unia.com.ua-lib-doc-..

Mortgage Credit Ukraine - visits Realkredit Danmark

Agenda
Realkredit Danmark as part of the Danske Bank Group
home real estate chain as loan originator
Product Development
The loan process
Credit scoring
Q+A

Speakers
Steen Hansen [email_address]
Klaus Kristiansen [email_address]
Michael Hermansen [email_address]

Danske Bank - Strategy and focus A transition towards an international retail bank 1997 1999 2001 2005 1990 1995 Mergers/acquisitions Divestitures/closures Banking activities UK Banking activities US Danske Securities Banking activities Asia BG Guaranty & BG Factoring Non life insurance

One Group – One System A strategy of doing things the same way everywhere Brand Channel Branches Contact Centre Internet Finance Centres ATMs Product FOREX Bonds & Equities Treasury Leasing Life & Pension Cash Management Mortgage Credit Asset Management Cards Currency Fees Payments Approvals Customer output Interests Accounting Core Organization Accounts Customer Risk Data Warehouse

Market capitalisation Danish banks - Danske Bank largest bank in Denmark Danish banks market capitalisation (DKr bn) (DKr bn)

Market capitalisation European banks - Danske Bank c. 21 largest bank in Europe European banks market capitalisation (USD bn) (USD bn)

Company Structure
RD is the Danske Bank Group’s mortgage finance arm and its provider of mortgage finance products based on mortgage bond issuance. RD provides loans secured on all forms of real estate (property) collateral including private and rental residential property, holidays homes, social, cultural and educational housing, commercial, industrial and agricultural property. In this capacity RD is a mono line MCI that only focuses on mortgage credit. RD also ensures that all mortgage finance customers of the Danske Bank Group have access to quality advisory services
RD markets its products through the Danske Bank and BG Bank branch networks, as well as its own distribution channels. The Danske Bank and BG Bank branch networks have increased RD’s distribution power significantly, not only in terms of market share; they also provide economies of scale. The fact that RD’s own branch offices are often located physically together with a BG Bank or Danske Bank branch office has created additional synergies

Company Structure
The nation-wide branch network of Danske Bank and BG Bank, comprising a total of approx. 500 branches and corporate centres, strengthens the distribution power of RD considerably
RD is represented by 22 branches across Denmark - 18 of these in shared offices with Danske Bank finance centres or large Danske Bank and BG Bank branches
home A/S is the real-estate agency chain of the Group. The real-estate agency activities are organised as franchise business, and the chain comprises a total of 190 offices in Denmark and has a staff of 1.100
RD has branded its products, thereby achieving the benefits of having an extensive customer base and distribution network as well as the positive effects from public awareness

Organization Board of Directors Interal Audit Jens Peter Thomassen Group Chief Auditor Executive Board Sven Holm Thomas Mitchell Executive Board Secretariat Henrik Blavnsfeldt Senior Vice President Region East Jens-Erik Corvinius Regional Director Region West Allan Aagaard Regional Director Funding & Markets Klaus Kristiansen Senior Vice President RD Service Lars Kjær Senior Vice President Credit Division Carsten Nøddebo Rasmussen Executive Vice President Steen Hansen Sales Division Executive Vice President Corporate Division H. P. Hansen Head of Corporate Division Subsidiary Home a/s Niels Bjerregaard Executive Director (25) (248) (259) (95) (52) (45) (29) (14)

History and Company Structure ctd
RD has 767 employees of which 165 are employed in the centralised departments and 602 in the the 22 mortgage credit offices and corporate centres across Denmark

Business concept
RD is the Danske Bank Group’s mortgage finance arm available to all customers on the Danish mortgage credit market
RD’s objective is to be market leader and the customers’ first choice as provider of secure and convenient mortgage finance
From its business activities, RD aims to create value for shareholders, customers and employees

Mission
RD’s core business is mortgage lending based on the issuing of mortgage bonds
RD will ensure that the Danske Bank Group offers expert advisory services and provides competitive mortgage finance products and services tailored to the individual customers and their property
RD will offer additional products and services, mainly from the Danske Bank Group. Development of combination products will be carried out in co-operation with other business areas of the Group
Products and services are marketed through RD’s own distribution channels as well as the sales network of the Danske Bank Group. Customers will be offered a choice between personal advisory services and sophisticated electronic solutions
RD is participating actively in attracting customers to the Danske Bank Group as an entity

home – real estate agent
Established in 1990
Subsidiary of RD
Franchise business
home is the franchise-provider
95 franchise-holders
190 branches all over the country
1.100 employees
First on the Internet in 1996 – www.home.dk

home
Vision:
Best brand and market leader
Mission:
The leading real estate agent that gives the best deal and refers customers to the group
Core-values:
Integrity, Accessibility, Value creation, Expertise, and Commitment

4 focus areas
1 Profitability
2 Market share
3 References (the battle of the financing)
4 Hit rate
I will return to the results!

Why references? Why not sales?
The marketplace
Banks are close to their customers
Product-packages and loyalty-programmes are standard
The real estate agent gives advice to the seller that pays the bill
The agent gives loan offers
The real estate agent must not give advice to the buyer
It is the buyer, which decides the financing of the property

home/group concept
home provides the buyers with RD-loan offers for financing
home refers customers to the banks
Buyers that already uses the banks (simple)
Buyers who does not (not simple)
home recommend the banks
Best practise: Physical customer introduction
Why do we do it this way?
The banks have the best opportunities to create a strong relationship with the customer – they have more to offer/sell
If the customer says “no thank you”:
home refers to RD – for the mortgage only

Results
home is very profitable
29 % MA 1Q06
56 % references to banks – plus:
21 % Group customers
8 % RD
15 % Lost opportunities/potential
26-59 % hits in banks
40 % hits for RD

Motivation
home gets a commission
From the banks
From RD
Management focus
Internal results
Best practise

unia.com.ua-lib-doc-..

by JosephSam

Accessibility

Upload Details

Usage Rights

Statistics

unia.com.ua-lib-doc-.. Presentation Transcript