Download - Growth Strategies in Retail Banking
1
BUDAPEST
WARSAW
RIGA
BUCHAREST
TALLINN
VILNIUS
BRATISLAVA
SOFIA
PRAGUE
LJUBLJANA ZAGREB
BELGRAD
Growth strategies in retail banking
Business breakfast
Bucharest, May 17th, 2006
2
Agenda
A. Development of CEE banking market 9h15
B. Successful retail business models 9h30
Breakfast break 10h00
C. Potential development of Romanian retail banking 10h20
3
BUDAPEST
WARSAW
RIGA
BUCHAREST
TALLINN
VILNIUS
BRATISLAVA
SOFIA
PRAGUE
LJUBLJANA ZAGREB
BELGRAD
BUDAPEST
WARSAW
RIGA
BUCHAREST
TALLINN
VILNIUS
BRATISLAVA
SOFIA
PRAGUE
LJUBLJANA ZAGREB
BELGRAD
A. Development of CEE banking markets
4
The CEE banking market has experienced threedistinct phases
Banks
Customers
Foundation 1990-1995
• Countries start building fullfunctioning banking sector
• Foreign investors startentering the market
• Market focus on corporatebanking
• Consumer banking marketstill immature
Privatization 1995-2000 Consolidation 2001-...
• Privatization of stateowned banks
• Foreign banks start buyinglocal banks
• Bankruptcy of some newlocal banks
• Competition in corporatebanking increases
• Retail banking marketdevelops
• Competition heats up, especially fromforeign players
• Markets are "underbanked" incapitalization and product penetration
• International banks start to reviewtheir CEE strategy
• Corporate banking market becomesmature
• SME market segment starts fastdevelopment
• Huge potential perceived in retaillending market and investment fundbusiness
Phase 1 Phase 2 Phase 3
5
Bank privatization is almost complete in core CEEand Bulgaria, with the end in sight in Romania 2006
Source: Central banks, ECB, Raiffeisen Research “CEE Banking sector report, 2005
% banking assets controlled by the state, 2005
• Poland: the state reduced its majority stake inPKO through a public offering in 2004; soldstake in BGZ to Rabobank and EBRD
• Serbia: privatization took off in 2005, 4 smallbanks privatized din 2004/ 2005, Vojvodjanska(#4) up for sale
• Bulgaria: privatization complete in 2003
• Romania: CEC privatization ongoing, BCRcompleted
Comments
0,0%
23,9%21,0%
19,1%
5,0% 4,5%3,1% 2,0% 1,8%
SE PL SL RO CZ HR BG SK HU
Note: updated to reflect BCR’s privatization in 2005: :a stake of 62% of BCR was sold to ERSTE Bank;
6
Four groups of regionally-diversified CEE bankscan be distinguished
Local champions• OTP• PKO BP
Strong presence inselected markets• KBC• Erste Bank• Banca Intesa• ING
1
3
Comprehensiveregional players• UniCredito/ BA CA• Raiffeisen• Societe Generale• Citibank• Volksbank
Specialists andopportunisticplayers• Allied Irish Bank• BCP Millenium• Fortis• Credit Lyonnais• ABN Amro• BNP
2
4
Foreign banks with market share of 77 % in CEE countries!
