1. IBOS - THE INTERNATIONAL BANKING NETWORK THAT GIVES YOU ACCESS TO 70% OF THE WORLD
IBOS BD Meeting
9 – 10th November 2016

2. Welcome and Introduction
Kevin Stockbridge
IBOS Managing Director

3. A bit about me
40 years in International Payments and Cash Management Business
Retired from Lloyds Bank at the end of 2015
Roles included ;
Manager, International Payment Operations / Systems
Senior Auditor, International Payment and Trade Finance Operations
Director, Financial Institutions (Relationship Management)
Director, Product Management (including responsibility for Lloyds relationship with Unicash and Connector)
Head of Network Management (including ICM partner banks)
Head of Bank Sales, Global Transaction Banking

4. IBOS Management Structure
Improving speed of decision-making and implementation of actions through the
establishment of two Management Committees reporting to the Board :
Internal Business Development - to include 3 Board members, 2 BD Reps and one member of the IBOS Office. This committee will focus on ;
Closure of service ‘gaps’ where possible
Specification of requirements re enhancements to web tools
Actions required to ensure that members utilise the IBOS referral route wherever possible
Reporting to the Board where it is agreed that unacceptable gaps remain and consideration is to be given to adding a new member bank
External Business Development - to include 2 Board members, 1 BD Rep and the MD, IBOS Office. This committee will focus on ;
Researching with existing members the demand for new members
Identification and agreement of target member banks
Agreement of terms and conditions under which new membership will operate

5. IBOS Management Structure
The following will be the prime remit of the Chairman and MD of IBOS
Financial Control
1. Regular reviews of IBOS financials, including costs and membership fees
2. Identification and agreement of areas where costs could be reduced through
member banks providing their own expertise (eg legal advice) as required
3. Approval of ‘significant spend’ items
Risk Management
Agreement of the IBOS Risk Management policy (including Disaster Recovery)
Identification of any emerging risks and compliance commitments impacting the business
Maintenance of a Risk Mitigation Actions Log
Identification of experts within member banks who can provide advice on detailed compliance matters in order to avoid external spend by IBOS

6. IBOS Office Focus
Following recent changes in the IBOS Office, the Board has agreed that the new
focus of IBOS should be :
Continuous improvement of web tools in conjunction with Maltin PR
Ensuring that the IBOS Service meets members’ needs and remains compliant with industry standards (legal and regulatory)
Provision of training where required
Organisation and chairing of meetings (AGM, Board, BD, Management Committees, and GSL as required) and management of action plans arising
Identification, qualification and on-boarding of new members as agreed with the Board
Management of any changes in existing member structures (eg Nordea and RBS) and introduction of new subsidiaries (eg Santander) as required
Financial Control (including monitoring of costs re suppliers)
Risk management (including seeking professional advice where required)
Ensuring that legal requirements of Companies House in the UK are met

7. Strategy for new products
The Board has agreed that, whilst new products are not a priority at present, it would be wise to keep track of current developments in the industry as they relate to the International Cash Management business. In particular, apart from a general defence against non-bank service providers, the following may provide opportunities as ALL IBOS members will be updating their systems to provide for these requirements :
SWIFT enhancements - In particular the current Global Payments Innovation initiative which many IBOS members are trialling.
PSD2 - The requirement for banks to allow access by third parties to client data (through open APIs) may provide opportunities to provide new services for corporate treasurers requiring data and/or sweeping services across a number of accounts in different geographies.

8. Strategy for internal growth through continuous improvement
As a prerequisite to both internal and external growth it is clear that some further work is required to get the basics right. The Board has agreed that priorities for us have to be ;
Transparency of service
Simplicity of processing
Clarity of requirements
Expert and dedicated resourcing
These are the key areas where we should be able to demonstrate we can compete, as a joined-up group, with the global players.
As we continue to work to improve the service we deliver to our clients it is now time to think about how we can embrace the differences which exist within the services provided by each member bank and cater for these in our documentation and website functionality in a way which makes working with such a variety of offerings clear and simple. This will encourage further use of the IBOS network and ease the on-boarding of subsidiaries of existing members.

