In light of our market watch and interviews with experts, Kurt Salmon point of view provides banks with some key points to succeed in targeting this kind of market
Next Station: Europe: How Europe´s tech startup ecosystems are evolvingAxon Partners Group
“Next Station: Europe” reflects our view about the current state of the European tech ecosystem as well as the great potential we still foresee for the upcoming years. Our optimism is supported by the data and analysis presented throughout the report along with the insights provided by key players of the tech European industry regarding different relevant topics covered in this document.
In 2010, Global Remittance Flow Showed a Growth Rate of 4.33%AMMindpower
The report highlights the above mentioned fact along with the detailed analysis of the various aspects such as remittance industry in Europe, Latin America, US and Asia
For more information please refer to the below mentioned link:
http://www.ammindpower.com/report.php?A=233&T=D&S=93
The Paris Luxury Market - Outlook for 2020David Bourla
Cushman & Wakefield has just published a report on the luxury retail-property market. Based on exhaustive data concerning retail store openings and development plans, the report provides a geographic overview of the Paris luxury market. In addition, various scenarios for 2020 are put forward.
Next Station: Europe: How Europe´s tech startup ecosystems are evolvingAxon Partners Group
“Next Station: Europe” reflects our view about the current state of the European tech ecosystem as well as the great potential we still foresee for the upcoming years. Our optimism is supported by the data and analysis presented throughout the report along with the insights provided by key players of the tech European industry regarding different relevant topics covered in this document.
In 2010, Global Remittance Flow Showed a Growth Rate of 4.33%AMMindpower
The report highlights the above mentioned fact along with the detailed analysis of the various aspects such as remittance industry in Europe, Latin America, US and Asia
For more information please refer to the below mentioned link:
http://www.ammindpower.com/report.php?A=233&T=D&S=93
The Paris Luxury Market - Outlook for 2020David Bourla
Cushman & Wakefield has just published a report on the luxury retail-property market. Based on exhaustive data concerning retail store openings and development plans, the report provides a geographic overview of the Paris luxury market. In addition, various scenarios for 2020 are put forward.
In the first of a series of reports commissioned by HSBC, we consider the macroeconomic situation in Europe, prospects for growth and the strengths of the continent's economy
Chinese investment in Spain topped 600 million euros in 2014, according to an ESADE study.
According to this report, 93.8% of Chinese direct investment in Spain since 2000, some €1.662 billion, occurred in the 2012-2014 period. Of that amount, €610 million was invested in 2014, 49% more than in 2013. Moreover, by the end of the year, total investment in 2015 could be even higher, as a result of various major transactions recorded over the last six months in the real estate/hotel and agribusiness industries.
The Chinese demand for luxury goods is immense. It is creating a unique, dynamic and rich digital luxury retailing environment.
This report looks at the growth of the global and Chinese markets for luxury goods. We estimate the size of the Chinese online luxury goods market. We then discuss what is responsible for creating China’s over-sized online luxury market, and the motivations of different customer segments.
This report will be of use to those interested in the luxury goods markets, Chinese retail and digital marketers generally.
This piece of research demonstrates the extensive knowledge that Instant have accumulated about the serviced office sector in emerging markets around the globe i.e. South America, East Europe, Africa and Asia Pacific etc..
Following the release of our Global Serviced Office Review, we gathered feedback from many of our corporate clients to determine which global regions were most relevant to their needs. Whilst specific needs did vary, the most common request was for Instant to provide a comprehensive guide to the serviced office sector in the world's emerging markets. this report is therefore intended to give greater insight for international corporations looking to set up offices in these locations.
Global Money Transfer (Remittances) Market Report: 2013 Edition – New Report ...Koncept Analytics
The report on global remittance market contains a comprehensive analysis of the global remittance industry along with the study of the regional markets including India, China, Mexico and Philippines. For more mail vikas@konceptanalytics.com
In the first of a series of reports commissioned by HSBC, we consider the macroeconomic situation in Europe, prospects for growth and the strengths of the continent's economy
Chinese investment in Spain topped 600 million euros in 2014, according to an ESADE study.
According to this report, 93.8% of Chinese direct investment in Spain since 2000, some €1.662 billion, occurred in the 2012-2014 period. Of that amount, €610 million was invested in 2014, 49% more than in 2013. Moreover, by the end of the year, total investment in 2015 could be even higher, as a result of various major transactions recorded over the last six months in the real estate/hotel and agribusiness industries.