= Asset share foreign banks,as of end 2004
• ERSTE• Raiffeisen• SocGen• ABN
Amro
• UniCredito• Banca Intesa• BA CA
• KBC• SocGen• BA CA
• Banca Intesa• Bayern LB• ERSTE• KBC
• UniCredito• BA CA• Citibank• ING
• ERSTE• KBC• SocGen• BA CA
• Banca Intesa• ERSTE• Raiffeisen
PL
CZ SK
SV HRHU RO
Overview foreign players
68%
94%97%
80%
89%
36%
91%
BG75%
7
A second wave of M&A activities is expected assmaller foreign banks will review their CEE strategy
Countries2005
Total Assetsin CEE, 2004
[EUR m]Banks
9
7
5
7
1
2
1
1
15,600
4,100
5,500
16,500
6,500
5,300
5,100
1,600
Notes: 1) Focus Poland/only small subsidiaries in other countries2) 2 as of 2005 (HU and BG)
1)
• Foreign players of small size/ with limitedpresence review their CEE banking strategy,might consider exit
• Second wave M&A activities expected/already happening (e.g. OTP’s appetite formore CEE assets, divestments by Unicreditin Croatia)
• Consolidation within foreign banking playersexpected
• Opportunities for “late entrants” or furtherconsolidation of the banking sector
2)
8
0
50
100
150
200
250
300
350
0 5 10 15 20 25 30
CEE markets are attractive because they areunderbanked compared to the EU
EURO zone
CZ HUPL
BG
Banking assets% GDP, 2005
HR
SK
75.913 EUR
Romania1.632 EUR
40CAGR*%
SV14.658 EUR
Notes: *2002-2005 CAGR for banking assetsThe size of the bubble represents the banking assets/capita
Source: Roland Berger Strategy Consultants, BA-CA CEE Report, ECB, Eurostat, Central banks
9
Romania is catching up with CEE average on retaillending, and the gap with EU fuels further growth
Retail lending as % of GDP Retail deposits as % of GDP
Source: ECB Monthly Bulletin, CEE Banking Sector Report 2005 by RZB Group, CEE Household Credit report by Unicredit
1210.4
8.3
6.5
5
4.4
1412.512.4
10.910
13.1
15.9
5.9
8.8
14.9
12.6
4.5
16.5
3.72.8
6.2
9.9
2.1
7.7
3.84.6
1.40.70.5
2000 2001 2002 2003 2004 2005
38.235.135.235.836.6
37.5
22.9
26.1
30.129.527.8
23.725.9
23.9
24.4 24.7
24.925.4
27.8
17.617.0
13.423.2
19.910.9
9.8
10.6 10.5 10.210.1
2000 2001 2002 2003 2004 2005
RO
BG
CZ
PL
HU
RO
PLHUBG
CZ
52.6% 54.4%EU 12 EU 12
Note: For EU 12, retail lending and deposits include non profit institutions serving households
10
Low mortgage penetration will drive growth in retaillending, probably more than consumer finance
Mortgage lending as % GDP [%] 2005 Consumer lending as % GDP [%] 2005
9.5
8.6
5.3
4.6
2.0
36.6EU 12
HU
CZ
PL
BG
RO
Source: Banking structures CEE (ECB), ECB Monthly Bulletin
Note: For EU 12, retail lending includes non profit institutions serving households* CAGR 2000 - 2005
10%
66%
50%
26%
124%
98%
11.2
9.5
7.4
6.2
5.8
16.0EU 12
BG
PL
HU
CZ
RO
4%
65%
10%
32%
33%
102%
CAGR* CAGR*
11
46.3%50.5%
53.3%56.7%58.9%61.0%62.8%
RO* PL SK BG HR HU CZ
Shrinking margins and high cost base will forceCEE banks to increase operational efficiency
Average interest spread Cost-Income Ratio, [%]
Source: National Banks, WOOD Company CEE Banks-” Managing South East”
45-50%EU bestpractice
20.6%
16.1%17.2%
11.5%14.7% 13.7%
6.4%9.2%
11.0%9.1%
12.7%11.1%
5.9%
7.2%8.8%
7.3% 6.7% 6.6%
0%
10%
20%
2000 2001 2002 2003 2004 2005
RO
BGPL
Note: * Calculated for top 10 banks
12
B. Successful retail banking business models
13
77%
58%
58%
50%
38%
31%
25%
25%
25%
19%
19%
12%
8%
8%
Staff, strategy, marketing & sales, distribution areviewed as key success factors in CEE
Staff
Strategy
Marketing&Sales
Distribution network
Speed/Time to market
Pragmatism
Customer base
Top success factors in CEE banking
Risk management
Front office processes
Back office processes
Cost management
Products
Internal organisation
IT
Comments
• Staff: management talent is scarce
• Strategy: universal bank or niche bank
• Marketing & Sales: transform branchstaff from administrators into sales-driven, customer oriented
• Distribution:– Usage of alternative channels is high
in CEE
– Modern trends regarding branchlocations: malls, supermarkets
– Invest in branch expansion to closegap with EU in terms of branchdensity
Source: ”Key factors for success of banks in CEE” by EFMA and zeb/
14
CEE banking markets are selling markets, with afocus on expansion and less on cost management
Strategy> Positioning: Universal or
niche bank?
