What makes the best transaction banks in Asean and Australia?

DBS wins the best in treasury and cash management award category in Asean, at The Asset Triple A Treasury, Trade, Supply Chain and Risk Management Awards

IT was a good year for transaction banking in the Asean region in 2017 with service providers demonstrating robust performance in cash management. This was also underpinned by the recovery in the trade finance business with the resurgent demand in commodity trade financing as well as increased demand for supply chain finance to meet the client’s working capital requirements without adverse impact on gearing.

Indeed, supply chain finance was a big theme in 2017 as clients sought to optimize their working capital to support their growth plans against the backdrop of the rising regional trade finance gap. Banks offer alternative financing solutions without recourse, enhancing their clients’ liquidity position without raising additional bank debt. The solutions are also designed to accelerate the conversion of receivables into cash and shorten days’ sales outstanding.

Digitalization is widespread as banks focused on initiatives to help their customers navigate payments, settlements, compliance and due diligence processes. Banks continue to pursue their digital agenda, leveraging on their IT infrastructure or through collaboration with fintechs to deliver bespoke solutions to clients.

Transforming its cash management business under its global transaction services 2020 strategic roadmap, DBS wins the best in treasury and cash management award category in Asean. The bank has rolled out new product capabilities and significant digital solutions such as IDEAL RAPID and Treasury Prism – the latter described as the world’s first simulation platform for cash management with rigorous involvement of corporate treasurers.

BNP Paribas exemplifies its expertise and structuring capability in winning the accolade for best in working capital and trade finance. The bank has secured a number of regional mandates from clients seeking to obtain competitive financing rates and support their business strategy and enhance their competitiveness through longer payment terms at attractive rates to their buyers.

By country, DBS also wins the best transaction bank award in Indonesia and Singapore. The bank saw its cash management business in Indonesia growing from strength to strength in 2017, posting a higher revenue as it increased its customer base. It launched in October 2017 a capability called anytime account transfers, enabling its customers to make domestic transfers to their beneficiaries that maintain DBS accounts in the same location, anytime.

In its home market in Singapore, cash management was a key focus for DBS, investing to enhance its technology platforms and infrastructure. It launched in July 2017 IDEAL RAPID, a first-in-market application programming interface (API) solution providing instant electronic payment and receivables capabilities.

The other winners in Indonesia include BNP Paribas, which was chosen as the best service providers for multinationals (MNCs) and supply chain solutions. UOB wins two awards – best cash management bank and best in treasury and working capital for large local corporates (LLCs).

Bank Mandiri was the best bank for SMEs, while the best e-solutions partner bank was CIMB Niaga. Bank Danamon is an emerging contender and a rising star as best supply chain solution provider as it expands its capability beyond distributor financing to end-to-end supply chain financing that includes supplier financing.

In Singapore, DBS has the lion’s share of the awards as it also wins the honours for MNCs/LLCs, SMEs and best bank for trade finance and e-solutions partner. The accolade for liquidity management goes to UOB, structured trade finance to Standard Chartered, supply chain to BNP Paribas and risk management to Deutsche Bank.

In Malaysia, CIMB and Deutsche Bank win two awards each with the former getting cash management and SMEs, while the latter was chosen for MNCs/LLCs and supply chain. The other award for trade finance goes to HSBC.

Domestic banks dominate the winner’s circle in the Philippines, with BDO being selected as the best bank for cash management and SMEs, while Bank of the Philippine Islands (BPI) was chosen for trade finance and supply chain. Metrobank is a rising star as a supply chain solution provider as it manifested its capability to offer innovative financing solutions that enable its clients to make the most of their working capital.

Thailand is another market that was dominated by the domestic banks with Siam Commercial Bank winning the awards for best transaction bank, trade finance and risk management, as well as SMEs. Kasikornbank, on the other hand, wins the accolades for best cash management bank, e-solution partner and LLCs.

Deutsche Bank is a big winner in Vietnam, winning the best bank in cash management, risk management and e-solution partner. The other winners are ANZ for trade finance and MUFG for supply chain.

In Myanmar, the best banks are MUFG for cash management, CB Bank for trade finance and OCBC Bank for supply chain.

ANZ dominates the Australian market as it was chosen as the best transaction bank as well as the best bank in cash management, supply chain, liquidity management, E-Solution partner and MNCs/LLCs. Westpac wins the honors for trade finance and structured trade finance.

For the complete list of winners, please click here.

The Asset is hosting the 4th Asia Treasury & Trade Summit in April. For more information please click here.