Presented at the Bankers Association for Finance and Trades 12th Annual Conference on International

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Kenneth V. McGraime Senior Vice President State
Street Bank and Trust Global Trade Banking
Division Using Technology to Create a New Trade
Business Model
Presented at the Bankers Association for
Finance and Trades12th Annual Conference on
International TradeGaining the Edge in a
Competitive Market In cooperation withThe
Chicago Council on Foreign Relations
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WHY

• External Market Trends
• Eroding Traditional Documentary Trade Volume
• Industry Consolidation
• Relentless pricing pressure on traditional
  products
• Increasing Investment to Stay Competitive
• Internal State Street Issues
• Lack of Broad Distribution
• Lack of Credit Appetite
• Not a Low Cost Producer

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WHAT TO DO

• Evaluate Our Assets and Strengths
• Internal Trade Technology Resource
• Existing Trade Processing Sites in Key Vendor
  Markets
• Agile and Flexible Global Trade Unit
• Highly Customer Focused on Buyers and Sellers
• The Opportunity Open Account Trader
• Create a transparent web-based trade settlement
  platform using internet technology and existing
  product knowledge, over which global buyers and
  sellers could transact their trade business more
  efficiently and better align trade settlement
  with corporate supply chain initiatives.

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LESSONS LEARNED

• Evolving Customer Needs Require a More Flexible
  Business Model
• Need to Make a Full Commitment to the New Model
  Including Cannibalizing Existing Business
• Technology and Logistics Expertise Become Key to
  the Front End Sales Process
• Collaboration and Alliances with a New Range of
  Partners Critical
• Full Integration of Sales, Operations, and
  Technology Functions
• A Broadened Definition of the Banking Role in
  Trade
• Sales Process is Longer and More Complicated
• New Economic Models Required to Meet Profit
  Objectives