1
Key success factors
2 Distribution> Alternative channels> Network optimization and
expansion
3 Marketing & Saleseffectiveness> Marketing/ Communication> Cross Selling> Sales empowerment
Strategy> Positioning: Universal or
niche bank?
15
Most banks offer universal services, but specialistand niche players have also proven successful…Market Positioning– CEE examples
Comments
A Niche player, with focus on fewproducts and/or distributionchannels with competitive advantage
B Product specialist, with focus onfew products, but extensive,innovative distribution channels
C Focused player, on distributionchannel/client segments with broadproduct portfolio
D Universal bank, with a wide rangeof products and distribution channels
Focused player Universal
Niche player Product Specialist
Broad
Productportfolio
Narrow
NarrowDistribution channel/segment
Broad
C D
A B
STRATEGY
16
Focused player Universal
Niche player Product Specialist
2003: Offer basic account, loan an depositthrough mini branches – high marketingcost for branding
2004: Offer mortgage loan products of otherbanks (3rd party provider)
2005: Develop internet offer, credit cards
…which are sometimes interim stages on thedevelopment path to become a universal retail bankExamples of implementation strategies
Implementation strategies
Broad
Narrow
Narrow Broad
Step 1: Consumer finance through POSStep 2: Usage of intermediariesStep 3: Own sales units/branches, offer
deposits, enter micro companiessegment
Productportfolio
Distribution channel/segment
STRATEGY
17
Lukas bank of Poland focuses on consumer financeto build up a large customer base
• Installment loans to individual customers, forproducts and services purchase, cash and carloans, mortgage loan with a free of charge analysisof a loan application within short period
Product• Branch location in the centers of large and smaller
towns, areas close to shopping centers and blockof flats settlements
• Co-operate with more than 31,000 shops, servicepoints and networks of big department storeswhere customers can buy and finance the goods
Distribution
• Target: mass clients, high number of clients over 50years – low risk group as far as loan repayment isconcerned
• Plans to enter the segment of small enterprises• Implementation of a new central IT system
Customer
• Extensive promotional campaigns and highspending on marketing
• Substantial increase of revenue and profitability in2004; ROE 73%, net profit EUR 68 m
Results
Consumer finance(Credit Agricole)
large customer base
STRATEGY EXAMPLE
18
Provident Polska focuses on the low incomesegment and delivers cash loans at home
• Cash loan up to 1.250 EUR for max. 1 year, puremono-line
• Competitive interest rates, but very highcommissions; high effective interest rates (100-200%)
• Fast turnover, high margin, low interest rate risk –cash loans are small and short term
Product• Delivery and collection by representatives at
customers' home• Close contact with client through representatives• Representatives´ commission based on collection• Increasing network of small purely sales offices
(223) in the whole country
Distribution
• Target: low income segment• Value proposition: Easiness of getting the cash
loan – no bank account, no guarantors, relative fast(in 48 hours), only guarantee is the confirmationabout salaries from last 3 months
Customer
• Alternative approach to credit standing evaluation,base for the evaluation is the home of the client
• Simple, but effective risk management process(bad loans: market standard)
• Bad loans sold to companies specialized in thecollection of receivables
Risk Management
Cash loans for the lowincome segment
STRATEGY EXAMPLE
19
Polish credit unions (SKOKs) are also successful intapping the lower income segment
STRATEGY EXAMPLE
• Fast service through decentralized and simple processes• Attractive pricing• Internal stabilizing fund and guarantee system• New services: investment funds, life insurance, mortgage products
Implementation
Results• Fast growth and increased profitability in recent years• One of the most successful concepts for providing services in savings and deposit segment• A new competitor for traditional banks• Assets of SKOK now account for over EUR 1 bn• The number of members grew by 29% annually reaching 1,3 m members at the end of 2005• The number of cash desks and branches at the end of 2005: > 1.500
Strategy• Non-profit associations focusing on simple products targeted to low
income customers (members) and relying on personal relationships in local community• Favorable legal status for credit unions in Poland (no capital requirements, no income tax until
end 2006, etc.)
