Are you a corporate client looking for a bank to partner with but are unsure where to start? Well, a locally incorporated bank is hoping to help. Media Isle of Man has been chatting with Werner Alberts, Managing Director of Capital International Bank. He’s been telling us about some of the misconceptions about choosing to work with smaller organisations.

‘There’s a tendency for corporate clients to gravitate toward large, multinational institutions because they think they’re safer than smaller banks. The perception is that banking with smaller banks is riskier, but this often isn’t accurate.’

Safety and stability are key when it comes to banking and Capital International Bank takes rigorous steps to reassure those in the corporate world that both are a priority in their books.

‘Every regulated bank on the Isle of Man, regardless of size, operates under stringent regulatory oversight and is subject to regular audits. This means there is a consistent standard of supervision by the Isle of Man Financial Service Authority across all locally licensed banks.’

It can be difficult being a smaller establishment competing with some of the banking bigwigs, but that can be a good thing for corporates. It means smaller banks have to go above and beyond to attract clients. They have to deliver more than just compliance; they must offer value that goes the extra mile.

One of the ways Capital International Bank does this is through its Fiduciary Deposit Solution offerings. Not sure what that means? I’ll let Werner elaborate.

‘It means you, as a corporate client, would be able to spread your deposits across more than one highly rated bank, which lowers risk because you don’t have all your expensive eggs in one basket, so to speak.’

One of the bank’s Fiduciary Deposit Solutions enjoys an ‘AAAf’ rating issued by Standard & Poors*, which gives clients further assurance of the low risk associated with these solutions.

The added advantage of this solution, Werner explains, is that ‘the corporate client need not open accounts directly with the fiduciary banks and thus avoids the lengthy process of onboarding with multiple banks and providing ongoing due diligence.’

So, you’ve been sold by the added offerings of a smaller bank, now where to begin when picking one to work with? Well, it’s important to note that not all small banks are the same. With that in mind, if you’re a corporate client, it’s worth considering a couple of things.

Firstly, a bank’s business model.

‘It’s good to understand how the bank generates its revenue.’ Werner tells us. ‘For example, Capital International Bank doesn’t make money through lending or investing in high-risk securities but charges account fees instead. This offers clients much more transparency and reassurance that their money is being held safely, giving them that all-important peace of mind.’

Secondly, the steps the bank is taking to keep you and your assets safe online. With internet fraud on the rise, it’s important for corporate clients to know their chosen bank is using up-to-scratch cybersecurity protocols.

At the end of the day, for corporate clients it shouldn’t be the size of a bank that matters but the way it operates. Smaller banks can offer a secure, responsive, and valuable alternative to traditional banking Goliaths.

‘At Capital International Bank, we combine innovation with transparency and a personable approach to help corporates manage risk, optimise their financial aspirations, and bank with confidence.’

To find out more, head on over to www.capital-iom.com/bank

*Rating applies to the Excess Fiduciary Account (EFA) in GBP, USD and EUR only. Whilst a fund credit quality rating methodology has been used by S&P Global Ratings, the EFA is not itself a fund, but rather a pooled account supporting the financial products known as fiduciary deposits. Capital International Bank Limited is a wholly owned subsidiary of Capital International Group Limited (www.capital-iom.com) a privately owned financial services group based in the Isle of Man. Capital International Bank Limited is licensed by the Isle of Man Financial Services Authority and operates as a non-retail, restricted deposit taker under a Class 1 (2) licence. Deposits are not covered by the Isle of Man Depositors’ Compensation Scheme and terms and conditions apply. Capital International Bank and Capital International are trading names of Capital International Bank Limited. Capital International Bank Limited is also licensed by the South African Reserve Bank Prudential Authority to conduct the business of a Representative Office in South Africa.