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					     Global Treasury
        Management
Banking Without Borders

   Program Skill Builder



         Last Revised: June 2012
Canadian Clearing
         Services
  BMO Financial Group Overview

      Established in 1817 as Canada’s first chartered bank

      Ranked 8th largest bank in North America by total assets of US $532 billion1

      Offering a full range of personal and commercial banking, wealth management, correspondent,
       investment and corporate banking services in Canada and the U.S.

      Serving over 12,000,000 clients, small and large, throughout North America

      Serving over 800 correspondent banking relationships across 130 countries throughout the globe

      Serving over 40 Schedule I, II and III Banks and Credit Unions in a Direct Clearing banking
       partnership

      Nearly 1600, Branches and offices – 900+ Canada and International; 650+ in the United States




1. Source: (SNL Financial, 05/31/12)




                                                              2
BMO Financial Group


                             Key Operating Data                                  F2011 Net Income by Operating Group
                                                                                        Private Client
      Market Cap*                      US$38 billion                                        Group                       Personal &
                                                                                                                        Commercial
     Total Assets*                     US$532 billion                                                    15%
                                                                                                               59%       Banking
     F2011 Revenue                     US$13.6 billion
      Employees*                       46,500+
                                                                                         26%
     *As at April 30, 2012
                                                                           BMO Capital Markets




     ADVISORY SERVICES                    CORPORATE FINANCE                   SALES & TRADING                   TREASURY SERVICES
      Mergers & Acquisitions              Initial Public Offerings           Institutional Sales              Cash Management

      Strategic Advisory                  Follow-on Offerings                Trading                          Risk Management

      Fairness Opinions                   Convertible Securities             Equity Research                  Asset Management

      Takeover Defense                    Mezzanine Lending                  Fixed Income Research            Foreign Exchange

      Share Buybacks                      High-Yield Debt                    Investor Marketing               Trade Finance

      Valuation Analysis                  Investment-Grade Debt              Investor Conferences

                                           Corporate Lending                  Account Sponsorship

                                           Securitization                     Retail Distribution

                                           Private Placements




                                                                       3
Canadian Clearing Services

BMO provides CAD clearing services to more than 800 correspondent Banks from over 130 countries. Our experience in the Canadian
dollar clearing space is both extensive and tenured. The Bank’s extensive amount of support to the International Financial Institutions
includes substantial commitment for all lines of business.

Our Canadian clearing service offering includes:

   Clearing and Settlement Systems (Outgoing and Incoming)
    BMO is a direct clearer in the Canadian Payments Association (www.cdnpay.ca) the national clearing and settlement system in
    Canada. BMO is a premier Canadian provider of domestic and international cash management services. We are a leading Canadian
    clearing bank, handling over two thirds of indirect banking sector clearing volumes. We are also one of the top three SWIFT network
    users in Canada with 125,000 SWIFT transactions per month. BMO serves 20% of Canadian households and has over 7 million
    personal and commercial accounts with over 36,000 staff across Canada to service them. BMO’s branch network consists of
    approximately 1,000 branches.


                                  Volume of incoming payments                                 Volume of outgoing payments


    Payment
    Payment             Quantity (daily)            Value ( bln .
                                                     Value              Share (%)    Quantity (daily)         Value ( bln .
                                                                                                               Value          Share (%)
    System                                   (billion, CAD/day)                                         (billion, CAD/day)
       System                                         CAD/day)                                                  CAD/day)



       LVTS
    LVTS                 3,100 - 3,300               18 - 20             18%+         3,100 - 3,300            18 - 20         18%+
    (Wholesale)
       ACSS
    ACSS               550,000 - 600,000             1 - 1.2             20%+       550,000 - 600,000          1 - 1.2         20%+
      (Retail)


    BMO is a service provider who can demonstrate the ability to our client’s needs while leveraging cost
                                       effective clearing solutions

                                                                    4
Canadian Clearing Services

   Cash Letter Clearing and Collections
    Cash letter service is available in CDN and US dollar for items negotiated on behalf of you and/or clients at your bank. We will credit
    your Canadian dollar NOSTRO account on our books the same business day of receipt of your items in Toronto, provided they are
    received prior to our same day value cut-off times. US dollar items are credited to your NOSTRO for value the following business
    day. Items received on collection are recorded and forwarded to the Canadian financial on which they are drawn for verification and
    payment. The normal time frame is 4-6 weeks from the time the check is received until the funds are posted to your account.

