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Emirates Bank launches Transaction Banking Services for Corporates & Institutional Customers


In today's competitive scenario, corporates in the Middle East are looking at banking solutions that can make their business efficient and cost effective.

In today's highly competitive scenario corporates are focusing on reducing the cost of doing business, while aiming to improve cash flow across their entire business. Banks have to be innovative to assist their clients further by providing services to improve operational convenience of interacting with the bank, however with an ultimate objective of improving the customers cash flow. To assist corporate customers achieve this, Emirates Bank today launched Transaction Banking Services.


Transaction Banking Services at Emirates Bank will house Trade Services, Cash Management and Factoring Services under one umbrella, thereby providing convenience, expertise and alternative methods to corporate customers in interacting with the bank to improve their cash flow.


Mr. Abdul Wahid Al Fahim, General Manager- Corporate Banking of Emirates Bank said: 'We are the first local bank in the UAE to launch Transaction Banking Services. The Transaction Banking business combines our expertise in Trade Finance along with new product offerings like Cash Management and Factoring. This unit will provide an integrated single window approach for all transactional requirements of corporates which will be aimed at assisting them with alternative financing as well as the convenience of interacting with the bank, away from the traditional means. The bank has hired professionals with vast experience in Transaction Banking in various international markets who will work closely with corporate clients and provide value added solutions and advisory services.'


Cash Management


In Cash Management, the Transaction Banking Unit will take the bank to the corporate customer; services provided will initially include an internet based Online Banking facility enabling the corporate client to access and transact on their Emirates Bank/Middle East Bank accounts from their office. Access to the accounts are on line and available 24 hours a day, 365 days a year. Since access is via the internet, corporate staff can obtain updates by login from anywhere around the globe. Currently, other than access to the accounts and requesting for services like placing Fixed deposits, cheque books amongst others, transactions conveniently initiated are all types of payments including utility payments to DEWA, ETISALAT, salaries, vendors that are usually the case. The channel branded as 'smartBUSINESS' even provides an auto email notification of payments to the vendor / employee which will reduce the inconvenient payment related queries that corporates face daily as well as customized exchange rates which are electronically administered. Added services available via Emirates Bank's Cash Management include a Cash & Cheque collection facility.



Development is afoot to make available further services and features which will make it even more convenient for the corporates to interact with the bank, saving corporates the bother of sending staff to the bank or communicating instructions on paper or waiting for bank statements and advices.



Ensuring the above operational convenience, Emirates Bank's Transaction Banking Services has concurrently introduced Factoring to keep abreast of the new trends in corporate trade financing, the core activity of most corporates. As in most markets, Letters of Credit as instruments to support trade is slowly reducing. Domestic and international trade on open account terms is growing and has been supported by financing via Factoring. In Middle East/Africa alone, Looking at just 7 countries (including Turkey) in Middle East/Africa, Factoring was an USD 14 billion (AED 51 billion) business (source: FCI, 2003).


Factoring is essentially an innovative financing and collections solutions for open account credit sales and purchases of corporates. Assigning domestic or international account receivables to a Factor is a flexible way of managing trade debts. Factoring allows the corporate to encash their account receivables rather than wait till the maturity or expected payment and also facilitates outsourcing of non-core activities such as collections of payments.


Today almost every industry can profit from Factoring. Emirates Bank Factoring services provides a simple solution regardless of the fact whether the user is a small business or a major corporation. The Bank looks forward to providing structured products to suit the individual needs of the corporate and thereby strengthening the seller-buyer relationship. A dedicated team has been put into place that will ensure that payments are collected efficiently and ensure customer satisfaction.


Maninder Bhandari, Head of Transaction Banking Services said: "Emirates Bank has launched Transaction Banking Services primarily to meet the growing customer requirements. Formation of this unit adds value to both the corporate as well the bank. Finance staff and Treasurers of corporates are looking at the ease of financing open account receivables, reducing the cost of borrowing funds, convenience of dealing with their financial institution provider as well as adopting end-to-end solutions covering all their channel partners. They require banks to provide timely information as well as innovative financing solutions for the corporate as well as their channel partners. From the banks perspective, this unit would help deepen our relationship with corporates".


"According to our internal estimates, the UAE Transaction Banking market size/total annual market spend is approx. AED 1.4 billion thereby making it a lucrative segment to be in. These are the prime reasons why we have combined Trade Services, Cash Management and Factoring under the Transaction Banking umbrella".




"Trade remains the mainstay of many businesses in the UAE and emirates Bank is a major player in providing services relating to the same. Apart from processing trade transactions, we have experts who provide advisory services and guidance to customers on simple to complex trade transactions. We have recently held several Trade related seminars and Trade related training which have been well received by our corporate customers".



Emirates Bank remains committed to the economic growth of the UAE, assisting by introducing new products and services which would enable corporates and institutions to concentrate on their core activities and take advantage of the capabilities and services that the Emirates Bank has committed to provide.