20
MultiBank built up its client base as an internetbank only – Outlets to support client acquisition
• Very innovative solution in the mortgage loanoffer – mechanism of balancing the loan amountwith client savings within the Multiplan
• High product flexibility – no fees required for earlyrepayment and currency change
Product• Multichannel access to the current account –
internet, branches (51), telephone banking, SMS,WAP
• Attractive branch style and equipment give clientsthe impression of high service quality and„closeness” to client
Distribution
• Target: middle and affluent segment - clearseparation of VIP clients (Aquarius Club) and smallenterprises
Customer
• Cooperation with the main intermediaries iscentrally coordinated – the bank cooperates mostlywith big intermediaries – Expander, Open Finance
Promotion
Internet bank withbranches for client
acquisition
STRATEGY EXAMPLE
21
0%10%
20%30%40%50%
60%70%80%
90%100%
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46
GE Money exploits full potential of customer needsvia cross selling – Professional CRM programGE Capital Multiservis Czech Republic
• Customer applies forsales financeaccount at POS tobuy e.g. washingmashine
• Once acquiredcustomer gets"converted"
• Cross selling• Customer life cycle
program
Basic Idea
Drive customeracquisition by "salesfinance loan" products
Drive high conversionrate by automatic flip torevolving credit
Drive revolving by strongcash card accessfunctionality
Drive x-sell andreactivation by targetedoffers/ products
Realization by Multiservice
1
2
3
4
% of opening balance
Month on file
Card issued: 4th-6th month
1
2
3
4
x-sellloans
revolvers
STRATEGY EXAMPLE
22
Strategy> Positioning: Universal or
niche bank?
1
Key success factors
2 Distribution> Alternative channels> Network optimization and
expansion
3 Marketing & Saleseffectiveness> Marketing/ Communication> Cross Selling> Sales empowerment
23
Seg-ments/productsInvestment/InsuranceMortgage loans
Car loans
Consumer loans
Credit cards
Deposits
Alternative distribution channels offer a fasterpayback period with a lower investmentProducts and distribution channels – Assessment CEE
Combinations are difficult
POS 3rd party/sales agents
Mini offices/sales outlets
Standardbranches
Directaccess
Size
Combinations are possible
Investmentlevel
Lowinvestments
Lowinvestments
Mediuminvestments
Largeinvestments
Large initialinvestments
DISTRIBUTION
24
Eurobank has a “Supermarket-Banking” branchformat – small sales outlets in high traffic locations
Example „mini-office“ Configuration „mini-office“
ATM Sales person
Information material • Needed space: 8 – 12 m2
• ATM (about 50% with deposit function)• 2 work places with computer network access• Place to provide information material• Located in places with high visitor rate
(supermarkets, shopping centers …)• High marketing support of EUR 15 m (2004)
resulted in >300,000 clients in 2 years
Investments per „mini-office“
• ATM with deposit function USD 15.000• ATM without deposit function about USD 5.000• Other equipment for the office about USD
15.000
DISTRIBUTION
25
10% of all mortgage loans in the Polish market weregranted by intermediation of Expander in 2004
Comments
• Expander offers a full range of sales servicesfor deposits, insurance and mortgage loans:in 2004 10% of all mortgage loans weregranted by Expander
• It started in 2000 as an internet portal as theonly distribution channel, evolving into atraditional branch network of 23 outlets in2005
• Expander was bought by the GeneralElectric group in 2003
• Mainly middle class living in big cities hasused the services of Expander and itscompetitor “Open Finance”; people withaverage salary for Poland (about USD 600)use their services