   Encoded or Un-encoded Draft (check) Processing
    Clients can issue drafts on their account with us. Client’s can send us a SWIFT message or can choose to print and use their own
    drafts provided that samples are sent in advance for testing. The testing is to ensure both the format and encoding are in compliance
    with the H6 rule in accordance with the Canadian Payments Association (CPA). For details on the H6 rule refer to the CPA website
    at: www.cdnpay.ca/news/pdfs_news/cp_rule_h6.pdf. Alternatively, we will be pleased to arrange printing of your drafts with a
    minimum order of 200 drafts.




              We are committed to partnering with the IFI team to provide pro-active sales support


                                                                   5
Cash Management Solutions for IFI

We work with your Relationship Manager and clients to ensure we fully understand your needs and needs of your clients in Canada.


   Payables Plus
    BMO can execute pension payments for approved governments (GPP) by Financial EDI, EFT, wire or check for payment in Canadian
    dollars. With Payables Plus you can transmit a single payment file to Bank of Montreal on a monthly basis, corresponding to each
    pension payment cycle. The ability to transmit a single payment file eliminates the need to support multiple file record layouts. Each
    file will contain all the relevant information to initiate payments by check or direct deposit (ie; electronic payments). Our Payables Plus
    solution can also produce and mail advices for beneficiaries receiving electronic payments. The service is also available for U.S.
    dollar payments destined to Canadian financial institutions.




                                                                     6
Information Management for IFI

   Account Systems and Information Management

    NOSTRO (CBDS) - Client Direct Access (CDA Web) provides real-time account information on your Canadian and U.S. dollar
    accounts, as well as the ability to initiate transactions and immediately transfer funds. The future plan is to integrate CDA Web into
    our Online Banking for Business platform

    Domestic Banking (MECH) - Online Banking for Business provides real-time, instant and easy access to a suite of web based
    treasury management services in a flexible and highly secure environment. Our online platform is accessible 24 hours a day, seven
    days a week and is available in both English and French.

    Balance Reporting will provide balance and transactions information to the you and will enable you to upload the information via
    your cash management system to your clients.




                               We are committed to establishing a long-term partnership


                                                                   7
Treasury Management Solutions




      BMO has an extensive suite of cash management solutions to Financial Institutions


                                             8
Exemplar Client Service and Coverage

                                             Global Treasury Management
                                                        Sales Team
                                                                                          Account Documentation Team
                                        The lead in supporting cash management
                                                                                          Works with the team to ensure a
                                        needs to ensure your daily banking needs
                                                                                          smooth on-boarding process and
                                        operate efficiently and without interruption.
                                                                                        keeps up to date with documentation
                                                                                                   requirements.


                                                                                             Implementation Team
                                                                                        Implements products and ensures a
International Financial Institutions                                                        smooth transition to BMO.
       Relationship Director
  Your senior point of contact within               Our Customers
  BMO who has detailed knowledge
                                                                                            Technical Help Desk Team
and understanding of your business.
                                                                                          Your day-to-day technical support
                                                                                        team to assist with queries regarding
                                                                                                your banking portal.

                                              Global Treasury Management
                                                Product Management Team                     Customer Service Team
                                          Provides expert guidance and support in       Your day-to-day cash management
                                          ensuring BMO remains competitive in the          support experts available via
                                              market with our product offering.              telephone, e-mail or fax.




