House in order
Streamlining the central organisation
Refocused distribution formats
Strengthening our position as Allfinanz
Group
Priorities
Subsidiaries: role and added value
Strategy and policy 17
an important anchor for our market leadership ambition. Loyalty to
the business and a preference for Rabobank Group's financial pro
ducts are important yardsticks of their engagement. Also, the mem
bers are a source of growth and inspiration because they give their
opinion on the quality of the services and because they actively
participate in innovation projects.That is why the strategy empha
sises a broader member base and stronger member engagement.
In the year under review, membership grew to over one million and
numerous initiatives were developed, both by and for members.
Bringing our house in order implies strengthened selling power and
continuing cost reduction efforts - both at a local and at a central
level - as well as greater efficiency. Our policy is centred on the
local Rabobanks and yielded results in the year under review.
Substantial staff reductions not only caused the rise in costs to level
out at the local banks but also improved financial results. As far as
selling power is concerned, significant improvements are still neces
sary. Having one's house in order also means having a vision of the
future positioning of the local Rabobanks in the longer term.What
will the local banks be like in a few years' time? What will their size
be? What should their performance and skill levels be like? And
how will this relate to Rabobank Nederland's central support orga
nisation? In the autumn of 2002, a special project group was esta
blished that should provide an answer to these questions in the
course of 2003.
As a result of mergers, the size and skill level of many local merged
banks have increased to such an extent that streamlining of the
central organisation has now become a necessity. In the year under
review, a first start was made. This has resulted in a substantial
reduction for Rabobank Nederland of external staff in particular and
has made an important contribution to better cost control.
However, further streamlining of the central organisation will be
inevitable. Through more demand-driven support, Rabobank
Nederland will continue to respond to the increasing expertise in
the local banks.
Maintaining the current strong market position of the local
Rabobanks and ensuring growth in those areas where market lea
dership has yet to be achieved will demand great efforts in the time
ahead of us. We shall continue our work on the efficient promotion
of Rabobank as the bank-near-you in the Netherlands, with the
most closely meshed network, both physical and virtual, of contact
points for our clients. Sales via direct channels, such as the telephone
and the Internet, will be emphasised. In addition, distribution formats
and service concepts for specific client groups, such as the well-off,
will be refocused or developed further. In order to strengthen our
position in the Dutch corporate market, local banks that meet
certain qualifications will be granted broader capacities to deal with
large transactions independently.
Together, the local banks and Rabobank Nederland Corporate
Clients, which is part of the wholesale banking business, succeeded
in strengthening Rabobank's position in the corporate market con
siderably in 2002.
Rabobank Group's strategy aims at strengthening its Allfinanz posi
tion in three ways:
Primarily by strengthening the market leadership of the
Rabobank brand in the distribution of financial services, as descri
bed above.
Additionally, by strengthening our market position in financial
services distribution through existing and new subsidiaries.
Selectively, by strengthening our position as a producer of finan
cial services by supplying products to distributors outside
Rabobank Group.
Currently, Rabobank Group is a market leader in many financial
retail markets, including payments, savings, investment, mortgages
and business financing.This is due to its strong position in the pri
vate segment, the small and medium-sized businesses segment
and the agricultural sector. Nevertheless, further growth is called for
in a number of areas. In practice, priority will be given to strengthe
ning our market position in the corporate market, insurance, asset
management (private banking), employment benefits, pensions and
care, consumer credits and mortgages. In addition, the position of
Rabobank Group - and particularly that of the local Rabobanks -
will have to be strengthened in the large(r) cities and among ethnic
minorities.
Apart from achieving attractive returns, the target for our subsidia
ries is to strengthen Rabobank Group's strategic position and image
both at home and abroad and to improve its total risk profile. In this
way we can provide for continued best-buy solutions for clients of
the local Rabobanks, even in the longer term.The subsidiaries are
competence centres for the local banks. Apart from this role, virtually
all of them also serve their own customers, who do not bank at a
local Rabobank. All subsidiaries are assessed according to their
contribution to Rabobank's market leadership ambition, using
criteria such as customer value and their financial and strategic
added value.
