In a demonstration of strength on the banking market, BRD opened 33 retail offices in a single day, nine of which are in Bucharest. This was the first step in the "BRD Express" project for expansion of the retail network by the second largest bank on the Romanian market.
The new banking office concept, based on the idea of being close to customers, will be extended to a further 25 locations by the end of 2004, the total number of new offices reaching 100 by next year.
Using this strategy of expansion on the retail market, BRD plans to expand to a network of over 300 offices by 2006. BCR, the largest bank in Romania, currently has 296 offices, while the third major player, Raiffeisen Bank, has 200 such offices.
"We are bringing to Romania the latest developments from the French market. We are therefore aiming to increase our number of customers by entering areas that lack banking offices," stated Patrick Gelin, BRD general manager.
He says the expansion and increase in network density is a major stake in terms of the bank's gaining a strong position on the market, which is generated both by tougher competition and the existence of a significant number of potential customers.
Expansion to the retail market should help BRD add some percentage points to its market share, which currently stands at around 13% in terms of assets. However, Gelin prefers to assess the bank's position in terms of ranges of products, by which measure BRD would have a market share of 14.5 to 22% in various market segments.
BRD's deputy general manager, Sorin Popa, says the average cost of setting up an office is 100,000 euros, implying an investment of some 6.5 million euros for this year.
Popa does not think the bank lost any potential customers due to its reticence towards the granting of foreign currency-denominated loans to individuals.
BRD policy on the mortgage market has also been cautious, a segment in which it has an average market share. Foreign currency-denominated consumer credits are of marginal importance in the bank's portfolio, though the bank is strong on ROL-denominated consumer credits. This year should see an increase in market share in most market segments as a result of various promotional campaigns for various products and services.
razvan.voican@zf.ro
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