First Chicago NBD, Scotiabank and Banco Inverlat Join IBOS Association
The three North American banks can now provide their customers with greater access to cash management services in Europe through the association's eight European members, which have a total of 5,500 branch offices. The IBOS consortium was created in 1991 by those European banks to meet their clients' in-country cash management needs.
"Our entry into the IBOS Association complements our own branch, subsidiary and affiliate network and supports our strategy to offer our customers a wide array of global operating products," said David Vitale, vice chairman of First Chicago NBD. "We are committed to meeting our customers' cash management needs as they expand their international activities."
The three new members also will help other IBOS member banks offer customers customized cash management and other cross-border banking services in the North American Free Trade Agreement region. The three new North American members, together with continuing member First Union National Bank, have a total of more than 6,000 branches in the United States, Canada and Mexico.
"The banks' excellent coverage and quality of banking services provide us the unique opportunity to form one of the most important banking alliances for the next millennium in the cross-border banking services field," said George Mathewson, chairman of IBOS and chief executive officer of The Royal Bank of Scotland. "We will continue to grow our membership in the next few months to further this goal."
All association members devote their skills and expertise to developing client solutions that leverage their extensive local presence with the association's growing global capabilities. Members deliver cross-border services under the umbrella of a guaranteed service level agreement that ensures the quality and consistency of the services offered.
First Chicago NBD is the ninth largest bank holding company in the U. S. with assets of $115 billion and 14 international offices. It recently announced plans to merge with BANC ONE CORPORATION to form a premier national provider of financial services, with expanded products and services for the larger, combined commercial customer base. First Chicago NBD's web site can be found at www.fcnbd.com.
In 1996, First Chicago NBD established a corporate cash management alliance with ScotiaBank and its affiliate, Banco Inverlat, for the NAFTA arena, and a similar arrangement with Standard Chartered Bank for the Asia/Pacific region with emphasis on Hong Kong, Singapore, Taiwan, the Philippines, Indonesia, Malaysia and Thailand.
With C$211 billion in assets and more than 41,000 employees, Scotiabank is one of North America's largest financial services companies. Through its extensive network of branches - over 1,300 in Canada - Scotiabank offers its customers a full range of banking services anywhere in the country. It is also Canada's most international financial institution, with branches and offices in 53 countries around the world. Its web site can be found at www.scotiabank.ca.
Banco Inverlat is the main subsidiary of Grupo Financiero Inverlat, one of the top five Mexican financial groups. The bank has total assets equivalent to US$6 billion, 7,500 employees and 338 branches throughout Mexico. It offers a wide range of financial services through its Retail, Corporate and Commercial banking groups. Banco Inverlat is headquartered in Mexico City. Its web site can be found at www.inverlat.com.mx.
The European member banks of IBOS are: The Royal Bank of Scotland, Credit Commercial de France, ING Bank, Banco Santander, Istituto San Paolo di Torino, Kredietbank-Cera and its affiliate Credit General-Cera, Unibank and Banco Santander Portugal (the former Banco de Comercio e Industria).
First Union, with assets of $220 billion, is the sixth-largest bank holding company in the U.S. It has six international transaction processing centers, five overseas branches and 28 representative offices throughout the world.
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The following questions and answers provide additional information about First Chicago NBD's entry into the IBOS Association.
Q. What is IBOS?
A. The IBOS Association was created in 1991 by eight well-established European banks to create a seamless platform of cross-border services to meet the cash management needs of their clients. IBOS is expanding further into North America with new members First Chicago NBD, ScotiaBank and Banco Inverlat. (First Union National Bank is already a member.)
Q. Why is First Chicago NBD joining IBOS?
A. It will help First Chicago NBD meet its customers' growing appetite for extensive cash management services around the world by complementing its own branch, subsidiary and affiliate network. First Chicago NBD can now provide its customers with greater access to cash management services in Europe through the association's eight European members, which have a total of 5,500 branch offices.
This also simplifies the process of opening accounts, obtaining information, and resolving service issues for customers in culturally diverse regions with different payment systems and regulations. As a result, customers will have integrated global account activity and be able to make centralized decisions for complete cash and treasury management.
Q. Is this similar to what First Chicago NBD is doing with Scotiabank and Standard Chartered?
A. Very much so. In 1996, First Chicago NBD established a corporate cash management alliance with ScotiaBank and its affiliate, Banco Inverlat, for the NAFTA arena, and a similar arrangement with Standard Chartered Bank for the Asia/Pacific region with emphasis on Hong Kong, Singapore, Taiwan, the Philippines, Indonesia, Malaysia and Thailand.
Q. How does IBOS assure quality?
A. All IBOS members subscribe to consistent Guaranteed Service Level Agreements covering transaction processing, account opening and customer service. IBOS also has enhanced its agreements to include the philosophy and processes that First Chicago NBD has applied to its relationships with ScotiaBank, Inverlat and Standard Chartered.
Q. Are there any other benefits for First Chicago NBD?
A. Yes. FCNBD will provide its premier U.S. cash management services to the European clients of the IBOS banks. Thus there is the opportunity for additional revenue generation.
Q. Does IBOS have further expansion plans?
A. IBOS plans to grow to approximately 20 members in countries where corporate trade flows are most significant. In particular, it plans to complete its coverage of Europe and to expand to other continents with institutions having strong local cash management orientation.