Volksbank negotiates with disgruntled clients and prepares new retail offer

With a new management team, Austria's Volksbank is trying to reach an agreement with angry clients, but also devise a new business strategy, after having seen the almost exclusive focus on mortgages can be risky.
Volksbank, ranking third in the system in terms of assets, and one of the most heavily contested banks by clients dissatisfied with lending conditions, is reshaping its retail product and services offer, after the lending activity was virtually blocked by the implementation of ordinance 50.
"We're trying to redesign some procedures and products with which to restart. Practically, Volksbank's new loan sales have been halted now, as everybody is busy with ordinance 50 implementation and client complaints. This is the disadvantage of a single-product bank," says Lucian Cojocaru, 42, who in mid-September took over the position of vice-president in charge with retail operations.
Volksbank has appointed for each unit an adviser who has the competence to talk with disgruntled clients and negotiate cost revisions depending on each case.