DELO.UA, July 2024
People who have been abroad and encountered foreign banking began to hold the Ukrainian one in even higher esteem. Although premium customers of large international banks do not have to choose, as they can benefit from "turnkey" banking solutions and the personal manager support both in Ukraine and abroad. Why the number of premium customers is increasing and where do they invest their savings? What is the advantage of transnational banks and turnkey banking solutions? Yelyzaveta Tymoshenko, Head of Premium Banking Development Department at Credit Agricole Ukraine, commented on these issues in the interview for Delo.ua.
– The full-scale war has transformed all segments of the Ukrainian economy. The premium banking market was also transformed. What changes can we talk about in this segment? How have the needs of customers and, accordingly, the bank's services changed?
The full-scale invasion has shifted the usual way of living of every family, reshaped all the habits of Ukrainians and influenced the change in financial customer flows. Since the beginning of the war, many wealthy Ukrainians postponed expensive purchases or business expansion until the victory, rescheduled their vacations and travel. Customers' uncertainty about the future put a tremendous strain on banks, premium managers performed both as financial advisors and as psychologists. During this time, Credit Agricole reconfirmed its reliability even in such challenging and unforeseen situations. We granted customers access to their safe deposit boxes at the first opportunity, coordinated all customer actions. The negative scenario that implied the outflow of funds from the banking system did not come true, on the contrary. In April, the total amount of liquidity in the banking system increased by UAH 6 billion and amounted to UAH 776 billion. Customers have firm belief in our country. This phenomenon is also facilitated by the balanced policy of the National Bank of Ukraine regarding the control of inflationary processes in the economy. Ukrainians invest both in deposits and domestic bonds. In 2023, the amount of funds in the accounts of premium customers at Credit Agricole increased by 34%, and the number of domestic bonds transactions increased by 57%. We do our best to live up to the commitment to our customers.
Another, but rather obvious, trend is customer migration. About 6 million people moved abroad, families were separated. Therefore, we focus even more on Family banking, which is very convenient for our customers. For instance, before the war, the family of our customer, the owner of a premium package, could not experience the benefits of the premium service, but now for many people it has become a solution to a significant number of issues. Thus, the number of additional cards in the package has increased in order to urgently provide family members with access to all the advantages of premium banking in Ukraine and abroad. Intrabank transfers have become faster and more convenient. Of course, even before the war, premium customers often made foreign transfers, but mainly because of their business interests or to pay for education of their children abroad. Nowadays, there are limits on the funds transfer abroad, established by the NBU. They have been changed for everyone and this causes some inconvenience.
The third trend is manifested in the fact that the requests of customers have changed somewhat, they began to pay more attention to the reliability of the bank, the expertise of a personal manager, the opportunity to form an investment portfolio, assistance with account opening abroad etc. We comprehensively support our customers, provide financial consulting and offer effective solutions both in the banking business and beyond.
– According to the data provided by different banks, the share of premium customers in the general bases is growing. And I am so stunned to observe this, why is this happening now? What are the benefits of being a premium customer?
Over the past year, the number of premium customers has increased by 31%. At the same time, more than 40% of premium customers stay with us for more than 5 years. This is perhaps the best proof of loyalty to our premium banking.
People who have been abroad are convinced by their own experience that Ukrainian banking is a step up from the foreign one. We constantly conduct surveys on the level of satisfaction with our services, and now, more than ever before, we receive very cool positive feedback and sincere words of gratitude from customers abroad. We maintain 24/7 contact with a customer, while using foreign banking services, you often have to wait days or even weeks for a response.
When we offered a premium package to potential customers earlier, we put support by a personal manager at the very end of the service list. Now we have made it a priority, because this is exactly what customers are looking for.
Regarding your question about the growth of premium customer base. This can be explained by the growth of trust in banks in general, and by the increasing need for individual service abroad, as well as the search for investment solutions. For instance, now we have a large segment of military customers who do military service in Ukraine, and their families may be abroad. In addition to the list of premium services, our bank offers them an increased yield on deposits: 14% per annum in UAH and 2% per annum in USD. This is a very decent level of rates, compared to other large international banks.
– Please tell us in more detail what kind of unique offers are available to premium customers?
We constantly analyze the market, compare benchmarks, and I would like to say that I am proud of our premium package, and it is definetly one of the best on the market in terms of the number and level of services. Here are travel services, capital management tools, remote banking, loyalty programs from partners, favorable offers on classic banking products, such as an increased yield on deposits or free of charge safe deposit boxes for a certain period of time. It is more profitable and cheaper for a customer to choose a premium package, rather than to buy different services and products offered by the bank separately.
A significant role is devoted to personal contact with a manager. It is cool when a manager, unexpectedly for a customer, calls closer to the depaturture date and reminds them of what services they can benefit from to make their trip abroad smooth and comfortable. We have such a wide range of services that sometimes the customer can forget what is included in the package. Then the manager says, "You don't need to buy an insurance policy, I'll just send it to you right now." The customer does not pay extra money for this insurance because it is already included in the premium package.
If a customer has an Elite card, we remind about the opportunity to experience fast track, rent a car, get to the airport comfortably, benefit from the Lounge service and a 25% discount in Duty Free and a restaurant.
