Value to Member

Corporate customers require their banks to provide comprehensive solutions, ranging from a full range of domestic / international services to the delivery of local capabilities in foreign markets (e.g. collections & disbursement, working capital lines, local payroll services, receivables discounting & factoring, card services, etc...)

Banks who wish to be seen as universal providers of customer solutions need to ensure that they can give corporate customers access to all these services, whether through internal channels or, when appropriate, using other banks’ capabilities - provided these are of high quality and well known.

A typical IBOS bank focuses principally on its domestic marketplace for commercial banking services, and possibly a few other marketplaces where it owns a full-service bank.

This footprint will be a subset of and a partial mismatch to the countries where its customers have operations and/or important trading relationships.

The joining of IBOS offers the bank an additional opportunity to service its customers with a wider range of capabilities outside of its natural footprint, thus contributing to the development of its corporate market share.

Each IBOS bank expands its footprint with every other bank that joins.

Also each footprint is heavier than the equivalent of that of a Global Network Bank, which customarily opens a branch or small subsidiary in a country’s financial centre – as opposed to an IBOS bank which is full service.

Financially the value to the IBOS member should materialise in four ways and become an undeniable case for IBOS membership:

1. retention of the value of existing customer relationships where the bank was able to act as Host Bank for an International Cash Management solution based on IBOS, where, without IBOS, the ICM business might have gone to a major competitor and threatened other streams of business as well
2. the value of the incremental relationships and/or business the member obtained thanks to being able to act as Host Bank for an ICM solution based on IBOS
3. the value of business referred into the member acting as an Account-Holding Bank in the context of IBOS-based solutions offered by other members to their customers
4. the value of the wider exploitation – beyond Cash Management – of relationships referred into the member acting as an Account-Holding Bank

This last point is important. While IBOS is about Cash Management primarily, it hopes that the IBOS Account-Holding Bank will become the main local banking connection of each subsidiary: the subsidiaries will certainly have needs beyond Cash Management and the IBOS banks, being fully-fledged commercial banks, should be able to meet them.