Cost Savings
Challenge
As a consistent participant in Z/Yen’s Settlement and Custody Fees surveys, a U.S. bank wished to tailor the results of the surveys to meet their specific needs.
Particularly, they wanted to identify specific markets where they could significantly reduce their transaction and custody costs paid to agent banks.
Solution
Using the results of the Settlement and Custody Fees survey, which captures data across 75 global markets, Z/Yen worked with the client bank to identify specific markets where banks of similar size had gained better rates.
In addition, Z/Yen assisted in identifying target prices for each market. The US bank was now well-equipped to re-negotiate with its agents to achieve target prices.
Results
Negotiations with its agents yielded real cost savings.
The U.S. bank was able to reduce agent costs by over $5 million across markets, including a $1 million saving in one market alone.