The Chinese demand for luxury goods is immense. It is creating a unique, dynamic and rich digital luxury retailing environment.
This report looks at the growth of the global and Chinese markets for luxury goods. We estimate the size of the Chinese online luxury goods market. We then discuss what is responsible for creating China’s over-sized online luxury market, and the motivations of different customer segments.
This report will be of use to those interested in the luxury goods markets, Chinese retail and digital marketers generally.
This piece of research demonstrates the extensive knowledge that Instant have accumulated about the serviced office sector in emerging markets around the globe i.e. South America, East Europe, Africa and Asia Pacific etc..
Following the release of our Global Serviced Office Review, we gathered feedback from many of our corporate clients to determine which global regions were most relevant to their needs. Whilst specific needs did vary, the most common request was for Instant to provide a comprehensive guide to the serviced office sector in the world's emerging markets. this report is therefore intended to give greater insight for international corporations looking to set up offices in these locations.
Global Money Transfer (Remittances) Market Report: 2013 Edition – New Report ...Koncept Analytics
The report on global remittance market contains a comprehensive analysis of the global remittance industry along with the study of the regional markets including India, China, Mexico and Philippines. For more mail vikas@konceptanalytics.com
Diaspora bond unlocking diaspora savings opportunities for investments in cam...Emmanuel Lao
This digital artifact highlights the importance of mobilizing the diaspora savings through "diaspora bonds" to finance development projects in a developing country like Cameroon with a growing and dynamic diaspora around the world.
For too many years marketing and sales have operated in silos...while in some forward thinking companies, the two organizations work together to drive new opportunity development and revenue. This session will explore the lessons learned in that beautiful dance that can occur when marketing and sales work together...to drive new opportunity development, account expansion and customer satisfaction.
No, this is not a conversation about MQLs and SQLs. Instead we will focus on a framework that allows the two organizations to drive company success together.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Short video marketing has sweeped the nation and is the fastest way to build an online brand on social media in 2024. In this session you will learn:- What is short video marketing- Which platforms work best for your business- Content strategies that are on brand for your business- How to sell organically without paying for ads.
Influencer marketing isn't just for big brands or consumer products anymore. In 2024, marketers face hurdles like escalating paid channel costs, diminishing organic reach, and building trust in their ideal customer accounts. This session offers practical ways to bring influencer marketing into your organization, to provide cost-effective access to niche audiences, countering budget constraints and rising CPMs. We'll discuss the impact of social algorithms on reach, the trust deficit in traditional advertising and how influencer partnerships offer genuine connections with audiences. Attendees will gain actionable insights to integrate influencer marketing into their strategies, leveraging influencers for impactful campaigns in both B2B and B2C environments. Join us to unlock the potential of influencers in navigating the evolving marketing landscape of 2024 and driving meaningful business growth.
Key Takeaways:
- Educate on the various types of influence we can use as marketers
- Establish the problems that make influencers a priority
- Walk through some practical tactics on HOW to run a program leveraging several of these influence channels
SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
Boost your social media marketing with our SMM Panel services offering SMM Cheap services! Get cost-effective services for your business and increase followers, likes, and engagement across all social media platforms. Get affordable services perfect for businesses and influencers looking to increase their social proof. See how cheap SMM strategies can help improve your social media presence and be a pro at the social media game.
Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.\
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROVWO
In today’s era of AI, personalization is more than just a trend—it’s a fundamental strategy that unlocks numerous opportunities.
When done effectively, personalization builds trust, loyalty, and satisfaction among your users—key factors for business success. However, relying solely on AI capabilities isn’t enough. You need to anchor your approach in solid principles, understand your users’ context, and master the art of persuasion.
Join us as Sarjak Patel and Naitry Saggu from 3rd Eye Consulting unveil a transformative framework. This approach seamlessly integrates your unique context, consumer insights, and conversion goals, paving the way for unparalleled success in personalization.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
The Secret to Engaging Modern Consumers: Journey Mapping and Personalization
In today's digital landscape, understanding the customer's journey and delivering personalized experiences are paramount. This masterclass delves into the art of consumer journey mapping, a powerful technique that visualizes the entire customer experience across touchpoints. Attendees will learn how to create detailed journey maps, identify pain points, and uncover opportunities for optimization. The presentation also explores personalization strategies that leverage data and technology to tailor content, products, and experiences to individual customers. From real-time personalization to predictive analytics, attendees will gain insights into cutting-edge approaches that drive engagement and loyalty.