Expander: Independent FinancialIntermediary
Value of loans in2004 USD 400 m
Average loanUSD 40.000
120 financialconsultants
21 branchesin 13 cities;4 years on themarket
Cooperation with20
banks and 70investment funds
Offer covers 90%mortgage
loans in Poland
DISTRIBUTION
26
• 100 outlets mainly in three Voievodships (out of 16)• Bank intends to gain in this way a closer access to the clients in the areas where the
bank does not have its own branch network• 350 new outlets by the end of 2005, total number of 600 outlets by 2006
Outlets anddevelopment
Productoffer
• 90% of all retail products (savings account, term deposits, credit cards, (cash) loans)• Servicing small business beginning of 2006
Organization • Partner incurs all the investment costs connected to setting up the branch• Partner employs staff and sets the level of salary• Bank offers the training for the partners opening the outlets• Break-even point reached as soon as after 3-6 months• Partner receives part of the transaction fees generated by the branch• Preferred locations: suburbs, large settlements of block of flats, shopping centers and
centers of small towns• All operations are carried out on-line and booked directly into the system of the Bank
Bank BPH is using franchising to expand its branchnetwork in suburbs and small towns
DISTRIBUTION
27
• Two types of agencies: so called ‘old’ type agencies – located in production plantsand ‘new’ type agencies accessible to all customers: approx. 3,000 agencies
• Established mainly in small towns where PKO BP does not have their own branchesand bigger cities in block of flat areas
• PKO BP plans to increase the number of products and services available troughthe agency (next to cash handling, opening accounts, loan applications, etc.)
• Agencies realize around 20% of all cash operations within the bank, 7% of savingaccounts, intermediation in loan sale – 20 000 loans in value of EUR 70 m p.a. (2004)
• Agency functions in the name of and on behalf of the bank PKO BP• A person interested in opening the agency has to be an entrepreneur (run a business)• Decision concerning setting up the agency is taken by the director of theregional retail department
• Agent must provide space for 1 cash teller, space for servicing client with adequatesafety measures (around 30 m2 with 2 employees), and has to rent a POS terminal
• The average investment in the outlet amounts to ca. PLN 10 000• PKO BP provides the agent with software, bank’s logo (free of charge), basic training• Agency cannot employ anyone without the bank’ s acceptance
PKO BP, the large savings bank increases accessby the set up of agencies point of sale
DISTRIBUTION
Outlets anddevelopment
Productoffer
Organization
28
Strategy> Positioning: Universal or
niche bank?
1
Key success factors
2 Distribution> Alternative channels> Network optimization and
expansion
3 Marketing & Saleseffectiveness> Marketing/ Communication> Cross Selling> Sales empowerment
29Notes: 1) Sample of selected Spanish and German big banks, 2004 2) Top 5 banks, 2004
Lessons learned from Spanish banks: Marketingexpenditure is linked to sales success
Share of advertising and communication costs to allnon-personnel costs [in %]1)
Spanishbanks
Germanbanks
6-10
100 100
17-23 20-31Premises costs
IT costs 16-26
...
Advertising/Communication
19-29
...
18-21
Polishbanks
100
...
25-33
10-15
Romanianbanks 2)
100
...
15-20
8-12
• Spanish banks have a highshare of marketing andcommunication costs
• Effective increase in brandrecognition and sales(Product campaigns, specialoffers for target groups, etc.)
