1. IBOS VALUE PROPOSITION
IBOS - Making Cross-border banking easier
IBOS VALUE PROPOSITION
INTERNATIONAL BANKING ASSOCIATION PRESENTATION

3. IBOS Value Proposition SERVICES
What is IBOS Association?
An international banking alliance, focused on providing corporate customers with International Cash Management Solutions.
IBOS is based on its 15 members and their subsidiaries, each of which is a leading supplier of local banking services in their domestic markets.
The IBOS offering consists of:
Competitive local services at the IBOS bank in the country concerned.
Meshing of local services into regional, multi-country Cash Management arrangements using the IBOS cross-border services

4. IBOS Value Proposition SERVICES
How is the service delivered?
The offering is brought to the corporate customer via its local member – the Host Bank.
The Account-Holding Banks work to the Host Bank as regards establishment of accounts and services, electronic banking and relationship management.
Typical Set-Up
Central Treasury of the customer uses Host Bank electronic banking to receive MT940/1/2 on all accounts and to operate them using MT101 and MT103.
Subsidiaries use the electronic banking of their in-country Account-Holding Bank to instruct their Payables, manage day-to-day liquidity, and to receive statements for reconciliation. 
Network Co-Ordination
IBOS Association has a central support office in London, which coordinates the streams of work and the definitions of messages and processes that make IBOS a network.

5. IBOS Value Proposition SERVICES
What is the service?
Streamlined account opening
Local payment, cash management and treasury services
Local payments based on MT101
Cross-border payments based on MT101 and MT103
Previous-Day and Intraday Balance and Transaction Reporting
Automated Cross-Border Zero-Balancing in Euro

6. IBOS Value Proposition SERVICES
What benefits does IBOS bring to customers?
Streamlined account opening
The process & required documentation for every bank is known at outset.
The account opening forms are completed by the receiving bank on behalf of the customer.
There is a process in place to deal with any blockages to account opening.
Hands-on adoption of new customers
Dedicated staff at all banks to make and receive introductions.
Introducing bank creates detailed profile of each customer and their business.
Customer is promoted within the receiving bank’s IBOS team.
Consistent process & service across a big area
Familiarity of the IBOS banks with the processes, across multiple countries.
STP payments with short turnaround.
Large number of countries covered in depth.
Local and cross-border banking all under one roof
Customers can deal with one bank per country.
Knowledge of local market & practices.
Banks work together-without overlay-to enable a regional cash management solution.

7. IBOS Value Proposition SERVICES
What benefits does IBOS bring to members?
Basis for a compelling proposition to customers
Retention of existing customers with an ICM requirement.
RFP questions can be answered, both for domestic & cross-border services.
Contact network for responding in pre-sales phase & in-production.
Cost benefit to building own network
No cost involved in creating new agreements as they are already in place.
Low entry fee.
No need to commit to volumes of business sent.
Wide reach via one set of agreements
Access to the IBOS services in 28 countries via the IBOS agreements.
Further reach through nominated affiliates of Member banks.
Depth within each country.
Scalable
Guaranteed Service Levels: high quality, commitment, issue resolution & redress
A documented Guaranteed Level of Service is provided by all IBOS members.
Dedicated multi-lingual teams in each bank to operate the service: banks always know who to call.
Quality assurance and escalation procedures.

8. IBOS Value Proposition SERVICES
Why is IBOS different to Other Banking Clubs (Unicash/Connector)?
Top tier banks
Strong market position in home country.
All are commercial banks.
Membership of all local clearing systems.
Formality & depth of structure
IBOS has a clear framework & governance structure, which is supported by legal agreements.
Member banks are represented on the IBOS Working Group Committees.
Minimum of 6 Working Group meetings per year in total.
Central office, legal entity & permanent secretariat. Three ongoing workstreams versus one
Permanent central office support & monitoring of processes & services.
The three separate IBOS workstreams are run by committee, and are comprised of the IBOS member bank representatives.
There is a commitment by members to dedicate resources to these workstreams.

9. IBOS Value Proposition SERVICES
Why is IBOS better than Other Banking Clubs (Unicash/Connector)?
Higher service level
Short guaranteed timeframes for account openings & payments.
Harmonised pricing & same-day value payments.
DZero daily cash concentration.
More robust quality assurance
Members have a legal commitment to provide the IBOS level of service.
There is ongoing monitoring by the IBOS central office.
Members have recourse via the IBOS Board of Directors.
Better cohesion
The IBOS private extranet holds extensive information about IBOS member banks & countries, IBOS products, processes & pricing.
There are designated IBOS contacts at each member bank.
Regular Working Group meetings in each workstream – strategic, technical, business development.

10. IBOS Value Proposition SERVICES
Why is IBOS different to Bilateral Arrangements?
IBOS is a many-to-many model with a single protocol, rather than multiple one-to-one arrangements
To obtain the IBOS Association Service Levels from IBOS members, a bank can sign up via one Accession Agreement to all existing agreements.
Administration of the IBOS Service Levels requires changes to one set of documentation only.
There is a guaranteed level of service for all IBOS services, across the IBOS Membership.
Harmonised terms
One process & service level to open an account with any IBOS Bank.
One pricing tariff for select services in key Euro countries.
One Euro cash concentration product for multiple countries.
Focus is corporate customer, not the relationship between 2 banks
IBOS products & related agreements have been designed to meet the needs of corporate customers.
Pricing not dependent on interbank flows.
No measurement of reciprocity, or revenue-sharing.

