Novoe Vremya December 2020
Credit Agricole Bank in Ukraine has changed its premium positioning by offering the renewed range of banking and non-banking services to the most demanding customers. Galyna Zhukova, Deputy Chairman of the Management Board of Credit Agricole Bank in Ukraine: trends in the world of private equity, expectations, and new habits of premium customers, as well as exclusive services from Premium banking Grand Prix.
“Grand Prix is a grand prize for premium customers”
New identity of our premium positioning emerged in the discussions – we have put a lot of thought into the main message of this transformation, discussed within the bank and with customers, and that resulted in a French phrase “Grand Prix”, which literary means “a big prize”. Its direct associations are recognition, phenomenal achievement, well-earned victory or nicely implemented project. That is what describes our premium customers, who are not only winners of big business races, but also triumphants in their lives. Together with them, we want to reach new heights feeling proud and experiencing dazzling emotions from communication with such outstanding people.
“Three key words are passion, expertise, and comfort”
If we try to describe Premium banking Grand Prix with three key words, they would be passion, expertise, and comfort. Passion is the emotion we experience when we service our premium customers. We are proud to cooperate with them and successfully build our long-term relations by creating additional value for them. Expertise is one of the bank’s strong points, since besides simple issues, which can be handled easily through digital channels, premium customers can seek advice from their personal managers at any time. Specialized units of the Head Office, as well as a wide range of partners ensuring professional expertise of any level are at their disposal. As for comfort, in our understanding, it is not only creation of premium terms and selection of convenient locations for premium zones, but provision of assurance in reliability and stability of our bank.
“Modern-day premium banking is more new opportunities than a status”
Whilst in 2010s a premium card was rather an element of prestige, since cashless payments were not widely used, today it is a real instrument used by premium customers on a daily basis. It is the cards of our packages Infinite, Sommelier, and Premium of Premium banking Grand Prix line that are the most active ones in the bank – have the highest number of transactions made. Since modern-day premium banking is more new opportunities than a status. For instance, they have become an easy helper on a trip. Customers enjoy using exclusive services in airports, fast check-in services, as well as travel and insurance policies ordered together with the premium card. And we want to believe that further amendments to the Ukrainian law would allow banks to provide yet more various financial and non-financial services of premium class.
“Trend communication channels in premium banking”
Credit Agricole Bank’s new positioning in premium banking has been a response to changed expectations of customers. They have become more demanding with regard to the service level. This is about not only the comfort of new premium zones, their locations and parking space available, but also convenient communication with the bank. Conversation with personal manager in an outlet or by phone is not enough for present-day premium customers – they want to use new communication channels in premium banking. They are interested in digital technology, so they willingly make requests via mobile applications themselves, perform simple transactions there, and use other features of internet banking. They are enthusiastic about chatting with premium managers in messengers. This is the reflection of a global trend – people are not calling as much as before, instant messaging in messengers is more convenient for them today. To tell the truth, such transformation of customers’ behavior causes conflicting emotions. On the one hand, virtual dialogue raises the risk of losing personal contact between the premium manager and the customer, and on the other hand, it allows for being trendy and saving time.
“Seamless premium banking”
Although every bank in Ukraine has its own way of customer segmentation with different thresholds for premium segment, in general, their number has been increasing. We follow this pattern and expand premium space. Last year, we opened five zones of premium services and the same number this year. Five more zones will be created in 2021. Credit Agricole Bank continues to invest in network transformation, and particularly, in its premium locations. We create “seamless” premium banking, where online and offline communication channels would be equally available to all customers. It is extremely important now during the pandemic, when safety issues are particularly acute.
“Digital banking in smartphone is a must have for premium customers”
With the development of digital technology, the premium banking has been changing as well. Today, availability of user-friendly digital application is a basic need of the bank’s customers, who have got used to tackling many financial tasks online. That is why we are proud that in just five months after the launch of the new mobile application СА+ from Credit Agricole Bank the number of its unique users is way over 50000. Now this functional and easy-to-use product whereby customers can receive all necessary banking services remotely is among the top 3 best banking applications in the Ukrainian market. This mirrors the general trend which is that digital banking in smartphone has become a must have for premium customers.