Key Takeaways:
Current consumer landscape; Steps to mapping an effective consumer journey; Understanding the value of personalization; Integrating mapping and personalization for success; Brands that are getting It right!; Best Practices; Future Trends
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
As the call for for skilled experts continues to develop, investing in quality education and education from a reputable https://www.safalta.com/online-digital-marketing/best-digital-marketing-institute-in-noida Digital advertising institute in Noida can lead to a a success career on this eve
It's another new era of digital and marketers are faced with making big bets on their digital strategy. If you are looking at modernizing your tech stack to support your digital evolution, there are a few can't miss (often overlooked) areas that should be part of every conversation. We'll cover setting your vision, avoiding siloes, adding a democratized approach to data strategy, localization, creating critical governance requirements and more. Attendees will walk away with actions they can take into initiatives they are running today and consider for the future.
A.I. (artificial intelligence) platforms are popping up all the time, and many of them can and should be used to help grow your brand, increase your sales and decrease your marketing costs.In this presentation:We will review some of the best AI platforms that are available for you to use.We will interact with some of the platforms in real-time, so attendees can see how they work.We will also look at some current brands that are using AI to help them create marketing messages, saving them time and money in the process. Lastly, we will discuss the pros and cons of using AI in marketing & branding and have a lively conversation that includes comments from the audience.
Key Takeaways:
Attendees will learn about LLM platforms, like ChatGPT, and how they work, with preset examples and real time interactions with the platform. Attendees will learn about other AI platforms that are creating graphic design elements at the push of a button...pre-set examples and real-time interactions.Attendees will discuss the pros & cons of AI in marketing + branding and share their perspectives with one another. Attendees will learn about the cost savings and the time savings associated with using AI, should they choose to.
Come learn how YOU can Animate and Illuminate the World with Generative AI's Explosive Power. Come sit in the driver's seat and learn to harness this great technology.
Is AI-Generated Content the Future of Content Creation?Cut-the-SaaS
Discover the transformative power of AI in content creation with our presentation, "Is AI-Generated Content the Future of Content Creation?" by Puran Parsani, CEO & Editor of Cut-The-SaaS. Learn how AI-generated content is revolutionizing marketing, publishing, education, healthcare, and finance by offering unprecedented efficiency, creativity, and scalability.
Understanding
AI-Generated Content:
AI-generated content includes text, images, videos, and audio produced by AI without direct human involvement. This technology leverages large datasets to create contextually relevant and coherent material, streamlining content production.
Key Benefits:
Content Creation: Rapidly generate high-quality content for blogs, articles, and social media.
Brainstorming: AI simulates conversations to inspire creative ideas.
Research Assistance: Efficiently summarize and research information.
Market Insights:
The content marketing industry is projected to grow to $17.6 billion by 2032, with AI-generated content expected to dominate over 55% of the market.
Case Study: CNET’s AI Content Controversy:
CNET’s use of AI for news articles led to public scrutiny due to factual inaccuracies, highlighting the need for transparency and human oversight.
Benefits Across Industries:
Marketing: Personalize content at scale and optimize engagement with predictive analytics.
Publishing: Automate content creation for faster publication cycles.
Education: Efficiently generate educational materials.
Healthcare: Create accurate content for patients and professionals.
Finance: Produce timely financial content for decision-making.
Challenges and Ethical Considerations:
Transparency: Disclose AI use to maintain trust.
Bias: Address potential AI biases with diverse datasets.
SEO: Ensure AI content meets SEO standards.
Quality: Maintain high standards to prevent misinformation.
Conclusion:
AI-generated content offers significant benefits in efficiency, personalization, and scalability. However, ethical considerations and quality assurance are crucial for responsible use. Explore the future of content creation with us and see how AI is transforming various industries.
Connect with Us:
Follow Cut-The-SaaS on LinkedIn, Instagram, YouTube, Twitter, and Medium. Visit cut-the-saas.com for more insights and resources.
