Sharing specialized knowledge
working relations
In March, What's NewS reported on the formation of Rabobank Nederland
Corporate Clients (RNCC) as a further evolution in our strategy towards the so-
called middle market clients. The unit is aimed at making available the full range
of wholesale products and services to our member banks' customers. Since that
time, RNCC has taken an important step towards its independence from Rl. At the
same time, a presentation by RI's London Forfaiting team shows how we are
putting concrete actions behind the theories of synergy between the two units.
Valuabletool
Creating synergy
Successful communication
Outstanding growth
Serving clients
What S NewS Issue 3 April/May 2000
First, developments within RNCC. The
unit has been rnoving ahead with dis-
cussions with clients about the move to
RNCC, and in some cases a move to
wards new relationship managers. On the
internal organizational front, meanwhile,
RNCC recently held the inaugural meet
ing of its own stand-alone credit commit-
tee, chaired by Willem Crarner. 'This is
another important further step in the inte-
gration process with Rabobank Neder
land,' says RNCC's Jan Rosdijk. Finallv,
April saw an important further evolution
in RNCC's relations with Rl centers of
product and service expertise.
On 5 April, during the internal monthly
presentations to RNCC, Richard Whiting
and Gayle Fisher of our London Forfait
ing team informed regional account man
agers about the possibi li ties and benefits
associated with the forfaiting product,
which represents another valuable tooi for
delivering value to RNCC's local export-
ing clients. Because forfaiting is not only
valuable to the cliënt, but also to the insti-
tution as a risk mitigation tooi, it has been
decided to market the forfaiting product
throughout the Rabobank Group, primar-
ily to the domestic export market via
Rabobank Nederland and secondarily to
clients - via Rabobank Nederland and
Rabobank International - through the in
ternational network.
'It was easy to identify the potentially in-
terested trade finance units within
Rabobank International,' says Richard
Whiting. 'Flowever the biggest hurdle was
to market the forfaiting tooi to account
Delivering value to local export clients:
London's Richard Whiting and Gayle Fisher
show a slide from the RNCC presentation
managers in the core business sectors who
had direct exposure to the Dutch export
market. Ultimately, though, we became
the first product unit from London to be
invited to the Monthly Product Meetings
to present and share our specialized
knowledge. This was not only useful, we
hope, to the Regional Account and Prod
uct Managers of RNCC in Eindhoven and
in Utrecht, and because it gave us the ulti-
mate opportunity to directly expand our
marketing base to the people who matter,
but also because it reflects the kinds of
synergies that are possible between Rl and
RNCC.'
The product meetings, attended by some
30 people in Eindhoven and some 45 in
Utrecht, clearly demonstrated to account
managers how new forfaiting products
and services can enhance relationships
with the clients. 'Through these presenta
tions, we were able to reach the right peo
ple very quickly, and to start making a
difference. We trust this serves as a good
example for future cooperation between
Rl and RN,' says Whiting.
Meantime, Rabobank's Forfaiting team
will soon become the first such team from
an official Dutch bank to be accepted for
ntembership in the International Forfait
ing Association. Forfaiting, as a trade fi
nance product, has grown considerably
since its inception in the 1950s: the mar
ket value of outstanding
forfaiting products alone
has grown from some USD
2 billion in 1974 to a eon-
servative estimate of USD
75 billion today.
The growing importance of
forfaiting and its frequency
of use within the wider con
text of financing global
trade flows, where it has be
come a major souree of cap-
ital, recently prompted the
formation of an official as
sociation. The International
Forfaiting Association (IFA) was formed
last August in Zürich, and membership
now totals above 65 institutions and is
rising steadily. The aim is to promote the
forfaiting business through the develop-
ment of shared values and accepted mar
ket practices, and to this end it includes
an education committee - aimed at pro-
viding workshops and seminars that in-
crease knowledge about global trade fi
nance - as well as committees aimed at
issuing rules and making recommenda-
tions on standards of accepted market
practices as well as maintaining relations
with the international press.
'We see this as another major step
forward for the business,' says Whiting.
'At last the forfaiting industry will have
a recognized official body that will be
self-regulatory and will give added value
to the profession, and the benefit of this
will be passed directly onto the cliënt -
which can be only a good thing.'
Please contact Richard Whiting by
e-mail or phone: 44 20 78093720
with your trade finance enquiries.
