Program Management - BMO Capital Markets
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Transcript Program Management - BMO Capital Markets
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)
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BMO Financial Group
F2011 Net Income by Operating Group
Key Operating Data
Market Cap*
US$38 billion
Total Assets*
US$532 billion
F2011 Revenue
US$13.6 billion
Employees*
46,500+
Private Client
Group
15%
59%
Personal &
Commercial
Banking
26%
*As at April 30, 2012
BMO Capital Markets
ADVISORY SERVICES
Mergers & Acquisitions
Strategic Advisory
Fairness Opinions
Takeover Defense
Share Buybacks
Valuation Analysis
CORPORATE FINANCE
Initial Public Offerings
Follow-on Offerings
Convertible Securities
Mezzanine Lending
High-Yield Debt
Investment-Grade Debt
Corporate Lending
Securitization
Private Placements
SALES & TRADING
Institutional Sales
Trading
Equity Research
Fixed Income Research
Investor Marketing
Investor Conferences
Account Sponsorship
Retail Distribution
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TREASURY SERVICES
Cash Management
Risk Management
Asset Management
Foreign Exchange
Trade Finance
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
Value
Value( bln .
(billion, CAD/day)
Quantity (daily)
LVTS
LVTS
(Wholesale)
3,100 - 3,300
18- 20
18%+
3,100 - 3,300
18- 20
18%+
550,000 - 600,000
1- 1.2
20%+
550,000 - 600,000
1- 1.2
20%+
ACSS
ACSS
(Retail)
Share (%)
Quantity (daily)
Value
Value ( bln.
(billion, CAD/day)
Payment
Payment
System
System
CAD/day)
Share (%)
CAD/day)
BMO is a service provider who can demonstrate the ability to our client’s needs while leveraging cost
effective clearing solutions
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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
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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.
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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
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Treasury Management Solutions
BMO has an extensive suite of cash management solutions to Financial Institutions
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Exemplar Client Service and Coverage
Global Treasury Management
Sales Team
The lead in supporting cash management
needs to ensure your daily banking needs
operate efficiently and without interruption.
International Financial Institutions
Relationship Director
Your senior point of contact within
BMO who has detailed knowledge
and understanding of your business.
Account Documentation Team
Works with the team to ensure a
smooth on-boarding process and
keeps up to date with documentation
requirements.
Implementation Team
Implements products and ensures a
smooth transition to BMO.
Our Customers
Technical Help Desk Team
Your day-to-day technical support
team to assist with queries regarding
your banking portal.
Global Treasury Management
Product Management Team
Provides expert guidance and support in
ensuring BMO remains competitive in the
market with our product offering.
Customer Service Team
Your day-to-day cash management
support experts available via
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
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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
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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).
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Banking Without
Borders
BWB Program Overview
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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
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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
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Value Proposition –
Differentiation Based on Relationship and Convenience
For You – Deeper Relationships
More Capabilities: Protected and enhanced
relationships with your clients
More Resources: Minimal investment and effort
More Solutions: Provide leading edge crossborder cash management and treasury solutions
to your clients
For Your Clients – Convenience
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
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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
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Overview of Different Models
Mutual Corporate Client (MCC)
Client Of Correspondent Banking (CCB)
Bank to bank agreement
Client signs with BMO directly
Your client signs the “Mutual Corporate client (MCC)
Authorization”
Your client signs the appropriate BMO service agreement
Account Structure
Account are jointly owned/controlled by you and your client
You and your client both sign the “Agreement for CCB Accounts”
You provide BMO with requisite account open material
You complete the appropriate BMO Implementation forms
gathering input from the client
You complete the appropriate BMO Implementation forms gathering
input from the client
Forms submitted either using paper, either via email or mail
Forms submitted either using paper, either via email or mail
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
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
Documentation
Forms
Implementation
Forms
Credit Risk
Controls
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
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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
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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
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Correspondent Bank Revenue Streams from the Program
NEW
Revenue
Stream
Revenue potential through
traditional referrals
Revenue potential
through
BWB Program
Service Fees
None
Set your own pricing policies
Foreign Exchange
None
FX revenue
Balances
None
Investment income
International “premiums”
None
Premium pricing
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BWB End to End Program Management Approach
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Portfolio at a Glance
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BMO Will Help You Realize Your Vision
Correspondent
Bank
Detailed Preparation
Successfully transitioning to
BMO means a
convergence of multiple
stakeholders
Internal stakeholders
Your existing and new
clients
Exceptional Client
Experience
Execution
Executive engagement
and communications
Clients know what to
expect
Dedicated team member
education
They are prepared for the
transition
Technological and tactical
client transitions
Their businesses are
minimally impacted by
the change
KPIs are measured and
reported
SLAs are reviewed and
achieved
Online education
Project management
Detailed project planning
Enhanced communications
Technology enablers
Electronic implementation
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
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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
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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
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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
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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
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Overview of Execution Model
How We Will Support Your Needs
Sale closed
Account openings
Sales concludes sale of CAD services
If complex client need, dedicated BMO Sales support is available.
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
Exceptional end-to-end client experience that is fully aligned with your vision
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How we support the BWB Program
BWB End Client Support Model
1
If your support team
needs assistance,
escalates
to BMO BWB support
2
BMO BWB Support
will research and
provide a response
back to you
Client has an
Inquiry
4
3
Your team will
respond to your client
directly
We remain behind the scenes while you remain your client’s primary contact
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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
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Team Approach with Dedicated Resources
Relationship &
Sales
Management
Program
Management
POD
Team
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
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
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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
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Correspondent Bank Responsibilities on the BWB Program
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Managing accounts and fee collection
You are responsible for the daily monitoring of client balances
Overdraft
Transfers
Stop Payments
Account information reporting
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BWB Program Billing
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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
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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
[email protected]
[email protected]
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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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