Customer Relationship Management for Bankers

Course Background Lending to corporate and SME customers is one of the largest and most stable source of earnings for commercial banks. At the same time, strong domestic and international financial institutions are fiercely competing in this segment and therefore you require an up-to-date strategy and differentiation for your institution. The role of the bank’s relationship managers is of upmost importance in this process. Taught by an internationally experienced professional, this course is designed to give delegates a comprehensive overview of the latest techniques and methodologies to successfully manage customer relationships. This course starts with the right customer segmentation and the analysis of the product and services required by the different types of companies. It concentrates on efficient client management which helps you to increase the share of wallet, improve the cross sell rate and offer an adequate product and services range to your corporate customers. In addition, the programme will discuss the appropriate goal setting for your sales force and the monitoring of their progress. The delegates will learn how to assess the financial needs of the corporate customers and offer the adequate banking products and services. The concept of successful product bundling, supply chain financing and the innovation of products will be discussed in order to increase the important cross sell rate. Real life situations will be discussed regarding the appropriate pricing in the different sales channels and customer segments in order to avoid price pressure and to achieve the bank’s profitability targets. During the programme delegates will learn how to manage successfully a marketing campaign to corporate banks. This course will also cover the credit and risk aspect of the corporate banking business. In an extensive case study it will be demonstrated how to price adequately a loan to different customers and how to assess risk in lending. Course Features This 4-day programme draws on the knowledge and practical experience of an internationally experienced executive who has worked for some of the largest institutions in the world. The German HVB Bank, now part of the Unicredit Bank Group- and ING Group are belonging to the largest banking institutions in the world. They are known to manage large retail and corporate banking networks in mature (Netherlands, Belgium, Poland, Germany, USA, Korea and Japan etc.) and in emerging markets (China, India, Russia, Indonesia, Turkey etc). In addition, examples will be given from successful financial institutions in Central & Eastern Europe, Asia and Africa. The course will teach how to successfully run a corporate banking network, how to manage your clients proactively and how to be responsive to their different needs. It will help you to set appropriate goals to your branches and RMs and monitor the success of your marketing campaigns. The RMs will be shown how to analyse the different financial needs of their clients and react with innovative proposals. This approach will help your organisation to improve the cross- sell rate, reduce the price pressure and increase the client’s loyalty. The course will although deepen your understanding of risk adjusted product pricing and how to measure client and product profitability. A comprehensive 4-day course for bank managers and customer relationship managers that will help you to: Successfully segment the different customers and to understand their respective product and financing needs Analyse the business of your corporate customers and make proactive proposals Set appropriate goals to the RMs and monitoring their success Efficiently manage the client relationship, prepare the customer visits and close successfully deals Improve the profitability of the customer portfolio Enhance your cross sell ratio with product bundling and supply chain financing Run successfully a marketing campaign Measure client and product profitability with the most advanced methodologies Understand risk adjusted pricing of lending products Who should attend: Relationship Managers, Bank Managers and Branch Managers from Corporate Banking and SME Departments Managers from marketing, sales and operations, strategic planning and general management Customer-facing bankers including Loan Officer, Credit Analyst and Credit Officer Younger bankers aiming to enter client-facing positions in commercial banks Supporting publication:
Day 1 Building a customer oriented sales organisation Introduction and Course Overview Successful client segmentation The success factors in corporate and SME banking The right client segmentation Understanding the customers product and service needs How customers are looking at their banks Understanding the competitive environment Developing a customer strategy for the large corporates and the SME sector Increasing the share of wallet for your bank Designing the national branch network Aligning product specialists and corporate finance experts with the corporate sales force Case study: The success factors in corporate and the SME business Modern sales channel management Effective time management of the sales staff Determining the right number of RMs, customers, volume and revenues per RM and branch Break even analysis for sales teams Delivering products and services through different sales channels Branch network Direct sales, telephone banking and ATMs Internet and telephone banking The future development and the influence of technology Pricing strategies in the different sales channels based on Size, credit volume, product uptake Profitability and future business volume Workshop: Towards a modern sale channel management: Understanding the pros and cons of the different sales channels The importance of the planning process Mission