CIBC CAPITAL MARKETS Transforming financial services and building the bank of the future
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Boutique coverage with big bank stability and reach
We are a highly-respected financial institution dedicated to delivering customized financial solutions that meet the unique
needs of our clients across the globe.
We understand that complex financial challenges require more than a one-size fits-all approach. That’s why we partner
with our clients to understand their specific requirements across a wide range of products, asset classes and geographies,
and develop specialized financial solutions to effectively meet their objectives in an ever-changing market.
A strong global counterparty
Through our major business units – Canadian Personal & Business Banking, Canadian Commercial Banking & Wealth
Management, U.S. Commercial Banking & Wealth Management and Capital Markets – our more than 45,000 employees
provide a full range of financial products and services to 10 million individual, small business, commercial, corporate and
institutional clients in Canada, the U.S. and across the globe.
Metrics 2019 2020 (As of Apr 30)
Total Assets $651.6B $759.1B
Deposits $485.7B $543.8B
Loans and Acceptances
$398.1B $420.6B
Common Equity Tier 1 Ratio 11.6% 11.3%
Market Capitalization $50.0B $36.7B
Total Shareholder Return (1-Year) 4.2% (22.6)%
Credit Ratings
DBRS Moody’s Standard &
Poor’s
Fitch Senior AA Aa2 A+ AA
Outlook Stable Stable Stable Stable
Disruptive innovation driven by our clients’ most pressing needs
CIBC has quickly become a global leader in financial technology, offering cutting-edge foreign exchange and payment
solutions to help corporate, institutional and retail clients manage risks and leverage market opportunities.
By taking advantage of technology to drive disruption within the financial services industry, CIBC is transforming the value proposition of traditional money movement solutions. CIBC is committed to working closely with its partners, to deliver creative financial solutions that address their most pressing needs and unique business challenges.
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Finding new ways to optimize cross-border payments
CIBC’s Global Payment Solution (GPS) leverages the latest payment technologies to simplify cross-border payment
acceptance and disbursements while providing our partners with new revenue opportunities, cost savings and enhanced
reconciliation capabilities.
CIBC understands the many challenges associated with making and accepting cross-border payments including:
• Uncompetitive FX conversion rates and high transaction costs
• Missing or incorrect information resulting in returned or delayed payments
• Lack of reconciliation and reporting capabilities
• Complexities issuing refunds and making other outbound cross-border disbursements
• Insufficient payment options available for international payers
• Slow payment processing timelines and inability to track payments
• Lack of Anti Money Laundering (AML) protocols
With CIBC’s GPS platform, organizations can receive funds in the local or preferred currency and payment method from
anywhere in the world. The platform also provides the ability to disburse outbound cross-border payments with zero
transfer fees and at highly competitive FX rates.
Key Service Factors and Benefits
Strong Track Record: CIBC’s extensive experience processing cross-border payments provides CIBC with the data and knowledge to optimize the client experience for all foreign currencies and countries globally.
New Revenue Opportunity: Unique opportunity to generate new revenue associated with FX conversions currently captured by intermediaries and other payment providers.
Dynamic FX Rates: CIBC’s market differentiating ability to provide access to dynamic FX rates (as quoted by Reuters or Bloomberg) that can be adjusted at any time instantaneously.
No Change to Existing Treasury Operations: CIBC’s GPS platform integrates with existing settlement processes resulting in no change to treasury operations; implementation can be completed in 2-4 weeks with minimal resource requirements.
Zero Fee Outbound Payments: Ability to disburse outbound cross-border payments with zero transfer fees and highly competitive FX rates; payments typically arrive within 24 hours with full-value settlement.
Management & Transaction Reporting: CIBC provides a full-service reconciliation portal for administrative use with access to comprehensive reporting functionality and “Big Data” analytics for strategic decision making.
Zero Fee Model: CIBC operates under a zero-fee model and will not charge for the initial implementation, payment processing or the ongoing management of the GPS platform.
