How to Make a Difference — the Value of Understanding Industry-specific Challenges

By Alexander Mutter Director, Head of Trade and Cash Solutions Advisory, EMEA [email protected]

Deutsche Bank has long recognised that its clients have varying requirements depending on their industry sector. There is no "one size fits all" solution. Leading commercial banks, in order to stay competitive and be able to truly serve their clients, need to understand the client's natural habitat in order to bring to the table a broad range of answers.

Earlier this year, Deutsche Bank restructured its Trade & Cash Solutions Advisory team to adopt a dedicated industry-oriented advisory approach. The early stages of this process included the appointment of a number of EMEA-wide Industry Advisory Heads.

The approach taken by the Bank's Global Transaction Banking division now mirrors, to some extent, the structure that has long served our corporate finance teams. We see it as a vital move. Why? It's really all about meeting our clients' demands. They want and need a bank that adopts an advisory-based approach, which can only be achieved if we understand the idiosyncrasies and specific needs of their industry.

The Heart of the Matter

To bring a client ideas, expertise and ready-made solutions, a bank has to get right into the DNA of that client. This requires an understanding of industry trends and how the macro environment is impacting them, what products are at the forefront of that industry and, as importantly, what the client's peer group is doing. If we can deliver this in an easily accessible manner, then we are getting to the heart of our clients and bringing them what they really need in order to stay competitive and grow.

We have identified the major industries that we need to focus on and selected the right people for the right sectors. These groups are: Technology, Media & Telecoms; Retail & Consumers; Healthcare/Pharmaceuticals; Transport & Logistics; Natural Resources; Chemicals & Industrials; and Metals & Mining.

Although these are all very different sectors, there are commonalities among them all. As the client's advisor, we need to add value and provide support for their business models, enabling them to become more profitable. And in this resource-constrained era, we need to help them reduce costs, exploit efficiencies and at the same time aggressively manage their risk exposures. From a Trade Finance perspective, we also help them to inject supply chains with additional liquidity in the most sustainable and efficient way.

How will we do that? We have to complement the growing industry sector expertise with our technical expertise by interpreting complex challenges and enhancing the relationship with customised and replicable solutions. This transcends the entire cash management and financial supply chain (FSC) solutions product range.

Replicating Successful Solutions

Our industry sector specialists are responsible for account planning in partnership with our client coverage teams, identifying opportunities, profiling clients, and exploring and executing deal opportunities. Above all, once we hit upon a successful solution, we must have the ability and resources to replicate it again and again.

One of our key objectives is to better understand the dynamics of the corporate client's commercial flows, including supply chain, risks, opportunities, costs and the impact on P&L.

Repackaging solutions, tailoring them for our target clients, is a crucial element to this strategic move. By understanding what they need, we can more effectively package a broad range of foreign exchange, FSC, cash and liquidity solutions. When solutions are presented in such a packaged form outside of any single product silo, aligned with the commercial agenda and priorities of our clients, and set within the specific context of an industry with its unique ecosystem, this becomes a compelling proposition.

Shift to a Sector Focus

The shift to a sector focus has enabled us to look at the issues — such as SEPA or Basel III — in the various industries and how they may affect the client. This also includes peer comparisons, which in themselves can identify potential needs for the client. It's important that we offer our clients the tools necessary to stay nimble and respond to market developments. Treasurers' strategic agendas continue to shift in the current economic climate and we have to align ourselves accordingly.

We have been pleased with the feedback received from clients on industry sector focus. It is, we feel, a natural and exciting step to take towards providing the kind of holistic approach that develops closer relationships and a better understanding of our clients' requirements.