JJ Mois Année

Competitive Intelligence as a key decision factor in Komercni banka

André LégerExecutive Director, Marketing

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Agenda

KB and the Czech banking market

The competitive intelligence in KB

Illustrative example on the mortgage loans

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A few figures about KB

KB and Czech banking market

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

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Agenda

KB and the Czech banking market

The competitive intelligence in KB

Illustrative example on the mortgage loans

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Competitive intelligence in KB

Competitive intelligence in KB:

Set of information (banking markets, customers) that enables targeted decisions

Information Analysis Distribution Decision

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Scope of sources

Competition Monitoring and Benchmarking

International TrendsMonitoring

Customers’ needs and expectations

KB network feedback and insights

DECISION MAKERS

Information for better

decisions and actions

?

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Commercial offers

Prices & IR

Daily IR report &

alert

Competitors Newsletter

Market Shares reportFinancial Results

Products comparisons

KB Market Research

Competitors monitoring Processing Main outputs

Weekly

Quarter

30 sources

Competitors monitoring and benchmarking: an extensive monitoring of

competitors activities

Scope of sources

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Detailed and summary reports KB Market

Research

Customers feedback: - Expectations - Satisfaction - Loyalty

40 surveys/year

18000 interviewed customers

Oral presentations to managers

Market Research suppliers

Customer feedback Processing Main outputs

for each survey

Customers feedback: provide a deep understanding of Czech customers’ financial needs and expectations

Scope of sources

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KB network insight: get feedback from KB network on local competitors’

activities and customers needs

Scope of sources

Product and process potential

issuesCompetitors local activities Customers’ feedbacks

Network Insights Main outputs

Regular reports

Regular meetings

Informal contacts

Monthly

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International trends: providing best practices from foreign banking markets

Trends monitoring Processing Main outputs

Consulting companies market analysis

Quarter

List of analysis at disposal for managers

KB Market Research

Networking

Societe Generale GroupBanking associations

Scope of sources

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Agenda

KB and the Czech banking market

The competitive intelligence in KB

Illustrative example on the mortgage loans

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Competitive intelligence in the mortgage loans strategy

MARKET SHARES EVOLUTION*

Volume growth

20062004 2005

Total Market

KB

*Illustrative data

MARKET GROWTH EVOLUTION*

VI-05 XII-05 III-06 VI-06

GROWTH POTENTIAL* (mortgage to GDP)

CZ PL FR EU-15

Context: KB needed to secure and strengthen its position in a strongly

growing market

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Interest rates war

Innovation

Aggressive communication

Agressive Offers

Competition Monitoring and Benchmarking

Competitive intelligence in the mortgage loans strategy

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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

Customers’ needs and expectations

?

Competitive intelligence in the mortgage loans strategy

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Improved Risk Scoring

Innovative Products

International Mortgage Loans

International TrendsMonitoring

Competitive intelligence in the mortgage loans strategy

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Role of 3rd parties

Conversion rates

KB network feedback and insights

Competitive intelligence in the mortgage loans strategy

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STRATEGY

Competition Monitoring and Benchmarking

International TrendsMonitoring

Customers’ needs and expectations

KB network feedback and insights

DECISION MAKERS

Insights for better

informed action

?

Competitive intelligence in the mortgage loans strategy

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Strategy Impact:

Mortgage Loan Strategy

5 Marketing aspects

Complete Sale Process (before sales – sales – after sales)

Distribution Network: Real Estate partnerships

Processes: Instant Mortgage

Communication: Easy and fast

Price: Guaranteed Interest Rate

Business Model: Anyone can get a Mortgage

Example of strategies on the Czech market:

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Student ID Card

4 in 1 card

Target: students

Channels: Trends monitoring (US best practices)

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

Bancassurance Quality

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Other Examples: KB quality organization

Customer Satisfaction

and Quality

Promotion Unit

39 Quality Animators Network

(GoB Managers)

15 Quality Animators HQ

(1 per bank Arm)

Comm.

Finan.Payments

Corp Sek. Risk IT

Audit

Invest

HR

Corp BankingPOM

Distribution

Internal Customers

- External

Customers

HQ

Network

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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

Other examples: KB quality commitments

Satisfaction: your satisfaction is important to us

- fees reimbursement- no closing fees- complaint system

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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