and vision statements used by different banks Principles of a successful planning process Setting SMART objectives for the budgeting and medium term planning process Differentiating between short- term goals and long- term objectives Setting different objectives for the sales force and individual RMs Strategic goals Profit goals, market goals, product goals Cost targets Performance goals Case study: Goal setting for a branch and their customer relationship managers Preparing and executing a customer visit Understanding the client’s financial needs Analysing the existing product usage and the compettive environment Developing a client strategy Preparing the call Analysing the financial statement Asking operational and financial questions Understanding the competitive environment Making proactive product proposals Using your time efficiently Asking the right questions; avoiding recital questions Closing the deal Case study: Key elements of a successful customer meeting Day 2 Increasing the customer profitability by efficient product bundling and a high cross sell ratio Product proposals under different economic circumstances Analysing the economic and customers circumstances Assessing the exiting financial exposure Proposing written alternatives for products and services Learning from success and mistakes Preparing a lending offer and including services or derivative products The many features of the lending products Adding derivative products Changing the feature of the product Case study: Analyze the performance of a medium sized corporate client, assess its financing requirements and develop adequate product proposals Actions to improve the profitability of your portfolio Identifying attractive customers Enhancing the cross sell rate Dealing with loss leaders Improving the performance of existing clients Introducing new products Looking for new clients Tracking the client performance Case study: Learning from successful competitors in Asia, Europe and the Americas Improved your cross sell rate through successful product bundling Introduction to product bundling What products to be included Which sector to be considered Best practice in different industries What mistakes to avoid Limits of product bundling Case study: Designing product bundles for different industry sectors Day 3 Innovative product offering Supply chain financing Defining core corporate products and services for corporate banking customers Lending based products Transaction based products and services Fee based products and services Introducing alternative lending products Transactional financing Leasing Factoring/ bill discounting Inventory based lending The most recent trend in transactional financing Identifying the suitable participants The concept of supply chain financing The companies involved The Upstream and downstream financing concepts The electronic payment platform The different products and services offered under supply chain financing Risk assessment of the supply chain financing proposal Case study: Understanding the chances and requirements of a modern supply chain arrangement Running a successful marketing strategy Determing the competitive environment The right time frame Defining the action plan Identifying the unique selling points for: The external target group Internal advantages The right communication Rolling out the marketing plan Contacting the client Preparing attention Organizing meetings Selling the product or service Assessing the success of a marketing strategy Best practice in banking Workshop: Determining the factors of a successful product roll out Pricing a loan under the Basel III ruling Elements of loan pricing The concept of risk adjusted pricing Calculating the cost of funding and operational costs Standard risk cost and expected losses Unexpected losses and the product profitability Economic capital vs. regulatory capital How to protect your institution from credit risk Determine standard and minimum pricing Case study: Guidance through a detailed price calculation under the Basle II regime Day 4 The risk adjusted pricing of loans and deposits and introducing a modern risk culture Measuring the profitability of clients and products Different concepts of measuring profitability Revenues/volume/risk-weighted assets Regulatory capital RAROC calculation EVA calculation Comparing RAROC and EVA measurements Workshop: How to calculate RAROC and EVA Assessing credit risk for corporations and SME companies Introduction to modern risk methodology in corporate banking Defining ratings for corporations Large corporations SME lending The difference of SME lending Financial ratios Qualitative factors The most important risk alerts Writing the credit request Case study: Defining the most important qualitative and quantitative ratios for corporate and SME lenders Understanding the methodology of scoring for small enterprises Introduction to modern scoring systems Assessing the creditworthiness of a customer in the absence of reliable financial information’s The concept of closed questions The four dimensions of a scoring system Social economic factors Financial data Bank data Risk factors The most important risk alerts An automated and remote approval process Approving the credit request Case study: The effectiveness of a modern scoring systems Developing the skill set of a corporate RM The skill set of a corporate RM Product knowledge Analysis of financial statements and client strategy Credit and risk expertise Negotiation skills RM versus product specialists The career path in the front line Keeping and promoting talented RMs Tracking the performance The right remuneration Goal setting The fixed salary Bonus payments Other incentives Workshop: Best practice in leading banks Case study: The different career plans for corporate relationship managers Summary and recap