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Why the paper chase could be waning in South Asia
The Asset 22 Mar 2015

As the hotbed of software development for the biggest technology companies, India surprisingly is stilled mired in a paper chase. Manual processes are a big part of cash management even among the larger companies. Service providers see India, representing South Asia’s biggest market, as both a challenge as well as an opportunity.

 

The challenge is to get more companies to embrace automation in treasury; the opportunity is the multiplier effect as more companies adopt better systems and processes in their treasury function. The opportunity for service providers has never been better.

 

But in 2014, service providers were also faced with headwinds including on the business side. Banks reported a tough environment as the economic uncertainty dampened revenues with a handful of banks reporting a decline while others showed single digit growth. Added to that was the competition not just among the international banks but also coming from the emerging local players.

 

Standard Chartered, like in years past, was among the stand-outs again pushing through with a number of especially notable trade finance solutions. Standard Chartered assisted Indian automobile maker Ashok Leyland with a L/C-backed term facility that mitigated interest rate risk with a swap mechanism. Supported by a number of strong client testimonials, Standard Chartered has continued to solidify its already strong hold.

 

The bank was interestingly quite active in Bangladesh and was involved in the country’s first ever PPP (public private partnership) providing United Ashuganj Energy with capital machinery financing. It was one of most profitable deals for the bank in the country to date. Standard Chartered wins the coveted Triple A Best in Working Capital and Trade Finance Bank for South Asia.

 

However, it wasn’t all Standard Chartered last year. Others such as Deutsche Bank gave Standard Chartered a run for its money. Despite the rough market conditions in India last year, the bank was able to post solid growth numbers with a number of new mandates from several companies such as Mudra Communications and Tata Communications Payment Solutions.

 

Focus on digitization was a big project for Deutsche Bank and it was in India that the bank decided to launch its cash manager app, which was The Asset’s Editors’ Triple Star Award in 2014. This allowed Deutsche Bank’s Indian clients to conveniently access information and initiate transactions online and also enabled the introduction of more electronic payment methods.

 

Deutsche Bank’s work with Hindustan Unilever (HUL) was one of the key digital solutions showcased by the bank last year. It helped HUL to transform its legacy XML files to be compatible with ISO20022 standards. Deutsche Bank is the winner of the Triple A Best in Treasury and Cash Management Bank for South Asia.

 

Similar to Standard Chartered, Citi was also active in Bangladesh providing clients with game changing technological solutions that automated traditionally manual processes. For example, Citi’s virtual account solution for the Bangladeshi subsidiary of Reckitt Benckiser helped the company gain better visibility of their payers through the use of Citi’s electronic platform. Citi wins the Triple A e-Solutions Partner Bank for Bangladesh.

 

HDFC for the third year retained its India SME crown thanks to its wide range of products. SME trade finance volumes have steadily grown for HDFC with around 50% of trade finance transactions coming from that segment. On the cash management side, the bank has maintained its leading position in both collections and payments with successful implementations of its e-payment platform.

 

In the MENA (Middle East North Africa) region, Standard Chartered maintained its dominance with a slew of complex structured trade solutions for Middle Eastern companies such as Aljaber Engineering, a leading general contractor based in Qatar.

 

The bank also won several cash management mandates for Middle Eastern retail companies and insurance companies. The success of Standard Chartered in the region last year reflects its deep ties in the region and despite some banks deciding to pull out.

 

The Asset will host an Oscar-style gala awards dinner on April 30 2015 at the Four Seasons in Hong Kong to honour the best transaction service providers and the solutions they jointly crafted with their corporate clients.

 

All winners in both South Asia and MENA, including the regions’ best solutions, are presented here:

 

Best Banks South Asia/MENA

 

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