FARs knowledge ofglobal developments
is essentialfor the
business and our bankers 9
B
How does the Rural Retail
banking strategy work for our
Brazilian business?
B
ledge across the R&R businesses
give you a competitive advantage?
A"ln short, yes. I think there's an enormous
amount we can learn from each other. Farmers
often think and act in the same way, especially
when they're involved in large commodity
segments linked to global markets. They
have the same concerns and face the same
issues and challenges. And they need banking
that fits their business. No other bank has so
much dedicated knowledge and so many
dedicated employees with such a clear
How do you learn from other
country operations?
How does the R&R strategy
benefit rural clients in Brazil?
What business ideas are
working well in Brazil that could
possibly be implemented in
other rural banking regions?
A "Before I joined Rabobank, I farmed
for 11 years in Brazil, managing farming
companies.Then, once l'd completed
my Masters in the US, I joined Rabobank
in 1997. My first task was to set up the
Advisory department. Since then, l've
been involved with the F&A sector, and
managed the corporate banking division
for four years. And for the past four years,
l've headed up the rural banking business.
Because we manage agricultural risk,
knowledge of the farming sector in Brazil is
essential. You need to know the farmers
and whether they're running their
businesses effectively, and you need
to know the farming environment and
the risks."
A "It's an excellent fit in Brazil. We define our
strategy in local terms as being a top bank
for top farmers in top commodity sectors.
So we apply Rabobank's strategy in a very
straightforward way. We provide financial
solutions to leading farmers with a proven
track record of high yields and low costs.
And Brazil is a country where you really do
business with farmers at the kitchen table.
Forging close relationships is the only way
you really get to know your customers and
how they run their business. Because we also
look at social and environmental issues, such
as child labour, deforestation, water pollution
and soil erosion, we tend to minimise
reputation risk."
focus on clients. Rabobank is the only bank
that devotes so much attention to matching
our clients' local banking needs, to their
sectors, and the global context. Basically, it's
good banking for good farmers. And of
course, we have challenges, too. To keep
growing we need to retain the best people,
and hire and train more people. Retaining
the people we have invested in and trained
in F&A banking is particularly challenging, as
Brazil's a very hot market right now and the
competition for the best people is fïerce. We
also need to increase efficiencies throughout
the process chain. Making documentation
and analysis leaner in a bank with a strong
wholesale background is a challenge we have
to overcome."
A "I travel a lot and get my people to visit other
countries. l've spent time at Rabobank AF and
Rabobank NA in the US and at member banks
in the Netherlands. Last year, I took a group of
regional managers to the Netherlands to see
how they do business. And this year, a group
of relationship managers from Brazil will spend
some time in Australia. Very importantly, we also
get people over here from other countries. Dick
Witherow (now senior manager Special Asset
Management at Rabobank Australia) is a good
example. FHe worked in Australia and helped
set up the Chile business before coming here.
Neil Dobbin, Group Executive Rural Banking
in Australia, also visited Brazil when we were
starting up. We are using Australia's experience
with their Client Relationship Management tooi
to develop ours. Just seeing first hand how Rl
does business in other countries and talking to
people like Neil is a very good way to learn."
A "If you can help your customers improve
their business, you improve how you serve
them. Travelling to other countries you also see
what other farmers in their sector are doing
around the world. After alt, our customers are
part of a global marketplace. That's why FAR's
knowledge of global developments is essential
for the Brazilian business and our bankers.
I think a clear sign of how we are adding value
to our farmers is the fact that we are gaining
market share and share of wallet, while
increasing the number of products we are
selling to our clients and maintaining good
profitability."
A "One growth area in Brazil is the succession
business. Farming is still very much a family
business in Brazil and a lot of farmers are
now looking to pass on the business to their
children. What we've done is piek a group of
select young farm managers and we're giving
them a course in financial management,
business plans and so on, while FAR is also
running seminars on a number of F&A
topics. We are helping them to enhance
their governance level while keeping an
international perspective on market drivers
and trends. We've also identified the 10
percent of our best and largest clients and
devised a specific marketing programme for
them, which includes exclusive seminars at
the bank, training courses for their financial
managers, trips abroad, and advisory services.
And our CSR department organises 'field-
days' on sustainability, using chosen farms
to showcase environmental and labour best
practices. These are very popular with our
clients, and are always very well attended.
All of these initiatives enhance our intimacy
with clients and could be adapted for other
regions."*
ISSUE 26 JANI
RI WORLD
