Financial institutions in Asia are becoming more sophisticated in their demands of cash management banks, according to BNY Mellon. Expected response time to client enquiries is narrowing and differentiation in service provision is becoming increasingly important.
A. Richard Brown, managing director of BNY Mellon’s treasury services business in the Asia-Pacific, said one important aspect of service quality for clients is response time, remarking on the how the globalisation effect of banking has heightened expectations..
Where 24 hours used to suffice as a benchmark, it has now narrowed to eight hours or before close of business in Asia, according to Fred Dicocco, managing director of Asia-Pacific global payments product management for BNY Mellon.
Banks are also thinking much harder about their contingency strategies in the wake of the Japanese earthquake and tsunami that occurred on March 11 of this year.
A bank’s contingency arrangement and disaster recovery plan allows it to get back to regular business activities as quickly and smoothly as possible in the wake of natural disaster.
For example, if servers and payment systems go down as a result of a natural disaster, having those systems integrated globally means that any processes can be retrieved elsewhere.
“It's a clear differentiation between banks that had contingency arrangements down the road in another country versus ‘follow the sun’ contingency plans which you can set up globally,” said Brown, adding that banks are increasingly considering moving to the latter.
According to Brown, banks are increasingly considering implementing globally deployable contingency strategies and integrating key systems across geographies in order to make this process more smooth.
BNY Mellon was recently named best for global cash management services by medium and large financial institutions in Asiamoney’s annual cash management poll, the largest survey of its kind yet in the region.