Global Treasury
Management
Banking Without Borders
Program Skill Builder
Last Revised: June 2012
Canadian Clearing
Services
BMO Financial Group Overview

Established in 1817 as Canada’s first chartered bank

Ranked 8th largest bank in North America by total assets of US $532 billion1

Offering a full range of personal and commercial banking, wealth management, correspondent,
investment and corporate banking services in Canada and the U.S.

Serving over 12,000,000 clients, small and large, throughout North America

Serving over 800 correspondent banking relationships across 130 countries throughout the globe

Serving over 40 Schedule I, II and III Banks and Credit Unions in a Direct Clearing banking
partnership

Nearly 1600, Branches and offices – 900+ Canada and International; 650+ in the United States
1. Source: (SNL Financial, 05/31/12)
2
BMO Financial Group
F2011 Net Income by Operating Group
Key Operating Data
Market Cap*
US$38 billion
Total Assets*
US$532 billion
F2011 Revenue
US$13.6 billion
Employees*
46,500+
Private Client
Group
15%
59%
Personal &
Commercial
Banking
26%
*As at April 30, 2012
BMO Capital Markets
ADVISORY SERVICES
 Mergers & Acquisitions
 Strategic Advisory
 Fairness Opinions
 Takeover Defense
 Share Buybacks
 Valuation Analysis
CORPORATE FINANCE
 Initial Public Offerings
 Follow-on Offerings
 Convertible Securities
 Mezzanine Lending
 High-Yield Debt
 Investment-Grade Debt
 Corporate Lending
 Securitization
 Private Placements
SALES & TRADING
 Institutional Sales
 Trading
 Equity Research
 Fixed Income Research
 Investor Marketing
 Investor Conferences
 Account Sponsorship
 Retail Distribution
3
TREASURY SERVICES
 Cash Management
 Risk Management
 Asset Management
 Foreign Exchange
 Trade Finance
Canadian Clearing Services
BMO provides CAD clearing services to more than 800 correspondent Banks from over 130 countries. Our experience in the Canadian
dollar clearing space is both extensive and tenured. The Bank’s extensive amount of support to the International Financial Institutions
includes substantial commitment for all lines of business.
Our Canadian clearing service offering includes:

Clearing and Settlement Systems (Outgoing and Incoming)
BMO is a direct clearer in the Canadian Payments Association (www.cdnpay.ca) the national clearing and settlement system in
Canada. BMO is a premier Canadian provider of domestic and international cash management services. We are a leading Canadian
clearing bank, handling over two thirds of indirect banking sector clearing volumes. We are also one of the top three SWIFT network
users in Canada with 125,000 SWIFT transactions per month. BMO serves 20% of Canadian households and has over 7 million
personal and commercial accounts with over 36,000 staff across Canada to service them. BMO’s branch network consists of
approximately 1,000 branches.
Volume of incoming payments
Volume of outgoing payments
Value
Value( bln .
(billion, CAD/day)
Quantity (daily)
LVTS
LVTS
(Wholesale)
3,100 - 3,300
18- 20
18%+
3,100 - 3,300
18- 20
18%+
550,000 - 600,000
1- 1.2
20%+
550,000 - 600,000
1- 1.2
20%+
ACSS
ACSS
(Retail)
Share (%)
Quantity (daily)
Value
Value ( bln.
(billion, CAD/day)
Payment
Payment
System
System
CAD/day)
Share (%)
CAD/day)
BMO is a service provider who can demonstrate the ability to our client’s needs while leveraging cost
effective clearing solutions
4
Canadian Clearing Services

Cash Letter Clearing and Collections
Cash letter service is available in CDN and US dollar for items negotiated on behalf of you and/or clients at your bank. We will credit
your Canadian dollar NOSTRO account on our books the same business day of receipt of your items in Toronto, provided they are
received prior to our same day value cut-off times. US dollar items are credited to your NOSTRO for value the following business
day. Items received on collection are recorded and forwarded to the Canadian financial on which they are drawn for verification and
payment. The normal time frame is 4-6 weeks from the time the check is received until the funds are posted to your account.