“Cure from high rates”
Present-day premium banking has been made immune to high rates. Just a few years ago, everyone tried to make money on placing new high yield deposits, but today, after the clean-up of the Ukrainian banking market, attention of premium customers has shifted to stability and reliability of financial institutions. In other words, they pay attention rather to the structure of shareholders, stability ratings, and other indicators of bank’s sustainability, than the rates. Here, Credit Agricole Bank has a lot to offer. Our bank belongs to one of the largest banking groups of Europe. The highest Fitch ratings, leading positions in bank sustainability and reliability ratings acknowledge our business reputation. The latest ratings of Dragon Capital and “Novoye vremya” magazine placed Credit Agricole Bank among the TOP 3 reliable banks of Ukraine. This acknowledgement is particularly valuable now during the crisis, when it is very important for everyone to understand whom they can rely on.
“Premium customers are interested in loans as well”
Many people think that lending is a product for retail segment only. However, premium customers are interested in such offers as well. Especially since credit limits of their premium banking cards are significantly higher than those of other cards. Credit limit in premium packages of Credit Agricole is up to UAH 500000, and a grace period of up to 62 days at 0.01% p.a. rate. Our customers gladly take loans to purchase high-end cars, because they understand that it makes more sense than using considerable funds out of operating assets of a company for this purpose. In addition to car loans, consumer loans are very popular as well.
“Mutual trust and transparency are the best foundation for relations”
These days, premium customers are well aware of all nuances of regulatory policy and peculiarities of compliance risk management in banks. Ten years ago, they were afraid to provide confidential information having doubts in preservation of banking secrecy. Today, customers regulate their activity themselves, and understand, which transactions the bank may have questions about, and so prepare all documents confirming the transparency and consistency of these transactions in advance. In terms of transparency, the Ukrainian law has evolved significantly. For our part, we are always ready to discuss all the issues with customers in good faith, since trust and transparency are the best foundation for relations between the bank and the customer. Premium banking Grand Prix enables our customers to “close” a wide range of financial issues from choosing a specific deposit program and buying domestic government bonds to making a cross-border money transfer with receipt of an electronic license from the NBU.
“Our own approach to creation of a service model”
In order to compete in the premium banking market successfully we continuously monitor the market and consistently ask our customers what more services they need. This is a story about daily work, which helps to refine the product’s quality from within. We have our own approach to creation of a service model, which is based on extensive experience of the Credit Agricole Group – a leading retail bank of Europe. We focus on improving our competitive advantages that include reliability and stability, user-friendly digital solutions, professional expertise, and lasting relations with customers. Quality of our expertise, for example, allows our customers to not only share the information on a vast array of current tasks, and long-term financial plans openly, but also receive additional options. For example, we launched a series of webinars Premium Talks, where together with experts we tell the customers about forecasts of certain markets, current macroeconomic trends. We seek to build trust-based relations with customers, prioritize club-like approach that builds emotional bridges. We create special events for our customers: from wine tastings aboard the ship to traditional New Year’s jazz events. We love that during such events, people who had not known each other before, find common ground and start to cooperate. It is the greatest prize for us!
“Premium banking in Ukraine has an enormous potential!”
Premium banking segment is fluid. While a couple years back, it consisted mostly of owners, directors, and top managers, today, the number of people who are rapidly approaching the premium customer status is increasing. For instance, representatives of IT industry. They are young, well versed in digital technology, and active users of banking services. Since the average age of customers in this segment has become significantly lower, the potential of premium banking in Ukraine is enormous. It would suffice for both our competitors and us. We just hope the legislation would keep up with such development. For example, normal operation of stock market. We as the bank would like more transparency and liberalization, since the country has already got certain promises and achievements in this matter. Therefore, if these promises are fulfilled consistently, there will be enough work for all players of the banking sector of Ukraine.
