Banks and Consumers

More documents

Info

BANKS AND CONSUMERS III Consumer policy through service – the services offered by private commercial banks 1 A focus on the customer – milestones in business with retail clients Until the end of the 1950s, the private commercial banks traditionally did business almost exclusively with the corporate sector and with small and medium-sized enterprises (SMEs). Then the German economic boom, the rapid rise in disposable income among broad sections of the population, and the resulting “German savings miracle” gave rise to a wholly new and extremely attractive target clientele. The banks’ previously exclusive client base was opened up for good and the term “universal bank”, AFTER 1960, RETAIL which in the past BANKING OPERATIONS had stood first and WERE SYSTEMATICALLY foremost for the EXPANDED AND variety of services INTENSIFIED. on offer, took on a new, wider meaning: private commercial banks became “banks for everyone”. The most obvious sign of change was the efforts by banks to attract retail customers no longer just as investors, but as borrowers, too. That banks consciously promoted their new services to non-clients as well as existing customers was considered downright revolutionary at the time, yet it reflected their view of themselves as “money and lending entrepreneurs”. After 1960, retail banking operations were systematically expanded and intensified. The introduction of standardised personal loans, the switch to cashless wage and salary payments, the breakthrough of the investment mentality and the maintenance of securities accounts are just a few of the milestones in this evolution. After radically increasing their number of branches and broadening their range of services, the private commercial banks were able by the end of the 1960s to offer their services to private households virtually everywhere in Germany. Since then, retail banking has joined corporate banking as a mainstay of the private commercial banks’ business. Today, private commercial banks compete for clients with domestic and foreign institutions in all areas of the ever more varied retail banking sector. The most important fields in which competition takes place are the product range (including traditional lending and investment products), account maintenance and payments processing, the quality of advice and service (which is determined mainly by staff skills and qualifications), and price. Since entering the marketplace, the private commercial banks have found themselves faced with particular competitive challenges: for many decades, regulatory strictures have prevented mergers between private and public-sector banks, thus precluding the associated economies of scale. This makes it that much more necessary for private commercial banks to develop lending and deposit-taking 22
BANKENVERBAND products and, above all, payments services that satisfy both the varied needs of clients and their wish for security, convenience and low cost. In addition, they need to provide an advisory service which furnishes information and guidance while always placing the customer centre stage. And last but not least, they have to offer terms and conditions that are transparent and competitive in the long term. The key to the future success of private commercial banks in retail banking will continue to be a successful combination of customised, costintensive advisory services and standardised (and thus attractively priced) products. Like an “off-the-peg” suit that fits a large number of customers like a glove, banking services must be tailored for mass use, as it were, through simplification and standardisation. 2 Core competencies Like lending, the deposit-taking and investment business is geared to the consumer’s individual needs. A distinction in terms of maturity is made between demand, time and savings deposits and direct investment in capital markets via the client’s securities account. The main types of investment are shares, bonds, derivatives and indirect investment in investment funds, for example. Innovative mixed forms of investment (certificates) are also attracting growing interest. To provide clients with comprehensive information on the risks and opportunities associated with various investment types, the private commercial banks have produced a publication entitled “Basic Information on Investments in Securities”. BANKING AND MINORS Business with minors, who are not allowed to take out loans of any kind, is inevitably only possible to a limited extent. Within these limits, however, young people must be made ready step by step for the multi faceted and complex world of finance. Banks, in collaboration with parents and teachers, have the important task of introducing young people to financial transactions and helping them to take responsibility for their financial decisions. This also means giving young people the freedom to “learn by doing”. The statement issued in 1995 by the Federal Banking Supervisory Office (since 1 May 2002, the Federal Financial Supervisory Authority) on banking business with minors was strongly supported by the banks in its drafting phase and continues to offer important practical guidance. 23
Page 1: BANKS AND CONSUMERS The comprehensi
Page 5: Contents I Banks and consumers - a
Page 8 and 9: BANKS AND CONSUMERS I Banks and con
Page 11 and 12: BANKENVERBAND II What is consumer p
Page 13 and 14: BANKENVERBAND lasting business rela
Page 15 and 16: BANKENVERBAND THE ECONOMIC IMPORTAN
Page 17 and 18: BANKENVERBAND customers. Some clien
Page 19: BANKENVERBAND financial services ar
Page 24 and 25: BANKS AND CONSUMERS CERTIFICATES Ce
Page 26 and 27: BANKS AND CONSUMERS which the recom
Page 28 and 29: BANKS AND CONSUMERS 3 Partners for
Page 30 and 31: BANKS AND CONSUMERS 4 Future develo
Page 32 and 33: BANKS AND CONSUMERS Ordinance comes
Page 34 and 35: BANKS AND CONSUMERS 2009 The Single
Page 37 and 38: BANKENVERBAND IV The private commer
Page 39 and 40: BANKENVERBAND PROMOTING ECONOMIC LI
Page 41 and 42: BANKENVERBAND Internet Teachers and
Page 43 and 44: BANKENVERBAND Conversely, some type
Page 45 and 46: BANKENVERBAND But information provi
Page 47 and 48: BANKENVERBAND If an order cannot be
Page 49 and 50: BANKENVERBAND EUROPEAN STANDARDISED
Page 51 and 52: BANKENVERBAND 3 Transparency in con
Page 53 and 54: BANKENVERBAND guarantees are now us
Page 55 and 56: BANKENVERBAND European Code of Cond
Page 57 and 58: BANKENVERBAND regardless of the ind
Page 59 and 60: BANKENVERBAND GBIC RECOMMENDATION O
Page 61 and 62: BANKENVERBAND standard practice in
Page 63 and 64: BANKENVERBAND THE CUSTOMER COMPLAIN
Page 65 and 66: BANKENVERBAND − At European level
Page 67: BANKENVERBAND DEPOSIT PROTECTION De
Page 70 and 71: BANKS AND CONSUMERS V Towards a sin
Page 72 and 73:
BANKS AND CONSUMERS so far as the o
Page 74 and 75:
BANKS AND CONSUMERS − to protect
Page 76 and 77:
BANKS AND CONSUMERS it that, after
Page 78 and 79:
BANKS AND CONSUMERS having to condu
Page 81 and 82:
VI Requirements for a forward-looki
Page 83 and 84:
BANKENVERBAND There can be no blank
Page 85 and 86:
BANKENVERBAND 2 Uniform basic princ
Page 87 and 88:
BANKENVERBAND for consumers, withou
Page 89:
BANKENVERBAND shaping the customer-
Page 92 and 93:
BANKS AND CONSUMERS VII Annex Rules
Page 94 and 95:
BANKS AND CONSUMERS (2) Formal prel
Page 96 and 97:
BANKS AND CONSUMERS b) Ombudsman de
Page 98 and 99:
© Bank-Verlag Medien GmbH 40.001 (
Page 100 and 101:
40.001 (01/12) Cost of Bank Service
Page 102 and 103:
BANKS AND CONSUMERS Useful internet
Page 104 and 105:
BANKS AND CONSUMERS The “fokus:ve
Page 106:
www.germanbanks.org Wie erreichen S
show all

Banks and Consumers

Create successful ePaper yourself

Delete template?

Save as template?