Encoded or Un-encoded Draft (check) Processing
Clients can issue drafts on their account with us. Client’s can send us a SWIFT message or can choose to print and use their own
drafts provided that samples are sent in advance for testing. The testing is to ensure both the format and encoding are in compliance
with the H6 rule in accordance with the Canadian Payments Association (CPA). For details on the H6 rule refer to the CPA website
at: www.cdnpay.ca/news/pdfs_news/cp_rule_h6.pdf. Alternatively, we will be pleased to arrange printing of your drafts with a
minimum order of 200 drafts.
We are committed to partnering with the IFI team to provide pro-active sales support
5
Cash Management Solutions for IFI
We work with your Relationship Manager and clients to ensure we fully understand your needs and needs of your clients in Canada.

Payables Plus
BMO can execute pension payments for approved governments (GPP) by Financial EDI, EFT, wire or check for payment in Canadian
dollars. With Payables Plus you can transmit a single payment file to Bank of Montreal on a monthly basis, corresponding to each
pension payment cycle. The ability to transmit a single payment file eliminates the need to support multiple file record layouts. Each
file will contain all the relevant information to initiate payments by check or direct deposit (ie; electronic payments). Our Payables Plus
solution can also produce and mail advices for beneficiaries receiving electronic payments. The service is also available for U.S.
dollar payments destined to Canadian financial institutions.
6
Information Management for IFI

Account Systems and Information Management
NOSTRO (CBDS) - Client Direct Access (CDA Web) provides real-time account information on your Canadian and U.S. dollar
accounts, as well as the ability to initiate transactions and immediately transfer funds. The future plan is to integrate CDA Web into
our Online Banking for Business platform
Domestic Banking (MECH) - Online Banking for Business provides real-time, instant and easy access to a suite of web based
treasury management services in a flexible and highly secure environment. Our online platform is accessible 24 hours a day, seven
days a week and is available in both English and French.
Balance Reporting will provide balance and transactions information to the you and will enable you to upload the information via
your cash management system to your clients.
We are committed to establishing a long-term partnership
7
Treasury Management Solutions
BMO has an extensive suite of cash management solutions to Financial Institutions
8
Exemplar Client Service and Coverage
Global Treasury Management
Sales Team
The lead in supporting cash management
needs to ensure your daily banking needs
operate efficiently and without interruption.
International Financial Institutions
Relationship Director
Your senior point of contact within
BMO who has detailed knowledge
and understanding of your business.
Account Documentation Team
Works with the team to ensure a
smooth on-boarding process and
keeps up to date with documentation
requirements.
Implementation Team
Implements products and ensures a
smooth transition to BMO.
Our Customers
Technical Help Desk Team
Your day-to-day technical support
team to assist with queries regarding
your banking portal.
Global Treasury Management
Product Management Team
Provides expert guidance and support in
ensuring BMO remains competitive in the
market with our product offering.
Customer Service Team
Your day-to-day cash management
support experts available via
telephone, e-mail or fax.
BMO has a committed team behind our customers
We are here to help you achieve your vision and take pride in your success
9
Standard Product Suite

Account (CAD & USD)

Check writing capabilities
Information Solutions:

Online Banking for Business Platform

White Label Capabilities

File Connectivity

MT940/BAI solutions
Payables Solutions:

FirstBank Automated Clearing Service (FACS)

Directcheque + Enhanced Positive Pay

Electronic Funds Transfer

Wire Payments

Tax and Bill Payments
Receivables Solutions:

FirstBank Cash Concentrator Service (FCCS)

Wholesale Lockbox (WLBX)
Note: Although this is our standard offering, all
products and services are available to your clients
10
The BMO Canadian Checking Account

Checking Accounts on BMO’s domestic or international depository platform

Provides access to Canadian banking services

Accounts available in Canadian and US Dollars (domestic) within Canada

Your clients have access to BMO’s extensive branch network across Canada of over 1,000 branches

BMO GTM Canada will bill INSERT BANK NAME for their clients activity.
 One lump sum debit to your account with a paper statement detailing activity per client
 A billing file is sent to you in comma separated value (CSV) format. This billing file is sent electronically to provide the option to
manipulate the data (ie; if you choose to mark up the fees before passing them on to your client)
 BMO has strategic partnerships that can assist with outsourcing statement printing to your clients

Overdraft limits can be made available on the checking accounts. Limits will be determined as required in conjunction with a credit
facility provided by the International Financial Institutions Group and your Relationship Manager
Accounts are insured in Canada by the Canadian Deposit Insurance Corporation (CDIC).
11
Banking Without
Borders
BWB Program Overview
13
What is the Banking Without Borders (BWB) Program?