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) ‘Alternative’ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Kurt Salmon - Migrants market - A.Arkam, H. Cambournac
1. The migrants market
Latest evolutions and outlook
March 2014
REPORT
24, rue Salomon de Rothschild - 92288 Suresnes - FRANCE
Tél. : +33 (0)1 57 32 87 00 / Fax : +33 (0)1 57 32 87 87
Web : www.carrenoir.com
INEUM Kurt Salmon
INE_06_0409_Logo_CMYK
14/12/2010
QUADRICHROMIE
M100 Y100
2. 2
The migrants market: latest evolutions and outlook
Contents
Introduction....................................................................................................................3
Market evolution.............................................................................................................4
Global overview of the migrant market.....................................................................4
Worldwide remittance evolution...............................................................................6
New barriers to remittances will force banks to adapt their business model...................9
European business models: three different approaches to the market...................................12
BNPP: create cross-entity synergies.........................................................................12
Bankamiz: A new Deutsche Bank division for Turkish people.....................................16
Extrabanca: the first pure player in the migrants market............................................20
The migrant segment, a successful experience of new trends in retail banking......................25
From ‘mass-marketing’ to ‘niche-marketing’..............................................................25
From selling to counselling…and financial education................................................26
New values to guide offers, customer relationships and distribution............................27
Conclusion...................................................................................................................28
Acknowledgements.......................................................................................................29
About us......................................................................................................................31
3. 3
In light of new initiatives concerning the migrants market launched over Europe in
the past 3 years, Kurt Salmon and Efma decided to launch a new study dedicated
to this market.
Indeed, with more than $400 billion remittances in 2013, the potential of this market
is no longer to be demonstrated. And if we are to consider the conclusions of our
previous study, the financial potential of this market goes far beyond money transfer.
If we take a look at the market in 2013, it seems that several European banks,
including very big ones, fully realized the potential of this market.
Thus, the first part of this study presents recent evolutions of the market. It is based on
our extended research capacity, permanent watch and solid benchmarks we use for
our daily delivery.
For the second chapter, a targeted focus on successful case studies, we selected
among our network three retail banks with extreme positioning towards Migrants but
complimentary approaches to provide a big-picture view of the sector.
• BNP Paribas, which addressed this market to build synergies across its entities,
bring value to its retail customers and encourage cross-selling.
• Deutsche Bank, which launched a complete affinity offering for the Turkish
community in Germany, considering it as a full segment.
• Extrabanca, the first pure player in Europe dedicated to migrants, which
proposes a model that aims at serving all foreign communities living in Italy, both
families and businesses.
In addition, it seemed that these experiences could provide few clues to the three
main retail bankers’ current questions:
• How to go from ‘mass-marketing’ to ‘niche-marketing’?
• How to evolve the ‘client – advisor’ relationship?
• What is the future of banking distribution network?
This last part gets the most of our business analysis competency.
This study aims to provide clear outlook and perspective for this market, and gives
dedicated advice to address the retail banking segment in an innovative way, given
new constraints and opportunities.
Aude Arkam, Manager, Kurt Salmon
Joel Nadjar, Global Partner, Kurt Salmon
Patrick Desmarès, Secretary General, Efma
Introduction
4. 4
The migrants market: latest evolutions and outlook
Global overview of the migrant market
According to the United Nations Department of Economic and Social Affairs (UN-DESA),
international migration represented 232 million people in 2013 (or 3.2 per cent of the World’s
population) and $414 billion remittances compared with 154 million people and less than $50
billion in 1990.
According to the latest figures, the World’s largest corridor for international migration remains
that between the United States and Mexico. The United States remains the most popular migrant
destination, with Mexican expatriates representing more than 38% of the total number of migrants
worldwide. Within the top 10 communities of migrants, only one corridor, migrants from Turkey to
Germany, is in Europe.
Nevertheless, within Europe, the United Kingdom, France and Spain still host a number of immigrant
communities as a result of work migration and geographic routes with North Africa.
Market evolution
Top migration corridors
Number of migrants (millions)
0
Mexico-UnitedStates
Bangladesh-India
Turkey-Germany
China-HongKongSAR
India-UnitedArabEmirates
China-UnitedStates
Philippines-UnitedStates
Afghanistan-Iran
India-UnitedStates
PuertoRico-UnitedStates
2
4
6
8
10
12
11.6
3.3 2.7 2.2 2.2 1.7 1.7 1.7 1.7 1.7
Source: World Bank 2011
5. 5
In addition, according to OECD, the Organisation for Economic Co-operation and Development,
figures also show a shift since 2000, with South – North and South – South migration (migration
between developing countries) at about 82 million international migrants. The volume of South –
South migration is now greater than migration from the South to high-income countries. This growth
was mainly driven by the increasing demand for foreign labour in the Gulf countries (United Arab
Emirates) and in Southeast Asian countries with rapidly growing economies, such as Malaysia,
Singapore and Thailand.
