Being able to offer
interest rate, FX
and commodity
price hedging products
under one roof will
give us a real edge
in these countries 9
Sharing experiences
Marcel van Doremaele:
of responsibilities and a more uniform way of producing output.
The quality of the end result is vital. And that means the quality of
the processes, the teamwork, the proposition to clients and the
execution of the products themselves," Van Doremaele says.
The first banks to adopt the new model are BGZ in Poland and RNA
in California, followed by Rabo AgriFinance (RAF), Chile, Australia/
New Zealand and Brazil. These R&R banks are well suited to the
new approach, as many of their clients already have experience
with hedging products. GFM has already been active in selling
derivatives to customers of these banks. On top of that, we are
now working towards a uniform way of costs charging, a balanced
revenue split, risk sharing and clear roles and responsibilities
between GFM and R&R bankers involved. This provides more room
to focus on clients' needs. "Being able to offer interest rate, FX and
commodity price hedging products under one roof will give us a
real edge in these countries, as clients appreciate our personal and
professional approach," Van Doremaele says.
An added benefit of the new framework is that the increased sale
of fee-based products not only increases income but also reduces
Rabobank's risk in those countries. "By reducing the risks for your
clients, you also reduce the risk for the bank itself. Good advice and
good products reduce the chances of your clients going under
and that reduces the risk of Rabobank having to write off cliënt
exposure," Van Doremaele says.
Ofcourse, taking a uniform global
approach to Treasury sales enables
Rabobank to look at the relative
performances of each business on
a like-for-like basis. The centralised
approach also makes it much easier
to share knowledge and successes.
If you know what your clients need
globally and you can service them with
a Standard set of products, you harness
the knowledge and expertise of the
whole group, Van Doremaele says.
This client-relationship-driven approach
has certainly given Rabobank an edge
in the Netherlands. And Van Doremaele
and Mulders are confident that it will
work in other countries. "We want to be recognised as the leader
in understanding our F&A clients' risk management needs, and this
model is perfect for that. We can have this model up and running
successfully at every R&R business around the globe by the end of
2011," Mulders says.i
From left to right: André Dolsma,
Hem Mulders and Marcel van Doremaele
And the signs are already positive, he
adds. "With RNA, the model is already
up and running smoothly. Best practices
helped boost buy-in for the new model
in the US and clear assignment of roles
free up the way to focus even more on
customer attention."
ISSUE 26 JANUAI RI WORLD