9. Strategy for growth through new members
It is important that IBOS reaches agreement on where new members are likely to bring cost- effective growth and, most importantly, provide the type and level of service which existing members and their clients are demanding. This could be in cases where :
IBOS has no membership coverage
IBOS members are unable to provide key elements of the full service offering required due to their own bank’s policies
IBOS members are unable to accept certain types of client (eg non-resident corporates)
If the standard of service being offered by a member bank is poor and beyond remedy
A potential new member has a significant volume of outward referrals for countries in which existing members operate

10. New member strategy – the basics
It is suggested that priorities for 2016/17 re new member banks have to be ;
the provision of services for the clients of existing members (ie our outward referrals)
banks who are making inward cross-border corporate account-opening referrals a priority and have the dedicated structure in place
banks in countries in demand by our clients.
As previously agreed by the Board ;
New members must be in the EU/EEA or in an EU Whitelist country
New banks must pass KYC tests of existing members and be approved for RMA exchange
Preferably new banks would pass existing members’ tests to be on ‘A’ List for crediting proceeds of MT103 without waiting to see cover

11. New member strategy – supporting data requirement
It has been agreed by the Board that the IBOS office should seek some detailed data from the member banks as to the destination of ALL outward corporate account opening referrals in Such data would include volumes, client sector data (where available) and destination banks / countries.
volumes (both existing and potential)
client sector data (where available)
destination banks
destination countries
residency of the new account
It is vital that this data is complete as far as possible as it will form the rationale for discussions with potential new member banks in new IBOS countries and countries where an existing member is either exiting or not able to provide a full service. The BD group will also play a key role in the selection of new member banks as only they will have a good knowledge of the level of service provided by these banks currently.

12. New member strategy – interim discussions
In the past few weeks we have picked up a number of discussions which IBOS has had with prospective member banks over the past couple of years in an effort to apply some consistency to the approach of prospective new members. He has also had some input from current Board and BD Group members as to the areas of demand from clients. Most commonly these have suggested the following as potential new member countries :
Australia / New Zealand
South Africa (and selected sub-Saharan countries)
Hong Kong
Singapore
India
U.A.E
In addition it is recognised that France is a country which requires urgent review as HSBC have given notice due to their inability to support DZero on their new platform.
Once the supporting data has been collected, we will continue or start discussions with selected (max. 2 or 3) banks in the new countries above with a view to identifying a sole provider.

13. IBOS Risk Management Framework
IBOS Office has prepared a comprehensive document which details the risks inherent in the IBOS business. This document, which has been shared with Board members, covers risks of the following kinds ;
Legal – including Competition Law, AML and Anti-Bribery regulations, company and tax law
Employee rights
Reputational risk
IT security / data protection
Financial Control
Also contained within the document is a Risk Log which records areas where there are perceived to be known weaknesses in risk controls.
In order to complete this exercise, a subset of this document is to be produced by the IBOS Office which focuses on the risks directly impacting IBOS as a company and which focuses on the risks with Medium or High Impact and Likelihood. Following this exercise, the Risk Log will be maintained by the Chairman and MD of IBOS as mentioned above.

14. IBOS Disaster Recovery Plan
The IBOS Disaster Recovery Plan is about continuing to operate when a disaster hits the IBOS Office. It has already been accepted by the Board that IBOS Office is not mission-critical to the member bank and that a period of 72 hours of sub-optimal running is acceptable
The essential planks in the plan are:
The IBOS member website is hosted so as to be online 24x7, as is the IBOS public website
s will be stored at MessageLabs until the server is restored
The IBOS network/ server is backed up daily
All IBOS’ IT is standard and replaceable within 48 hours
We have RayCon available to re-create the environment, re-install our applications under current licences, re-load our data from the back-up, and bring up-to- date from MessageLabs
Regus are committed on a best-efforts basis to find an office in one of their other buildings. In the interim, most operations can be performed at home.
We have £50,000 insurance to cover the costs of the interruption
With the above and to complete the work, a brief summary of key recovery actions and responsibilities is to be prepared by the IBOS office and signed off at the next Board meeting. The existing plan is to remain as a reference document for those involved in the recovery.

15. Sales Performance
Tim Maltin
IBOS Office

16. Number of Referrals – By STATUS – YTD - SEP 2015

17. Status: (All), YTD - SEP 2016

18. Number of Referrals – By STATUS – YTD - SEP 2016

19. Number of Customers referred by Status - YTD - SEP 2016

20. HB’s who did NOT refer and AHB’s who did not receive - YTD SEP 2016

21. IBOS and Non-IBOS Sales Analysis and Discussion
Kevin Stockbridge
IBOS Managing Director

22. Referrals Analysis – Non-IBOS Countries (Asia only)
Account holding country
Account holding bank
Non-resident accounts (vol)
Resident accounts (vol)
China
Unknown 5
HongKong
DBS, Hang Seng plus another 1 23
India
DBS, Yes Bank
Japan
Mizuho 2
Korea
Various
Malaysia
Singapore
DBS, UOB, OCBC plus another 22
Taiwan
DBS
Total Res/Non-Res 7 61
Combined Total 68

