Quick wins
THEME - COUNTRY BANKING
Canadian Connection
Road ahead
including pension and tax laws - differ between countries, so
it's not easy to transplant products without tailoring them.
'Small and medium banks can have difficulty developing their
own products due to a lack of critical mass,' says Van der
Weijden. Molenaar adds, 'As a small player you can only af-
ford to make limited investments in new systems and product
development. As part of a larger group, it's possible to exploit
the expertise of the group and develop the critical mass needed
for new products. While there is the possibility to share prod
ucts, it's possible only for those products that don't require
large local investments.'
Already the forecast is for some quick wins for ACC in terms
of using Rabobank's expertise; not to mention cheaper funding
possibilities and increases in status in the financial sector that
the Triple-A rating immediately installs. From the Group's
perspective, the most immediate gain to be had from adding a
bank working for the primary F&A sector is the competitive
advantage of covering and having knowledge of the whole
chain. However, even more exciting is the prospect of using the
ACC network to distribute Rabobank retail products, specifi-
cally asset/wealth management. Certainly the successful uptake
by ACC customers of the Solidworld Bond developed by Rabo
A strategie alliance is being drafted between
Alberta Treasury Branches (ATB) and Rabobank
International. The alliance will grow opportuni-
ties in the Bood and Agribusiness (F&A) industry
and forestry sector, allowing RI access to new
distribution channels. This is an opportunity to
undertake joint lending and to assist ATB 's
internationally active customers who require
cross-border financial services, such as invest-
ment banking, corporate finance advisory and
F&A risk management services. Future initiatives
to be explored include the possibility of offering
specialized retail products includng leasing and
investment funds to ATB clients via its branch
network. Cooperation on e-commerce and
information technology projects are also future
possibilities.
Securities indicates the potential. Furthermore, prospective
synergy between RI wholesale activities and ACC in terms of
Treasury and corporate/structured finance opportunities is
expected to bring rewards. Van der Weijden says, 'Better
integration will help us to recognize joint opportunities.'
I ligh on the list of priorities is intproving the integration
between ACC and RI and promoting synergy within the whole
Group. Part of ACC's transformation from a bureaucratie
organization into a cliënt orientated, privately owned bank is
the incorporation of a new set of policies and procedures.
'Thus there needs to be greater transparency between ACC
and RI,' says Van der Weijden with a resolve to facilitate this.
Although it's early days, preliminary reports suggest the
relationship between ACC and the Rabobank Group is pros-
perous. The expectation is that ACC revenues will grow by 20
percent per annum over the next five years - and this does not
take into account the luck of the Irish. The 'country banking'
strategy now in the spotlight is not so much a revolution but
an evolution. By consolidating expertise and resources
acquired over more than 100 years of Rabobanking, the
Group will be catapulted into new retail markets, thus
ensuring continued success over the next century. I
The Word I 73