BMO sells its Canadian Treasury Management product suite to Correspondent Banks
headquartered in US, Canada, Europe or Asia

The Correspondent Bank then “resells” these cash management products to their client base to
enable these clients to bank in Canada, while maintaining one single banking relationship with
them, their primary provider

The Correspondent Bank controls the account and remains the primary contact with their client

BMO has been working with correspondent banking partners for over 20 years and currently have
over a 12 partners on the BWB Program

Our program is flexible - we work with our partners to tailor our offer to their needs

Demonstrated success at driving value for correspondent banks and their clients
Banking Without Borders Program positions a powerful value proposition to Correspondent Banks
14
Target Market
The BWB Program will meet the needs of a Bank who have clients that:

Have branches, offices or sales activities in Canada

Have business dealings in Canada but manage treasury functions from their head-office

Regularly deposit Canadian dollar instruments to their account with you

Want to collect funds, make payments and receive information from Canada – quickly and easily

Prefer a trusted source with whom they already have a local banking relationship

Do not want the complexity of managing new, multi-national banking relationships
15
Value Proposition –
Differentiation Based on Relationship and Convenience
For You – Deeper Relationships

More Capabilities: Protected and enhanced
relationships with your clients

More Resources: Minimal investment and effort

More Solutions: Provide leading edge crossborder cash management and treasury solutions
to your clients

For Your Clients – Convenience
New sources of Revenue

Convenience: Maintain their banking
relationship with you – their trusted banker
 Seamless access to robust Canadian cash
management and treasury solutions
 Improved cash management

Value: Reduced cost and complexity

Service: Reduced complexity associated with
other international banking relationships
The Banking Without Borders program’s value proposition is compelling for you and for your clients
16
BWB Flexibility: Relationship Model


Your own the Relationship:

Provide sales support

Market and price the program to your clients

Provide implementation support

Frontline for client service
BMO supports your Sales and Service Team
Broadening product line and extending footprint
17
Overview of Different Models
Mutual Corporate Client (MCC)
Client Of Correspondent Banking (CCB)

Bank to bank agreement

Client signs with BMO directly

Your client signs the “Mutual Corporate client (MCC)
Authorization”

Your client signs the appropriate BMO service agreement

Account Structure

Account are jointly owned/controlled by you and your client

You and your client both sign the “Agreement for CCB Accounts”

You provide BMO with requisite account open material
You complete the appropriate BMO Implementation forms
gathering input from the client

You complete the appropriate BMO Implementation forms gathering
input from the client

Forms submitted either using paper, either via email or mail

Forms submitted either using paper, either via email or mail

Your clients can operate on a pre-funded or via credit lines
carved from your credit lines at BMO

Your clients always operate with credit support from your lines at BMO

Prefunding is not supported

You have access to real time activity on their clients on BMO’s
Correspondent Banking portal CDA Web

BMO can deliver MT940 or BAI file with previous day data to you
Documentation
Forms
Implementation
Forms
Credit Risk
Controls
Information
Reporting

Your clients have access to real time information online

Online Banking for Business is slated for a private label
and single sign on capability in upcoming releases

BMO can deliver MT940 or BAI file with previous day data
to you
18
Full suite of world class treasury management solutions

BMO offers the full suite of treasury management services to our Correspondent Bank partners
Receivables Solutions:
Lockbox
Incoming Wire Payments
BMO offers the full suite of treasury management services –
there are no restrictions on the Canadian services we can offer
19
Online Banking for Business
Features:
 Account Information for up to 120 days (Mech)

Account Transfers

AutoConnect Report Scheduling

Stop Payments

Electronic Funds Transfers

Tax and Bill Payments

File Transfers & Cross-Border Transfers

Centralized Customer Self-Administration

DirectCheque Stops and Inquiries

Wire Payments

Check Image Search

Foreign Exchange

Extended Archiving

Alerts & Notifications
Online Banking for Business supports full single sign on and private label functionality –
enhancing the end client experience
20
Correspondent Bank Revenue Streams from the Program
NEW
Revenue
Stream
Revenue potential through
traditional referrals
Revenue potential
through
BWB Program
Service Fees
None
Set your own pricing policies
Foreign Exchange
None
FX revenue
Balances
None
Investment income
International “premiums”
None
Premium pricing
21
BWB End to End Program Management Approach
22
Portfolio at a Glance
23
BMO Will Help You Realize Your Vision
Correspondent
Bank
Detailed Preparation

