Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger

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22 MICRO STRATEGIES – ELABORATING SEGMENTATION AND SERVICE MODEL Figure 15 shows a reference case from a CEE bank with a reasonable segmentation and target group definition. Banks should reduce branch dependency for micros and reposition their underestimated call centers SERVICE MODEL – THE COST-TO-SERVE DRIVER Banks tend to focus all kind of micro-client activities to branches (compare fig. 16), yet this is the most expensive channel. A proper segmentation shows that several micro segments do not need personal assistance and profitability declines with increased use of branch advisor services. Therefore the recommendation is to transfer service to e-channels in order to stop over-servicing and to reserve higher quality to the higher-value segments.
MICRO STRATEGIES – ELABORATING SEGMENTATION AND SERVICE MODEL 23 62 The high share of dedicated micro advisors indicates of overservicing and suggests a servicelevel review Dedicated advisors (relationship managers) are the most expensive service model granting the same high service level to each micro-segment client with high probability of over-servicing. In Romania, Russia, Slovenia and Ukraine, most banks use dedicated advisors while in Czech Republic, Hungary, Poland and Slovakia, the mixed model is more popular. Interestingly enough, banks with a detailed micro strategy combine the two models (compare fig. 17) and reserve dedicated advisors for premium clients. Mass clients can be served by universal advisors in branches. Most of the participating banks still apply the traditional branch management approach: the branch manager acts like an entrepreneur taking responsibility for a geographical area and for all client segments. In addition, he or she decides which client should receive a higher or lower service level. Banks focusing on micros need a separate reporting line to guarantee a proper bi-directional information flow Banks with an advanced micro strategy use two micro sales/service channels (compare fig. 18): > Branches serving mass-micro clients – controlled by the branch manager > Dedicated advisors serving premium-micro clients – reporting to region centers (or to the central micro unit)
Page 1: RETAIL BANKING IN CEE EXPLOITING OP
Page 5: PREFACE 3 PREFACE EFMA AND ROLAND B
Page 8 and 9: 6 SUMMARY OF KEY FINDINGS SUMMARY O
Page 11 and 12: 9 PART I IMPORTANCE OF MICRO BUSINE
Page 13 and 14: IMPORTANCE OF MICRO BUSINESS - HIGH
Page 15: IMPORTANCE OF MICRO BUSINESS - HIGH
Page 18 and 19: 16 MICRO STRATEGIES - ELABORATING S
Page 29 and 30: 27 PART III RISK MANAGEMENT - MANAG
Page 31: RISK MANAGEMENT - MANAGING RISK COS
Page 34 and 35: 32 CROSS-SEGMENT OFFERING - UTILIZI
Page 41 and 42: 39 PART V SUMMARY - RECOMMENDATIONS
Page 43 and 44: SUMMARY - RECOMMENDATIONS FOR "MICR
Page 45: METHODOLOGY AND SCOPE OF THE STUDY
Page 49: 47 Many thanks to the following per

Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger

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