28 February 2022
Suppose you are looking for a second-hand book online. You find one, but it only has one picture – a blurry one at that – and the seller only created his account a day ago. Reviews from previous buyers? Zero. Do you transfer your money and trust that the book will arrive on your doorstep a few days later? You'd probably think twice about it.
This uncertainty also exists in the financial markets, where it drives the supply and demand price apart and causes trade to stall. But that is where ABN AMRO Clearing comes in. The bank sits between buyer and seller and guarantees a successful transaction. This provides security and thus more efficient markets. Today, clearing is an integral part of international finance, but ten years ago it was very different. The field is therefore still undergoing major developments.
The plumbers of the financial market
The clearing industry ensures smooth and safe trading, and ABN AMRO Clearing is one of the largest of its kind. Customers have global access to financial markets, and they can also obtain credit for higher returns. This creates challenges for credit risk officer Tjeerd Nauta: from the 'second line', he assesses the risks of new customers or loans. Based on this, Nauta advises his colleagues in the 'first line', who mainly want to offer the best possible service.
High demand for clearing
After the 2008 crisis – when the financial markets came to a standstill as confidence plummeted – many changes were made to ensure greater stability. The fast-growing clearing sector is the result: it has brought security from which small clients benefit just as much as pension funds and other institutional investors. Increasingly accurate risk models provide a more solid foundation for the financial market. ABN AMRO Clearing continues to improve in this area and is achieving results: in 2021, the bank processed six times as many transactions as there were pin payments throughout the Netherlands.
Green energy on the market
Tjeerd Nauta also sees the effects of the energy transition on the financial markets, as new customers are venturing into ambitious projects in renewable energy generation. They feel the momentum and are taking advantage of it. But green energy also leads to fluctuating prices. Wind and solar energy aren’t always available when demand is high, and electricity is not easy to store. Transparancy makes for more stable and secure trading in these sectors. Companies whose core business lies in the energy sector cover their price risks with special financial products from ABN AMRO Clearing. In addition, its Power Clearing Bank offers access to more than twenty-five of the most prominent energy and resources exchanges worldwide.
Working at the heart of the global economy
The atmosphere at ABN AMRO Clearing is different from that at the average bank, Nauta thinks. You will be challenged in the analytical area, as you have to know the global financial market inside out. That international character also makes it exciting: Clearing allows you to explore the world. At the same time, you’re working in an open and informal environment: come up with a good plan and you could end up in Singapore or Chicago. You choose your own path.