Successfully transitioning to
BMO means a
convergence of multiple
stakeholders
 Internal stakeholders
 Your existing and new
clients
Exceptional Client
Experience
Execution

Executive engagement
and communications

Clients know what to
expect

Dedicated team member
education

They are prepared for the
transition

Technological and tactical
client transitions

Their businesses are
minimally impacted by
the change

KPIs are measured and
reported

SLAs are reviewed and
achieved

Online education

Project management

Detailed project planning


Enhanced communications
Technology enablers
 Electronic implementation
process/forms
BMO is committed to a smooth transition of your clients. We have significant experience transitioning a large number of
clients and have many best practices to share
24
BMO – Your Best Banking Without Borders Partner

Global Treasury Management is a strategic priority at BMO. Our Banking Without Borders program is almost two decades old and
has, year-after-year, brought financial and client success to our partner banks

BMO’s capabilities meet all of your solution requirements. We recommend an integrated approach to achieve the goal of
delivering all functionality

Our solution is flexible
 Each partner bank is unique
 We work with our partners to tailor our solutions to meet their needs

BMO has demonstrated success at driving value for our partners and our partners’ clients

BMO’s differentiator is our execution model – our integrated end-to-end Banking without Borders program supports your vision
and your client’s current and future financial needs in Canada:
 Strategic Alignment: Alignment to your mandate, objectives and specific metrics
 Comprehensive Products: The full range of BMO’s current and future product suite available to you with customized delivery
 Sales Support and Training: Dedicated sales support for complex deals, comprehensive sales tools and tailored in-person
training
 On-Boarding: Dedicated, knowledgeable documentation, account-open and implementation specialists
 After Sales Support: Dedicated, professional, responsive and knowledgeable client service support
25
Our End-to-End Program Management Approach
Strategic Alignment

A flexible program tailored to suit the needs of you and your clients

A collaborative relationship to deliver on your strategy and promise to your clients
Program and Products

We work with you, our banking partner, to determine the ideal solution to offer your client

Our delivery model is customized based on your client delivery strategy

The entire BMO Treasury Management product suite is available to you
Sales Support and Training

Tailored training for your team

Dedicated sales support for complex deals and RFPs
Implementation

Dedicated implementation support

Dedicated documentation and account opening support

All your customer implementations are handled by people who understand your strategy and are aligned to our partnership
After Sales Support

Dedicated Customer Service and Help Desk support

Dedicated 1-800 number and e-mail for our partner banks
We view all aspects of the program as equally important for the success of this strategy and have dedicated
resources for each
26
Ensuring Alignment to Drive Value

Monthly Operational Meetings




An integrated deal team approach to reviewing issues and
opportunities
A detailed discussion on any general and operational question
A detailed update on progress and next steps relative to overall
performance and project tracking
Comprehensive Relationship Reviews




The most comprehensive review available from any Canadian FI
Sharing and alignment of long term objectives and plans
Recommendations for best practice process and product
enhancements to save you money and enable a more efficient
structure
Detailed overview of solutions, transmission methods, user
profiles, documentation, and usage.
Regularly scheduled touch-points, at all levels of our respective organizations, ensure excellence in service
delivery and drive significant value
27
Delivering Program Support and Success

Sharing and aligning strategic initiatives

Providing Best Practices to increase Program growth and efficiencies

Banking Without Borders Program infrastructure such as operational and management meetings will further support transition

Sharing understanding of differences between US and Canadian landscape and what it means to your clients

Providing support to your Program group through:
 Training and Learning Tools
 Online Support
 Sales and Marketing Tools

Monthly reporting on requests
Dedicated support tools to help you manage your program
28
Overview of Execution Model
How We Will Support Your Needs
Sale closed
Account openings




Sales concludes sale of CAD services
If complex client need, dedicated BMO Sales support is available.
Send notification instructing us to open an account and services required
BMO will provide an Account Opening Package with documentation to facilitate client on-boarding
Implementations

Implementation information provided to BMO
Client implemented by dedicated Implementation Specialist; complex implementations receive project management
support
Client Service

Dedicated Client Service SME contact for your team‘s assistance via dedicated 1-800 number / e-mail
Technical support

