Nothing is left on the right side, and nothing is right on the left side – this humorous description of the state of banking balances worldwide comes from a London economist.
However, this does not apply to Croatian banks, which have so far remained unscathed. The Croatian financial system, like that in other Central and Eastern European countries, has developed through strong branch expansion, revenue growth, and stringent cost control. In the banks of the developed part of Europe, there is a more pronounced struggle for each individual client, branches are more independent in operational matters, and some parts of the business are completely internationalized. While developed banks earn about 750 euros per client, banks in the region and Croatia manage to generate "only" 206 euros. However, banks in the region are also rapidly developing alternative models in their dealings with citizens, such as internet banking, various franchise models, so-called supermarket banking, and services of independent financial intermediaries that offer products from up to 30 banks in one place, concludes the study.
The analysis of the banking situation in the region did not overlook the problem of the current crisis. More than 60 percent of surveyed managers believe that the next year will be difficult, but relief will come as early as 2010. Thus, the majority expects the crisis to last one to two years. Precisely because of the crisis, the study recommends that banks overcome it through innovations in business – from complete customization for each client (variable working hours, staff, and salaries), through orientation towards one key segment in business and franchises to direct banking and greater involvement of independent financial intermediaries, recommends Hendrik Bremer, managing partner at Roland Berger. (Gordana Gelenčer)
