Growth strategies in retail banking Study - Roland Berger
Growth strategies in retail banking Study - Roland Berger
Growth strategies in retail banking Study - Roland Berger
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STRATEGY EXAMPLE<br />
Provident Polska focuses on the low <strong>in</strong>come<br />
segment and delivers cash loans at home<br />
Product<br />
Cash loan up to 1.250 EUR for max. 1 year, pure<br />
mono-l<strong>in</strong>e<br />
Competitive <strong>in</strong>terest rates, but very high<br />
commissions; high effective <strong>in</strong>terest rates (100-200%)<br />
Fast turnover, high marg<strong>in</strong>, low <strong>in</strong>terest rate risk –<br />
cash loans are small and short term<br />
Target: low <strong>in</strong>come segment<br />
Value proposition: Eas<strong>in</strong>ess of gett<strong>in</strong>g the cash<br />
loan – no bank account, no guarantors, relative fast<br />
(<strong>in</strong> 48 hours), only guarantee is the confirmation<br />
about salaries from last 3 months<br />
Customer<br />
Distribution<br />
Cash loans for the low<br />
<strong>in</strong>come segment<br />
Delivery and collection by representatives at<br />
customers' home<br />
Close contact with client through representatives<br />
Representatives´ commission based on collection<br />
Increas<strong>in</strong>g network of small purely sales offices<br />
(223) <strong>in</strong> the whole country<br />
Alternative approach to credit stand<strong>in</strong>g evaluation,<br />
base for the evaluation is the home of the client<br />
Simple, but effective risk management process<br />
(bad loans: market standard)<br />
Bad loans sold to companies specialized <strong>in</strong> the<br />
collection of receivables<br />
Risk Management<br />
VIE-1789-90000-017-415<br />
18
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