Yves Martrenchar, Chief Operating Officer of BNP Paribas Retail Banking

News Article -- May 02, 2011

BNP Paribas changed scale after the Fortis acquisition. Who exactly are the main retail banking players on the European scene?

Yves Martrenchar: Very few European banks are present in several Western European countries: in addition to BNP Paribas, the other main players are Santander, Crédit Agricole, Unicredit and HSBC. A sort of Champions League, as it were.

Today BNP Paribas is the only bank with a significant presence in retail banking in four eurozone countries: France, Italy, Belgium and Luxembourg. And our market penetration is considerable: out of a population of 135 million in those four countries, we have 14 million private clients.

Do you expect a trend towards consolidation?

Y.M.: Since we acquired Fortis, which enabled us to enter the Belgian market, there has not been another major transaction and banks are currently facing new capital constraints. I don’t think that large scale consolidation is very likely in the short term.

Retail banking is strongly local in character. What advantages does your international network give you?

Y.M.: Having an international network makes it possible to share knowhow and innovation. We can also pool certain resources and investments. For instance, we’re going to standardise the processing of all card operations, whereas we currently have 21 different systems!

The challenge is to maintain a balance between horizontal integration – which yields synergies – and the necessary closeness to our clients. When we deploy our integrated model in a country, our goal is to embed ourselves in the local economy, and build rich and lasting relationships with our clients, both corporate and private.

Is there such as thing as a global client? Or a European client?

Y.M.: Every country has its own particularities, and its own banking culture. We can distinguish between developed countries and emerging countries, where the middle classes are beginning to have access to the banking world.

However, the studies we have carried out highlight many common elements. In all countries, clients want an offering that is both competitive and safe – and flexible, to respond to the increasing demand for personalisation. The relationship aspect is important: clients value competence, responsiveness and proactivity. They also want stability: they don’t like it when their contact person changes too often, and they expect their own customer history to be taken into account.

These are the basic characteristics of a global client, even if certain traits are more strongly emphasised in any given country. For example, the acceptance of banking costs varies considerably from one country to another.

And corporate clients?

Y.M.: For companies, the model is centred on business centres – we have 150 of them in 23 European countries. The initiative “One Bank for Corporates in Europe” is the expression of our determination to support them in all the markets they’re present in, by building close relationships around a complete range of services: cash management, leasing, factoring, credit, trade solutions, etc.

You often mention an “integrated model”. How do you define it?

Y.M.: Our model for retail banking is that of a multichannel bank, which manages all services and customer contacts in an integrated manner. In the physical branch, via telephone and via the internet site – and clusters all the offerings and specialised services of the group around them. This requires high performance tools that enable us to understand customers and contact them at the right moment – and to respond in an appropriate manner when they call us. We also deploy personalised information systems and sales support tools on the workstations of our advisors and call centre advisors.

Has the role of advisor changed?

Y.M.: Today advisors are operating within an increasingly directed environment, and using leading edge decision support tools. That said, initiative and commercial talent remain determining factors. Being able to listen to the client, and daring to ask the right questions in order to propose a tailored response: that’s the key competence!

Availability is another: you need to be able to juggle leads, appointments and unexpected calls from clients… And that’s a talent that depends on more than just an information system!

Will the bank of tomorrow be very different?

Y.M.: Not fundamentally. In recent years the internet has become important, and mobile banking is accelerating – in terms of information and services, but also in commercial terms. However, this isn’t really a revolution for us. Given that we have a genuinely integrated multichannel model, the main challenge will be to shift our offering in response to market developments and customer needs. Our ambition remains the same: we want to be the best multichannel player, in particular in online and mobile banking.

Biography

Having joined BNP directly after his studies at the École polytechnique, Yves Martrenchar has spent his entire career in the retail banking division. He set up the first “Products and Markets” marketing department and went on to lead the Retail entity of the retail banking division in France. Today he is responsible for Distribution, Markets & Solutions, and is COO of BNP Paribas Retail Banking.