Growth strategies in retail banking Study - Roland Berger

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STRATEGY …which are sometimes interim stages on the development path to become a universal retail bank Examples of implementation strategies Broad Product portfolio Narrow Focused player Universal Niche player Product Specialist Narrow Distribution channel/segment Broad Implementation strategies 2003: Offer basic account, loan an deposit through mini branches – high marketing cost for branding 2004: Offer mortgage loan products of other banks (3rd party provider) 2005: Develop internet offer, credit cards Step 1: Consumer finance through POS Step 2: Usage of intermediaries Step 3: Own sales units/branches, offer deposits, enter micro companies segment VIE-1789-90000-017-415 16
STRATEGY EXAMPLE Lukas bank of Poland focuses on consumer finance to build up a large customer base Product Installment loans to individual customers, for products and services purchase, cash and car loans, mortgage loan with a free of charge analysis of a loan application within short period Target: mass clients, high number of clients over 50 years – low risk group as far as loan repayment is concerned Plans to enter the segment of small enterprises Implementation of a new central IT system Customer Distribution Consumer finance (Credit Agricole) large customer base Branch location in the centers of large and smaller towns, areas close to shopping centers and block of flats settlements Co-operate with more than 31,000 shops, service points and networks of big department stores where customers can buy and finance the goods Extensive promotional campaigns and high spending on marketing Substantial increase of revenue and profitability in 2004; ROE 73%, net profit EUR 68 m Results VIE-1789-90000-017-415 17
Page 1 and 2: LJUBLJANA BELGRADE PRAGUE TALLINN R
Page 3 and 4: LJUBLJANA PRAGUE BELGRAD TALLINN RI
Page 5 and 6: Bank privatization is almost comple
Page 7 and 8: A second wave of M&A activities is
Page 9 and 10: Croatia is the leading CEE country
Page 11 and 12: Shrinking margins will force banks
Page 13 and 14: CEE banking markets are selling mar
Page 15: STRATEGY Most banks offer universal
Page 19 and 20: STRATEGY EXAMPLE Polish credit unio
Page 21 and 22: STRATEGY EXAMPLE GE Money exploits
Page 23 and 24: DISTRIBUTION Alternative distributi
Page 25 and 26: DISTRIBUTION 10% of all mortgage lo
Page 27 and 28: DISTRIBUTION PKO BP, the large savi
Page 29 and 30: MARKETING AND SALES EFFECTIVENESS L
Page 31 and 32: MARKETING AND SALES EFFECTIVENESS V
Page 33 and 34: Growth in retail lending is expecte
Page 35 and 36: Branch density is at par with matur
Page 37 and 38: Credit cards and mortgages will be
Page 39: Roland Berger Strategy Consultants

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