One Stop Shopping in Bank Austria Creditanstalt

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One Stop Shopping in Bank Austria Creditanstalt
Klemens HallerHead of Retail Segment Management

• February 2008

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General reasons for One-Stop-Shopping/Bundling

• Due to several analysis
• Most clients say they are open to bundling,
  whereas in reality only few of them are actually
  bundling ? high potential (European Small
  Business Market Research 2007)
• Bundlers have a higher revenue potential
  (McKinsey study)
• Bundlers are significantly more loyal to their
  bank (European Small Business Market Research
  2007)
• ? BA-CA decided to set up One-Stop-Shopping
  strategy within the Small Business Segment

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One Stop Shopping - Business and private needs
are serviced by one assigned small business RM
private part
business part
One RM for business needs and another RM for
private needs gt 2 RMs for 1 customer

• One small business RM for business AND private
  needs
• Business AND private needs of companies,
  professionals, business owners and related
  private persons are serviced by one dedicated
  SB-RM and if necessary additional specialists
  will be involved (e.g. an investment specialist)
  
• Goal
• View on potential revenues and revenues is taken
  on basis of the entire service compound structure

business part
private part

serviced by ONE relationship manager supported by
the investment specialist in the centre/region
entrepreneur as private person
liable private person
partner as private person
Company, Office.

• Within the customer migration in July/August 2007
  the already bundling customers were transferred
  to one small business RM.
• RMs are to focus also on the potential private
  side of non bundling customers.

associates and shareholders
Children
manager as private person
Example GvK group
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Survey results and actions taken

Survey result
Action

• Nearly 2/3 of BA-CA customers (64) are already
  bundling. (70 of the BA-CA main bank customers
  and in Vienna!)
• Main reasons for bundling- Coincidence and
  habit I started like this and I had no reason
  to change (52 very relevant) - Convenience -
  you go to the same place for all your needs (51
  very relevant)- Better support by a bank/person
  who knows both sides (47 very relevant)
• Main reasons for non-bundling- Non-Bundling as
  a principle (56 yes) and satisfaction with the
  current situation (55very relevant)-
  Confidentiality around the personal wealth
  (41)- Better in case of financial business
  problems (36)

Systematically connect the nuclei and enforce
cross selling activities.

• Emphasize on convenience for customer and ensure
  good education for RM on business and private
  topics.
• Support RM with professional advisory tools ?
  BusinessClass folder and adapted FinanzCheck

• Try to convince customers of the advantages of
  bundling by offering them attractive products
  (Bonification Model)

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Survey results and actions taken
Survey result
Action

• More than a third say that the statement My
  business bank never asked me to bundle.. is very
  relevant for their bank relationship. (38 very
  relevant)
• Potential evaluation On the basis of the
  quantitative results Market Research estimates
  the potential (realistic chance for convincing
  non-bundling customers to become bundling
  customers) of about 10 of the existing BA-CA
  Small Business customers (precondition
  attractive marketing/product-offer, which should
  be pretested)

Build up communication

• Bonification Model as motivation for customers to
  bundle

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One Stop Shopping Austria one picture
1. BusinessClass Advisory Folder
2. Bonification System
Goal support RM in their advisory meetings
Goal attract SB customers to start bundling
One Stop Shopping
5. Investment Specialist
3. FinanzCheck private/business
Goal enforce sales of investment products
through specially trained RM
Goal enforce product sales and cross selling
expected 2008
4. Product Bundle BusinessClass Account
Goal reduce transaction costs/increase revenues
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BusinessClass advisory folder

• A new advisory folder was developed
• RM got an advisory folder, with focus on the
  private and business needs of small business
  clients including professionals.
• Content Supporting sales arguments, list of
  products, FinanzCheck, information on new
  Bonification System, product folders and
  information about private and business products,
  application forms.
• Goals
• support RM, ensure customer oriented service.
• simplify application process and increase
  revenues.

• Advisory map
• is of high-quality leather and helps to leverage
  RMs motivation
• Contents are produced in BA-CA corporate design.
• The rings ensure easy changing of updated
  information material.

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BusinessClass Bonification System

• BusinessClass Bonification System
• Cash-back/credit note for buying additional
  private products related to the volume of
  business with BA-CA.
• Already bundling clients get cash-back, if its
  fresh money. Bonus based on product
  profitability.

• Handling of bonification tool is very easy
• RM choose the product, volume and percentage of
  bonification up to 20. (technically limited)
• Tool calculates automatically bonus for client.
• Print-out/Screenshot of the tool serves as
  internal document for booking the bonus.

• Examples of bonuses
• EUR 70.000 in form of a savings book
  BusinessClass bonus EUR xxxx
• New ErfolgsKonto Premium (private account
  package) BusinessClass bonus EUR xxxx
• EUR 100.000 in PIA Fund BusinessClass bonus
  EUR xxxx

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Adapted FinanzCheck private/business and
BusinessClass account

• FinanzCheck
• is an already successfully used instrument to
  gather information on customers actual situation
  and his needs and enforce cross selling in
  consequence.
• RM get regularly hints via SaM which clients to
  contact and to perform the FinanzCheck.
• the adapted FinanzCheck is aimed to cover also
  the private part of the client.

• BusinessClass Account
• Business current account is combined with the
  online Tool BusinessNet Basic
• Goal reduce the internal costs of payment
  transactions by raising the profit of the
  Business current account
• BusinessNet Basic officially free of charge, the
  costs will be included in the Business Current
  account
• Planned technical introduction Q3 2008
  (depending on WAVE resources and budget)

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Investment specialist within SB-Centres

• Localisation of demand-oriented potentials in
  matters of investments, insurances and treasury
  within the SB centres (SB, Professionals and
  affiliated private persons)
• Tasks
• structured research for potentials
• one-to-one coaching as the leading support for
  the SB relationship manager
• responsible for information transfer and
  continuous coaching within the SB centre
• interface function with central units
• Implement reporting and controlling
• Products
• Investment products (our funds, funds of funds,)
• life and non-life insurance
• treasury products (coverage of FX and interest
  rate risks)
• Standard caps EUR and SFR for private persons