everaging success
Rutger Schellens
Dealing with differences
Europe is growing as new member states
join the European Union and borders
between existing members disappear.
This has created new opportunities in
high-growth markets like Central and
Eastern Europe. To take advantage of
this situation, over the past four years,
Rabobank International (Rl) has acquired
ACC Bank in Ireland and secured an
interest in Bank BGZ in Poland. The aim
is to increase RI's European network,
leverage the Group's key capabilities
and serve Dutch clients in their activities
abroad. To be a leader in F&A markets,
we have to extend our franchise,' says
Rutger Schellens, Chief Executive Officer
Europe and Managing Board member.
'We also want to take the knowledge and
expertise we have developed in retail
banking in the Netherlands and leverage
them elsewhere.'
There are sound reasons for this retail
banking focus in Europe. 'If you look at our
activities outside of Europe, you're talking
about Australia, California and Brazil,'
Schellens continues. 'All three are mainly
focused on farm financing. But the frag-
mentation ofthefarming sector in Europe
doesn't allow the same approach.' As a
result, Rl is adopting a broader strategy,
building small to medium enterprise (SME)
and retail banking business and benefiting
from high-growth markets in these areas.
'In Ireland, it's SME across the board, not
just F&A. In Poland, we're dealing with
farms, but on a very different scale from
other regions. So we position ourselves
as a universal "Polish" bank, serving other
cliënt groups like private individuals, SMEs,
and large corporates.'
As well as differences between Europe
and the rest of the world, Rl also has
to contend with differences in retail
banking within Europe itself. 'Despite
the growing "one European market"
philosophy, there are still major differ
ences between European countries,' says
Caroline Steenvoort, Head European
Retail Development. This is largely due
to different systems and fiscal treat-
ment.' Moreover, in countries like the
Netherlands and Belgium, the market
has Consolidated into a few large players,
but in other countries, like Germany and
Italy, this has not yet happened. All of
this has an impact on competition and
opportunities. 'On the other hand,' adds
Steenvoort, 'there are many similarities
when it comes to service and building
a strong distribution network to sell to
retail customers.'
Given the internal differences, how are
newly acquired banks reconciled with RI's
way of doing business? 'A key element
of the Rabobank style is positioning
and organising ourselves close to the
customer,' explains Steenvoort. Bank
BGZ fits this approach as Schellens
Issue 13- February 2007 The Word 25
