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Global Treasury Management Banking Without Borders Program Skill Builder Last Revised: June 2012.

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Presentation on theme: "Global Treasury Management Banking Without Borders Program Skill Builder Last Revised: June 2012."— Presentation transcript:

1 Global Treasury Management Banking Without Borders Program Skill Builder Last Revised: June 2012

2 Canadian Clearing Services

3 2 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 billion 1 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)

4 33 ADVISORY SERVICES Mergers & Acquisitions Strategic Advisory Fairness Opinions Takeover Defense Share Buybacks Valuation Analysis TREASURY SERVICES Cash Management Risk Management Asset Management Foreign Exchange Trade Finance SALES & TRADING Institutional Sales Trading Equity Research Fixed Income Research Investor Marketing Investor Conferences Account Sponsorship Retail Distribution CORPORATE FINANCE Initial Public Offerings Follow-on Offerings Convertible Securities Mezzanine Lending High-Yield Debt Investment-Grade Debt Corporate Lending Securitization Private Placements BMO Capital Markets BMO Financial Group F2011 Net Income by Operating Group Key Operating Data *As at April 30, 2012 Private Client Group Personal & Commercial Banking Market Cap* US$38 billion Total Assets* US$532 billion F2011 Revenue US$13.6 billion Employees* 46,500+

5 4 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 ( 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 BMO is a service provider who can demonstrate the ability to our client’s needs while leveraging cost effective clearing solutions

6 5 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: Alternatively, we will be pleased to arrange printing of your drafts with minimum order of 200 drafts. We are committed to partnering with the IFI team to provide pro-active sales support

7 6 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.

8 7 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

9 8 Treasury Management Solutions BMO has an extensive suite of cash management solutions to Financial Institutions

10 9 Exemplar Client Service and Coverage Our Customers Global Treasury Management Sales Team The lead in supporting cash management needs to ensure your daily banking needs operate efficiently and without interruption. Implementation Team Implements products and ensures a smooth transition to BMO. Technical Help Desk Team Your day-to-day technical support team to assist with queries regarding your banking portal. Customer Service Team Your day-to-day cash management support experts available via telephone, e-mail or fax. Global Treasury Management Product Management Team Provides expert guidance and support in ensuring BMO remains competitive in the market with our product offering. Account Documentation Team Works with the team to ensure a smooth on-boarding process and keeps up to date with documentation requirements. International Financial Institutions Relationship Director Your senior point of contact within BMO who has detailed knowledge and understanding of your business. BMO has a committed team behind our customers We are here to help you achieve your vision and take pride in your success

11 10 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

12 11 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).

13 Banking Without Borders

14 13 BWB Program Overview

15 14 What is the Banking Without Borders (BWB) Program? Banking Without Borders Program positions a powerful value proposition to Correspondent Banks 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

16 15 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

17 16 Value Proposition – Differentiation Based on Relationship and Convenience For You – Deeper RelationshipsFor Your Clients – Convenience More Capabilities: Protected and enhanced relationships with your clients More Resources: Minimal investment and effort More Solutions: Provide leading edge cross- border cash management and treasury solutions to your clients New sources of Revenue Convenience: Maintain their banking relationship with you – their trusted banker Seamless access to robust Canadian cash management and treasury solutions Improved cash management Value: Reduced cost and complexity 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

18 17 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

19 18 Overview of Different Models Mutual Corporate Client (MCC)Client Of Correspondent Banking (CCB) Account Structure Bank to bank agreement Client signs with BMO directly Account are jointly owned/controlled by you and your client Documentation Forms Your client signs the “Mutual Corporate client (MCC) Authorization” Your client signs the appropriate BMO service agreement You and your client both sign the “Agreement for CCB Accounts” You provide BMO with requisite account open material Implementation Forms You complete the appropriate BMO Implementation forms gathering input from the client Forms submitted either using paper, either via email or mail You complete the appropriate BMO Implementation forms gathering input from the client Forms submitted either using paper, either via email or mail Credit Risk Controls Your clients can operate on a pre-funded or via credit lines carved from your credit lines at BMO Your clients always operate with credit support from your lines at BMO Prefunding is not supported Information Reporting Your clients have access to real time information online Online Banking for Business is slated for a private label and single sign on capability in upcoming releases BMO can deliver MT940 or BAI file with previous day data to you You have access to real time activity on their clients on BMO’s Correspondent Banking portal CDA Web BMO can deliver MT940 or BAI file with previous day data to you