                               BMO has a committed team behind our customers
                    We are here to help you achieve your vision and take pride in your success

                                                             9
Standard Product Suite

   Account (CAD & USD)

   Check writing capabilities

Information Solutions:

   Online Banking for Business Platform
       White Label Capabilities

   File Connectivity

   MT940/BAI solutions

Payables Solutions:

   FirstBank Automated Clearing Service (FACS)

   Directcheque + Enhanced Positive Pay

   Electronic Funds Transfer

   Wire Payments

   Tax and Bill Payments

Receivables Solutions:

   FirstBank Cash Concentrator Service (FCCS)

   Wholesale Lockbox (WLBX)
                                                          Note: Although this is our standard offering, all
                                                       products and services are available to your clients




                                                  10
The BMO Canadian Checking Account

   Checking Accounts on BMO’s domestic or international depository platform

   Provides access to Canadian banking services

   Accounts available in Canadian and US Dollars (domestic) within Canada

   Your clients have access to BMO’s extensive branch network across Canada of over 1,000 branches

   BMO GTM Canada will bill INSERT BANK NAME for their clients activity.
     One lump sum debit to your account with a paper statement detailing activity per client

     A billing file is sent to you in comma separated value (CSV) format. This billing file is sent electronically to provide the option to
      manipulate the data (ie; if you choose to mark up the fees before passing them on to your client)
     BMO has strategic partnerships that can assist with outsourcing statement printing to your clients


   Overdraft limits can be made available on the checking accounts. Limits will be determined as required in conjunction with a credit
    facility provided by the International Financial Institutions Group and your Relationship Manager




            Accounts are insured in Canada by the Canadian Deposit Insurance Corporation (CDIC).


                                                                     11
Banking Without
        Borders
BWB Program Overview




         13
What is the Banking Without Borders (BWB) Program?

   BMO sells its Canadian Treasury Management product suite to Correspondent Banks
    headquartered in US, Canada, Europe or Asia

   The Correspondent Bank then “resells” these cash management products to their client base to
    enable these clients to bank in Canada, while maintaining one single banking relationship with
    them, their primary provider

   The Correspondent Bank controls the account and remains the primary contact with their client

   BMO has been working with correspondent banking partners for over 20 years and currently have
    over a 12 partners on the BWB Program

   Our program is flexible - we work with our partners to tailor our offer to their needs

   Demonstrated success at driving value for correspondent banks and their clients




     Banking Without Borders Program positions a powerful value proposition to Correspondent Banks


                                                    14
Target Market

The BWB Program will meet the needs of a Bank who have clients that:

   Have branches, offices or sales activities in Canada

   Have business dealings in Canada but manage treasury functions from their head-office

   Regularly deposit Canadian dollar instruments to their account with you

   Want to collect funds, make payments and receive information from Canada – quickly and easily

   Prefer a trusted source with whom they already have a local banking relationship

   Do not want the complexity of managing new, multi-national banking relationships




                                                  15
Value Proposition –
Differentiation Based on Relationship and Convenience


       For You – Deeper Relationships                           For Your Clients – Convenience

   More Capabilities: Protected and enhanced               Convenience: Maintain their banking
    relationships with your clients                          relationship with you – their trusted banker
                                                              Seamless access to robust Canadian cash
   More Resources: Minimal investment and effort
                                                                management and treasury solutions
   More Solutions: Provide leading edge cross-               Improved cash management
    border cash management and treasury solutions
    to your clients                                         Value: Reduced cost and complexity

   New sources of Revenue                                  Service: Reduced complexity associated with
                                                             other international banking relationships




    The Banking Without Borders program’s value proposition is compelling for you and for your clients


                                                    16
BWB Flexibility: Relationship Model

   Your own the Relationship:


       Provide sales support


       Market and price the program to your clients


       Provide implementation support


       Frontline for client service


   BMO supports your Sales and Service Team




                                  Broadening product line and extending footprint


                                                        17
Overview of Different Models

                                   Mutual Corporate Client (MCC)                                      Client Of Correspondent Banking (CCB)


                       Bank to bank agreement
Account Structure                                                                         Account are jointly owned/controlled by you and your client
                       Client signs with BMO directly


