Technology seems to be a focus at NAB right now, how does FICC fit into the bigger NAB digital picture?
Our CEO Cameron Clyne has outlined how important NAB’s technology investment is to the bank’s overall success. We need to give our customers options to suit their changing needs. We want to enable more client self-service, freeing ourselves to focus on building client relationships and offering them innovate solutions. Clearly those banks that can respond quickly to this dynamic landscape, and adapt their strategy accordingly, will be best placed to grow their client footprint. FICC is building a new eTrading platform which signifies NAB’s commitment in this area.
How does NAB see the digital trend playing out?
We believe FICC markets are entering a new phase of consolidation. New regulations are driving the clearing of FX derivatives and enforcing the move to swap execution facilities (SEFs) for both currency and fixed-income products. There is a clear push from policymakers globally to move OTC trading onto electronic venues where they can be observed and monitored. Our job is to respond to these changes and to the needs of our clients.
The way clients and banks interact is changing as technology changes. The cost of platform development and maintenance has declined substantially in the past five years, opening up opportunities for new players. We believe this trend will continue. Those banks and vendors that can navigate the changes to pre- and post-trade execution management, collateral management and trade reporting will be best placed to succeed.
NAB has been expanding its presence outside Australia. Has that been led by its AUD & NZD offering?
Yes, NAB’s knowledge and expertise in AUD & NZD markets differentiates us globally. For example, NAB’s strong corporate relationships in Australia and New Zealand give us key insights into industry trends in our region, our competitive position in the Australian superannuation market and our proprietary research like NAB’s Superannuation FX survey, are key points of difference when talking to our clients globally.
What can clients expect to see from NAB in the further development of your offering?
Our focus for growth has moved beyond Australia and New Zealand. We recognize that to achieve our goal of being the number one bank in AUD and NZD solutions, we need to grow our distribution globally. With over 50% of all FX activity captured in London and North America, these markets have been central in our client expansion.
Furthermore we have grown our overall FICC sales team in Asia with a defined strategy on where we wish to compete. We see tremendous growth opportunities in Asian currencies with the continued moves to internationalize the RMB.
We have done this while creating a cross-asset trading group which focuses on new and innovative product offerings.
Combine all of this with the eTrading platform we are developing and we believe we are well positioned to be considered the leading AUD & NZD debt and currency product provider by our clients globally.
For more information please contact:
Executive General Manager,
Currencies and Commodities,
National Australia Bank
P: +61 2 8220 5462