Transcript David Bell, ASB - (AANZFTA) | ASEAN - Australia

AANZFTA Business Seminar – Services Trade with SE Asia
Financial Services Workshop
Prepared by : David Bell
Date : 3 June 2011
Agenda or Contents
1
The Role of Banks
1
2
Current Opportunities
2
3
Market Conditions
3
4
Value of an Agent/JV Partner
4
5
Risks of International Trade
5
6
Key Takeouts
6
2
The Role of Banks
•
•
•
•
•
•
We support the “partners in growth” philosophy
Banks have a vital role in linking Trade
Our parent (CBA) has invested resource in the markets of Indonesia,
Singapore and Vietnam to date – further expansion is planned
Strategic intent to support New Zealand and Australian businesses in
our key trading regions, such as South East Asia.
Other banks have adopted the same approach
International banks (i.e. HSBC) have strong global interest but may lack
the same level of desire to support NZ’s SME’s
3
Current Opportunities
•
•
•
•
Education – private ownership or consultancy partnering
Infrastructure
Aviation – pilot training & refurbishment
Agritech- on farm
4
Market Conditions
•
•
•
•
•
•
Full range of financial services is available – i.e. Debt, Trade, Retail, etc
Mix of personal and electronic service platforms (branch & internet)
However, banking licenses are regulated and “home banks” such as
ANZ, ASB, BNZ, WBC, have limited offerings in certain jurisdictions.
Key to success is a strong in-market partner bank with mutual growth
objectives
ASB maintains personal relationships with key executives to ensure
continuity of world class service outside NZ
ASB has partnerships with global (Standard Chartered), regional (DBS)
and many local banks throughout the ASEAN countries.
5
Value of an Agent or J.V. Partner
•
•
•
•
•
•
•
•
Can take care of all the Laws & Ethics issues for a margin
Selling & promoting – sales force
Bulk Breaking – large lots into small
Warehousing – hold & manage inventories
Transportation- quicker delivery to buyers
Financing – end user
Risk Bearing – title, cost, theft, damage, obsolescence
Market info – competitors, new prod’s, price points
6
Risks of International Trade
•
•
•
•
•
•
•
•
•
•
Product risk – pricing, packaging, transport, insurance
Market risks - exchange and interest rates, shipping rates and prices
Credit risk of the overseas supplier or buyer
Legal risks - legislation and policies of other countries
Settlement risks - overseas banks & financial regulations
Political and country risks in dealing with overseas countries
Operational risk
Middleman risk
Cultural
Fraud
7
Practical Help from a Bank
•
ASB supported Rakon, an Auckland based exporter of oscillating crystals,
with their in market J.V.
Payments & Transactions
• ASB provided in market transactional account (local and USD ) to
facilitate running of local sales office
Trade Finance
• ASB provided USD 20m Standby L/c to “in-market’ local bank
• “in-market” bank issued Commercial L/C’s to Japanese suppliers
• Rakon installed plant & equipment at new factory
• Offshore manufacturing began
8
Key Takeouts
•
•
•
•
•
Sales are vital, but getting paid is paramount - engage your banker early
Carefully assess each country – as entire region is not the same
J.V. partner maybe required to sift through/comply with local rules
There is huge opportunity with the appropriate preparation and
planning around risk mitigation
It is getting easier
9
Contacts
David Bell
GM Transaction Banking Solutions
ASB Institutional
P : +64 9 337 4945
M : +64 21 491 240
E : [email protected]
Level 21, ASB Bank Centre
135 Albert Street, Auckland 1140
Mike Atkins
Head of International Trade
ASB Institutional
P : +64 9 337 4830
M : +64 027 475 8889
E : [email protected]
Level 21, ASB Bank Centre
135 Albert Street, Auckland 1140
10
Disclaimer
This document is a private communication and is not intended for public
circulation or for the use of any third party, without the approval of ASB.
The information contained in this document is given with an express
disclaimer of responsibility. No right of action shall arise against ASB or its
employees either directly or indirectly as a result of this information. Those
acting upon this information do so entirely at their own risk. This
information does not purport to make any recommendation upon which
you may reasonably rely without taking further and more specific advice.
11