                       Your client signs the “Mutual Corporate client (MCC)
                                                                                          You and your client both sign the “Agreement for CCB Accounts”
 Documentation          Authorization”
    Forms                                                                                 You provide BMO with requisite account open material
                       Your client signs the appropriate BMO service agreement



                       You complete the appropriate BMO Implementation forms             You complete the appropriate BMO Implementation forms gathering
 Implementation         gathering input from the client                                    input from the client
     Forms
                       Forms submitted either using paper, either via email or mail      Forms submitted either using paper, either via email or mail



   Credit Risk         Your clients can operate on a pre-funded or via credit lines      Your clients always operate with credit support from your lines at BMO
    Controls            carved from your credit lines at BMO                              Prefunding is not supported



                       Your clients have access to real time information online

                       Online Banking for Business is slated for a private label         You have access to real time activity on their clients on BMO’s
   Information                                                                             Correspondent Banking portal CDA Web
                        and single sign on capability in upcoming releases
    Reporting
                       BMO can deliver MT940 or BAI file with previous day data          BMO can deliver MT940 or BAI file with previous day data to you
                        to you




                                                                             18
Full suite of world class treasury management solutions

   BMO offers the full suite of treasury management services to our Correspondent Bank partners




                                         Receivables Solutions:


                                         Lockbox
                                         Incoming Wire Payments




                         BMO offers the full suite of treasury management services –
                       there are no restrictions on the Canadian services we can offer

                                                       19
Online Banking for Business

Features:
 Account Information for up to 120 days (Mech)

   Account Transfers
   AutoConnect Report Scheduling
   Stop Payments
   Electronic Funds Transfers
   Tax and Bill Payments
   File Transfers & Cross-Border Transfers
   Centralized Customer Self-Administration
   DirectCheque Stops and Inquiries
   Wire Payments
   Check Image Search
   Foreign Exchange
   Extended Archiving
   Alerts & Notifications




            Online Banking for Business supports full single sign on and private label functionality –
                                     enhancing the end client experience

                                                        20
Correspondent Bank Revenue Streams from the Program


         NEW                                                Revenue potential
                           Revenue potential through
       Revenue                                                  through
                              traditional referrals
        Stream                                               BWB Program



     Service Fees                    None              Set your own pricing policies




   Foreign Exchange                  None                      FX revenue




       Balances                      None                   Investment income




International “premiums”             None                    Premium pricing




                                            21
BWB End to End Program Management Approach




                    22
Portfolio at a Glance




                        23
         BMO Will Help You Realize Your Vision

                    Detailed Preparation                                                    Exceptional Client
                                                             Execution
                                                                                               Experience
Correspondent




                     Successfully transitioning to      Executive engagement             Clients know what to
                      BMO means a                         and communications                expect
                      convergence of multiple
                      stakeholders                       Dedicated team member            They are prepared for the
                                                          education
Bank




                                                                                            transition
                       Internal stakeholders

                       Your existing and new            Technological and tactical       Their businesses are
                         clients                          client transitions                minimally impacted by
                                                                                            the change




                    Online education                    Project management               KPIs are measured and
                                                                                            reported
                    Detailed project planning           Technology enablers
                                                                                           SLAs are reviewed and
                    Enhanced communications               Electronic implementation
                                                                                            achieved
                                                             process/forms




      BMO is committed to a smooth transition of your clients. We have significant experience transitioning a large
                              number of clients and have many best practices to share

                                                                 24
BMO – Your Best Banking Without Borders Partner

   Global Treasury Management is a strategic priority at BMO. Our Banking Without Borders program is almost two decades old and
    has, year-after-year, brought financial and client success to our partner banks

   BMO’s capabilities meet all of your solution requirements. We recommend an integrated approach to achieve the goal of
    delivering all functionality

   Our solution is flexible
     Each partner bank is unique

     We work with our partners to tailor our solutions to meet their needs

   BMO has demonstrated success at driving value for our partners and our partners’ clients