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Sending Payments
CIBC has leveraged the latest payment technologies to deliver a no-fee international payment solution that allows for
cross-currency payments to be disbursed globally with zero upfront fees, regardless of payment amount or frequency.
Enhancing Operational Efficiencies
CIBC has developed an intuitive user interface to collect and store beneficiary details, resulting in a streamlined payment
process. CIBC verifies the validity of beneficiary details in real-time, reducing payment delays from input errors.
Individual Payments: Select beneficiary information for individual payment disbursement
Bulk Payments: Select the “Upload Payouts” tab to disburse mass payments with a single upload
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1,000.00 USD
250.00 USD
1,000.00 USD
6,901.20 CNY
1,725.30 CNY
898.43 EUR
1 USD = 6.90 CNY
1 USD = 6.90 CNY
1 USD = 0.90 EUR
CIBC disburses payments to
the beneficiaries through
direct bank-to-bank transfers
Disburse
Beneficiaries receive
payments in full with no
fees or deductions
Collect Reconcile payments with
robust management &
transaction-level reporting
Reconcile Upload either individual or
bulk payments through the
CIBC GPS platform
Upload
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Optimizing Cross-Border Payments
CIBC allows for money to be sent almost anywhere with zero lifting or intermediary banking fees. This is a major
differentiator to standard pricing models that charge a fee per transaction, or charge a percentage of the nominal amount
being sent. By removing any transaction fees associated to making cross border payments, CIBC ensures that the full value
of each transaction is received by the recipient with no additional deductions.
• The current cross-border money movement space typically utilizes multiple correspondent banks to disburse payments, resulting in delays and in most cases additional fees charged to the beneficiary.
• Other cross-border payment providers do not have access to efficient FX rates for mass disbursement of low value micro payments, resulting in significantly higher transaction costs associated with FX conversions.
Uncompetitive FX rates
Payment delays and full principal amount not
guaranteed
High cost and unpredictable fees from intermediary
banks
Complexity of managing multiple international bank
accounts
Secure bank-to-bank transfers
Payments arrive in-full with no deductions or banking fees
Next day delivery of funds
Access to highly competitive FX rates
Traditional Cross-Border Payment Methods CIBC Global Mass Payouts
$4,000
$45 $35 $23 $40
$910 $915 $927 $905
$50
Organization
instructs their
financial institution
to disburse funds
internationally
Funds arrive in deducted amounts and take several business days
to reflect in recipients’ account
Fees are deducted from
initial payment by the
beneficiary’s corporate
bank and intermediary
banks
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2
3 3 Beneficiaries receive funds typically within 24 hours with no
deductions or intermediary banking fees
Organization
uploads batch file
of payments
through CIBC’s
payment portal
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2
$4,000
$1000 $1000 $1000 $1000
Funds are
disbursed through
CIBC’s proprietary
correspondent
banking network
✓
✓
✓
✓
CIBC delivers funds faster, cheaper and with the transparency needed to feel confident about your cross-border
payment disbursements
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Accepting Payments
CIBC’s Global Payment Solution provides international payers with the convenience of making payments in their preferred
currency and selecting between a variety of payment methods.
By leveraging CIBC’s robust Foreign Exchange infrastructure along with significant investments in the latest payment
technologies, CIBC provides our partners with access to competitive FX rates for all international transactions.
International Payment Process Flow
Access to Advanced Reconciliation & Reporting
CIBC provides a comprehensive reconciliation portal for administrative use which matches all payments with the payer’s identification number. Customizable reporting at the management and transaction level is available 24/7.
Payers initiate wire payments and lock in highly competitive FX rates.
