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RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL...

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RETAIL BANKING iitorului într-o Europa largita Strategii pentru inovatie si Marc Lauwers Bucuresti, 29 iunie Commercial strategy in Slovakia
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Page 1: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

RETAIL BANKINGBanca viitorului într-o Europa largita Strategii pentru inovatie si crestere

RETAIL BANKINGBanca viitorului într-o Europa largita Strategii pentru inovatie si crestere

Marc LauwersMarc Lauwers

Bucuresti, 29 iunie Bucuresti, 29 iunie

Commercial strategy in SlovakiaCommercial strategy in Slovakia

1

Page 2: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

2 Commercial StrategyCommercial Strategy

AgendaAgenda

• Dexia• Dexia

• Dexia Banka Slovensko• Dexia Banka Slovensko

• (Turbo) Retail Strategy• (Turbo) Retail Strategy

• Conclusions• Conclusions

• Questions• Questions

Page 3: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

3 Commercial StrategyCommercial Strategy

AgendaAgenda

• Dexia• Dexia

• Dexia Banka Slovensko• Dexia Banka Slovensko

• (Turbo) Retail Strategy: key elements• (Turbo) Retail Strategy: key elements

• Conclusions• Conclusions

• Questions• Questions

Page 4: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

4 Commercial StrategyCommercial Strategy

Total Assets (31.12.04) €389.0bn

Total Shareholders’ Equity €10.5bn Tier 1 Ratio

Net Profit €1.8bn

ROE

Based on 2004 consolidated financial statements (under Belgium GAAP)

CAGR Earnings Per Share 11.5 %

19.8%

10.7%

AA+Rating

Dexia at a glanceDexia at a glance

€20.6bn Market Capitalization (01.04.05)

20.613.8 9.7

23.836.0

HVB Erste BankKBCDeutsche Bank

# 14 Comparison on european level

Page 5: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

5 Commercial StrategyCommercial Strategy

Dexia at a glanceDexia at a glance

Business portfolioNet income for 2004 (excl. central Assets)

Public/Project Finance & Credit Enhance- ment53%

Treasury & Financial Markets 11% Investment Mngt & Insurance Services 14%

Personal Financial Services 22%

# employees 24,019

Presence in # countries also in Romania

22

As at 31.12.04

Page 6: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

6 Commercial StrategyCommercial Strategy

AgendaAgenda

• Dexia• Dexia

• Dexia Banka Slovensko• Dexia Banka Slovensko

• (Turbo) Retail Strategy• (Turbo) Retail Strategy

• Conclusions• Conclusions

• Questions• Questions

Page 7: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

7 Commercial StrategyCommercial Strategy

Dexia Banka Slovensko Dexia Banka Slovensko

FinancialsFinancials

• Net profit• Net profit• Total assets• Total assets

• ROE• ROE

200220027.87.8

628628

31.731.7

200320038.48.4

642642

20.320.3

200420046,86,8

980980

20,020,0

mio EURmio EUR

mio EURmio EUR

%%

StaffStaff

• Employ.• Employ.• Branch.• Branch.

687687

5050

General ProfileGeneral Profile

• Strong focus• Strong focus

• Retail : not actively developed• Retail : not actively developed

- municipalities- utilities / project finance- municipalities- utilities / project finance

• Branch network• Branch network municipalitiesretailmunicipalitiesretail

• Market share : 3,25%(end 2004) rank 7• Market share : 3,25%(end 2004) rank 7

GovernanceGovernance

Individuals 2 %Individuals 2 %

Slovak municipalities 19 %

Slovak municipalities 19 %

Dexia KB 79 %Dexia KB 79 %

Page 8: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

8 Commercial StrategyCommercial Strategy

Dexia Banka Slovensko Dexia Banka Slovensko

Turbo RetailProject

Turbo RetailProject

• Project Front-to-back (F2B)• Project Front-to-back (F2B)

==more time

on commercialactivities

more time on commercial

activities

• Project Retail Reflection• Project Retail Reflection

==redefine

business,marketing &distribution

strategy

redefinebusiness,

marketing &distribution

strategy

Objectif 2006Objectif 2006

Financial controlFinancial control

First impressionsFirst impressions

• 5 % market share• 5 % market share

Retail strategyRetail strategy

Credit Risk MgtCredit Risk Mgt

F.O. / B.O.F.O. / B.O.