Contrary to expectations, and according to the World Bank study, the global crisis did not result in
the widespread return of migrants or declining remittances to developing countries.
Destination of migrants from the South
44%
14%
42%
High-income non-OECD
High-income OECD
South
Source: World Bank 2011
6. 6
The migrants market: latest evolutions and outlook
Worldwide remittance evolution
Where the money goes
This map shows where some of the $500bn of remittance money sent home by migrants
across the world in 2011, went
Source: The Guardian
Despite a modest decline in remittance inflows to developing countries in 2008, such flows have
remained more resilient compared with private debt and equity flows and foreign direct investment.
From 2009, the pace of growth reached its pre-crisis level (more than 5% annual growth), with
recorded remittance flows to developing countries reaching an estimated $401 billion in 2012, a
growth of 5.3% compared with 2011. According to a recent outlook, remittances to developing
countries are expected to accelerate to 8.8% growth on average during 2013-2015.
7. 7
This trend is also relevant in Europe, where remittances from the Benelux countries, the United
Kingdom and Spain are still increasing dramatically, with an average of 8% growth between
2010 and 2011.
Remittances and other resource flows to developing countries (US$ billion)
700
600
500
400
300
200
100
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013e
2014f
2015f
2016f
FDI
Remittances
Pvt debt and portfolio equity
ODA
Source: World Development Indicators and World Bank Devlopment Prospects Group
EU remittance outflows (€ billions, 2011) Evolution since 2010
Germany 16 + 7%
United Kingdom 17.2 + 10%
France 14.8 + 6%
Spain 14.1 + 9%
Italy 8.9 + 8%
Austria 3.8 + 2%
Belgium 3.8 + 11%
Netherland 3.6 + 7%
Denmark 1.3 + 6%
Luxembourg 0.7 + 11%
Source: World Bank 2011
8. 8
The migrants market: latest evolutions and outlook
Remittances to Eastern Europe and Central Asia are estimated to have fallen by 3.9% in US dollar
terms (–2% in Euros considering its depreciation), to about $40 billion in 2012.
For receiving countries, a key factor behind the resilience in remittances is the diversification of
migrant destinations. Some studies show that the more diversified the destinations and the labor
markets for migrants, the more resilient the remittances sent by migrants.
Top 10 recipients of migrant remittances (r billion, 2012e)
0
India
China
Philippines
Mexico
Nigeria
Egypt
Bangladesh
Pakistan
Vietnam
Lebanon
20
40
60
51.1
44.4
17.8 17.0 15.5 15.5
10.4 8.9 7.4 5.2
Source: World Bank 2013
A closer look at developing countries by region reveals substantial variations both within and
between regions.
In 2012, recorded remittance flows to the Middle East and North Africa and South Asia expanded
rapidly, while Eastern Europe and Central Asia experienced a decline. Flows to Latin America and
the Caribbean, East Asia and Pacific, and Sub-Saharan Africa were broadly unchanged or slightly
positive in 2012.
9. 9
New barriers to remittances will force banks to adapt their business model
Migration and remittances are being featured in ongoing discussions on the Millennium Development
Goals and the Post-2015 agenda.
Actions are being implemented to drive down the transaction prices for remitting money
Besides economic and social factors, exchange rates and oil prices, another obstacle to growth of
remittance flows is the high transaction cost for remitting money. Remittance fees averaged 7.5%
during the third quarter of 2012 in the top 20 remittance corridors, although there is substantial
variation across countries. For example, in large remittance-source countries, such as the GCC (Gulf
Cooperation Council), the United States and the United Kingdom, the average price was around 5%,
while in Germany it was 15%. The average remittance price for Sub-Saharan Africa was 12.4%, the
highest among all developing regions.
Remittance prices were stable over the past year (9.1% in the first quarter of 2013), while the global
weighted average fell to an all-time low of 6.9% in the first quarter of 2013. This suggests that prices
are decreasing where higher volumes are being transferred.
Canada, Italy and the UK also registered increases in the average price for the first quarter of 2013,
caused mainly by higher exchange-rate margins being charged by remittance service providers.
The price of sending remittances from France and Germany declined nearly 1 percentage point in
the first quarter of 2013 compared with a year earlier, decreasing from 11.8% to 10.7% in France,
and from 11.2% to 10.2% in Germany.
