(August 24 – 10:15 ET) – Tony Comper and Matthew Barrett are back together again. Bank of Montreal, Barclays plc, Australia and New Zealand Banking Group Ltd. and American Management Systems Inc. are announcing a deal to form a new venture in trade services transaction processing.
The firms have signed an agreement in principle to create the new firm to enable banks to improve customer service levels and reduce costs for their trade services businesses. Trade services includes such services as letters of credit and collections. It’s expected that the new company will be operating by mid 2001. Along with improving service and cutting costs the firm will provide an Internet-based portal for banks and their corporate customers to initiate and track their trade services transactions online.
BMO, Barclays and ANZ will contract their back office trade services transaction processing to the new company and employ its Internet-based technology. The technology will be built by AMS.
The new company will be independent of the four partners with its own management team. The banks say the new venture will enable them to build a new revenue stream for their shareholders and invest in the continued growth of their trade businesses.
The company will target the trade services transaction processing business of other trade banks globally in an effort to leverage the technology investment and scale. Banks using the service will retain full control of their customer relationships, servicing, credit risk management and pricing.
Corporate customers will continue dealing directly with their own bank’s trade services specialists, but will also have the benefit of the latest Internet-based tools for initiating and managing trade transactions.
Jeff Orr, chairman and CEO of BMO Nesbitt Burns, said, “Our corporate and commercial customers across North America want faster, electronic-based means to facilitate and settle international trade transactions. This new venture will help us meet the demands of both importers and exporters, and is an excellent fit with our overall strategy to aggressively drive e-business opportunities.”
-IE Staff