Domestic banks take home world standard awards

Bank operations extend across the board. Why has The Corporate Treasurer focused on awards relevant to cash management and trade finance?

We grant Best Cash Management Bank and Best Trade Finance Bank awards because these are the most central services banks provide to businesses. Doing a smart job with these services means that banks are satisfying most business needs.

The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) received these prestigious awards for three years straight during 2011-2013. Why did the bank do so well?

Our awards panel surveyed a number of firms. We use very selective criteria and are extremely objective and rigorous when analysing performance across a diverse range of fields from infrastructure, technology, creativity and diversification in products and services to comfort level, operational network and quality of human resources. Techcombank met multiple criteria and received positive feedback from customers, including high-profile companies like Coca Cola, FPT, and state-owned energy producer Electricity of Vietnam.

It hasn’t only been Techcombank that has effectively handled cash management and trade finance services, so what made Techcombank stand out?

Techcombank stood out for several important reasons. This bank possesses an extensive network with 315 branches throughout Vietnam, while boasting advanced infrastructure which has remained highly stable in recent years, allowing the bank to provide a wide-ranging suite of products and services to its customers. The bank can also foresee customer demands and quickly respond to them. Another outstanding point is that Techcombank remains capable of handling a tremendous transaction volume. I believe the bank will continue to outperform competitors in this segment in the coming period. The way it spends money and uses its staff is also significantly different.

In your view, do local banks have the capacity to compete with their foreign peers in providing cash management and trade finance services?

It is noteworthy that most Vietnamese banks are completely capable of providing these key services for enterprises. The level of customer satisfaction, however, depends on the scale, reputation, capacity and ties of Vietnamese banks to global partners as well as the investment the banks themselves have made into infrastructure, technology and human resources.

Generally, the infrastructure, technology and diversity of products and services provided by local banks effectively meet the needs of local businesses. Banks have engaged not only in lending and guaranteeing international trade, but also in helping businesses control expenses, sourcing low-cost capital source, consulting, and supplying firms with comprehensive solutions to optimise capital flows. I think that some Vietnamese banks are in a position to compete head-on with foreign peers in this field.

How is a bank’s reputation enhanced in the eyes of investors and partners after winning a globally-acclaimed accolade?

International awards definitely help banks bolster their status. The partners and investors will have a chance to look at the service quality of that bank in comparison with other banks, and it helps engender trust in the bank’s products and services and improves confidence in further helping the bank grow.

When a bank wins a raft of prestigious awards, its customers and partners will obviously believe that the bank has not only pursued suitable growth plans and strategies but has also delivered on these pledges. Unsurprisingly, it means the bank is likely to become the top choice for many customers and partners.

During 2011-2013, Techcombank won 15 awards related to cash management and trade finance granted by international prestigious organisations in finance and banking field such as Finance Asia, Asian Banking & Finance, Global Trade Review, Global Banking & Finance, Alpha Southeast Asia and Asian Banker.

Techcombank received the Best Cash Management Bank and Best Finance Trade Bank Awards 2013 directly from David Edwards, representing the editorial team of Corporate Treasurer (under Finance Asia) at an awards ceremony held on September 9. The bank also secured eight other international awards from Finance Asia magazine, UK-based Global Banking & Finance Review and Asian Banking & Finance magazine at the event.