   BMO’s differentiator is our execution model – our integrated end-to-end Banking without Borders program supports your vision
    and your client’s current and future financial needs in Canada:
     Strategic Alignment: Alignment to your mandate, objectives and specific metrics

     Comprehensive Products: The full range of BMO’s current and future product suite available to you with customized delivery

       Sales Support and Training: Dedicated sales support for complex deals, comprehensive sales tools and tailored in-person
        training
       On-Boarding: Dedicated, knowledgeable documentation, account-open and implementation specialists
       After Sales Support: Dedicated, professional, responsive and knowledgeable client service support




                                                                  25
    Our End-to-End Program Management Approach
Strategic Alignment
   A flexible program tailored to suit the needs of you and your clients
   A collaborative relationship to deliver on your strategy and promise to your clients

Program and Products
   We work with you, our banking partner, to determine the ideal solution to offer your client
   Our delivery model is customized based on your client delivery strategy
   The entire BMO Treasury Management product suite is available to you

Sales Support and Training
   Tailored training for your team
   Dedicated sales support for complex deals and RFPs

Implementation
   Dedicated implementation support
   Dedicated documentation and account opening support
   All your customer implementations are handled by people who understand your strategy and are aligned to our partnership

After Sales Support
   Dedicated Customer Service and Help Desk support
   Dedicated 1-800 number and e-mail for our partner banks


We view all aspects of the program as equally important for the success of this strategy and have dedicated
                                           resources for each

                                                                      26
Ensuring Alignment to Drive Value

   Monthly Operational Meetings
       An integrated deal team approach to reviewing issues and
        opportunities
       A detailed discussion on any general and operational question
       A detailed update on progress and next steps relative to overall
        performance and project tracking
   Comprehensive Relationship Reviews
       The most comprehensive review available from any Canadian FI
       Sharing and alignment of long term objectives and plans
       Recommendations for best practice process and product
        enhancements to save you money and enable a more efficient
        structure
       Detailed overview of solutions, transmission methods, user
        profiles, documentation, and usage.




Regularly scheduled touch-points, at all levels of our respective organizations, ensure excellence in service
                                    delivery and drive significant value

                                                           27
Delivering Program Support and Success

   Sharing and aligning strategic initiatives

   Providing Best Practices to increase Program growth and efficiencies

   Banking Without Borders Program infrastructure such as operational and management meetings will further support transition

   Sharing understanding of differences between US and Canadian landscape and what it means to your clients

   Providing support to your Program group through:
     Training and Learning Tools

     Online Support

     Sales and Marketing Tools

     Monthly reporting on requests




                                Dedicated support tools to help you manage your program


                                                                 28
Overview of Execution Model

                                                          How We Will Support Your Needs

                       Sales concludes sale of CAD services
   Sale closed
                       If complex client need, dedicated BMO Sales support is available.



                       Send notification instructing us to open an account and services required
Account openings
                       BMO will provide an Account Opening Package with documentation to facilitate client on-boarding



                       Implementation information provided to BMO
Implementations        Client implemented by dedicated Implementation Specialist; complex implementations receive project management
                        support



 Client Service        Dedicated Client Service SME contact for your team‘s assistance via dedicated 1-800 number / e-mail



Technical support      Dedicated 1-800 number for prompt resolution of technical issues




                 Exceptional end-to-end client experience that is fully aligned with your vision


                                                                  29
How we support the BWB Program
BWB End Client Support Model


                                  If your support team
                                    needs assistance,
                                        escalates
                    1                                                2
                                  to BMO BWB support


                                                                         BMO BWB Support
                                                                          will research and
    Client has an
                                                                         provide a response
       Inquiry
                                                                             back to you




                      4                                              3
                                     Your team will
                                  respond to your client
                                        directly




           We remain behind the scenes while you remain your client’s primary contact


                                               31
Roles and Responsibilities

   IFI Relationship Management
     Overall relationship coverage

     Opportunity identification

     Engage GTM Sales




   GTM Sales Management
     Sales Specialist of BWB Program

     Work with IFI RM and client to win opportunities




   Program Management
     Oversight of BWB Program deliver and its overall strategy




