Alliances
give shape to
Rabobank's
European
strategy
B
Babo
band Issue 11/August 24, 1992
Some 15,000 branches are
ready to serve Rabobank's cus-
tomers in Europe. Rabobank's
own foreign offices are the out-
posts in the bank's European pol-
icy, while the alliance partners'
branches are the service points
at local level. A massive and
wide-ranging approach such as
this calls for efficiënt operational
procedures. The Eurodesk is the
nerve centre for the contacts be-
tween the customers and Rabo
bank's European services.
Cariplo
Banco Popular Espanol
More than 15,000
branches are at the
service of the customers
To supplement the services pro-
vided through its own office in Milan
Rabobank entered into a strategie
alliance with Cariplo - short for the
Italian Cassa di Risparmio delle Pro
vincie Lombarde - which is Italy's
main savings bank. The bank
originates from Milan but is now ac-
tive throughout the country with a
total of over 600 branches. Since
its formation in 1823 the bank's
activities have steadily expanded.
Cariplo has its roots in the private
savings market, but meanwhile it
has also been clearly developing as
a bank for large and small industrial
companies. One of Cariplo's most unexpected services is the operation of a number of
warehouses and refrigerated stores at the frontier. Exporters and importers - including
Rabobank's customers - can store their goods here temporarily. Needless to say, Cariplo
also offers the usual banking services for international Rabobank customers.
In Italy, Rabobank opted for a strategie alliance with
Cariplo.
uild, buy or cooperate. These were
the three choices open to Rabobank
for designing its European policy.
The economie developments in Europe
made it essential to expand the range of
international services. The local Rabo-
banks' customers are increasingly doing
business on a cross-border basis.
Expensive As far as possible, cus
tomers must be served where they are ac-
tive. Opening an own Rabobank office in
every major European city is an expensive
and often time-consuming strategy. Building
up an extensive foreign branch network is
therefore a limited option. Buying and taking
over a foreign bank with a strategicaily well-
developed branch network is another possi-
bility, but this too has its disadvantages. It is
still reasonably possible to evaluate the
risks which a foreign bank has in its credit
portfolio. Things are much more difficult
when it comes to the problems resulting
from a difference in corporate culture. For
example, the integration of the former ADCA-
Rabobank's first strategie alliance was concluded with Banco Popular Espanol in
1989. In the past two years, the Spanish partner has been ranked as the best bank
in the world by rating agencies such as IBCA and Euromoney. Popular - as it is called
for short - consists of Banco Popular and five regional banks. The advantage of that
regional orientation for Rabobank customers is that the local Popular branches are very
well informed about the circumstances in their area which vary to some extent from
place to place. Popular's activities are strongly focused on medium-sized and small
businesses. Our Spanish partner is thoroughly at home in the field of funds transfers.
A Dutch Rabobank customer can go to any one of the over 1,700 branches of Banco
Popular and Rabobank's representative office in Madrid.
The strategie alliance with Banco Popular in Spain was the first of the partnerships.
Bank into the Rabobank Group initially ran
less smoothly than had been expected.
Cooperation The possibility of cooper-
ation presented a good alternative. In this
structure Rabobank enters into strategie al
liances with highly reputed foreign banks.
Stable and reliable banks with a large net
work of branches and familiar with small
and medium-sized businesses. Apart from
its own offices, the more than 15,000
branches of the alliance partners are now
at the service of the local Rabobanks' cus
tomers. Conversely, the customers of the
partner banks can be helped through every
local Rabobank. In this way, Rabobank's
customers can obtain the same high quality
services internationally as in their own
country. The branch network of the alliance
partners and their knowledge of the local
market are important plus points. There are
currently five strategie alliances: in Spain
with Banco Popular, in France with Crédit
Agricole, in Great Britain with Lloyds Bank,
in Italy with Cariplo and in Austria with
Raiffeisen Zentralbank. Strategie alliances
are expected to be concluded shortly with a
number of banks in Germany.
Procedure How do these alliances
operate in practice? The Eurodesk in
Utrecht (030-901040) plays a central role
in the services supplied. A customer comes
into the local Rabobank and asks for a ser
vice in a country abroad. If necessary, that
bank gets in touch with the Eurodesk which
is the central point of contact for the local
banks. Through the Eurodesk's Information
Centre, enquirers get answers to ali their
questions about doing business in Europe,
about forms and procedures, and about
foreign products. If necessary, they are re-
ferred to the Eurodesk employee special-
izing in the relevant European country, who
acts as a link between the local Rabobank
and the alliance partners of Rabobank
Nederland. (Continued on page 5)