20 19 Full suite of world class treasury management solutions BMO offers the full suite of treasury management services to our Correspondent Bank partners BMO offers the full suite of treasury management services – there are no restrictions on the Canadian services we can offer Receivables Solutions: Lockbox Incoming Wire Payments

21 20 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

22 21 Premium pricingInternational “premiums” Investment incomeNoneBalances FX revenueNoneForeign Exchange Set your own pricing policiesNoneService Fees Revenue potential through BWB Program Revenue potential through traditional referrals NEW Revenue Stream None Correspondent Bank Revenue Streams from the Program

23 22 BWB End to End Program Management Approach

24 23 Portfolio at a Glance

25 24 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 BMO Will Help You Realize Your Vision Successfully transitioning to BMO means a convergence of multiple stakeholders Internal stakeholders Your existing and new clients Detailed Preparation Execution Exceptional Client Experience Executive engagement and communications Dedicated team member education Technological and tactical client transitions Clients know what to expect They are prepared for the transition Their businesses are minimally impacted by the change Online education Detailed project planning Enhanced communications Project management Technology enablers Electronic implementation process/forms KPIs are measured and reported SLAs are reviewed and achieved Correspondent Bank

26 25 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

27 26 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

28 27 Ensuring Alignment to Drive Value Regularly scheduled touch-points, at all levels of our respective organizations, ensure excellence in service delivery and drive significant 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.

29 28 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

30 29 Exceptional end-to-end client experience that is fully aligned with your vision Overview of Execution Model How We Will Support Your Needs Sale closed Sales concludes sale of CAD services If complex client need, dedicated BMO Sales support is available. Account openings Send notification instructing us to open an account and services required BMO will provide an Account Opening Package with documentation to facilitate client on-boarding Implementations Implementation information provided to BMO 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

31 How we support the BWB Program

32 31 We remain behind the scenes while you remain your client’s primary contact BWB End Client Support Model 1 2 3 4 If your support team needs assistance, escalates to BMO BWB support BMO BWB Support will research and provide a response back to you Client has an Inquiry Your team will respond to your client directly

33 32 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

34 33 Your Dedicated Team Team Approach with Dedicated Resources Team Model: Manage our relationship and the success of your program 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 Sales Manager: Marcia Cowan Senior Sales Associate: Rebecca Patton Program Manager: Sarah Cairns Senior Product Manager: Jay Pickett Relationship & Sales Management Program Management POD Team Client Service: Munira Gohill, Brian Liu Help Desk: Adam Hewitt, Maria Kadomtseva, Yousouf Mohoboob Implementation: Khatra Haji, Frank Morelli Documentation: Stephanie Chan

35 34 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

36 35 Correspondent Bank Responsibilities on the BWB Program

37 36 Managing accounts and fee collection You are responsible for the daily monitoring of client balances Overdraft Transfers Stop Payments Account information reporting

38 37 BWB Program Billing

39 38 Compensation Statements, Statement Delivery & Fee Collection Summary of accounts and fees Total activity fee posted to the your nostro account Detailed product usage by client account Electronically delivered directly to the you each month Available between the 8 th to 10 th business day Compensation statements are available in both Report and CSV formats Fees are debited to the your nostro account on the 15 th business day of the month Compensation statement review You debit your client accounts to collect the activity fees Compensation Statements Statement Delivery Fee Collection

40 39 Thank you! For more information on how this program can benefit you and your customers please contact us anytime Marcia Cowan – Sales Manager Global Treasury Management BMO Capital Markets T. 416-867-2796 Sarah Cairns - Program Manager Global Treasury Management BMO Capital Markets T. 416-643-4342

41 40 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.

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