SME Banking. Best practice and case studies. Retail Banking Research

Transcription

1 SME Banking Best practice and case studies Retail Banking Research October 2010

2 TABLE OF CONTENTS ACKNOWLEDGEMENTS 5 About the author: David J Cavell FCIB 5 About the publisher: Retail Banking Research (RBR) 5 Confidentiality 5 Disclaimer 5 TABLE OF CONTENTS 7 TABLE OF FIGURES 11 EXECUTIVE SUMMARY 13 Economy and community 13 Getting closer? 13 Relationship management 14 Women entrepreneurs 15 Access to finance and risk management 15 Products 16 Education and support 16 Delivery channel strategy 17 Conclusion 17 BANKING PRODUCTS, CHANNELS AND RISK Banking products and channels The transaction, current or checking account Savings and investments Borrowing Related services The role of the branch Self service Internet banking Other direct channels Direct channels in Europe Payment cards for SMEs The business card Debit cards The travel and entertainment (T&E) card The credit card The professional card The executive business card The lodge card Fleet and fuel cards The multicard Management information services Developing the product Card designs for business 34 Retail Banking Research 2010 Page 7

3 2.13 Mini-case study: The Universal Air Travel Plan (USA) Conclusion Risk management Background SMEs and profitable lending Lending effectively Commercial scoring and information services Automated application processing close up Workflow management Ongoing customer management Working for the SME Conclusion 50 CASE STUDIES FROM AUSTRALIA Australia & New Zealand Banking Group (Australia) Background Delivery channel strategy ANZ and SMEs Business education Lending to SMEs Conclusion Bendigo and Adelaide Bank (Australia) Background The community banking model Improving the business environment for the SME Toora, Victoria State A learning experience Conclusion 64 CASE STUDIES FROM EUROPE Caja Navarra (Spain) Spanish banking Caja Navarra positioning Civic banking Caja Navarra and SMEs EURECAN The Canchas and SMEs Conclusion The Sparkassen (Germany) Background Savings Banks Finance Group and the Mittelstand 74 Products and promotion The international dimension Understanding the business Into the future Conclusion Lloyds TSB (UK) A strong heritage The SME difference 82 Page 8 Retail Banking Research 2010

4 8.3 Delivery channel strategy Business clients and branches The SME Charters Further support Conclusion Short case studies from Romania, Belgium and Slovakia Banca Transilvania (Romania) Dexia Bank (Belgium) Slovenska Sporitelna Erste Group (Slovakia) Relationship management in Europe (including lending) Independent research Accountabilities and portfolio Service, sales and acquisition Credit assessment and management Conclusion The view from the customer Background Success in getting credit Reasons for having been refused credit Looking forward SME banking on the UK high street Background The current situation Specialism and design HSBC branch strategy Service visibility and presence Conclusions 107 CASE STUDIES FROM NORTH AMERICA Advanta (USA) SMEs and the credit cycle Introducing Advanta Business development The turning point Risk management strategy Conclusion Ixe Banco (Mexico) Background The bank Ixe banco and SMEs Delivery strategy Lending to SMEs An evolving strategy Key Bank (USA) Background Delivery channel strategy Products, services and support Women business owners Formalising the bank s commitment 126 Retail Banking Research 2010 Page 9

5 15.6 Key4Women in action Relationship management Conclusion TD Canada Trust (Canada) Background Delivery channel strategy TDCT and small business Local service and sales Customers and their needs Improving the customer experience at the branch Conclusion Wells Fargo (USA) Background Scale and diversity Business education The product set Conclusion Banks and SMEs in the USA The Greenwich market pulse Brand Relationship management Capital expenditure Conclusion 146 APPENDIX: CONTRIBUTORS 149 Page 10 Retail Banking Research 2010

6 TABLE OF FIGURES Figure 1: Examples of the new generation of branches ANZ and Wells Fargo 23 Figure 2: Fully automated depository at SpareBank 1 (Photo courtesy of Scan Coin) 24 Figure 3: Depositories and change machines at Commonwealth Bank and NAB in Australia (Photos courtesy of Banking Automation) 25 Figure 4: Developing the right customer proposition (Source: MasterCard Europe) 33 Figure 5: Experian scorecard predictiveness 42 Figure 6: The new generation of ANZ branch with a strong corporate image 54 Figure 7: Celebrating community banking at Rosewood 60 Figure 8: Civic banking at the branches of Caja Navarra 68 Figure 9: Caja Navarra SME definitions 69 Figure 10: The new style LTSB branches serve both personal and SME clients 83 Figure 11: New generation Dexia branches 89 Figure 12: Concerns for SME businesses in the UK 99 Figure 13: Sources of credit for SME businesses in the UK 100 Figure 14: Reasons why SME businesses in the UK require credit 100 Figure 15: SME success in getting credit 101 Figure 16: Refusal rates by financing purpose and amount required 101 Figure 17: Reasons given for refusal of credit 102 Figure 18: Reasons why the business requires finance in Figure 19: Other main sources of alternative finance 103 Figure 20: HSBC out-of-town business banking branch 106 Figure 21: SME financing statistics for Canada 110 Figure 22: Distribution of businesses by size 112 Figure 23: Advanta corporate and business credit cards 115 Figure 24: Percentage of receivables and their FICO score at origination 117 Figure 25: The latest branch design from Ixe Banco 121 Figure 26: Breakdown of KeyBank retail branches by region 124 Figure 27: The Key4Women National Advisory Board at work 127 Figure 28: New generation branch banking in Canada 132 Figure 29: Simple, effective, modern branches at Wells Fargo 138 Figure 30: SME reasons for increasing capital expenditure 146 Retail Banking Research 2010 Page 11