Distribution of Leasing Products Through the Banking Network
16.09.2008
Warsaw, 16th September 2008 - An analysis performed by the management consulting company zeb/rolfes.schierenbeck.associates indicates a very low cross-selling ratio of leasing products at Polish banks compared to other European countries. The main reason for such a situation are major imperfections of leasing sales models currently used by the majority of banks.
According to an analysis conducted by zeb/, Polish banks have – in comparison to the European Union – a low cross-selling ratio on the average. Thus, the share of gross income by SME product line from leasing constitutes approximately 10.4% in Greece, 10% in Spain and only 1% in Poland. “These results indicate that the current sales model of leasing by banks is far from being optimal and there is a considerable improvement potential,” says Dr. Maciej Meder, Senior Manager at zeb/ in Warsaw.
To analyse the reasons for low cross-selling of leasing products via the banking network in Poland, zeb/ performed a series of mystery calls. During the phone conversation relationship managers were asked for the optimal financing for two new cars by an owner of a small company. In 53% of the cases, the bank advisors directed potential clients to associated companies, or did not offer leasing at all. Even though leasing would have been the preferred financing, only 47% of advisors recommended it (see fig. 2 of appendix). According to zeb/ assessment, approximately 60 % of surveyed advisors had poor or no knowledge about the leasing offer of the group. “Our findings confirm that some relationship managers at banks are not sufficiently trained nor incentivised to offer leasing products,” says Martin Suray, Senior Consultant at zeb/, who was leading the survey. “Banks have to better integrate the leasing into the complete offering and stop treating leasing as internal competition to loans; however, this requires a dramatic change of the current sales model and a better understanding of leasing specifics,” adds Dr. Maciej Meder.
Experiences that zeb/ gained in other markets indicate that an effective cooperation between a leasing company and a bank within one financial group might be one of the elements of building up a competitive advantage. While offering their clients leasing as an additional product, banks make their offer much more attractive. Thus, the customer receives a comprehensive product offer from one supplier, which is an important argument for staying with a financial group in the long run.
A low cross-selling ratio of leasing products in Polish banks indicates necessity to implement improvements by banks in sales model of these products. Adjusting sales model will be a positive growth drive for banks’ profits in SME segment.
zeb/rolfes.schierenbeck.associates is a management consulting company specialising in the consulting services for financial institutions. It has twelve offices in Poland, Germany, Austria, Switzerland, the Czech Republic, Ukraine and Hungary. Today zeb/ employs more than 650 employees all over Europe.
Contact:
Dr. Maciej Meder
Senior Manager
Phone: +48 22 5285352
Email: mmeder@zeb.pl
www.zeb.pl
Dr. Anne Täubert
Head of Corporate Communications
Phone: +49.251.97 128.220
Email: ataeubert@zeb.de
www.zeb.de
Here you can read this press release in Polish.