Upload
cordelia-jones
View
220
Download
0
Embed Size (px)
Citation preview
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
2 Commercial StrategyCommercial Strategy
AgendaAgenda
• Dexia• Dexia
• Dexia Banka Slovensko• Dexia Banka Slovensko
• (Turbo) Retail Strategy• (Turbo) Retail Strategy
• Conclusions• Conclusions
• Questions• Questions
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
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
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
6 Commercial StrategyCommercial Strategy
AgendaAgenda
• Dexia• Dexia
• Dexia Banka Slovensko• Dexia Banka Slovensko
• (Turbo) Retail Strategy• (Turbo) Retail Strategy
• Conclusions• Conclusions
• Questions• Questions
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 %
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
9 Commercial StrategyCommercial Strategy
AgendaAgenda
• Slovakia• Slovakia
• Dexia Banka Slovensko• Dexia Banka Slovensko
• (Turbo) Retail Strategy• (Turbo) Retail Strategy
• Conclusions• Conclusions
• Questions• Questions
10 Commercial StrategyCommercial Strategy
(Turbo) Retail Strategy(Turbo) Retail Strategy4 Lines4 Lines
StrategyStrategy
FinancialsFinancialsShareholder
value proposition
Shareholdervalue
proposition
Clientorientation
Clientorientation
Internalorganisation
Internalorganisation
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
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
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
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 %
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
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 %
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
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
19 Commercial StrategyCommercial Strategy
AgendaAgenda
• Dexia• Dexia
• Dexia Banka Slovensko• Dexia Banka Slovensko
• (Turbo) Retail Strategy• (Turbo) Retail Strategy
• Conclusions• Conclusions
• Questions• Questions
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
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.
22 Commercial StrategyCommercial Strategy
Conclusions after 1 yearConclusions after 1 year
Overall conclusion :
don’t waste time ! Overall conclusion :
don’t waste time !
23 Commercial StrategyCommercial Strategy
AgendaAgenda
• Dexia• Dexia
• Dexia Banka Slovensko• Dexia Banka Slovensko
• (Turbo) Retail Strategy• (Turbo) Retail Strategy
• Conclusions• Conclusions
• Questions• Questions
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