11. IBOS Value Proposition SERVICES
Why is IBOS better than Bilateral Arrangements?
Commitment to cooperation
IBOS Association Members have agreed to cooperate with all member banks not just one.
The IBOS Service Level is the same for all members.
New banks can be introduced to the existing IBOS services relatively quickly.
Banks coordinate the full package: customer does not have to do it
Customer can access full IBOS services via one member bank.
Member banks co-ordinate all aspects & liaise with the receiving bank/s on behalf of the customer.
Cuts implementation time.
DZero service
Movement of full end-of-day available balance.
Cut-off time independent.
Results posted on today’s statements.

12. IBOS Value Proposition SERVICES
Why is IBOS different to Network Banks?
Depth of in country network
Full service branch network in the key countries of operation.
Represented in key regional centres.
Capabilities beyond payments (leasing, pensions, insurance).
Range of in-country services
IBOS banks have ability to provide extended services in-country.
Handling of paper instruments.
Cash and ATM services.
Can support both customer service models, decentralised & centralised
Branch-level RMs available.
Central service in each country.
Fully centralized model through Host Bank & IBOS Representatives.

13. IBOS Value Proposition SERVICES
Why is IBOS better than Network Banks?
Specialists in country of operation
Branch network.
Service range.
Local relationship management.
Direct integration of retail with treasury solutions
DZero & day-to-day operations occur at same bank.
No need for overlay.
IBOS cross-border solutions as good as Network Bank ones.
Every component has scale
Banks rank in top 3 per country.
Major local payments share.
Balance by region & line of business.

14. IBOS Value Proposition SERVICES
Members and Associates – Account-Opening, MT101/103/94ns
Austria Bank Austria
Belgium KBC Bank NV
Brasil Santander Brasil
Bulgaria CIBank
Canada The Royal Bank of Canada
Chile Santander Chile
China Bank of Shanghai
Czech Republic CSOB Czech Republic
Denmark Nordea Bank Denmark A/S
Finland Nordea Bank Finland plc
France HSBC France
Germany Unicredit Bank AG
Hungary K&H Bank
Ireland Ulster Bank
Italy Intesa SanPaolo SpA Unicredit Corporate Bank
Mexico Santander Mexico
Netherlands KBC Bank NV Nederland
Norway Nordea Bank Norge ASA
Poland Bank Zachodni WBK
Portugal Banco Santander Totta
Romania Unicredit Bank SA
Russia CJSC Unicredit Bank
Slovakia CSOB Slovakia
Slovenia Banka Koper
Spain Banco Santander
Sweden Nordea Bank AB (publ)
UK Royal Bank of Scotland
UK Bank of Tokyo Mitsubishi UFJ, Ltd
US PNC Bank NA
Silicon Valley Bank
US Bank NA

15. IBOS Value Proposition SERVICES
DZero Account-Holding Banks
Live now:
Austria Bank Austria
Belgium KBC Bank NV
Czech Republic CSOB Czech Republic
Finland Nordea Bank
France HSBC France
Germany Unicredit Group
Hungary K& H Bank
Ireland Ulster Bank
Italy Intesa SanPaolo SpA Unicredit Corporate Bank
Netherlands KBC Bank NV
Portugal Banco Santander Totta
Slovakia CSOB Slovakia
Spain Banco Santander
Live but with “health warnings” on economics:
Romania Unicredit Bank SA
Live shortly:
Poland Bank Zachodni WBK

16. IBOS Value Proposition SERVICES
What type of customers does it appeal to and why?
Almost totally decentralised
Full service branch network in the key countries of operation.
Capabilities beyond payments (leasing, pensions, insurance).
Central customer can get reporting and Relationship Management
Centralised Treasury/Decentralised AP & AR
Comprehensive in-country payments service, and in-country liquidity solutions
Maintaining central Treasury accounts
Information reporting for Treasury through the Host Bank
MT101 service or DZero to move funds from local accounts to Treasury Accounts
Regional Shared Service Centre
For Nordics, for Iberia, for Germany/Austria..
Using the file transfer mechanism of the local IBOS member
Plus all that services Centralised Treasury

17. IBOS Value Proposition SERVICES
Sales Process positioning
Extension of our bank’s capabilities
IBOS is a component of our Managed Network
IBOS is structured along the same lines as a bank manages ICM though its own units
Same processes and controls, and the same people in our bank do it
Use of IBOS as and when customer needs requires it
Depends on customer business model and organisation
The aim is to do everything within a single framework for electronic banking, Relationship Management and customer service
Quality Assurance
Detailed Service Level agreements on set-up processes and on all services once in production
Non-Compliance Tool for instances of deviation from the Service Level
Procedures for IBOS Office to pursue those deviations and resolve them
Escalation to the IBOS Board
Depth and breadth
A lot of countries with large presence
Full service with high scale for each component

18. IBOS Value Proposition SERVICES
RFP Handling
IBOS business model allows many parts of an RFP to be answered with a solid response
Let’s refer to the AFP’s Standardized RFP for Global Treasury Services
Certain elements will be for the Host Bank alone
On the other hand there are many parts that relate to the international network of the Host Bank
These can be filled in with confidence
Because IBOS is robust
Because the answer regarding IBOS from a Host Bank will be very similar (if not identical) to what it answers regarding its own units and how they are managed
Which means IBOS partners fit seamlessly into the Host Bank’s ‘Managed Network’

19. COVERAGE
The IBOS global banking network provides international coverage with market-leading on-the-ground services in each country, through our unique alliance of some of the world’s largest banks.
The IBOS service is growing all the time. We currently operate across 70% of the world, including throughout Central, Eastern and Western Europe, North and South America, and China.