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Strategy for domestic retail banking
Rabobank Group pursues all-finance market leadership in the Netherlands. The local Rabobanks
make an important contribution to achieving this target, as do Obvion's mortgage sales. In its
strategy update, Rabobank indicated that its aim is to be the biggest and most important
corporate bank. This means that its position must be extended, particularly at the high end of
the market. The strategy also explicitly states Rabobank's aspirations for growth in the private
banking market. As a result of the stronger focus on sound balance sheet ratios, the local
Rabobanks intend to finance a large proportion of their growth in lending from growth in
amounts due to customers. The implementation of the Rabobank 2010 programme for the
local Rabobanks is another important element in the strategy.
Many local Rabobanks getting to grips with Rabobank Vision 2010
Rabobank's primary objective is to help members and customers achieve their ambitions.
Rabobank 2010 offers options for innovating and improving customer service while cutting
costs. Local Rabobanks can put this vision into practice by implementing a number of
programmes, including Processes Monitoring. Working through this Programme, they are
expected to implement new standard processes and monitor them closely, so that customers
are being served more quickly and at lower costs. In 2007 and 2008 five local Rabobanks and
Rabobank Nederland launched a pilot and the Programme was tested by nine other local
Rabobanks.The Rabobank 2010 Programme also became available to the other local Rabobanks
later in 2008. Besides these fourteen local Rabobanks, another 51 local Rabobanks started to
implement the Programme in 2008 and 2009; many banks will follow suit in 2010.
Rabobank bolsters position in corporate and mortgage markets
Market shares
in
2005
2006
2007
2008
2009
45
40
Mortgages
Savings
SME
8 Statistics Netherlands (CBS) have
used the same definition for savings as
the Dutch Central Bank (DNB) since
January 2009. As a result, savings
deposits held at banks that are not
subject to DNB's reporting requirements
are now also included in calculating the
volume of the Dutch savings market.
The comparative figures as at year-end
2008 have been restated.
Rabobank Group holds a leading position in a large number of sectors of the Dutch financial
services market. It has traditionally been a major player in the agricultural sector. Rabobank
also has a strong presence in the Dutch mortgage, savings and SME markets.
The yearly mortgage production in the Netherlands contracted by 33% on 2008. Rabobank
Group's market share saw a 0.3 percentage point increase to 29.9%. The local Rabobanks'
share in the mortgage market increased by 2.5 percentage points to 26.1%; Obvion's share in
this market was 3.8% (6.0%).
Dutch consumers put more of their money towards savings and conditions in this market
remained fiercely competitive. The volume of the Dutch savings market8 increased by 7% to
EUR 284.8 (266.4) billion in the reporting period. In 2008 Rabobank benefited from its stability
in a turbulent environment, thanks to which the share in the savings market rose by 2.3
percentage points in that year. This market share fell back slightly in 2009 due to strong
competition, mainly at Robeco Direct. The goal was to strike the right balance between market
share on the one hand and margins on the other. Rabobank Group's share in the savings
market stood at 40.2% (40.7%).The local Rabobank's market share was 38.5% (38.4%), with
Robeco Direct's share dropping by 0.4 percentage point to 1.6%.
Rabobank aims to build on its position in the Dutch corporate market, particularly in the top
end of this market. The share in the SME market was up 2 percentage points to 41% in 2009.
18
Report 2009 Rabobank Group