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Central and Eastern European Banking Study 2008
EFMA
July 2008
For the third consecutive year, zeb/rolfes.schierenbeck.associates, the European Financial Management & Marketing Association (Efma) and KBC Group have analysed the latest developments, changes and evolutions of the banking business in Central and Eastern Europe. The result of this investigation is our Central and Eastern European Banking Study 2008.
Even after three years, the main objective remains the same as we want to give concrete suggestions and alternatives for the successful strategic positioning, management and steering of banks in Central and Eastern Europe. For that purpose, the Central and Eastern European Banking Study 2008 provides a detailed insight into the Central and Eastern European banking markets, identifies successful strategic approaches and key success factors for financial institutions and offers and evaluates prospects for entrepreneurial banking as a successful sales system.
The first part of our study concentrates on the banking markets. It contains not only an update of the well-proven analysis of market dynamism and market maturity from our Central and Eastern European Banking Study 2007 and 2006, like our S-curve concept to evaluate the key issue of the maturity of markets. Moreover, we also present some new selected insights into the current status and functioning of the banking markets by analysing the effect of declining margins in the financial sector and the consequences of the current credit crisis. In addition, we provide forecasts for the development of total assets and even the profitability in Central and Eastern Europe in the years to come.
Chapter II addresses one key topic of our study, the analysis of key success factors in the financial business in Central and Eastern Europe. In a first step, we identify the strategic approach of each foreign banking group active in this region and evaluate the success of different market strategies. On that basis, it becomes obvious that banking groups with a clear and consistent strategic approach can be considered to be much more successful than other institutions. In a second step, we expanded this investigation by analysing the key success factors of individual banks demonstrating that high profitability in banking business heavily relies on the strategic position, the growth orientation and the risk position of a financial institution.
As in previous years, the third chapter of this study is dedicated to a selected current issue in retail banking. In times of increasing competition and decreasing margins in banking markets we chose to pay closer attention to alternative, future-oriented ways of sales distribution. Thus we analysed the current state and future prospects of entrepreneurial banking models – franchise-like sales networks in which entrepreneurs operate sales outlets on behalf of a contracting bank. Two aspects were at the centre of our analysis which seem to be key reasons for the low diffusion of these models within European markets: operational risks and national regulatory frameworks. The third chapter of our Central and Eastern European Banking Study 2008 focuses on the results from a CEE perspective.
Based on these issues, we want to provide new insights and innovative answers for the executives of international banking groups, the management of local institutions and all others who are interested in the most profitable and fastest growing banking region in Europe. We hope you will enjoy reading the Central and Eastern European Banking Study 2008 and wish that it may bring fresh ideas to your work.
Even after three years, the main objective remains the same as we want to give concrete suggestions and alternatives for the successful strategic positioning, management and steering of banks in Central and Eastern Europe. For that purpose, the Central and Eastern European Banking Study 2008 provides a detailed insight into the Central and Eastern European banking markets, identifies successful strategic approaches and key success factors for financial institutions and offers and evaluates prospects for entrepreneurial banking as a successful sales system.
The first part of our study concentrates on the banking markets. It contains not only an update of the well-proven analysis of market dynamism and market maturity from our Central and Eastern European Banking Study 2007 and 2006, like our S-curve concept to evaluate the key issue of the maturity of markets. Moreover, we also present some new selected insights into the current status and functioning of the banking markets by analysing the effect of declining margins in the financial sector and the consequences of the current credit crisis. In addition, we provide forecasts for the development of total assets and even the profitability in Central and Eastern Europe in the years to come.
Chapter II addresses one key topic of our study, the analysis of key success factors in the financial business in Central and Eastern Europe. In a first step, we identify the strategic approach of each foreign banking group active in this region and evaluate the success of different market strategies. On that basis, it becomes obvious that banking groups with a clear and consistent strategic approach can be considered to be much more successful than other institutions. In a second step, we expanded this investigation by analysing the key success factors of individual banks demonstrating that high profitability in banking business heavily relies on the strategic position, the growth orientation and the risk position of a financial institution.
As in previous years, the third chapter of this study is dedicated to a selected current issue in retail banking. In times of increasing competition and decreasing margins in banking markets we chose to pay closer attention to alternative, future-oriented ways of sales distribution. Thus we analysed the current state and future prospects of entrepreneurial banking models – franchise-like sales networks in which entrepreneurs operate sales outlets on behalf of a contracting bank. Two aspects were at the centre of our analysis which seem to be key reasons for the low diffusion of these models within European markets: operational risks and national regulatory frameworks. The third chapter of our Central and Eastern European Banking Study 2008 focuses on the results from a CEE perspective.
Based on these issues, we want to provide new insights and innovative answers for the executives of international banking groups, the management of local institutions and all others who are interested in the most profitable and fastest growing banking region in Europe. We hope you will enjoy reading the Central and Eastern European Banking Study 2008 and wish that it may bring fresh ideas to your work.
Study Publisher(s) :
- KBC Group
- Avenue du Port 2
- 1080 Bruxelles
- Belgium
- www.kbc.com