Dedicated 1-800 number for prompt resolution of technical issues

Exceptional end-to-end client experience that is fully aligned with your vision
29
How we support the BWB Program
BWB End Client Support Model
1
If your support team
needs assistance,
escalates
to BMO BWB support
2
BMO BWB Support
will research and
provide a response
back to you
Client has an
Inquiry
4
3
Your team will
respond to your client
directly
We remain behind the scenes while you remain your client’s primary contact
31
Roles and Responsibilities

IFI Relationship Management
 Overall relationship coverage
 Opportunity identification
 Engage GTM Sales

GTM Sales Management
 Sales Specialist of BWB Program
 Work with IFI RM and client to win opportunities

Program Management
 Oversight of BWB Program deliver and its overall strategy
32
Team Approach with Dedicated Resources
Relationship &
Sales
Management
Program
Management
POD
Team

Team Model: Manage our relationship and the success of your
program

Partnership: Work closely with you to meet your needs

Program: Strategic focus on today and future

Expertise: Dedicated POD with Banking Without Borders
program training
Your Dedicated Team
Sales Manager: Marcia Cowan
Client Service: Munira Gohill, Brian Liu
Senior Sales Associate: Rebecca Patton
Help Desk: Adam Hewitt, Maria Kadomtseva, Yousouf
Mohoboob
Program Manager: Sarah Cairns
Implementation: Khatra Haji, Frank Morelli
Senior Product Manager: Jay Pickett
Documentation: Stephanie Chan
33
Global Treasury Management
Our Philosophy

BMO offers a holistic approach to servicing you

We are fully engaged with our clients in the architecture of creative solutions

By understanding your business model and strategy we can offer an end-to-end service solution to you
Engage in a consultative partnership with BMO
34
Correspondent Bank Responsibilities on the BWB Program
35
Managing accounts and fee collection

You are responsible for the daily monitoring of client balances

Overdraft

Transfers

Stop Payments

Account information reporting
36
BWB Program Billing
37
Compensation Statements, Statement Delivery & Fee Collection
Compensation Statements

Summary of accounts and fees

Total activity fee posted to the your nostro account

Detailed product usage by client account
Statement Delivery

Electronically delivered directly to the you each month

Available between the 8th to 10th business day

Compensation statements are available in both Report and CSV formats
Fee Collection

Fees are debited to the your nostro account on the 15th business day of the month

Compensation statement review

You debit your client accounts to collect the activity fees
38
Thank you!
For more information on how this program can benefit you and your customers
please contact us anytime
Marcia Cowan – Sales Manager
Sarah Cairns - Program Manager
Global Treasury Management
Global Treasury Management
BMO Capital Markets
BMO Capital Markets
T. 416-867-2796
T. 416-643-4342
Marcia.Cowan@bmo.com
Sarah.Cairns@bmo.com
39
Disclaimer
These materials are confidential and proprietary to, and may not be reproduced, disseminated or referred to, in whole or in part
without the prior consent of BMO Capital Markets (“BMO”). These materials have been prepared exclusively for the BMO client or
potential client to which such materials are delivered and may not be used for any purpose other than as authorized in writing by
BMO. BMO assumes no responsibility for verification of the information in these materials, and no representation or warranty is
made as to the accuracy or completeness of such information. BMO assumes no obligation to correct or update these materials.
These materials do not contain all information that may be required to evaluate, and do not constitute a recommendation with
respect to, any transaction or matter. Any recipient of these materials should conduct its own independent analysis of the matters
referred to herein.
“BMO Capital Markets” is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal,
Harris N.A. and Bank of Montreal Ireland p.l.c., and the institutional broker dealer businesses of BMO Capital Markets Corp., BMO
Nesbitt Burns Trading Corp. S.A., BMO Nesbitt Burns Securities Limited and BMO Capital Markets GKST Inc. in the U.S., BMO
Nesbitt Burns Inc. in Canada, Europe and Asia, BMO Nesbitt Burns Ltée/Ltd. in Canada, BMO Capital Markets Limited in Europe,
Asia and Australia, and BMO Advisors Private Limited in India.
BMO does not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended to be used, and cannot
be used or relied upon, for the purposes of avoiding any tax penalties and (ii) may have been written in connection with the
“promotion or marketing” of the transaction or matter described herein. Accordingly, the recipient should seek advice based on its
particular circumstances from an independent tax advisor.
40