If You Can Make it Here, You’ll Make it Anywhere…

By Stuart Roberts for eCurrents, September 2008

Swedbank New York has been serving the financial and investment needs of Swedish clients since 1991. General Manager John Matthews talks about what it takes for a Swedish company to make it in the United States, and how Swedbank can help them get there.

"With a good idea, good marketing and good advice, anyone can do well in the U.S. market," Matthews says. And Swedbank New York’s General Manager has seen plenty of good ideas come out of Sweden. "Swedes are coming up with new products and ideas in every field. I have seen this in pharmaceuticals, electronics, telecommunications, the automotive industry and many others," he says. "If they have the fundamentals right, anyone can do well," he adds.

Matthews, a US citizen and long-time New Yorker, jumped at the opportunity of opening Swedbank’s New York office in 1991 as Swedbank’s U.S. service hub for its customers. The philosophy was simple: "Our primary focus is to meet the financial needs of Swedish companies in the U.S.," Matthews says. "We are here to facilitate Swedish companies’ business in North America. Everything else revolves around that," he adds.

The New York branch provides a critical U.S. dollar funding platform for Swedbank’s clients on both sides of the Atlantic. "Swedbank New York is a good funding source as we can raise money in U.S. dollars in this market, not only for our branch portfolio, but also for the bank’s customers in Sweden, if they need U.S. dollar funding," Matthews says.

Swedbank New York’s financing options, for both parent companies and subsidiaries, range from relatively simple, standard facilities to tailored structures, including operational capital, investments, project financing, trade finance and bank guarantees. Says Matthews: "There’s nothing exotic: these are pure, basic banking products."

Swedish companies can also maintain tight control of their finances through Swedbank’s US cash management product, called Swedbank CashServices, Matthews says. The product is designed to enable companies to conduct treasury functions securely online, so that they can efficiently retrieve and manage cash management data. "We started this product five years ago, and more and more clients are taking it up," he says. "If Swedish companies want to manage the funds of subsidiaries in the U.S., they can consolidate their cash flow in U.S. dollars," he adds.

Getting quick access to funds in a market in which a check can often take several days to clear is also a key advantage of Swedbank New York’s cash management product, according to Matthews: "We provide a service which means customers can get their cash very quickly, within a matter of hours rather than days and weeks." This is made possible by the national presence of its cash management product partner, Bank of New York Mellon, which provides systems and infrastructure support. "Bank of New York Mellon have offices all over the country, so a check issued in California can be deposited on the west coast and the client can get their money right away," Matthews explains.

In addition to its key products, Swedbank New York offers its clients seamless customer service. Each client has a dedicated account officer in New York, as well as a group client executive based in Sweden, so they can get professional advice and support at both sites. Matthews is proud of the bank’s customer service track record. "We have never lost a customer because they don’t like our service," he says.

In addition to servicing Swedish companies in the North American market, Swedbank’s New York Office also provides its entire suite of banking services to other Nordic and Baltic customers of the bank. It also provides banking products and services to facilitate U.S. companies doing business in Swedbank’s home markets.

The bank’s focus on its core banking products has effectively quarantined the branch from the current turmoil in financial markets brought on by the sub-prime mortgage crisis. Says Matthews: "We were never in any of those markets directly. We don’t lend for those kinds of projects, and we don’t have a retail business either."

Indeed the branch is on track for an unprecedented financial result. "Swedbank New York will have a very good result this year – it could be one of the best ever," Matthews says. This growth has been driven by a shift in the credit market as a result of a rationalization in competition, according to Matthews. "From the bank’s point of view, credit risk is priced favorably at the moment, which means that we can charge a reasonable margin for risk."

Swedbank New York enjoys positive ratings, which directly benefits customers, according to Matthews. "Swedbank New York has a good reputation in the U.S. market. We can get funds at a good rate so we don’t have to pay a high premium," he says.

Matthews, who has been visiting Sweden several times a year for almost two decades, has always been impressed by Sweden’s entrepreneurial tradition. "Sweden is a beautiful country and I really admire the people. It’s a country of only 9 million people, but it is at the forefront of many industries," he says. "Swedish companies are in every field you can think of. Sometimes I think: ‘where do they get these ideas?’" he muses.

Matthews hopes the New York branch will make contact with more of the bank’s entrepreneurial clients at the upcoming Swedish-American Entrepreneurial days in Stockholm in September. Account officers from the New York branch will be at the Edays, with information and advice about the bank’s U.S. products, and with tips about doing business in the U.S. "It’s a very good opportunity for our account officers to meet potential clients in Sweden; it’s a good way of doing business," Matthews says.

*Swedbank is one of the sponsors of the Swedish-American Entrepreneurial Days in Stockholm