Презентация “Новой концепции” “Пересмотр подходов западных банков к репутационному менеджменту на развивающихся рынках – на примере Украины” была озвучена 20 мая на круглом столе ежегодной конференции Reputation Institute.

1. Reconsidering the Western banks‟ approach
to reputation management in developing markets
on the example of Ukraine
14th International Conference
"The Sustainability Imperative: A Strategic Role for Reputation Management”
Reputation Institute
19-21 May 2010
Rio de Janeiro, Brazil

2. Never ending banking?

3. Post-Soviet shocks
After the series of economic and financial shocks which hit the post-Soviet
economies in last decades, the trust in banking system has reached such a
low level in Ukraine that the citizens preferred to keep their savings at
home „under the mattress‟

4. “You
can do
as you
please,
but
I am “
off

5. The coming
of Western banks
to the Ukrainian market
was meant to correct
such a situation

6. The active expansion of Western banks on Ukrainian
market after Orange revolution took place without
taking into account expectations and awareness
of consumers
During 2005 – 2009 foreign banks‟ share has grown from 17% to 44%

7. Consumers had no experience what so ever of work
with bank loans and financial services

8. The domestic branches of Western banks actively issued
bank loans in foreign currency to Ukrainian clients
The business model used by the foreign banks was based on extracting
profit from the difference between the interest rates for consumer loans
and the interest paid for resources attracted in the foreign European
markets.

9. The Western banks have got the reputation
of “kind uncles” who materialize the dreams
of the clients such as purchasing whatever they want
Banks‟ communications were focused on describing the opportunities
to their clients and neglected to inform them about the responsibilities

10. But,

11. After the onset
of the global
financial crisis
the majority
of Western banks
have suffered
This was caused not only by the negative
colossal losses economic developments but also by numerous
in Ukraine past mistakes in banks‟ communications with
their customers and their reputation
management on this market

12. GfK Ukraine: by the end of
2008 the level of distrust
in banks in Ukraine has
almost doubled from
28,4% to 56,2%
Ukraine‟s GDP in 2009 dropped by
the record 13,9%
Consumers easily stopped
repaying and servicing their loans

13. Not prepared for such a challenge the Western banks
are considering and developing various exit strategies
for the Ukrainian market

14. Today banks do not issue credits, because they are
not trusted anymore
The reputation damages has been done
also to Ukraine financial market.
Bankers tried to solve the problem at
the expense of more capable borrowers
by increasing the interest rates on their
loans. Additional reputation damage
has been done by the National Bank of
Ukraine‟s directive to freeze the
withdrawal of deposits for 7 months.
After the freeze has ended, customers
began actively to withdraw their
deposits. Clients did not trust banks.
Clients did not make deposits

15. Ukrainian Customer 2009:
Relation to banking services
(deposits and loans)
Such low numbers for popularity of banking services are mostly the result of the impact the crisis
had on the households and of the spectacular drop of banks‟ reputation, including those with
foreign capital

16. The Ukrainian branches of Western banks face a
tremendous task of damage control:

17. Bringing to consumers the better understanding
of the risks of making the loan which could hit
the short-term performance of banks
Still it guarantees long-term stability and prosperity of
credit institutions
The best information
source in this case could
be the banking
association, which is able
to take on some negative
aspects of the massage

18. Educate clients
Lobby own interests in Government
Communicate profitably with large debtors
The Great Piggy Bank Advanture is
an interactive experience that
brings basic savings and
investment concepts to life in fun
way.
The Disney Attraction includes a
series of games that teach guests
how to set goals, save and spend
smartly, stay ahead of inflation
and diversify investments.

19. Questions?

20. New Concept Group
T. + 38 044 289 4517
F. + 38 044 287 5316
http://www.nc.ua
blog.nc.ua
72 A Velyka Vasylkivska Street
03150 Kyiv
Ukraine