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Competitive Intelligence as a key decision factor in Komercni banka. André Léger Executive Director, Marketing. Agenda. KB and the Czech banking market The competitive intelligence in KB Illustrative example on the mortgage loans. KB and Czech banking market. A few figures about KB.
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Competitive Intelligence as a key decision factor in Komercni banka André Léger Executive Director, Marketing
Agenda • KB and the Czech banking market • The competitive intelligence in KB • Illustrative example on the mortgage loans
KB and Czech banking market • A few figures about KB Network and employees • 360 branches • 7 500 employees Clients • Individuals - 1 200 000 clients - market share 20% • SB and MEM - 300 000 clients - market share 35% • A competitive banking market • A concentration of the number of banks • A decrease of the multibancarisation rate of customers • Main players belong to international groups and bring strong upgrade of their commercial offer
Agenda • KB and the Czech banking market • The competitive intelligence in KB • Illustrative example on the mortgage loans
Competitive intelligence in KB Competitive intelligence in KB: Set of information (banking markets, customers) that enables targeted decisions Information Analysis Distribution Decision
Scope of sources Competition Monitoring and Benchmarking International Trends Monitoring DECISION MAKERS Information for better decisions and actions ? KB network feedback and insights Customers’ needs and expectations
Scope of sources Competitors monitoring and benchmarking: an extensive monitoring of competitors activities Competitors monitoring Main outputs Processing Daily 30 sources • IR report & alert • Commercial offers Weekly • Competitors Newsletter Quarter • Prices & IR KB Market Research • Products comparisons • Market Shares report • Financial Results
Scope of sources Customers feedback: provide a deep understanding of Czech customers’ financial needs and expectations Customer feedback Main outputs Processing • Customers feedback: - Expectations - Satisfaction - Loyalty • 40 surveys/year • 18000 interviewed customers for each survey Market Research suppliers • Oral presentations to managers • Detailed and summary reports KB Market Research
Scope of sources KB network insight: get feedback from KB network on local competitors’ activities and customers needs Network Insights Main outputs • Product and process potential issues • Competitors local activities • Customers’ feedbacks Monthly • Regular reports • Regular meetings • Informal contacts
Scope of sources International trends: providing best practices from foreign banking markets Trends monitoring Main outputs Processing Quarter • List of analysis at disposal for managers • Consulting companies market analysis KB Market Research • Networking • Societe Generale Group • Banking associations
Agenda • KB and the Czech banking market • The competitive intelligence in KB • Illustrative example on the mortgage loans
2004 2005 2006 Competitive intelligence in the mortgage loans strategy • Context: KB needed to secure and strengthen its position in a strongly growing market MARKET GROWTH EVOLUTION* MARKET SHARES EVOLUTION* GROWTH POTENTIAL* (mortgage to GDP) Volume growth Total Market KB VI-05 XII-05 III-06 VI-06 CZ PL FR EU-15 *Illustrative data
Interest rates war Innovation Aggressive communication Agressive Offers Competitive intelligence in the mortgage loans strategy Competition Monitoring and Benchmarking
Customer Behavior: Behavior change Social shift Communication to customers: Technical: Innovation Transparent fees Easy subscription / Simple products Soft Skills: Professional seller Bank = Partner Easy deal Competitive intelligence in the mortgage loans strategy ? Customers’ needs and expectations
Improved Risk Scoring Innovative Products International Mortgage Loans Competitive intelligence in the mortgage loans strategy International Trends Monitoring
Role of 3rd parties Conversion rates Competitive intelligence in the mortgage loans strategy KB network feedback and insights
Competitive intelligence in the mortgage loans strategy STRATEGY
Mortgage Loan Strategy Strategy Impact: • 5 Marketing aspects • Complete Sale Process (before sales – sales – after sales) Example of strategies on the Czech market: • Distribution Network: Real Estate partnerships • Processes: Instant Mortgage • Communication:Easy and fast • Price: Guaranteed Interest Rate • Business Model: Anyone can get a Mortgage
4 in 1 card Target: students Channels: Trends monitoring (US best practices) Other examples Student ID Card Bancassurance Quality • 1st phase: sell insurance products • 2nd phase: connect insurance to bank products • Channels: • Trends monitoring (Worldwide trends) • Network of animators • Internal communication and trainings • Quality commitments • Channels: • SG Group practices
Other Examples: KB quality organization Internal Customers - External Customers Customer Satisfaction and Quality Promotion Unit 15 Quality Animators HQ (1 per bank Arm) Corp Sek. Risk IT HQ Comm. Audit HR Payments Invest Finan. POM Corp Banking Distribution Network 39 Quality Animators Network (GoB Managers)
Other examples: KB quality commitments Security: we protect your money and banking data - funds management - personal data protection - security of direct banking Trust: we offer you a trustworthy relationship - RM at disposal - clear information about charges - warning about any condition changes Speed: easy and fast access to money and banking data - direct banking tools - 24/24h access to banking information - dense ATM/branch network Satisfaction: your satisfaction is important to us - fees reimbursement - no closing fees - complaint system
Conclusion • Competitive Intelligence used on a daily basis • Legal information gathered on a formal or informal way • Raw information to be analyzed and distributed efficiently • People are the main key success factor of the process