Finansbank embraces new expansion strategy

Finansbank is poised to embrace a new growth strategy, relying more on alternative distribution channels, now that it is changing its corporate identity to Credit Europe Bank.
“We do not have an aggressive target in terms of network expansion, but we want to be present in all the major cities. At the end of June, we’ll finish work on the new branches and then we will invest more capital in alternative channels,” Omer Tetik, vice-president of the bank, told ZF.
Targeted distribution channels include, Internet and mobile banking, e-payment instruments, as well as collaboration with sales intermediaries.
Finansbank at the end of last year had a 60-branch network and is expected to operate 75 branches by the end of March.
By December, the network is expected to go beyond 100 branches, but the pressure of finding human resources is also affecting the process of expansion.
As a matter of fact, FIBA, which owns Finansbank Romania, also includes a bank, Finansbank Netherlands, using the Internet as its main distribution channel.
“We will use the know-how of Fiba Holding International in selling products through alternative channels,” says Tetik.
At the end of December, Finansbank reported assets worth almost 704 million euros with the NBR, double the value of 2005. Growth was above the market average, so that the bank’s share of assets in the system climbed to 1.4% last December, from a figure of 1% in December 2005.
Shareholders have not yet approved financial results for 2006.
Tetik expects a faster income in growth this year, on the back of the activities of the branches opened in 2006.
He also estimates the bank’s turnover will advance at a slower pace in 2007, given that the market is also expected to slow down.
In his opinion, the areas still boasting a significant growth potential are real estate lending and savings products, while the consumer credit area is slower to grow.
According to its strategic development plan, the bank wants to gain a strong position among the top ten players in the system on the medium term, so that its management has to secure further market share advances.
Speaking about how this growth will be financed, Tetik says there are no cash problems. However, Finansbank plans to contract some syndicated loans from foreign markets and issue bonds on the domestic market.
Until then, the bank will have to go through a re-branding process, taking over the name of Credit Europe Bank as part of this change. The new identity will be strongly promoted for one month starting on March 12th, through video clips and the printed press. Then, the new identity will be communicated indirectly, by promoting some products launched during this period.