Growth strategies in retail banking Study - Roland Berger

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DISTRIBUTION Bank BPH is using franchising to expand its branch network in suburbs and small towns Outlets and development Product offer 100 outlets mainly in three Voievodships (out of 16) Bank intends to gain in this way a closer access to the clients in the areas where the bank does not have its own branch network 350 new outlets by the end of 2005, total number of 600 outlets by 2006 90% of all retail products (savings account, term deposits, credit cards, (cash) loans) Servicing small business beginning of 2006 Organization Partner incurs all the investment costs connected to setting up the branch Partner employs staff and sets the level of salary Bank offers the training for the partners opening the outlets Break-even point reached as soon as after 3-6 months Partner receives part of the transaction fees generated by the branch Preferred locations: suburbs, large settlements of block of flats, shopping centers and centers of small towns All operations are carried out on-line and booked directly into the system of the Bank VIE-1789-90000-017-415 26
DISTRIBUTION PKO BP, the large savings bank increases access by the set up of agencies point of sale Outlets and development Product offer Organization Two types of agencies: so called ‘old’ type agencies – located in production plants and ‘new’ type agencies accessible to all customers: approx. 3,000 agencies Established mainly in small towns where PKO BP does not have their own branches and bigger cities in block of flat areas PKO BP plans to increase the number of products and services available trough the agency (next to cash handling, opening accounts, loan applications, etc.) Agencies realize around 20% of all cash operations within the bank, 7% of saving accounts, intermediation in loan sale – 20,000 loans in value of EUR 70 m p.a. (2004) Agency functions in the name of and on behalf of the bank PKO BP A person interested in opening the agency has to be an entrepreneur (run a business) Decision concerning setting up the agency is taken by the director of the regional retail department Agent must provide space for 1 cash teller, space for servicing client with adequate safety measures (around 30 m 2 with 2 employees), and has to rent a POS terminal The average investment in the outlet amounts to ca. PLN 10,000 PKO BP provides the agent with software, bank’s logo (free of charge), basic training Agency cannot employ anyone without the bank’ s acceptance VIE-1789-90000-017-415 27
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 and 16: STRATEGY Most banks offer universal
Page 17 and 18: STRATEGY EXAMPLE Lukas bank of Pola
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: DISTRIBUTION 10% of all mortgage lo
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

Growth strategies in retail banking Study - Roland Berger

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