• Increase in marketing andadvertising costs in the lastfew years (e.g. Santander+8% since 2002) at the sametime decrease in other non-personnel cost (e.g.Santander -9% since 2002)
Comments
1-4 5-8
MARKETING AND SALES EFFECTIVENESS
Average CIRretail segment 45% 76% 78% >80%
30
Notes: 1) Analyzed products: current account, deposits, mortgage loans,credit cards, consumer loans, investment funds, insurance etc.; 2) 2002
Cross-selling ratio is another important measure ofsales effectiveness
Source: Annual reports; Salomon Smith Barney
3.3
BancoPopular
Banesto BBVASantander BancoSabadell
Bankinter
3.42)
4.5
3.7 3.92)
6.3
Average ofRomanianbanks: < 2
• Mortgage loans as anchorproducts for cross selling
• Example: Santandercustomers with mortgageloans have six products inaverage
• Bankinter valueproposition: "Mostinnovative, highest quality,multi-channel convenience,personalized services"based on anchor productmortgage loans
• Usage and development ofsophisticated CRM-Tools
CommentsCross-Selling Ratios of selected Spanish banks, 2004 [retailsegment]1)
MARKETING AND SALES EFFECTIVENESS
31
Variable remuneration for sales employees is asignificant lever to support sales culture
Variable remuneration for sales employees –EXAMPLES [%]1)
Source: Company's information
Notes: 1) Example of selected Spanish, Polish and German banks (retail segment)2) Very few Polish banks have variable part up to 50% values only for full time employees
15-45
Germanbanks
Spanishbanks
5-15
Polishbanks2)
10-30
Romanianbanks
10-20
• Variable remuneration share for salesstaff at Spanish banks is high (up to 45%)– significant driver of sales culture
• Example Santander
– Collective targets(for example market share in targetcustomer groups)
– Individual targets(dependent on specific employeeprofile)
– Customer satisfaction/-service(based on customer surveys everysix months)
Comments
Variable Fixed
MARKETING AND SALES EFFECTIVENESS
32
BUDAPEST
WARSAW
RIGA
BUCHAREST
TALLINN
VILNIUS
BRATISLAVA
SOFIA
PRAGUE
LJUBLJANA ZAGREB
BELGRAD
BUDAPEST
WARSAW
RIGA
BUCHAREST
TALLINN
VILNIUS
BRATISLAVA
SOFIA
PRAGUE
LJUBLJANA ZAGREB
BELGRAD
C. Potential development of Romanian retailbanking
33
1,4%
3,8% 4,6%
7,7%
2.090
7.528
11.314
9,6%
Retaillending% GDP
Mortgage 590
Consumer
30.336
21.719
117% 40%CAGR
Growth in retail lending is expected to slow down,driven more by mortgage than consumer lending
Outstanding retail loans [m RON]
Note: * Estimated by Roland Berger Strategy Consultants based on maturitySource: NBR
1.5005.677
7.980
16.47422.120
1.851
3.334
5.246
8.216
2002* 2003* 2004 2005 2006E
• Mortgage loans account for only25% of retail loans in Romania,while in the EU the percentage 80%
• Consumer finance boom fueled bystrong demand for durables isexpected to slow down due torestrictive National Bank measures,market saturation on certainsegments, slow down in white goodsdemand
Comments
34
Competitive banking environment
Banks have to find the right strategic positioning;not everyone can be a universal bank!
Eurozone/ Global Retail Banking
= Asset size
Universal banks/financialsupermarket
Distribution
Prod
uct
Focus
Mortgagebrokers
Brokers
Mortgagebanks
Privatebank
Financialadvisors
Selfbanking
Niche banks
Niche Product Specialist
Universal
+–
+
–
Autobank
Romania
+
–
Prod
uct
Focus Universal
Cost Saver/ Niche Product specialist
BRD
CEC
HVB Tiriac
BancpostRZB
BT
Unicredit
+– Distribution
Alpha Bank
ABN
BCR
= Asset size
OTP
Unicredit+HVB Tiriac
Porsche BankProcredit
Raiffeisen Locuinte
35Source: National Central Banks; Bankscope
Branch density is almost at par with mature CEEbanking markets
• Low branch density relative toEU
• Plans for 500+ branchesannounced for 2006 (+16%)
High potential to improve branchdensity and increase revenueBUT investment and innovativebranch concepts required
CommentsBranch density [# per 100.000 inhabitants]1)
19
44
52
58
99
11
12
16
15
UK
FR
DE
ES
IT
CZ
PL
H
RO2)
Notes: 1) Incl. cooperative banks 2) 2005
36
Alternative distribution channels offer a fasterpayback period with a lower investment
Products and distribution channels – Assessment Romania
Seg-ments/productsInvestment/InsuranceMortgage loans
Car loans
Consumer loans
Credit cards
Deposits
Combinations are difficult
POS 3rd party/sales agents
Mini offices/sales outlets
Standardbranches
Directaccess
Size
Combinations are possible High competition Low competition
Investmentlevel
Lowinvestments
Lowinvestments
Mediuminvestments
Largeinvestments
Large initialinvestments
37
0%
10%
20%
30%
40%
50%
Credit cards and mortgages will be increasinglyattractive for retail banks
Corporate lending
Consumer lending
Life insurance
Non-life insurance
CreditCards
Leasing
Marketconcentration
Growthpotential
Market segment attractiveness overview
Mutual Funds
Deposits
Notes: Bubble size represents size of the business. Size of the cards business not defined.Market concentration measured by HHI (Herfindhahl – Hirschmann) index from 0 to 1; 0 Represents low market concentration.
