H How are we going to change?
m How will we explain our strengths
to new F&A prospects in Asia?
Interview with:
Rob van Zadelhoff,
Regional Head
of RI As ia
Rob Van Zadelhoff, who heads
up Rabobank International's
Asia operations, talks about
the impact changing into a full
F&A market player will have
on the bank's activities across
the region.
225£2£
Which countries in Asia are priorities as
we increase our focus on the F&A sector?
"Essentially, every country where we have
a presence is a priority, as they all need to
transform their generic business models into
F&A franchises. However, those countries
where the F&A market is noticeably larger,
and which in the longer term offer the
greatest possibilities, such as India, China and
Indonesia, will have greater potential. For
smaller F&A countries where there are less
direct opportunities, such as Singapore and
Hong Kong, there are alternatives. in Singapore,
for example, there is a strong focus on F&A
trade and commodity fïnance. Additionally,
many F&A companies with operations in
neighbouring countries - such as Malaysia
or Indonesia - have their headquarters in
Singapore, so we have strong Singapore-based
business relationships. Hong Kong will focus its
F&A efforts much more on the South Eastern
part of China."
"We have already started the process. Based
on F&A penetration targets set on a regional
level for 2009 and 2010, we have asked all
of the countries to come up with a plan on
how they will transform their business. This
involves making an assessment of their current
business, the F&A market opportunities and
then creating a plan on how they can take a
larger slice of the F&A sector. We also asked
them to show us how they can run-off their
non-core businesses. As a consequence, in the
first year or two we might not make as much
revenue as normal, but we will manage
our costs very effectively."
What are the main challenges?
'The main challenge is building a franchise
in a sustainable way. In other words, creating
a franchise that earns solid returns and grows
over time. To do this we need to make sure
we have the right dient focus - we need to
be more intimate with what will be a smaller
dient base. We also need to develop the
right products - if you want to provide clients
with a wider range of products, they need to
be the right products. Our M&A partnership
with Rothschild is a good example, but we're
also looking at other products, such as GFM's
commodity hedging products or equity-related
products."
Which opportunities do you see
going forward?
"The Asian market is the largest F&A market
in the world, with enormous growth potential
in countries like India and China, so that's the
greatest opportunity. However, we also have
the chance to fully make use of that potential
and differentiate ourselves from other banks,
and I believe that is a wonderful opportunity."
"We always show our clients and prospects
that we know the markets in which they
operate, that we understand their business,
and that we have the products and the global
reach to support them. We have a unique
research department (FAR) that produces
intelligence across the F&A sector and some
very dedicated products. This sets us apart
from other banks, and will be a great attraction
for prospective clients."
issue 19 THE WORD