23. Referrals Analysis – Non-IBOS Countries (EMEA only)
Account holding country
Account holding bank
Non-resident accounts (vol)
Resident accounts (vol)
Algeria
Unknown 1
Angola
Banco BIC
Israel
Kuwait
NBK
Saudi Arabia
South Africa
Standard Bank plus another
UAE
Various 6
Total Res/Non-Res 12
Combined Total 13

24. Referrals Analysis – Non-IBOS Countries (The rest)
Account holding country
Account holding bank
Non-resident accounts (vol)
Resident accounts (vol)
Argentina
Banco Galicia, Banco Patagonia 2
Australia
Various 7 21
Chile
Bco de Estado de Chile 1
Jamaica
Scotiabank
New Zealand
ANZ 3
Panama
Switzerland
Unknown
US Virgin Islands
Total Res/Non-Res 31
Combined Total 38

25. Referrals Analysis – IBOS Countries
Account holding country
Account holding bank
Non-resident accounts (vol)
Resident accounts (vol)
Common rationale for business direction where IBOS member bank not used
Mexico
Scotiabank 2
Client preference
Netherlands
ING 1
The Americas
Confidential 34 31
France
KBC, Soc Gen, BNP plus another
20+
HSBC income threshold mainly UK
Various
12+
Total Res/Non-Res
66+
Combined Total
100+
Grand Total
219+

26. Bilateral Networking
IBOS BD Members

27. IBOS Member Website Update
Tim Maltin and Tom Nicholas
IBOS Office

28. Website enhancements
Enhancements based on user experience & feedback from users at member banks
Simplification/restructuring of user interface to improve the user experience
Account Opening information reorganised/updated/reformatted to enable Account Holding banks to specify:
Their Referral Criteria
Are Accounts available to Non Residents?/Specify any prohibited types of business/Outline basic commercial criteria – minimum turnover etc.
Their Referral Process
Enables each bank to specify exactly what they need at each stage (Notification, Due Diligence and Account Opening) of the referral process including specific requirements for both Resident & Non-Resident accounts
Their Referral Notification Contacts
‘Good to Know’ information documents moved to most relevant section(s)
Enhancements to Referral Reporting tool to accommodate enhanced Account Opening process.
Update to User profile administration to support “Contacts” updates
Website User Manual will be updated and published to reflect all changes
Training via webinar(s) to be scheduled prior to going ‘live’
Peer-to-peer review cancelled & Broadcast tool removed
Enhancements will maintain existing content including referrals.

35. Internal Business Development Committee
Resolution of service issues
Identification and documentation of areas causing diversion of business to non-IBOS banks (some supporting data to be provided by IBOS office)
Discussions with member banks with a view to commitment to short term resolution or agreement that service issue cannot be resolved
Specification of requirements re enhancements to web tools
Principal requirement to deliver a simple to use tool which allows inputs and outputs which fulfil the format and content requirements of both Host and Account Holding Banks
Other actions required to ensure that members utilise the IBOS referral route wherever possible
Ensure that appropriate level and type of resource in place to support ‘preferred’ level of service for IBOS referrals
Devise and agree revised simplified framework IBOS service documents incorporating agreed changes above and allowing for the individual policies and procedures agreed by each member bank
Reporting to the Board where it is agreed that unacceptable service issues remain and consideration is to be given to adding a new member bank

36. External Business Development Management Committee
Researching with existing members the demand for new members
Analysis of data provided to IBOS Office (retaining confidentiality)
Research with members regarding current market trends
Discussions with member banks re likely new demands in coming 3 years
Identification and agreement of target member banks
Analysis of banking sector in target countries to devise shortlist of ‘best fit’ banks
Discussions with member banks re current experience with potential new members
Eliminate banks where concerns exist re competition with existing members
in target or other geographies
Close liaison with IBOS office through independent tender process
Recommendation to Board of terms and conditions under which new membership will operate
Membership fees
Agreed variances from IBOS model (eg due to local restrictions)

37. Introductory Presentation
Bank of Shanghai
Introductory Presentation

38. Dynamic CRS Presentation
Tom Nicholas
IBOS Office

42. BD Workshop
IBOS BD Members

43. Next Meeting
A.O.B