Source: "Piata FInanciara", Insurance Supervision Commission, ASLR
Growing Attractiveness
Low Medium High
Mortgage lending• Some product groups require
more specialist know how suchas investment products
• Credit cards expected to boomdue to co-branded cards, anincreasingly attractive marketingtool for retailers and banks;smart cards and premium cardsare promising niche segments
Comments
38
Levers to grow profitably – cheaper distribution,product innovation, sales effectiveness
Optimize distribution4. • Use alternative distribution channels via third party agents,mini offices
• Customize branch format to target clients and location• Periodically reevaluate branch locations
Execution5. • Increase of sales efficiency in integrated multi channel concept• Strengthening of marketing/communication• Increase of sales resources and cross selling leverage of sales channels• Sales focus on performance (Incentives, activity controlling, etc.)• Tight processes; shortening response time• Risk management
Excellent clientsegmentation/ Focus ontarget groups
2. • Development of new segments (e.g. low income segment,agribusiness)
• Focus on SME client segments
Product Innovation3. • Using one product as an anchor, then cross sell• New innovative products (e.g. savings+ mortgage loan)
Choose the right strategicpositioning
1. • Positioning as a universal bank only if significant market sharecan be achieved; otherwise pursue niches
39
D. AppendixRoland Berger Strategy Consultants
40
network
A truly global company
Amsterdam I Barcelona I Beijing I Berlin I Brussels I Bucharest I Budapest I Detroit I Düsseldorf I Frankfurt IHamburg I Kiev I Lisbon I London I Madrid I Milan I Moscow I Munich I New York I Paris I Prague I Riga IRome I São Paulo I Shanghai I Stuttgart I Tokyo I Vienna I Warsaw I Zagreb I Zurich
31 offices in 21 countries
Revenues of EUR 530 m
1,630 employees
75% of all projects with cross-border challenges
41
ROLAND BERGER SALES GROWTH1970-2004
1970 1980 1990 2000 20041975 1985 1995
+17.1% p.a.
Repeatclients
76%
24%New
clients
EUR 530 m
Our clients' trust is the basis for our growth
42
CEE as a region of dynamic growth for RolandBerger Strategy Consultants
> One region
• One consultant pool(~100)
• Local knowledgecombined withinternational experience
• 14 languages
• Intensive know-howexchange
•Ljubljana •Sarajevo • • •
•Sofia
•
• Riga
Moscow•
•KievBratislava
Vienna
ZagrebBelgrade
Prague
Warsaw
Budapest•
ROLAND BERGER STRATEGY CONSULTANTSIN CEE
Bucharest••
•
43
Our clients in CEE include the world's leadingfinancial institutions
• Organizational realignment
Typical project topics:
• Post merger integration
• Credit risk management optimization
• Market entry strategies, internationaldiversification
• Sales and marketing strategies (includingSalesUp!)
• Strategic repositioning• Strategy
44
Thank you!
Amsterdam • Barcelona • Beijing • Berlin • Brussels • Bucharest • Budapest • Buenos Aires • Detroit •Dusseldorf • Frankfurt • Hamburg • Kiev • Lisbon • London • Madrid • Milan • Moscow • Munich •New York • Paris • Prague • Riga • Rome • San Francisco • Santiago de Chile • São Paulo • Shanghai •Stuttgart • Tokyo • Vienna • Warsaw • Zurich
Roland Berger Strategy Consultants SRLBlvd. Lascar Catargiu nr. 17Sector 1010602, BucurestiRomania