Alberta Cefis Executive Vice-President & Head, Global Transaction Banking at Scotiabank

Even before the global financial crisis struck, importers and exporters faced weighty supply chain finance issues that often hinged on finding a dependable banking partner with global reach and local expertise. The current economic situation has renewed the focus on risk mitigation, financing and timely payments that are constant concerns for businesses around the world.

Fortunately, Scotiabank, a solid Canadian-based bank with an award-winning reputation, is proving its true mettle to clients — from Monterrey to Moscow — despite today's economic conditions.

"Until recently, business managers worried most about non-payment by buyers. However, today's slowing world economies and tight credit markets have brought a renewed focus on mitigating risk on all fronts," observes Alberta Cefis, Executive Vice-President & Head, Global Transaction Banking at Scotiabank. "In these turbulent times businesses are looking for solid partners able to support them as they ride out market challenges. They want to be confident their bank will provide letter of credit confirmations as well as supply chain finance solutions to keep business flowing efficiently."

Cefis' team has witnessed heightened interest in Scotiabank's trade finance services from both new and existing clients: "Importers and exporters are seeking dependable partners, secure payment methods and supply chain finance solutions to reduce costs and offset lower revenues." Cefis has seen many industry trends during her 28-year career in financial services, most recently as head of Scotiabank's trade finance, cash management, payments, and correspondent banking services.

These clients have found Scotiabank to be a safe harbour in today's stormy conditions. As a Canadian-based institution with more than 175 years of history, Scotiabank maintains a strong capital position and operates in one of the most highly regulated, well-managed financial systems in the world. The World Economic Forum concluded recently that Canada has the most sound banking system in the world, and the International Monetary Fund deemed the Canadian financial sector as one of the most highly developed.

Scotiabank's strong diversification by business and geography (with 12.5 million customers in some 50 countries), and stringent risk management culture have also allowed this institution, with $508 billion in assets, to maintain manageable exposure to the highly volatile sectors affecting financial institutions around the world.

Global strength with local solutions
The strength and scope of Canada's most international bank also allows it to satisfy the daily challenges customers confront around the world. Across Latin America, the Caribbean, Asia and Europe — not to mention an unmatched NAFTA footprint — Scotiabank's global network delivers local intelligence and transactional abilities wherever commercial and corporate customers need them.

"This means we can oversee complex supply chain finance scenarios, and comfortably manage cultural, language, and logistic issues," states Cefis. "Imagine a Chilean manufacturer whose Malaysian subsidiary must pay suppliers in China and arrange vendor financing in Jamaica. The possibilities are endless." She explains that such companies often struggle to find end-to-end solutions from one bank, including centralized control over payment processing, and financing for parents, subsidiaries, suppliers and customers.

Award winning solutions reduce costs
With today's uncertain sales, margins and exchange rates, cost reduction is crucial for customers. As a result, they are seeking ways to improve their efficiency and working capital management throughout their business. For example, Scotiabank's TRADEXPRESS elite™ service recently enabled a new client to begin issuing Letters of Credit online and reduce the time required to prepare their trade documents from five days to less than 24 hours. This service also provides centralized, online supply chain visibility, including automated purchase order, invoice and payment tracking for their transactions.

Working with a banking partner with strong strategic alliances, and access to unique trade support programs, can also help both buyers and sellers take advantage of specialized supply chain financing solutions. For example, customers in Canada and Mexico can now benefit from Scotiabank's exclusive agreement with Export Development Canada that guarantees Scotiabank Mexico loans to importers of Canadian goods or subsidiaries operating in Mexico, improving their access to credit and reducing risk.

A strong international network also enables the delivery of innovative solutions. When a global mining company needed to post reclamation bonds issued by local banks, Scotiabank leveraged its U.S., Mexican and Peruvian subsidiaries to help finalize the transaction. The single bank relationship across borders was the key to significant time and cost savings for this customer. It's no wonder the Bank has earned numerous industry awards including Best Trade Finance Bank in Canada for both 2008 and 2009 by Global Finance magazine.

"While these are unsettling times for businesses, it's an opportune moment to reflect on your trade bank relationships," sums up Cefis. "It's time to ensure you're working with a solid, dependable institution that can mitigate your risks, deliver global expertise and local solutions that help you chart a course for success through choppy markets."