UBI Banca Group

- the global financial crisis, which has reduced the size of markets substantially and rendered
customers increasingly more demanding in their requirements for simplicity, clarity,
customised services, assistance and stability;
- the changed regulatory context which in responding to consumers demands, requires a
stronger focus on issues such as the simplicity of product ranges and transparency in the
terms and conditions that apply.
Small Businesses
The Group renewed its commitment to support small to medium-size enterprises in 2011,
especially with regard to businesses able to show good prospects for growth.
The growing cost of funding nevertheless required the use of attentive pricing policies,
extremely carefully gauged to match the risk profile of corporate customers. Activity was
therefore commenced and organised for the constant monitoring of pricing and to bring price
levels into line with company credit ratings and the cost of funding.
Initiatives were launched during the year as part of the SME project, designed to improve
performance and to increase the capacity to assist businesses in four areas: the development
of foreign related activities, as a result of increased co-operation between branches and
specialist foreign services units; approved growth in short term lending; the ability to attract
and manage the liquidity of businesses; the ability to acquire new customers and serve them
fully.
The importance of further reinforcing the role of small business account managers became
evident so that they can become true partners to businesses, able to assist them in the choice
of sources of funding, treasury management, internationalisation processes and in acquiring
knowledge of opportunities for subsidised loans and guarantees. A training project was
therefore started which will continue throughout 2012. It is designed to spread best practices
on the subjects identified, throughout the whole distribution network.
PRODUCT DEVELOPMENT FOR THE SEGMENT:
CURRENT ACCOUNTS
Marketing of Utilio Click&Go was launched during the year, a bundled product, which provides the use
of a set of products and services under special terms and conditions for the payment of a fixed monthly
charge. It is targeted at shop-keepers, free-lance professionals and trades persons who prefer to use
electronic channels such as internet banking, POS terminals and ordinary and evolved ATMs. Customers
are also given the opportunity to customise the range of products and services according to their own
need, by adding further product combinations, such as a POS terminal or a credit card with special
terms.
Utilio Click&Go won the “Innovation Award” prize in the “Business accounts and cards” category,
awarded by the financial daily Milano Finanza in co-operation with Accenture. The prize was awarded for
the innovative features of the bundle offered.
LOANS
Guarantee fund for SMEs (pursuant to Law No. 662/1996)
The use of public sector, credit risk mitigation instruments, such as the Guarantee fund for SMEs
(pursuant to Law No. 662/1996), continued, in order to facilitate access to credit for SMEs.
Businesses may benefit from intervention by the fund for any type of operation, provided it is directly
related to a business’s activities. The guarantee generally covers between 50% and 70% of the amount of
the loan up to a total maximum amount guaranteed per company of €1,500,000 euro, depending on the
nature of the eligible operations, the type of beneficiaries and their location.
Banca Carime and Banca Popolare di Ancona are among the main banks involved in the use of the fund
in the sector in terms of volumes. Total loans granted amounted to €725 million, of which €331 million in
2010 and €346 million in 2011. These figures should increase because in 2011 the internal process for
guarantee applications became fully operational in the other network banks.
UBI Banca and SF Consulting, a company controlled by the Finservice Group and in which a 35%
interest is held by the Group, signed a convention for the provision of support and advisory activities in
relation to formalities for the issue of guarantees from the fund, valid for all the network banks (except
for Carime and BPA, already operational). The aims of the convention are to support account managers
in numerous activities ranging from the assessment of the feasibility of an operation (including
verification of the subjective and objective requirements of a business) to the acquisition of the guarantee
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