UBI Banca Group

Significant events that occurred during the
year
The organisational changes planned in the 2011-2015 Business
Plan of the UBI Banca Group
On 13 th May 2011, the Management Board and the Supervisory Board of UBI Banca approved
the Group Business Plan containing strategic guidelines and operating, financial and capital
targets for the period 2011-2013/2015 1 .
The plan, consisting of 16 business projects with a substantial impact on the achievement of
the objectives set, groups organisational changes into three focus areas: business, governance
and support, and product companies and special projects.
The business area includes the largest number of projects, which are also the most important:
the reorganisation of commercial activity (distribution model), changes to service models and
also plans to accelerate commercial results, to be achieved through enhancing the Group’s
distribution capacity and customer base by means of the following:
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a new “hour-glass” shaped distribution model, which combines the best features of the
conventional “hierarchical” and “portfolio” models to create synergies from interaction
between the different markets and different supply chains, generated by the co-ordination
of new Local Headquarters;
a more effective market segmentation and greater variety in the range of value added
services, with the development of customised products and services, such as a modular
current account, and a wide range of advisory services;
a “mass market machine”, with the introduction in retail branches of a joint pool of account
managers and operational staff for mass market customers and the selection of retail
account managers to work on commercial development;
a “pricing excellence project” to improve the structured management of pricing and to close
gaps with the sector nationally, found by studies;
acceleration of the integrated multi-distribution channel project.
At the same time specific organisational and technological initiatives were identified with
regard to problem loan management:
▪ pro-active management of non-performing loans with:
- the implementation of a new technologically advanced IT platform to manage the life
cycle of deteriorated loans;
- a revision of the organisational model to refine operating processes, differentiated by
exposure and type of loan;
- segmentation and division of positions into portfolios assigned to account managers who
are allocated specific credit recovery budgets;
▪ the optimisation of problem loan management through a new “by objectives” approach,
which allocates a budget for the management of problem loan portfolios at the branch or
corporate centre level of each network bank;
▪ extension to the main product companies of the credit monitoring model to structurally
reduce loan impairment rates.
At the same time, the Business Plan also included a significant effort to streamline and/or
automate internal operational and management processes and sales processes in order to
shorten customer response times and improve transparency and clarity in contracts and
regulations. This is also focused on reducing costs.
1 The Business Plan was approved before the European sovereign debt crisis and the Italian crisis in particular manifested with an
intensity which rendered internationally co-ordinated institutional action urgently necessary. This had inevitable repercussions on
the expected performance of the real economy and on economic and financial market trends.
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