Payers can make payments by debiting fees directly from
their bank account
Payers can make payments using Visa and MasterCard Debit /
Credit cards in 70+ currencies
Payers from China can make payments in CNY using the China UnionPay network
International Bank Wire Automated Clearing House
(ACH) Visa & MasterCard China UnionPay
International payer receives invoice
Payer views invoice amount in their local or preferred currency
Payer selects their preferred payment
option to pay in their preferred
currency
CIBC will receive the funds in payer’s local or preferred currency and
convert to USD
Organization receives invoice amounts in USD along with reconciliation
reports from USD
Figure 1: Administrative Portal Dashboard Figure 2: Administrative Portal Transaction History
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Prepaid Card Services CIBC’s prepaid card program provides public sector organizations with a streamlined payment process to support a variety of spend applications. The program provides an alternative to the issuance of cheques, physical cash and vouchers where funds can be electronically disbursed quickly and securely while reducing costs and generating significant operational efficiencies.
Advantages of CIBC’s Prepaid Card Program
Cost Effective: Less expensive and more secure option for making payments with non-reloadable and reloadable funding options.
Convenience: Cardholders gain immediate access to funds everywhere VISA is accepted, including POS transactions, ecommerce transactions and cash withdrawals from ATMs.
Safety: Cards are equipped with the latest in Chip & PIN technology without the requirement to be connected to a bank account; access to funds can be blocked if the card is lost or stolen, preventing fraudulent transactions.
Financial Inclusion: Alternative to direct deposit or wire transfer for unbanked or underbanked individuals.
Control: To ensure adherence to specific program requirements card usage can be restricted from certain Merchant Category Codes.
Minimal Change Management: Relief payments can be debited centrally from a CIBC deposit account and loading of individual cards is automated through a digital Administrative Portal provided by CIBC.
Administrative Portal
CIBC provides access to an Administrative Portal to submit load instructions and download reconciliation reporting. Administrative users have the ability to submit load requests individually or through bulk upload files.
Bulk Upload
Initiate Card Load
Card Number
451123050000051
Load Amount
$500.00
First Name
Jane
Last Name
Doe
Submit for Approval
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Client Case Studies
Client Example #1
Like many organizations today, our client relied on cash, vouchers and cheques to support their staff and volunteers across the globe for travel expenditures, medical supplies and emergency relief payments. With this process, the organization was faced with many inefficiencies including:
Solution CIBC introduced a prepaid card program to manage the disbursement of funds globally. CIBC developed a unique Administrative Portal linked to a CIBC deposit account where the Prepaid Cards can be funded and managed by the client’s Treasury team centrally.
• Cards are available with one-time (non-reloadable) or recurring (reloadable) funding options
• Cards can be provided in physical or virtual form; physical cards can be mailed to individuals directly or provided centrally for onward dissemination
• Access to comprehensive reconciliation and audit reporting including outstanding balance reports and transaction history reports
Unknown foreign exchange rates
and excess transaction fees
Security risk of carrying large
amounts of cash
Lack of audit reporting and reconciliation functions
Client Example #2
Our client facilitated international payments to their global entities for emergency relief through traditional payment methods. With this process, the organization was faced with many inefficiencies including:
Solution CIBC introduced our innovative payment technologies to deliver a no-fee international payment solution that allowed for cross currency funds to be disbursed across the globe quickly and securely. CIBC also provided comprehensive reporting, reconciliation and payment tracking to streamline business operations.
• The full payment value is delivered to the recipient with same-day or next day settlement, in the local currency of the destination country, with no deductions or intermediary bank fees
• CIBC provides access to its market-differentiating ability to apply live FX rates to micro-transactions resulting in material FX cost savings and increased transparency
• Ability to automate payment disbursement and reconciliation through CIBC’s eFX portal with comprehensive transaction level and management reporting capabilities.
Payment delays and lack of
payment tracking
Unknown foreign exchange rates
and excess transaction fees
High fees and payment deductions
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Key Contacts:
Dan Sutin Head of Strategic Partnerships, Global Payment Solutions Global Markets CIBC Capital Markets 416 956-6433 [email protected]
Grace Howie Associate, Alternate Solutions Group Global Markets CIBC Capital Markets 416 594-8272 [email protected]
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