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Retail banking is not only an important part of BA-CA’s core business, but is also a Division in UniCredit Group’s business model which is expected to make a significant contribution to value creation – particularly in the mature Western European markets.
In 2006 we adapted our business segments in line with the divisional structure of UniCredit Group and organised business to continue our present strategy on the basis of common principles. The banking markets still differ widely as far as consumer habits, product preferences, the use made of sales channels and especially the competitive environment are concerned – and only the faint contours of the single European financial market are visible against this background. Nevertheless, UniCredit Group is firmly convinced that retail business is subject to effective supraregional banking principles and above all, that it can be very profitable and can be conducted to the satisfaction of customers. In line with this, we are guided by the following strategic considerations:
- Customer-oriented business segmentation instead of the traditional product-based approach, enabling the bank to apply the various customer service models – ranging from volume business to discretionary individual relationship management – in an optimal manner.
- Focus on needs as a guideline for more detailed segmentation and for product policies. Our approach is geared to the needs of customers at different stages in their lives.
- Customer satisfaction is imperative in customer relationship management. In this context, incentives for employees reflect the emphasis placed on sustainable customer relationships.
- Using the advantages of specialisation internally by separating customer service, marketing and product development from production activities and from settlement and back-office processes.
We have been following this strategy in retail banking for several years. As part of the “Fit for Sales” programme we geared our sales network towards active selling supported by professional campaign management, a relationship management information system, the customer contact centre and various sales channels: branches / mobile sales / electronic banking. In product development we implemented coordinated, standardised solutions. And finally we separated back-office functions from the sales network by combining and outsourcing the back-office functions in BA-CA Administration Services GmbH (AS). These functions are now carried out efficiently at transparent prices in line with internal service level agreements in the Global Banking Services Division.
In 2006 the integration in UniCredit Group had two effects on the Retail Division: first, the segment was adapted to the divisional structure and this had significant consequences for Retail compared with the former Private Customers segment. Second, a lively exchange of ideas was initiated with the integration: in spite of the structural differences in local retail business, there was a two-way flow of ideas, with valuable insights gained from internal benchmarking in the Group.