There is no doubt that SME sector is one of the most potential but also one of the most challenging business segments for European banks. Capturing the loan and deposit is no longer enough to ensure the growth and retain small and medium enterprises. Gaining long-term revenue opportunities demand well-structured internal networks, flexible cross-border products and services as well as solid understanding of the dynamics in diverse European markets.
On February 11th and 12th fifty experts from market leading European financial industries gathered to Marriott Hotel in Vienna in order to exchange ideas and professional knowledge on issues such as SME-specialized personnel, channeling and distribution networks, credit risk optimization, relationship management and impact of EU regulations.
The first conference day was focusing on two main themes –efficient organization of SME division in the banks and SME risk management.
The morning session of day one was opened by Mr. Han de Ruiter, Director of SME Relations in ABN AMRO, who introduced the topic of strengthening the pool of SME specialized staff. Mr. De Ruiter looked at recent activities and initiatives on European scale focusing on efforts to minimize corporate fraud. The next four presentations by Citibank Hungary, Zagrebacka Banka, Millenniumbcp and Garanti focused on relationship management, the role of branches and improving cross departmental communication. As SME banking falls sometimes under retail banking, sometimes under corporate banking, it does not necessary receive full attention and clear communication and that might decrease the efficiency and attention given to the segment. Tackling these issues in order to improve the bank – SME relationship was in the center of that block and triggered interesting discussions.
The afternoon session looked at how companies can more efficiently monitor SME risk and develop segment specific risk strategies. Mr. Schintowski from SAB briefly introduced the solutions that enable thorough and consistent real time monitoring of SME credit activities and detect potential fraud and money laundering attempts. The first day was completed by Mr. Martin Muransky from Raiffeisen International. Mr. Muransky, who is the VP for SME Risk in Vienna based financial group, walked through the strategy that Raiffeisen has developed in order to efficiently observe and analyze SMEs throughout the whole credit life cycle and make sound credit decisions with limited borrower information.
The end of the day was then followed by networking cocktail reception and a dinner hosted by the Jacob Fleming Company.
The second conference day was focused on practical tips and insight on channels and distribution networks that banks have developed in order strengthen the relationship and loyalty of the segment. The opening presentation by Mr. Thomas Rudolph from Danske Bank gave a practical insight into a recently implemented pilot project at Danske Bank, where a team based advice and new channel approach has been developed in order to improve the communication with the SME customers.
Equally catchy and interesting was also the next presentation by Mr. Phil Curme from LloydsTSB. His presentation reviewed the scope of channels taking a deeper look at the potential and usage of new and innovated channels. The discussion evolved over the dilemma of finding the best channel combination through effective multichannel integration where new e-channels are introduced while keeping the traditional channels as well.
The fourth and last block of the conference was focusing on innovation and outreach of SME products and services. The session was open by Nordea Bank speaker Mr. Martin Mark, who was focusing on business internet banking and reviewing, how e-channels and e-solutions can support SMEs throughout the whole life cycle including the establishment and growth phases as well for e-payments and cross-border operations.
Mr.Johan Schmalholz from Swedbank continued on e-channels track by analyzing the specifics and possibilities of e-invoices. The message from his presentation was clear – SMEs are definitely the bank’s key to B2B e-invoice market and in order to establish that market, banks should invest into the establishment of e-invoice services. Swedbank has taken its steps on that path and this enabled Mr. Schmalholz to look at practical challenges and experience as well.
The afternoon sessions of Day 2 shifted from e-solutions to a wider ground raising issues such as widening the SME product portfolio and linking the SMEs with retail products. Mr. Klemens Haller from Bank Austria Creditanstalt was specifically presenting the case of linking the private and business banking. As SMEs are solid base for consumer banking clients, banks need to carefully think about how to link the personal and business banking in profitable ways.
The last presentation of the second conference day by Mr. Pierre Noissant from Mastercard reviewed a number of practical solutions on SME specialized cards that are customized to the needs of the segment and can also reinforce the customer relationship. The conference was summarized during a final panel discussion coordinated by the chair, Mr. Esa Tuomi from Nordea, whose chairmanship had lead the delegates and speakers through the event.
Jacob Fleming Company and its team were happy to host this SME Banking Conference and we are happy to meet all the speakers and participants at some other Jacob Fleming Conference in future.
Maarika Kirikmae
Senior Conference Producer
Jacob Fleming Group
