Divisionalisation in 2006

In 2006, without interrupting service continuity at the level of sales units, we combined those sub-segments within the new Retail Division which are characterised by large numbers of low volume transactions and can therefore be served through a similar cost-efficient approach, using a product range that is geared to the needs of customers at different stages in their lives.

• Therefore we transferred the high-net-worth segment of private customers (to which the bank applies a different service approach) and asset management product competence to the Private Banking & Asset Management Division (PB&AM).
• Business with private customers was combined with the small business segment which was previously included in the SMEs Austria segment and has so far shown below-average profitability. SMEs Austria had been created with a view to restoring business with this customer segment to profitability.

The newly defined Retail Division serves both private customers (with the exception of the high net worth customers transferred to the Private Banking segment of the PB&AM Division) as well as independent professionals. We differentiate between the sub-segments “TopKunden” private customers, “ErfolgsKunden” private customers and small business customers, which enables us to concentrate on the particular needs of the individual target groups. Moreover, our employees can focus specifically on the requirements of our customers.

The basic difference between the “ErfolgsKunden” customer segment and the “TopKunden” customer segment is the volume of funds available for investment. Thus customers seeking more sophisticated investment products with specific minimum transaction amounts can be provided with customised advice. As far as companies are concerned, we service business customers whose annual turnover is below € 3 million. The total number of customers served is over 1.8 million.

Internal management and service functions coordinate and actively support the implementation of the business model and current business in the customer segments: strategic segment management, human resources development, risk management, financial planning, process optimisation and marketing ensure the proper balance between growth and risk. This cooperative approach will help us to strengthen customer loyalty and restore the Retail business segment to profitability.