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transaction banking is becoming increasingly important for international banks but where does it sit exactly within the organizational structure my colleague Jane Cooper some research and found out so Jane first of all what is transaction banking Wow okay so the way I think of it is with retail banking or consumer banking you're an individual your customer individual consumer so you have income coming in you have probably some loans maybe you pay your staff of people you might have a credit card all these different transactions that are coming in and out of your account so you've already got about ten different banking relationships financial services relationships now imagine that but for a multinational corporation it's much more global it's much more complex or it could be for public sector organization or other banks also need to put their money and manage their banking other people so transaction banking is basically banking for those sort of entities and managing those players okay and historical historically some section banking used to be a call center it certainly is not now so what has changed how is the prod that developed over the years I think in some sense is it transaction banking has grown as multinational corporations have grown and they've become more complex so they've grown along with the growth of their customers but also financial crisis kind of helped the industry a lot it's a stable revenue you know there's a lot of good things about transaction banking so that sort of business is getting more recognition from other parts of the business and at the board level now so which is I'm sure it's making many transaction Bank is pretty happy so let's look at the chance that you've put together so HSBC they were one of the first to reorganize so they're quite interesting because you don't see transaction services transaction banking Treasuries they just don't call it that so they break it down by the activities now this isn't an organizational chart this is what they've got in their annual report and it's the principal activities so it's difficult to describe how they organize themselves in commercial banking for example they also divide by customer segment by the size of the class but here they they break it down by the activity so you've got payments and cash management and here as well and international trade and receive so and you've got a trade finance features here as well so it's more integrated they don't within the existing businesses yeah how does this compare with other big banks well JP Morgan they they also have it breaking down what they did with in 2012 they merged their corporate and investment bank and they've now got this CIB structure and they've got it integrated broken down by the different lines of business if you will whereas Deutsche Bank is quite different in rather than integrating it and trying to create sort of they've got a standalone unit so here Deutsche Bank in 2012 they reorganized and global transaction banking is one of the four pillars of the bank so the CEO of gtp he reports straight in to the co-ceos of Deutsche Bank and this is the only large global transaction banking that has highlighted transaction banking in such a way so do you see this also in terms of their activity the fact that they have highlighted this business in such a way does it reflect also in the volume of business well I I think essentially what they're all trying to do when you talk to them and trying to understand their business they all actually say the same thing so they've the way I see it they've organized themselves differently they call it different things but they're all trying to achieve the same thing so you they all talk about client centricity so the idea is you have the client first and then you see what all the other needs are so they might need trade finance they might need cash management they might need to do an IPO and you know so they are pulling it together with different sections of the bank and so everyone is I think essentially trying to achieve the same thing if you go to a city they've done something slightly different they used to have a layer a management layer of global transaction services so they used to have let's say it was here global transaction services was a standalone sort of layer and its own but they've removed that and integrated so treasure and trade solutions has now moved into banking and the it used to be securities and fund services that's now moved into the markets that's more the investment banking side so it's very good to see where transaction banking operations sits within these banks structure and it seems like respective of each organizational structure transaction banking will continue to be a very important feature of international banks yeah Thank You Jay you