Global Broker Networks Can

Do The Job For Midsize Firms

Multinational firms aren't the only ones capable of service abroad

For years, accounts with international exposures were told that working with a major, global brokerage was the only viable way to insure their foreign operations.

However, an alternative is to work with independent or regional brokers who expanded their global capabilities through non-owned networks and strategic partnerships.

The following is a list of what multinational clients should demand of a broker's network:

o Independence:

Brokerage offices should be entrepreneurial and not totally dependent upon the outward flow of accounts from the United States. An office that is wholly dependent on U.S. business does not have the strength to leverage a market locally.

o Service Consistency:

Service standards set by the managing office should be upheld consistently throughout the network. Procedures need to be in place to address poor service if the client can't switch brokers.

o Revenue Standards:

In some network environments, focus on profit-center growth sometimes takes precedent over network focus, and clients are faced with the imposition of minimum revenue levels. Clear explanation of revenues and minimums is critical for multinational clients.

o Network Coordination:

An international account executive should be part of the risk management team to ensure the best service and market coordination.

o Network Culture:

A strong network culture is one based on consistent service and customer cultures and is critical to client service. Ownership does not equal culture.

o Network Age:

Networks are dynamic entities. A client will have questions about the length of the current relationships to ensure that there is a long-term commitment to the network and the clients.

o Network Reach:

The network should have the geographic reach to service the client effectively today and five years from now.

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