As it sheds its California tagline and rebrands itself as a national institution, Union Bank is also moving to expand its treasury services business.
Union Bank has seen an influx of funds from corporate clients, as have other banks with stronger asset quality, says Todd Gregory, the senior vice president who leads the treasury services division. The treasury group's deposits have grown by more than a third since the U.S. economic turmoil began as companies search for safety in the current credit environment. “The uncertainty among the clients is probably the greatest I've ever seen it in 25 years,” he says.
“We're taking highly rated resources within the bank and we're applying those with a broader reach, with more focus and more people,” Gregory says, noting that the Union Bank's treasury services is already ranked among the top 10 cash management providers by Ernst & Young.
As part of its expansion, the treasury group is creating two new specialized industry practices: one for the energy business, reflecting its strong lending practice in that area, and the other for non-bank financial institutions.
Gregory, who joined Union Bank last year from J.P. Morgan, says that corporate clients want a certain level of customer service. “They're looking for knowledgeable bankers who are not distracted and have the time to focus on their needs,” he says. “That's where a bank like Union Bank can really set itself apart.”
Union Bank, until recently known as Union Bank of California, is the main subsidiary of UnionBanCal. Last fall, Mitsubishi UFG, Japan's biggest bank, bought the 35% of UnionBanCal that it didn't already own.
The treasury services division sees no need to expand its regional offices in eight states–California, Colorado, Georgia, Illinois, New York, Oregon, Texas, Washington–and the District of Columbia. “Commercial clients truly have the bank in their office now,” Gregory says, citing services ranging from armored cars picking up cash to the imaging of deposits. “That's the biggest evolution. You can bank with any bank, anywhere. With the ongoing development of the Web and the legislation on check image clearing, we now bring the bank to you.”
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Susan Kelly
Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.
