executive profile
Henk Visser's personal highlights
What's NewS Issue 1 January/February 2000
embroiled in a heated discussion on
subsidies - I'm still not sure which side
got the best of it.
After the US, Rabobank bought into Germany by
acquiring ADCA Bank - according to Rt mythoiogy,
it wasn't our best move.
There were pros and cons. At the time, we
bought ADCA because the German
market is key for the Dutch economy. We
feit we had to have a presence there. And
acquiring ADCA did a lot to promote our
international profile. But, like all the other
foreign banks who went into Germany,
we discovered how strong relationships
were between companies and their banks.
It wasn't easy to come between them.
Your next move was to establish the so-called
'port strategy'.
That's correct. We built a presence in all
of the world's most important trade cen-
tres, with the exception of Japan and Ko
rea. The thinking was our role in trade fi-
nance, but this initial network was also an
important part of our agribusiness policy.
Rabobank's international activities focused on
agribusiness comparatively early.
When 1 headed up the international divi-
sion in the 1980s, we wrote a policy docu
ment which stressed the importance of
agribusiness in our international future.
When 1 left international to join the exec
utive board in 1990, more than half our
US activities were agri-related. As you can
imagine, I'm pleased to see this focus
carried through in the joint venture. And
to see just how highly our international
network is valued by our German partner.
Most of our international expansion has been
achieved through organic growth. Why?
You mean as opposed to acquisition?
Over time, when we discussed growth, we
would weigh both routes - organic and/or
acquisition. The relatively few acquisi-
tions we have done, such as PIBA, which I
look back on with real pleasure, have
been successful. But our strength has
always been in 'home grown'. It is what
we do best. But when you look at very
specific areas of expertise, such as fund
management or venture capital, then you
see we have used acquisition.
You don't have the same kind of(cultural) probiems
with organic growth.
If you have a very specific policy and
strategy, then finding suitable acquisition
candidates which meet your criteria is
even harder.
Atone time, cross-border strategy was prompted by
the notion of'global serves local'. What about now?
It is still relevant today, although perhaps
in a different way. What is 'local'? Our
customers in Latin America see themselves
as 'local', so they have to receive the same
service as any other local customer, wher-
ever they may be located. What I would
say here is that the strategie alliances in
Europe were perhaps less effective in this
respect. It wasn't always easy to motivate
partner banks abroad. That will change
through our new cooperation. I'm con-
vinced that our German colleagues, and I
assume the other parties who will ulti-
mately join us, will be highly motivated to
provide considerably better service.
This move comes at a time when Rl has come in for
some fairiy negative publicity.
A lot has happened to Rl in the past three
years. But I am still convinced that the
course we chose is the right one. There is
no place for an international wholesale
bank which does not have a significant
presence in intermediation. That is why
we made the decisions we made. In my
regular contacts with clients, the majority
say they appreciate greatly our expanded
range of products and services. From an
internal perspective, I would say that ten-
sion always occurs in organizations un-
dergoing processes of change; I believe we
would have had similar experiences with
an acquisition. It is my belief that the ten-
sions which did occur are due primarily to
the fact that our back office activities were
under extreme pressure and therefore
could not meet the expectations of some
people coming in. But let me add here that
Rl was not the only institution which
experienced difficulties. Many institutions
suffered major losses and even took
irresponsible risks. Rl did not. Our risk
profile has always remained favourable -
even in periods of strong growth.
What about actual results?
If you look at the numbers for 1999, then
you'll see we're performing according to
expectations. Again, I think the measure is
how your clients see your performance.
And clients teil me that they have gained
added value from us in recent years.
You mention your discussions with customers - you
are possibiy best known for your intense dient rela
tionships and your deep knowtedge of the agribusi
ness industry. Why is that so important to you
I have always believed that you cannot
develop and pursue a strategy unless you
are in regular contact with the people you
are trying to service - your customers. 1
would have found it very difficult to come
to strategie concepts and actions without
a real sense of the market. If you are not
engaged in a meaningful dialogue with
your customers, if you are not listening to
them, hearing and heeding their advice,
then your strategy will not be effective. 1
have always been fascinated by translating
customers' perceptions into strategy. You
know, a bank only exists by the grace of
its customers. You have to give that visible
recognition. Maybe I'm an old-fashioned
kind of banker. The kind who believes
that a banker has to be at the customer's
service, 24 hours a day.
According to Visser, his almost 30 years with the Rabobank organization
have comprised both huge challenges, but also a lot of fun. 'I am grateful
for the great level of freedom I have always had to do the things 1 believed were
important.' Here are some of them:
In the past three decades, we have grown Rabobank from a primarily
domestic bank with a heavy focus on retail to a financial institution whose
clients - both at home and internationally - perceive us as an international
player;
Rabobank is one of the few financial institutions worldwide which is
recognized as a true agribusiness bank;
The Rabobank organization is the only non-government bank with a triple-A
rating. Due to a prudent risk profile we have been able to maintain that rating
very emphatically;
Finally, Visser says, achicving the letter of intent agreement with our
German colleagues is a truc highlight. It opens the door for Rabobank's
further entrenchment in Europe. 'It may be more than 20 years after
wc first launched Unico, but we got there in the end.'