Ace:

[Calling his boss] Hi, Boss. TopNotch just called to propose a structured pre-payment financing in Asia. The deal is straightforward enough, but I’m not sure how to handle it within SiloBank. It doesn’t really fit with any of our product groups.

Boss:

Oh, why’s that?

Ace:

Well, first, it has all the hallmarks of a pre-export financing, except there’s no export. So the export group won’t handle it. Second, there’s some inventory financing too, but the goods are not exchange deliverable, so our inventory group won’t get involved.

Boss:

Well, what about our own transactional financing team?

Ace:

You mean us. We’re supposed to do only the self-liquidating transactionalised financings… those without performance risk.

Boss:

Well, can’t the customer change the deal to include some export?

Ace:

I don’t think that’s quite what they want.

Boss:

Well, it’s that or no deal.

Ace:

I was thinking… since we have the capability to run with this though it doesn’t fit a given product group, couldn’t we just create a deal team from the various groups to run with it?

Boss:

Good idea. Let me ask the other product heads.

A few days later…

Boss:

It’s not as simple as we thought. The export group are a man short and can’t spare anyone, while the inventory group says it’s just not interesting enough for them. Besides, have you thought what to do in Asia? We have no one from the commodity group where we need them and would have to rely on the corporate banking team to handle it locally.

Ace:

I have no problem leading the team and helping the corporate bankers understand the deal, the risks, and how to run with it. They have the local knowledge of the counterparties, which is half the battle.

Boss:

Yes, yes… but then we have to share income with the corporate bank, and argue over who takes what risk. It’s just not worth it.

Ace:

The relationship is worth it. A few million dollars a year to be exact, and this will add another half-million. There’s also scope for rolling it over, and for tying in some more business locally.

Boss:

No. We already have a restriction on our travel budget and I simply couldn’t justify you flying out there for this.

Ace:

Pity. We have the capability. Anyway, I’d better tell TopNotch.

A few minutes later…

Ace:

[To TopNotch] Sorry, we’re unable to help… unless you change the deal to suit one of our product groups. Just joking!

TopNotch:

Hmm… SiloBank is becoming a joke. We never seem to have exactly the sort of deal we want. I can’t see the sense of being product-driven when the markets are requiring more and more hybrid financings. We wasted a lot of time discussing a deal with some of your people a few months back before they realised it wasn’t pre-export but local sales… and then they simply said another group would run with it, which never happened. Why can’t you give us customers what we want?

Ace:

I don’t disagree. Having a single execution group with the capability to handle a range of solutions makes far more sense and would actually be more cost-effective, let alone put us on the road to increased revenues as we start to deliver what you need.

TopNotch:

So, what’s stopping you?

Ace:

People-politics and empire building. Oh, and a certain lack of experience at the top.

TopNotch:

Well, maybe they need more people like you at the top…

Ace:

Thanks. They do. But look around… it’s rare to see a real thoroughbred in charge. But for those that have taken the initiative, the rewards are certainly there. In the meantime, let me put you in touch with MoneyBank… I know they can help you.