Partner Banking & ICM Solutions

Banks use a range of components in theirBanks put together ICM solutions using EB services and support, own branch services, partner bank services, payment and collection services, liquidity management services, and customer support. The quality of the overall ICM solution is determined by how well these components are integrated and delivered. ICM (International Cash Management) solutions for their corporate clients. These components include their own branches and representative offices, correspondent banks, and partner banks. There are basically two types of partner banking arrangement:

  • Service Level Agreement (SLA) Partner Banks covering banks that provide cash management and payment services to agreed Service Levels for the lead bank in the solution. Companies open accounts direct with each of the partner banks.
  • Electronically Integrated (e-Integrated) Partner Banks which include both Wired Partner Banks solutions and Integrated Partner Banks.
  • Wired Partner Banks: there is a direct electronic link between the banks' back offices. Corporate clients have an instant view of their accounts in both banks through EB services. Corporate clients can open accounts direct with the local bank and with the lead bank.
  • Integrated Partner Banks: the partner bank provides services to agreed standards plus has electronic integration of their back offices, which allow the lead bank to use their nostro accounts at the partner bank for client services. Typically, the corporate client only has bank accounts at their lead bank, although they can also open accounts with the local partner bank. This is known as: Virtual Banking or Nostro Account partner banking. J.P. Morgan call this Network Extension.

The relative quality of the ICM services varies significantly as the Figure below shows.

Quality of the Types of ICM Solution
Quality of ICM solutions, partner banking, banking clubs

Banking Clubs
Because there are such variations in the quality and consistency of SLA partner banking, some banks have joined together to form Banking Clubs with the aim of providing more consistent and integrated services and products. These banking clubs' SLAs can much more detailed and demanding than some bilateral SLAs.

It‘s a service delivery business
Banks put together ICM solutions using EB services and support, own branch services, partner bank services, payment and collection services, liquidity management services, and customer support. The quality of the overall ICM solution is determined by how well these components are integrated and delivered.

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