Rural support
8
NZ special
What's NewS Issue 3 March 1998
operational systems to provide
transactional banking, with us
acting as the clearing bank.
The product will be totally
Rabobank branded, although
we won't be directly involved
in any day to day operations.
What's more, in terms of
servicing, we can tap into the
Association's 95 branches
located New Zealand wide.'
Michael Hales,
marketing our F&A
image
corporate banking we are
proving we support the agri
industry every step of the way.
It's a winning combination,
farmers accept the concept and
the fact that our specialization
is of benefit to them as
primary producers.'
CUSTOMER FOCUS
So much for securing future
business. In answer to what
makes Rabobank in the ever-
competitive New Zealand
market a success so far, Klep is
quick to point the finger to our
knowledge driven strategy, a
focal point he and the team
never tire of hammering home.
'Our number one best asset is
the thorough primary industry
know-how of our team. Our
policy is to take farm
management graduates, then
turn them into bankers - the
emphasis first and foremost
being on a solid rural
background. A farmer can see
the strengths and weaknesses
of an operation and is then in
a better position to determine
the client's ability to generate
capital. It's important our
bankers have rural knowledge
combined with the right
analysis tools and credit
process know-how of a banker.
In terms of customer focus, it's
also important for our people
to be in a position to talk shop
and encourage rapport with
our clients. This farmer-banker
combination is ideal and has
contributed greatly to our
success so far. In fact, so strong
is this playing card that, in
Kon Lander, lending his years of
experience as a rural banker
FARMER BANKERS
For Rabobank in New
Zealand, rural lending is
without a doubt the most
aggressive market. According
to rural division's senior
manager Ron Lander, all major
New Zealand banks are
tapping into the same target
group. 'However, Rabobank is
the only lender with a niche
primary sector focus which
helps differentiate us from our
competitors. Rural lending has
been through some difficult
years with commodity prices
such as beef and wool in
steady decline. Our biggest
industry by far is the dairy
sector which makes up the
largest single export within the
country's primary agriculture
sector. Externally, the New
Zealand dairy industry makes
up 22 percent of the world's
dairy trade, internally
contributing 4.2 percent to our
GDR It's our big fish, if you
like, and the reason why farm
lending for Rabobank over the
past three to four years has
been dominated by the dairy
sector. Compared to the other
main pastoral activities,
namely sheep and cattle
farming, returns for the dairy
industry have been good.'
GRASS ROOTS
Head of marketing, Michael
Hales agrees with the grass
roots approach and explains
how Rabobank New Zealand
is elaborating on the niche
food and agri theme. 'We are
the only integrated agricultural
and agribusiness bank in this
country. At least that's how
we're promoting ourselves - as
over seven years of business,
we are proud to say we have
never lost a customer.'
something more than just loan
facilitators to farmers. We
offer a full range of financial
services right across the
primary sector board, from
producer through to consumer.
Our strong points are that we
as Rabobank have been in
existence for 100 years, we
have a triple-A rating and
sound agricultural knowledge.
With our recent presence in
both rural lending and
CORPORATE BANKERS
Rural lending is difficult, but
an area of untapped potential
for Rabobank New Zealand is
corporate banking which, for
the two-man Auckland team
on track for a little over 18
months, is still in its teething
stages. Since agribusiness is
such a fundamental part of the
New Zealand economy,
Down on the farm,
rural lending manager
Allan Fleming in his
element
Proving that Rabobank down under
places emphasis on being a farmer
before being a banker is Auckland's rural
support team made up of Allan Fleming,
rural lending manager and backed by
Adrian Brough and Rodney Hutchinson
- all farm management graduates with
strong rural backgrounds.'Personal
contact with the farmer is important,'
says Fleming/we need to have our hearts in their business as well.
And being a single focused bank with an agri only portfolio, we have
a thorough understanding of farming.This unique farmer-banker
combination has earned a reputation of not being what the farming
community regards as "fair weather bankers"- meaning if things are
looking sunny, the finance is there, but if farmers experience a grey
patch, lending suddenly becomes difficult. With our strong agri
background farmers have learned that Rabobankers understand
farming is stormy by nature.'
Adrian Brough and Rodney Hutchinson - farmers turned bankers
