Welcome and introduction
- Programme overview
- Delegates expectations
Strategies in corporate banking
- An update of the banking crisis: lessons to be learned
- The competitive landscape in developed and emerging markets
- Different strategies in corporate banking
Workshop: Products and services required by customers.
- Corporate banking
- SME banking
- Retail banking
- The profitability of different banking products
- The key success factors in
- Corporate banking
- SME banking
- Retail banking
Workshop: The customers view of banks: How to position your bank in the eyes of your corporate clients.
The importance of the planning process for SME banking
- Mission & vision statements
- Setting SMART objectives for
- The SME banking portfolio
- A region or branch
- SME- account officers
- Defining financial and performance goals
- Profit goals
- Market goals
- Product goals
- Cost targets
- Portfolio targets
- The execution of the planning process
- Review of performance goals
Workshop: Setting individual goals for a SME division, a branch or account officers responsible for SME banking.
Building an efficient SME sales network
- Defining strategic business units
- Market research and relevant data
- Successful client segmentation
- Designing the national branch network
- Delivering through different sales channels
- Branch network
- Internet banking
- Direct sales forces
- Delivering corporate finance and capital markets products
- Executing a market penetration strategy
- The role and responsibility of the regional and branch manager
Workshop: Towards an effective sales management: Understanding the pros and cons of the different sales channels.
Effective client management
- Client relationship management
- Defining the clients needs and your banks share of wallet
- Improving cross selling
- Dealing with loss leaders
- Calculating the clients profitability
- Tracking sales channel efficiency
Case study: Delegates will analyse the performance of a medium sized corporate client, assess its requirements and develop a marketing strategy.
Building a competitive product range
- Defining core SME products
- Lending based products
- Transaction based products and services
- Introducing innovative products
- Risk management products
- Corporate finance products and services
Workshop: Delegates will standardize different product offerings and apply them to the SME market.
- Does bank assurance work?
- Sharing revenues and expenses
- How to build a portfolio of structured products
Case study: Identifying a corporate clients needs and increasing the share of wallet for your institution.
Measuring product and client profitability in SME banking
- Different concepts of measuring profitability in SME banking
- Revenues/volume/risk-weighted assets
- Regulatory capital
- RAROC and RORAC
- Applying risk adjusted pricing in SME banking
- Standard risk cost and expected loss expectation
- Unexpected losses
- Economic capital versus regulatory capital
- Establishing the minimum price for banking products
- Factors influencing the price of banking products
- Understanding the pricing practice in SME banking
Workshop: How to price a product in a competitive banking environment?
Mastering credit risk in SME banking
- Introduction to risk in corporate banking
- Developed markets
- Emerging markets
- How Basel II has changed the perception of risk
- Defining ratings for corporations
- Qualitative assessment
- Quantitative ratios
- Defining an efficient scoring system for SME customers
- Quantitative factors
- Qualitative factors
- The weighting of the factors
- What are the differences to a consumer lending scoring model?
- Defining ratios for structured lending products
Workshop: Analyzing the different rating models for corporate lenders and SME clients.
Case study: The effectiveness of financial ratios and qualitative factors in rating and scoring systems. How to apply them to the SME sector.
A streamlined credit decision process for SME customers
- Segregation of duties in the loan underwriting process
- Defining the appropriate approval level for loans
- Manual interference in the scoring process
- The governance of credit committees/ decisions
- Alternative route: credit decision by an expert system
- Joint portfolio responsibility
Case study: Improving the cooperation between the sales organisation and the credit department.
Understanding operational risk in SME banking
- Level of operational risk
- Risk indicators
- Assessing operational risk
- How to avoid operational risk
Workshop: Calculating the potential losses from operational risk.
Introduction to portfolio management in
- Role and responsibility of the risk management department
- Establishing risk- limit systems
- For portfolios
- Regions and branches
- Introducing a loan transfer system
- Applying risk mitigating factors to a SME portfolio
- Establishing a value creating management information system
Action plan for your bank or area of responsibilities:
- What steps to be taken next!
Course summary and close