We have received very positive feedback when a personal manager helped a customer in a force majeure situation. To illustrate the point, a customer did not inform us that he was going somewhere, then he arrived at the airport in Bergama (a city in Turkey - ed.) and saw a queue of 300 people, and boarding would be closed in an hour. The customer was panic-stricken and called his premium manager. He didn’t call a friend, didn’t look for information somewhere, but contacted the bank’s manager. Then we can do miracles. After such an experience, the customer recommends us to his friends, and this is the highest evaluation of our work.
– We have already discussed investments a little bit, but let's get back to this issue. In Ukraine, domestic bonds are one of the most popular and profitable investment instruments. Which investment instruments are available to your customers and which are chosen most often?
Indeed, nowadays the Ukrainian market offers only domestic bonds for investment. The international Credit Agricole Group is represented in 46 countries and has in-house asset management company, called Amundi. We offer our customers, who have savings in accounts abroad, several investment funds in the list of services, which have different risk profiles and form their portfolios from both shares and debt securities. Some of them put the focus on ESG practices.
– You have many outlets in different European countries, what are the pros of such a transnationality for your customers?
We have established exellent cooperation with our foreign colleagues who work in the private banking direction at the Group’s bank in Poland, and offer our customers individual support and personal manager assistance.
Our customers can rely on their premium manager here in Ukraine, as well. It is enough to contact them so that we can arrange a meeting with a manager abroad. We make an appointment, in some countries we can ensure that our employee could facilitate the account opening process or help a customer with other issues.
Sometimes it is vital for our customers to get service as soon as possible when they are passing through a country. In the European Union, a meeting with a premium manager is scheduled in advance. That's why we are giving our helping hand.
We advise customers, help collect documents, organize a meeting in one of the 400 outlets of Credit Agricole in Poland, if necessary, we offer the services of an English-speaking manager, provide support during the compliance due diligence procedure approval. Investment funds with different risk profiles and target returns, created and managed by the international Credit Agricole Group, are also available to our customers.
If a customer opens an account abroad, he/she still remains our customer. It is definetly our consultations and pieces of advice that they apply, because now there are much more needs than before.
Cash withdrawal terms in other countries are also crucial. During the war, we made this service free of charge.
– Since many Ukrainians now live abroad, have you managed to implement a ‘remote’ operation format and establish full interaction with them?
We adapted very quickly to the remote work format thanks to the COVID-19 pandemic experience. Since the first day of the full-scale war, we have been supporting our customers. Not a single customer complained that he/she could not contact us, could not communicate with his/her manager. Although everyone was under the same conditions: both our employees and customers.
We can open an account and various premium packages remotely, and deliver the card directly to the customer’s place of residence either in Ukraine or in 200 countries worldwide. Our CA+ mobile application offers a number of functions, which allows you to use daily banking conveniently and quickly.
We can also use the "Diia" application for customer identification to sign documents and agreements. I observe the experience of banks in other countries, when, for example, a customer needs to travel from America to an EU country just to visit an outlet physically and undergo identification. We offer to do it in a few clicks.
We are very flexible regarding the channels of communication with customers and can interact in a messenger they trust and are accustomed to use, with video, or only in chat.
– According to the NBU, many bank customers now prefer remote service, namely 89.2% of business entities and 79.5% of private individuals (2.9 million and 62.3 million customers, respectively). How is CAU adapting to these new trends?
We notice that both convenient remote services and personal contact with the manager are important for our customers. Therefore, we not only do not reduce the network which is represented by 139 outlets in Ukraine now, but also develop it. Recently, we have opened a flagship two-storey outlet in the "San Francisco" business center in Kyiv. Convenient space zoning, a separate lounge for premium customers − all this contributes to maximum comfort and privacy.
At the same time, Credit Agricole invests heavily in IT. We offer remote account opening for private individuals and private entrepreneurs. Our CA+ mobile application is consistently among TOP-3 on the market according to user feedback on the Apple Store and Play Market. Furthermore, 70% of the bank's active customers and 97% of employees are CA+ users, which indicates a high level of loyalty to the product.
During the war, we also launched new Internet bank CA+ Pro for private entrepreneurs, in particular for IT PEs. Thus, we are developing in both directions.
– What distinguishes the bank in general, and the premium segment in particular, from competitors?
We provide more than banking and financial services, and since the beginning of the war this has become more evident than ever before. We are distinguished by values and social responsibility. When the full-scale invasion began, Credit Agricole Group immediately confirmed its intention to continue operating in Ukraine and established a EUR 10 million solidarity fund to help Ukraine.
We systematically provide assistance for children and hospitals within our "We Care!" corporate social responsibility program. Since the beginning of the war, Credit Agricole has allocated UAH 142 million to charity.
In terms of premium segment, we offer all the advantages available due to our affiliation to the international financial group, which is among TOP-10 of the largest banks worldwide, and at the same time we try to maintain a boutique style of operation, applying individual approach to customers.
– Credit Agricole was the first foreign bank to appear on the Ukrainian market and has been operating for 31 years. What do you believe the main achievements of the bank during this time are?
The stability and loyalty of our customers, the number of which constitutes 385,000 in Ukraine. Whatever happens, they know that they can always rely on Credit Agricole, because customers are at the core of our attention.
We also have leading positions on the automotive lending, corporate and premium banking markets.
– What are your goals and plans for this year? Perhaps the launch of new projects, expansion, etc.?
In the third quarter or so, we plan to launch a new package for premium customers that is unique on the market. We will talk about it in more detail a little bit later.
Also, we expect the further expansion and deepening of synergy with banks of the Group in other countries, in particular in Switzerland. This will allow our customers to have even greater access to the Group's banking and investment solutions.
