims only in matters of cash and
FX, and in the adjacent field of making sure the right quantities
of cash and securities are in place to settle the trades – which
matters more in this market than in some others.
Deutsche Bank
Scores were down for Deutsche in 2017, but they are down more
sharply this year. Collectively, respondents reckon the onboard-
ing is not onerous, their cash and securities are safe, transactions
will settle on time and the client service is attentive and open
to new ways of doing things. However, they would also like to
see Deutsche take more risk in asset servicing, offer a better and
more-transparent deal on cash and FX, help them control the
costs of credit and stock borrowing, and trim its custody fees
and transaction charges. Without improvement, they warn, the
relationship is unlikely to grow.
HSBC
The average HSBC client in Taipei thinks the settlement record
is virtually flawless, the client service excellent and the com-
pliance procedures reassuring. But they also find it tiresome
to open and close accounts, see asset safety and cash and FX
spreads as black boxes, regard the sourcing of cash and securi-
ties as inefficient, sense fees are too high and argue that, while
income is collected efficiently, more complicated corporate
actions and votes and tax reclamations are not handled as well.
Scores are down on 2017, but nobody is thinking seriously of
switching their business elsewhere.
Citi
Reduced to an average, a handful of respondents clearly have no
doubts about the creditworthiness of the bank, its ability to fund
their trades, and its competence in keeping them on the right
side of local laws and regulations. But, in a market that was once
a byword for excruciatingly painful buy-ins, they are merely
satisfied rather than utterly delighted by the settlement services.
They are also noticeably disgruntled by the asset servicing, the
spreads charged, the fees levied, and the costs passed on. Scores
are down for a second year in succession.
Others
Taiwan was one of the markets J.P. Morgan selected to insource
when it embarked on a strategy to expand its direct custody and
clearing services back in 2011. Too few responses were received
from third parties to assess the quality of the services, but the
data received is not redolent of excellence. Responses were also
received from a number of clients of the Bank of Taiwan, which
expressed a high degree of satisfaction with the client service
and relationship management.
WEIGHTED AVERAGE SCORES
Standard Chartered Citi
Deutsche Bank
HSBC
Market Average Global Average
Share of validated responses (%) 41% 14% 19% 19% Relationship management 5.54 4.85 5.19 5.00 5.31 5.30
Client service 5.91 5.73 5.50 4.74 5.54 5.56
Account management 5.41 4.97 4.82 4.62 5.03 5.14
Asset safety 4.55 4.73 4.28 4.00 4.35 4.60
Risk management 5.44 5.29 5.00 5.87 5.44 5.50
Liquidity management 5.67 5.12 5.12 4.71 5.18 5.14
Regulation and compliance 4.30 5.62 4.29 2.33 4.28 4.84
Innovation 4.62 4.90 4.50 4.05 4.50 4.75
Asset servicing 5.30 5.77 4.60 6.15 5.35 5.52
Pricing 5.25 5.43 5.57 4.52 5.25 5.28
Technology 5.62 5.29 5.24 5.20 5.40 5.41
Cash management and FX 5.32 5.73 5.17 4.78 5.32 5.42
Total 5.28 5.27 4.98 4.76 5.13 5.23
82
Global Custodian
Winter 2018