Let Your Net Work for You

At Vontobel, we believe strong network management is key when it comes to providing services to our clients and the future development of our Bank. With competent, well-connected network management, new regulatory requirements, changes to the geopolitical landscape, and the latest market trends can be identified and analyzed early on.

Not every bank has a dedicated Network Management team. In smaller banks, network management tasks are often the responsibility of the COO, or else assigned to back-office managers. Put simply, network management is the global point of purchase for banking services. We believe strong, competent network management is key when it comes to providing services to our clients and the future development of our Bank. At Vontobel, network management is part of our Transaction Banking unit. The proximity to our various departments and our Trading and Account Management teams is a real advantage in ensuring an efficient flow of information. Traditional tasks such as cost management, developing a basis for selecting partners, and monitoring certain risks are now being joined by other areas of responsibility. These traditional tasks will not disappear; their scope will continue to expand as expertise becomes broader. Our experience often sees us play the role of a coordinator or facilitator, and we are called on to provide our expertise in numerous areas and projects. Good network management is not just about external contacts – teams must also be connected and understand the processes and responsibilities in-house. In the longer term, we may see network management expand its scope even further, gradually assuming the role of a coordination unit.

The three key aspects of network management at Vontobel

When purchasing a service, we have to evaluate where we can obtain the best service possible, with the highest level of quality, and all for an attractive price. This is the only way we can offer our internal and external clients high-quality services at competitive rates. We focus on three key aspects when selecting a partner: relationship, quality, and price.

Global networking for all banking products

Working with partners who have a clear commitment to transaction banking is of paramount importance to us. Our partners must understand our requirements and those of our clients. This is the only way to ensure the level of quality we need from our providers.

With a well-connected global network management solution, you can develop services specifically tailored to your clients. To handle requirements such as these, we work closely with relationship managers, the Trading team, and the further departments within the Bank. Although we already cover a large portion of the global market (over 50 countries / 26 cash correspondents), we are constantly adding new market connections. We are also responsible for the relationships with our cash correspondents and the custodians of precious metals and virtual currencies. The work we do on a daily basis varies greatly, and thanks to the wide scope of our activities, we always have the opportunity to learn something new.

Network managers and the importance of staying in touch

In an ever-changing world, maintaining constant contact with other network managers is of tremendous importance. This is the only way to ensure that important trends or regulatory changes are identified early on and that the Bank’s processes are adapted if necessary. Network management is crucial when it comes to recognizing changes and new developments. More and more data and information pour into the Bank, all unfiltered and from multiple partners and providers. The key is to sift through the inputs from the various channels and sources of information, identify the important aspects and insights, and implement the necessary measures.

Geopolitical situations must be assessed in the network

It is to be assumed that the network manager’s area of responsibility will continue to evolve in the years ahead. By maintaining an agile working environment, we are able to ensure adaptability and can cope well with changing market conditions. Drivers for change might include new laws, new regulations, or, as we are currently witnessing, changes on the geopolitical stage (e.g. a war). Whatever the case, the important thing is that we continue to focus on our clients. Markets must remain accessible wherever possible, and securities and assets must be protected.

Mandatory due diligence on our custodians

Since the 2008 financial crisis, network managers have tended to focus on risk management. Holding client assets for safekeeping takes top priority for us, and we visit our custodians on a regular basis for the purposes of due diligence. These visits include on-site evaluations of topics such as workflows, reconciliation, business continuation processes (BCPs), data security, asset safety, and working conditions. Due diligence is also becoming increasingly standardized. For example, the introduction of the AFME Due Diligence Questionnaire has harmonized the process of completing questionnaires for custodians. Our visits are planned in consultation with the various departments. This also means we can use these meetings to address any process optimizations we want to make and coordinate strategic goals on both sides.

Important events such as SIBOS and The Network Forum

By attending global and regional forums as well as events, we can ensure our network continues to grow. We attend at least two major trade fairs every year. One is SIBOS, which draws around 10,000 visitors from the finance sector, and the other is The Network Forum, which primarily attracts network managers.

Maintaining a network

Just like a relationship manager, a network manager is also responsible for maintaining their relationships with custodians and sector peers. Keeping an open dialogue is extremely important, especially regarding complex topics and new standards. With the sector becoming increasingly complicated and regulations more complex, network managers are spending more time dealing with tasks that are related to compliance topics. Being a network manager today means being an allrounder, someone with a complete overview of front-to-back operations who can represent the interests of a bank and its clients.

We believe in letting your net work for you – so why not take advantage of our expertise and see what our network can do for you?