Erste Group Bank
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New ČS business strategy for housing associations and condominiums June 2011 Prepared by Pavel Kühn, Developer centres Director
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New ČS business strategy for housing associations and condominiums June 2011 Prepared by Pavel Kühn, Developer centres Director. Erste Group Bank. Serves 17.7 million clients Employs more than 50,000 people Operates 3,200 branches in 8 countries - PowerPoint PPT Presentation
Transcript of Erste Group Bank
New ČS business strategy forhousing associations and condominiums
June 2011Prepared by Pavel Kühn, Developer centres Director
04/21/23 – strana 2
New ČS business strategy for housing associations and condominiums
Erste Group Bank
– Serves 17.7 million clients
– Employs more than 50,000 people
– Operates 3,200 branches in 8 countries
– Ranks among TOP 3 banks in AUT, CZ, RO, SK,CRO
04/21/23 – strana 3
New ČS business strategy for housing associations and condominiums
A. Target
Financing
InvestingOperations
AdvisoryAdvisory
To become leading Czech bank for HA + Cond. segment by providing most comprehensive service for the most competitive pricing
privatizations, refurbishments,
new build(MT / LT loans)
surplus cash management
(deposit accounts, investment
products, etc.)
Key tool: cross-selling
current accounts,payments,
electronic banking,cards,
overdrafts, etc.
Grantika ČS complex care,
concepts, strategies
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New ČS business strategy for housing associations and condominiums
B. MarketČS statistics
NUMBER OF CLIENTS06/2010
ČS24%
ČSOB50%
Others26%
Number of CS clients 2 634 2 681 2 755 3 564Number of Other clients 5 022 5 358 5 618 6 292ČS share of clients 34,4% 33,3% 32,9% 36,2%BUSINESS VOLUME (M USD) 2007 2008 2009 6/2010Assets 254 303 343 374Liabilities 170 173 176 207
Cond.NUMBER OF CLIENTS 2007 2008 2009 6/2010Total number of subjects 36 323 39 107 43 979 44 771Number of CS clients 6 658 8 336 9 034 9 397Number of Other clients 29 665 30 771 34 945 35 374ČS share of clients 18,3% 21,3% 20,5% 21,0%BUSINESS VOLUME (M USD) 2007 2008 2009 6/2010Assets 221 346 386 395Liabilities 147 192 219 227
HOUSING ASSOCIATIONS + Cond.NUMBER OF CLIENTS 2007 2008 2009 6/2010Total number of subjects 43 979 47 146 52 352 54 627Number of CS clients 9 292 11 017 11 789 12 961Number of Other clients 34 687 36 129 40 563 41 666ČS share of clients 21% 23% 23% 24%BUSINESS VOLUME (M USD) 2007 2008 2009 6/2010Assets 475 650 729 768Liabilities 317 365 395 435
Mortgage
Investment Loan
BUSINESS VOLUME 06/2010
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
2007 2008 2009 6/2010M
CZK
Assets Liabilities
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New ČS business strategy for housing associations and condominiums
Market development is heavily influenced by products with governmental support:- Green for savings (Zelená úsporám)- Panel- New rental housing
Despite of possible market fluctuations we still expect market growth mainly in Cond. sector0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total number of HA Total number of SVJ
MARKET 2004 2005 2006 2007 2008 2009 2010 2011* 2012* 2013* 2014* 2015*Total number of HA 7 802 8 013 8 326 8 583 9 012 9 386 9 856 10 349 10 866 11 410 11 980 12 579Total number of Cond. 21 275 23 295 32 431 36 323 39 107 43 979 44 771 48 353 52 221 56 399 60 910 65 783
The data used are ČS estimation only – no official statistics exist! * ČS forecast
B. MarketMarket development
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New ČS business strategy for housing associations and condominiums
from market growth
from competition
Growth in HA sector will be fuelled mainly by split of existing big HAs, new privatizations and new builds
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total number of subjects Required number of CS clients
CS clients - actual development
SHARE 2004 2005 2006 2007 2008 2009 2010 2011* 2012* 2013* 2014* 2015*Total number of subjects 7,802 8,013 8,326 7,656 8,039 8,373 9,856 10,349 10,866 11,410 11,980 12,579CS clients 2,318 2,380 2,477 2,634 2,681 2,755 3,564 3,742 4,379 5,016 5,653 6,290Others 4,642 4,768 4,950 5,022 5,358 5,618 6,292 6,607 6,487 6,394 6,327 6,290CS share of clients 33.3% 33.3% 33.4% 34.4% 33.3% 32.9% 36.2% 36.2% 40.3% 44.0% 47.2% 50.0%
B. MarketHousing associations market development
The data used are ČS estimation only – no official statistics exist! * ČS forecast
