working relations
Value-added solutions
Arranging business
How will the reallocation of RI's
large Dutch corporate clients
work in practice? We find out
how the migration is progressing.
Service agreements
Serious partner
6 What's NewS Issue 2 March 2000
Acustomer-dedicated approach is
nothing new to RI. Our goal of
becoming strategie partner to clients by
providing not just products but solutions
is fundamental, and one that Pieter
Zwart, team leader at RNCC, believes
should be adapted for the middle rnarket
as well. Zwart was a relationship manager
at R1 in the logistics, transportation and
construction sectors - expertise he now
brings to RNCC. When it comes to being
know-ledge-driven, Zwart and his team
'want to show mid to large-size clients in
the Netherlands that Rabobank is not
only an F&A bank, but has quite a bit of
know-ledge in other sectors as well'.
This is the thinking behind forming six
sector teams, to be located in Utrecht: lo
gistics, F&A, health care,
industry, government and
other corporates (trade).
'In a transparent market,
margins on loans are
quite obvious, allowing
clients to just shop for the
best deal. What ma kes us
the best sparring partner
is our sector knowledge,
our ability to help a cont-
pany realize their long
range goals. If we under-
stand a specific business
and its objectives, we can
build deeper relationships
as well as assess risks more accurately.'
At RI, Zwart managed accounts with
multinationals and served as an advisor
on logistics for Dutch middle market
teams. About one-third of existing clients
in that sector will stay with RI, the other
two-thirds will migrate with him to
RNCC, Zwart explains. Asked why he
wanted to change his focus to the market
for mid and large-size companies, he
Zwart - transporting excellence
replies: 'It's interesting
because the Netherlands is
very competitive in the
logistics sector due to
geographical position and
a healthy economy and
labour force. Logistics is
the driving force behind
the success of most
companies, especially now
that time-to-market is so
important. We'd like to
form long-term alliances
with clients who are going
in this direction, like the
automotive industry.'
The slogan here is clearly: Why not take
what RI does well and apply it to mid and
large-size companies? At the same time,
Zwart does not discount the importance
of teamwork in achieving this level of
service for these clients. I Ie hopes joint
marketing efforts with ntember banks will
be successful, and that the new frame-
work will allow local bankers to find their
way and ntake the most of RNCC.
Continued from page 4
ber bank taking responsibility for priori-
tizing activities - in consultation with
partners in true Rabobank fashion, of
course. 'But where we are going with this
concept is a step further,' Cramer
explains. 'Basically, we're talking a virtual
approach. Our ntember banks retain their
local independence and we "cherish" that
autonomy because it inspires entrepre
neurship and supports long-standing and
deep customer relationships. At the same
time, both entrepreneurship and customer
relationships must be backed by high
levels of services and products which most
member banks cannot support individu-
ally, or even in clusters.'
Cramer sees RNCC's role as 'building a
mature range of products and services,
making thent easily available and accessi-
ble to the member banks., and of course
to our own customers.' One example here
is, say, mergers and acquisitions. 'M&A is
a very specialized business,' Cramer says.
'So we have reached service level
agreements with Rabo Securities to supply
six Full Time Equivalents specifically
for RNCC customers. It is agreements
like this that ensure we get top service
for our clients.' The same will apply for
other products, such as treasury and
structured finance.
That is one part of the new RNCC. But
there is, of course, also a large 'inhouse'
operation which brings together sector
expertise in relationship management,
product knowhow and other indispens-
able services to the domestic corporate
market, such as the arrangers of franchise
funding (see sidebar: Arranging business).
'We currently have around 800 clients,'
Cramer confirms. 'They are served by a
number of relationship managers with
specific sector expertise. This is another
key element in our virtual structure and
we will be growing our business into the
future. Basically, we have a real opportu-
nity here to project RNCC as a very seri
ous banking partner for corporate clients
in the Dutch market. We are planning to
take full advantage of that opportunity.'
There are lots of unsung heroes in any organization, but thcre's one group
which has been almost invisible - except, of course, when it comes to
the substantial bottom line it generatcs every ycar. Many large retail chains
in the Netherlands are franchised. Entrepreneurs who want to start up
supermarkets, drug stores and the like take up a franchise with one of the
top names. Finance is often handled by Rabobank's so-callcd arrangers who
quietly organize funding via a local member bank for the entrepreneur.
This structure must meet criteria established by both the bank and the retail
chain to maintain image, quality and service. I.ikc many other activities that
were formerly part of RN, the arrangers have now become part of RNCC.
