5 International Strategie alliance Outsourdng Keeping costs down Royalties Branching out ISSUE 35/14 NOVEMBER 1994 The new branch's policy is designed to get them there. Whereas the competition handles all business for all clients, Milan is focusing solely on the real multinationals. 'This is where our strategie alliance with Cariplo comes in,' says Van Limburg Stirum. 'Accord- ing to some sources, Cariplo is the largest bank in the country, while others say it is the second largest. But which ever way you look at it, its a big bank.' Cariplo originated in the Northern Italian Lombardy region, but through a series of min- ority stakes in southern savings banks, it now has a comprehensive nation-wide network. 'This means it can assist our Dutch clients wherever they need to be, and especially the small and medium-sized companies, so we can concentrate on the very big players,' Van Limburg Stirum continues. 'As yet, it is not a major thing - we only began in 1992 - but it is certainly starting to piek up. I'd say it was already a success in the sense that we have al- ways been able to handle cliënt requests promptly and efficiently.' 'To make this work, even at a modest level, is a real success,' De Cardona believes, 'because strategie alliance partners can perceive you as competition. So, I think what we've already achieved together is quite remarkable.' There appears to be a lot that is quite remark able and even unique on Via Albricci. Their computer main frame is a case in point - they don't actually have one. 'We use an outsour dng system,' explains information system ma nager Marco Tagliani, 'so we don't need a main frame in the office.' This year, Milan sig- ned a contract with an outside company that had been created by a group of banks with the aim of providing this type of service. 'We are the only foreign office to use this approach, and are possibly the only bank in Italy. But this company has been selling the software itself to banks for some years now,' says De Cardona, 'and it works extremely well. They offered us this deal which means we can access their hardware and software at all times. In fact, a lot of other banks here are watching us close- ly to see how it works.' The advantages are patently clear. There are no fixed investments in technology that is often almost obsolete before it's fully oper- ational 'and,' says De Cardona, 'we don't need an enormous EDP department. That is a real saving. There is a minimal risk of non-success, truly minimal, because this system is based on software that has been tried and tested for years. Our only risk is if the telephone lines all break down.' The downside is, of course, con- fidentiality. 'As we're the first bank to try it, I doubt there's any chance of a breach in con- fidentiality,' says Van Limburg Stirum. 'I think it's more a psychological or emotional thing for us - the idea of someone else having insight into your figures. This company is trying to sell the service to other banks, so they are doing everything they can to make it a suc cess because it is not in their interests to prove untrustworthy.' It is almost impossible to get a whole office together at one time, and so itproved in Milan - missing from thephotos are treasury managers Guiseppe Civardi and Massimo Borgato (out at a conference), Laura Tosini, assistant to the controller (on maternity leave) andAngela Sabatelli of the back office who was ill. There is more than a hint of pride as De Car dona goes on to mention another computer first. 'We have a heavy focus on treasury and Marco Tagliani has developed the most ad- vanced interest-rate swap software on the Italian market to assist our treasury managers. Other banks are now interested in buying it, so we have made an agreement with a software house to sell it under their responsibility. But we'11 get royalties.' Now there's a hint of satisfaction. In Milan, small has been beautiful and pro- fitable for Rabobank since the operation be gan. But if they are to achieve the aims they have set for themselves - continued annual growth in all activities - Rabobank Italia is going to have to grow itself. The branch will be looking to doublé its present staff size over the next three years. Yet, they have no inten- tion of losing their positive bottom line. 'I think we upgraded at precisely the right time,' De Cardona believes. 'We could have gone for it earlier, but a lot of factors made waiting worthwhile. We have no capital because new EU legislation means a European bank can set up in another member state without bringing in capital to the country concerned. Plus, by doing it now, we can have both the branch and the fmance company operating side-by-side without ever having to decrease our profits. We'11 be recruiting new staff- in just about all departments. But we'11 do that in a phased way. We've proved profitable in the past and we want to keep it that way. Even with all the changes and additional costs of upgrading, we've still made a growth budget for 1995.' As you look around the spacious, light and essentially elegant Milanese office with its al most tangible sense of focused activity, you somehow can't help sharing Rabobank Italia's confidence.

Rabobank Bronnenarchief

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