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New ČS business strategy for housing associations and condominiums
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total number of subjects Required number of CS clients
CS clients - actual development
from competition
from market growth
Growth in Cond. sector will be fuelled mainly by Cond. generation out of development projects and HA ownership transfers
SHARE 2004 2005 2006 2007 2008 2009 2010 2011* 2012* 2013* 2014* 2015*Total number of subjects 21,275 23,295 32,431 36,323 39,107 43,979 44,771 48,353 52,221 56,399 60,910 65,783CS clients 4,002 4,597 4,413 6,658 8,336 9,034 9,397 10,337 14,331 18,325 22,319 26,313Others 17,273 18,698 28,018 29,665 30,771 34,945 35,374 38,016 37,890 38,074 38,591 39,470CS share of clients 18.8% 19.7% 13.6% 18.3% 21.3% 20.5% 21.0% 21.4% 27.4% 32.5% 36.6% 40.0%
B. MarketCond. market development
The data used are ČS estimation only – no official statistics exist! * ČS forecast
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New ČS business strategy for housing associations and condominiums
C. Opportunity
201550% market share in housing associations
40% market share in cond.USD 63 m total revenues
201036% market share in housing associations
21% market share in cond.CZK 457 m total revenues
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New ČS business strategy for housing associations and condominiums
D. How to achieve it
1. New pro-active market approacha) Competitive pricingb) Easy, transparent and safe products and services (incl. advisory)c) Dedicated and co-ordinated sales channelsd) Increased capacity of sales and processing (also for cross-selling)
2. New organization of salesa) Municipal finance (4400) as the HA + Cond. competence centerb) Product and sales management by Municipal finance (4400)c) Consistent multiple sales channels: Branch network (5600, 5700), Municipal finance
(4400), Developer centers (4330), External sales force (5800)
3. Process streamlininga) Methodology unification and simplificationb) New set-up of approval processc) Efficient motivation of sales channelsd) Improvement of training structure
4. Strong marketing supporta) Central campaign + local campaigns (both starting in 2010)b) Sponsoring of SČMBD
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New ČS business strategy for housing associations and condominiums
D. How to achieve it1. New pro-active market approach
How clients make decisions
Do not look for the most profitable solutions but for those with low risk
Do not look for complicated solutions
Watch closely the annuity amount and whether the property collateral is required
Appreciate dedicated personal service (high influence of the broker)
Decision base on precaution and price consideration
Make tenders
And our response?
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New ČS business strategy for housing associations and condominiums
D. How to achieve it1. New pro-active market approach – cont´d
a) Competitive pricing To become more competitive in pricing – so far our biggest disadvantage New pricing policy supporting market share growth and clients takeover from competitors
b) Easy, transparent and safe products Easily accessible products (for clients as well as for sales staff) Clear product specification and its communication to clients Simple and efficient processing Development of subsidized products (state subsidy, ČS subsidy) Refinancing of competitors (mainly ČSOB)
c) Dedicated and co-ordinated sales channels As close to the client as possible (in terms of territory as well as of behaviour) Intensive sales coverage in regions for every type of client and product via multiple channels
d) Increased capacity of sales and processing Strong, motivated and well trained sales channels with competence Additional capacity and value of DCs, External sales force, Partner ČS, and Grantika ČS Specialists in credit risk management Processing in pre-defined deadlines (incl. approval process)
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New ČS business strategy for housing associations and condominiums
G. Conclusions
Česká spořitelna has the potential to acquiredominant market share in the housing
associations and cond. segment
To seize the opportunity we need to define clear strategy, new product and process structure,
competitive pricing and credit policy, and present ourselves in the market with the convincing marketing story
This presentation was the first step in the above effort!
