F&A as segment of world economy i■BH 4 Country Share of GDP Total GDP, USD bn 1 5 5 I 6 1 Agri Food F&A migration Banking products in F&A Upgrade and re-gear What's NewS Issue 4 June/ July 2000 I5 Emerging markets INDIA CHINA INDONESIA BRAZIL ARGENTINA HUNGARY MEXICO 8 6 Mature markets JAPAN 382 902 215 820 380 403 46 7800 4200 8100 USD 102 profit, 4-5% growth USD 225 profit, 2-4% growth The overall F&A contribution to world GDP is estimated at USD 1.5 trillion, growing at 3-4% peryear team - Niek Streefkerk, Iwona Lechocka and Bruce Tozer, supported by Matthias Wiemeyer, Mark Lobo and Derek D'- Souza of Rubus - worked through the fi- nal night to define clear goals. A simple listing here belies the massive task that faces the workshop participants who have 'volunteered' to carry this project forward vigorously. Among the areas of action are: formulate and refine product/market ambition; HR; MIS/Control; FAR/F&A Advisory; InSight; and Credit. Because each of these 'bullets' have much deeper backgrounds, we will be going into each in our next two issues. Although the bottom up approach is high on the agenda, management com- mitment is key. Ton Toebosch spent much of the final day with the group, questioning findings and perceptions, as well as answering queries from the Hoor on DGRI and the multi-domestic concept (see pages 8-12). It will be his task to mandate the resources needed to achieve what has been called 'the migra tion of the craft operations of most offices to the more standardized US/Australian models'. This means that the whole net- work must move rapidly towards the 60/40% F&A/others portfolio that has al- ready been achieved in the American and Australian markets. While this is a clear target, the workshop also demonstrated tending our coverage of the chain from agri to food; extending our focus from low value to high value products and creating the links needed to cross-sell. In addition, we need to focus on prac- ticing greater efficiency in our use of solvency and more active portfolio management. Migration avenues have also been established and include greater transparency on product contri bution and cliënt profitability, the cre- ation of F&A-related incentive schemes and the removal of conflicts relating to pursuit of bottom line/longer-term value proposition, the upgrade of RM skills, enhanced commercial role for FAR, and re-gearing of the credit process and risk management skills to benefit the new proposition. You will probably agree that the conclusion of the workshop - the challenge is big, but the targets are few - represents the next step in RI's ongoing evolution into a global bank in the food and agribusiness. But with a small, but hugely important Europe Corporale lending Loan Syodiaction M&A O LBO/MBO 9 Equity Issues O Bond Issues Rest of World Global F&A wholesale banking market estimated at USD 790bn, 1988 Considering the volume of deals and hans, the developed markets are much larger - specifically, growth products, i.e., M&A and strategie advisory take a large share of total volume Given the site of RI's current business and the potential in the brand, there is ample opportunity to grow the recognition that, even though we were committed to F&A, in the past we have often lacked the necessary tools to deliver. How can we overcome that lack? Among the goals defined by the workshop are ex- qualification. We may be global, but this new move towards implementation of our strategy takes us much closer to the local and regional environments where our cus- tomers work. We will be looking at various aspects of action plan development in our next issue.

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blad 'What's news' (EN) | 2000 | | pagina 15