ALMALM

SegmentationSegmentation

• competencies• organization• competencies• organization

• ABC• margin• ABC• margin

• missing instruments• missing instruments

• administration• administration• what ?• what ? • corporates in BL2• corporates in BL2

• actively develop retail market• actively develop retail market

Page 9: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

9 Commercial StrategyCommercial Strategy

AgendaAgenda

• Slovakia• Slovakia

• Dexia Banka Slovensko• Dexia Banka Slovensko

• (Turbo) Retail Strategy• (Turbo) Retail Strategy

• Conclusions• Conclusions

• Questions• Questions

Page 10: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

10 Commercial StrategyCommercial Strategy

(Turbo) Retail Strategy(Turbo) Retail Strategy4 Lines4 Lines

StrategyStrategy

FinancialsFinancialsShareholder

value proposition

Shareholdervalue

proposition

Clientorientation

Clientorientation

Internalorganisation

Internalorganisation

Page 11: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

11 Retail Strategy SlovakiaRetail Strategy Slovakia

(Turbo) Retail Strategy(Turbo) Retail StrategyLine 1 Client orientationLine 1 Client orientation

• Customer segmentation• Customer segmentation• Distribution• Distribution

• Customer value proposition• Customer value proposition

Key observationsKey observations

• Product offering • Product offering • Brand reputation• Brand reputation

• Price structuring• Price structuring

Page 12: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

12 Commercial StrategyCommercial Strategy

(Turbo) Retail Strategy(Turbo) Retail StrategyLine 2 Internal organizationLine 2 Internal organization

Key observationsKey observations

• Lack of commercial time• Lack of commercial time

Operational efficiency & ITOperational efficiency & IT

261 / 426 branch employees = active sellers 261 / 426 branch employees = active sellers 13 % of total time : commercial activities 13 % of total time : commercial activities 47 FTE’s : payment orders 47 FTE’s : payment orders 33 FTE’s : cash transactions33 FTE’s : cash transactions

• Causes of high administrative workload• Causes of high administrative workloadcentralization / decentralization centralization / decentralization internal checks & paper load internal checks & paper load level of automation level of automation

Page 13: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

13 Commercial StrategyCommercial Strategy

(Turbo) Retail Strategy(Turbo) Retail StrategyLine 2 Internal organizationLine 2 Internal organization

Operational efficiency & ITOperational efficiency & IT

• Portfolio x 2 impact on activities in servicing• Portfolio x 2 impact on activities in servicing

GoalGoal

• Time for sales activities attract new customers• Time for sales activities attract new customers

more time on commercial activitiesmore time on commercial activities

HowHow

• Front to Back Project improve operational efficiency• Front to Back Project improve operational efficiency

Page 14: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

14 Commercial StrategyCommercial Strategy

(Turbo) Retail Strategy(Turbo) Retail StrategyLine 2 Internal organizationLine 2 Internal organization

Operational efficiency & ITOperational efficiency & IT

Time in branchesTime in branches

Controls& paper

loads

Controls& paper

loads

Immediat.centra-lization

Immediat.centra-lization

CurrentCurrent Automat.in

MIDAS

Automat.in

MIDAS

Delayedcentra-lization

Delayedcentra-lization

Frontoffice

applicat.

Frontoffice

applicat.

100100

8080

6060

4040

%%

877680

74 72 69time freedby mediumterm solut. 7 %

time freedby quick wins 11 %

commercial time :13 % 24 % 31 %

Page 15: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

15 Commercial StrategyCommercial Strategy

(Turbo) Retail Strategy(Turbo) Retail StrategyLine 2 Internal organizationLine 2 Internal organization

Employee value propositionEmployee value proposition

Key observationsKey observations

• Recruitment requirements : available• Recruitment requirements : available• Previous reorganization : best sales moved to 1st BL• Previous reorganization : best sales moved to 1st BL

GoalGoal

• Freed up time for new customers & sales but commercial staff needs• Freed up time for new customers & sales but commercial staff needs- capacities

- tools- capacities- tools

Page 16: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

16 Commercial StrategyCommercial Strategy

(Turbo) Retail Strategy(Turbo) Retail StrategyLine 2 Internal organizationLine 2 Internal organization

Employee value propositionEmployee value proposition

HowHow

• Branch managers & deputies : assessed on• Branch managers & deputies : assessed on - commercial- coaching- commercial- coaching skillsskills