                                                         32
Team Approach with Dedicated Resources

                                             Team Model: Manage our relationship and the success of your
           Relationship &                     program
               Sales
            Management                       Partnership: Work closely with you to meet your needs

                                             Program: Strategic focus on today and future

                                             Expertise: Dedicated POD with Banking Without Borders
                                              program training
    Program              POD
   Management            Team




                                          Your Dedicated Team


 Sales Manager: Marcia Cowan                           Client Service: Munira Gohill, Brian Liu
 Senior Sales Associate: Rebecca Patton                Help Desk: Adam Hewitt, Maria Kadomtseva, Yousouf
                                                                  Mohoboob
 Program Manager: Sarah Cairns
                                                       Implementation: Khatra Haji, Frank Morelli
 Senior Product Manager: Jay Pickett
                                                       Documentation: Stephanie Chan




                                                  33
Global Treasury Management
Our Philosophy

   BMO offers a holistic approach to servicing you

   We are fully engaged with our clients in the architecture of creative solutions

   By understanding your business model and strategy we can offer an end-to-end service solution to you




                                  Engage in a consultative partnership with BMO


                                                           34
Correspondent Bank Responsibilities on the BWB Program




                          35
Managing accounts and fee collection

   You are responsible for the daily monitoring of client balances
       Overdraft
       Transfers
       Stop Payments
       Account information reporting




                                                   36
BWB Program Billing




        37
    Compensation Statements, Statement Delivery & Fee Collection

Compensation Statements

   Summary of accounts and fees

   Total activity fee posted to the your nostro account

   Detailed product usage by client account


Statement Delivery

   Electronically delivered directly to the you each month

   Available between the 8th to 10th business day

   Compensation statements are available in both Report and CSV formats


Fee Collection

   Fees are debited to the your nostro account on the 15th business day of the month

   Compensation statement review

   You debit your client accounts to collect the activity fees



                                                              38
                                       Thank you!

For more information on how this program can benefit you and your customers
                              please contact us anytime


        Marcia Cowan – Sales Manager             Sarah Cairns - Program Manager

          Global Treasury Management                Global Treasury Management

             BMO Capital Markets                       BMO Capital Markets

               T. 416-867-2796                           T. 416-643-4342

           Marcia.Cowan@bmo.com                       Sarah.Cairns@bmo.com




                                          39
Disclaimer

These materials are confidential and proprietary to, and may not be reproduced, disseminated or referred to, in whole or in part
without the prior consent of BMO Capital Markets (“BMO”). These materials have been prepared exclusively for the BMO client or
potential client to which such materials are delivered and may not be used for any purpose other than as authorized in writing by
BMO. BMO assumes no responsibility for verification of the information in these materials, and no representation or warranty is
made as to the accuracy or completeness of such information. BMO assumes no obligation to correct or update these materials.
These materials do not contain all information that may be required to evaluate, and do not constitute a recommendation with
respect to, any transaction or matter. Any recipient of these materials should conduct its own independent analysis of the matters
referred to herein.

“BMO Capital Markets” is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal,
Harris N.A. and Bank of Montreal Ireland p.l.c., and the institutional broker dealer businesses of BMO Capital Markets Corp., BMO
Nesbitt Burns Trading Corp. S.A., BMO Nesbitt Burns Securities Limited and BMO Capital Markets GKST Inc. in the U.S., BMO
Nesbitt Burns Inc. in Canada, Europe and Asia, BMO Nesbitt Burns Ltée/Ltd. in Canada, BMO Capital Markets Limited in Europe,
Asia and Australia, and BMO Advisors Private Limited in India.

BMO does not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended to be used, and
cannot be used or relied upon, for the purposes of avoiding any tax penalties and (ii) may have been written in connection with the
“promotion or marketing” of the transaction or matter described herein. Accordingly, the recipient should seek advice based on its
particular circumstances from an independent tax advisor.




                                                                  40

				
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