• Benchmark salaries• Benchmark salaries

• Recruitment requirements• Training programs• Recruitment requirements• Training programs adapted & improvedadapted & improved

• New commissioning system rewarding sales efforts• New commissioning system rewarding sales efforts• Current salary distribution• Current salary distribution

Fixed 76 %Fixed 76 %

Individual 13 %Individual 13 %

Team 11 %Team 11 %

Page 17: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

17 Commercial StrategyCommercial Strategy

(Turbo) Retail Strategy(Turbo) Retail StrategyRiskRisk

• Sales capacity of branches : difficult to achieve• Sales capacity of branches : difficult to achieve• Risk : not to be capable of transforming the opportunity• Risk : not to be capable of transforming the opportunity

Execution riskExecution risk

• Executing projects : parallel & successfully• Executing projects : parallel & successfully

Competitive riskCompetitive risk

• Retail : competitive investing from foreign banks• Retail : competitive investing from foreign banks

• Shortage of available assets in Sl. Market margins• Shortage of available assets in Sl. Market margins• Risk : miss the business volume target• Risk : miss the business volume target

How to mitigate these risksHow to mitigate these risks• Dedicated support on group level in all areas touched upon• Dedicated support on group level in all areas touched upon

Page 18: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

18 Commercial StrategyCommercial Strategy

Front Office ManagersFront Office ManagersAssessment & deputy branchAssessment & deputy branch

• Qualitative assessment indicated potential problem in our ambitious goals• Qualitative assessment indicated potential problem in our ambitious goals

Being entrepreneurial / initiative:

Customer-orientedness

Goal orientation

Ability to start &

keep contacts

Loyalty

Organizational skills

Analytical

Creativity / Innovativeness

Stress resistance

Clear communication skills

Ability to motivate & support

skills

A (16 %)

B (27 %)

C (46 %)

C* (11 %)

Dexiaaverage

Page 19: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

19 Commercial StrategyCommercial Strategy

AgendaAgenda

• Dexia• Dexia

• Dexia Banka Slovensko• Dexia Banka Slovensko

• (Turbo) Retail Strategy• (Turbo) Retail Strategy

• Conclusions• Conclusions

• Questions• Questions

Page 20: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

20 Commercial StrategyCommercial Strategy

Conclusions after 1 yearConclusions after 1 year

• Training on new IT new products, procedures & organization proved to be main bottleneck

• Training on new IT new products, procedures & organization proved to be main bottleneck

• Systems to monitor branches largely in place• Systems to monitor branches largely in place• Competition proved to be very fierce with pressure on margins• Competition proved to be very fierce with pressure on margins

Page 21: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

21 Commercial StrategyCommercial Strategy

Conclusions after 1 yearConclusions after 1 year

• Brand Awareness (BA) Spontaneous BA DBS Supported BA DBS

• Brand Awareness (BA) Spontaneous BA DBS Supported BA DBS

August 2004 May 200514%

46% 72,4%

34,6%

31.05.04 31.05.05693

163 412

6011

• However : commercial results are rocketing eg credits production individuals SME/Corp.

• However : commercial results are rocketing eg credits production individuals SME/Corp.

Page 22: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

22 Commercial StrategyCommercial Strategy

Conclusions after 1 yearConclusions after 1 year

Overall conclusion :

don’t waste time ! Overall conclusion :

don’t waste time !

Page 23: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

23 Commercial StrategyCommercial Strategy

AgendaAgenda

• Dexia• Dexia

• Dexia Banka Slovensko• Dexia Banka Slovensko

• (Turbo) Retail Strategy• (Turbo) Retail Strategy

• Conclusions• Conclusions

• Questions• Questions

Page 24: RETAIL BANKING Banca viitorului într-o Europa largita Strategii pentru inovatie si crestere RETAIL BANKING Banca viitorului într-o Europa largita Strategii.

RETAIL BANKINGBanca viitorului într-o Europa largita Strategii pentru inovatie si crestere

RETAIL BANKINGBanca viitorului într-o Europa largita Strategii pentru inovatie si crestere

Marc LauwersMarc Lauwers

Bucuresti, 29 iunie Bucuresti, 29 iunie

Commercial strategy in SlovakiaCommercial strategy in Slovakia

24


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