Trends in remittance prices worldwide
Total cost of sending $200, including fees and exchange-rate margins
10%
8%
6%
4%
2%
0%
2008
1Q2009
3Q2009
1Q2010
3Q2010
1Q2011
3Q2011
1Q2012
3Q2012
1Q2013
2Q2013
3Q2013
Simple average
Weighted average
Source: Remittance Prices Worldwide, the World Bank, 2014
10. 10
The migrants market: latest evolutions and outlook
Market competition for providing remittance services is a key driver in pushing down prices, and
analysis of several corridors finds that prices are lower where there are more providers serving the
same corridor. Transparency is also an important factor in remittance markets, and money-transfer
operators are continuing to lower their prices, while also being the most transparent – with 98%
disclosing full information to their customers. For banks and post offices, the comparative figures are
only 76% and 45%, respectively.
Markets will be helped by improved disclosure requirements, as contained in the US Remittance
Transfer Rule (refer to section 2).
Remittance costs are a key determinant of resource flows to developing countries, and lowering these
costs is an important policy objective, as affirmed by the G20 in their 2008 commitment to reducing
the global average remittance cost by 5 percentage points (from 10% to 5%) over five years (the 5 x 5
objective), which could save up to $16 billion a year.
In addition, the speed of delivery may strongly influence the decision of the sender to choose a
particular channel (banking channel, money-transfer operators or postal network…).
Even if banks could outsource this business to maintain remittance-transfer services to their
customers, prices will continue to fall and force banks to focus on their most natural way to send
money (from accounts or cards to accounts), and let specialized competitors (Western Union,
MoneyGram…) organize cash-transfers. Those operators have wide networks in the sending and
receiving countries, less stringent identification requirements, and can easily organize low-value
and high-frequency transactions.
New regulatory constraints
Increased
transparency
Lower fees
New recipe for remittances business
Normed
processes
11. 11
New regulatory requirements appear to be going to make remittance transfers to other
countries more transparent and reliable
The Dodd-Frank Wall Street Reform and Consumer Protection Act directed the Consumer Financial
Protection Bureau to adopt the US Remittance Transfer Rule (effective on October 28, 2013) whereby
remittances will be more controlled.
Dodd-Frank seeks to protect and inform consumers by providing greater transparency and
predictability with respect to the price and delivery of international payments. Based on Dodd-
Frank, international remittance transfers from individuals in the United States are subject to clear and
prominent disclosures about the price of a transfer, the amount of currency to be delivered to the
recipient and the date the funds will become available.
The Rule has significant implications for the remittance industry in the US, and aims to enhance
transparency and competition, as well as establishing norms for addressing grievances and errors.
Banks that deal with international consumer payments now need to amend their cross-border
payments models, systems and processes to satisfy some provisions (guarantee of amount of final
funds delivered, guarantee on when funds will be received, right to cancel a transaction up to 30
minutes after its submission, fees and taxes imposed…). Fees and margins will keep decreasing while
new development costs will appear.
To summarize, regulatory rules are becoming more restrictive, prices are still decreasing, forcing the
banks to adapt their business model for remittances.
Nevertheless, the migrants’ market is much more than remittance. Indeed, it is still expanding and
provides new opportunities for banks.
Transform regulatory constraint into opportunity
More restrictive regulatory rules and prices that fall down for remittances push banks to transform
their business model.
Because Migrants’ market is still growing, they have to maintain their money transfer services and
use it as a flagship product integrated to a competitive offer with new adapted products.
With a more complete offer, banks will remove money-transfer operators competition, attract and
retain customers.
Key lessons learned
12. 12
The migrants market: latest evolutions and outlook
In this challenging and competitive market, we studied, through interviews with sales and marketing
managers, three major European players that have developed different business models to address
the migrant market.
• BNP Paribas has set a priority on building synergies across its entities to create direct impact for
retail customers and encourage cross-selling.
• Deutsche Bank has launched an affinity offering for the Turkish community in Germany, which aims
to assist migrants with their projects, solely in Germany.
• Extrabanca, the first pure player, proposes a model that aims at serving all foreign communities
living in Italy, both families and businesses.
BNPP: create cross-entity synergies
BNP Paribas is a leading retail bank in Europe and a key player at World level, operating in 78
countries*
(see illustration below). With over 23 million* retail customers, the Group is continuously
seeking to better address the needs of existing customers and acquire new customers through new
segments and innovative approaches.
Over the past four years, the Group has set a priority on building synergies across entities to create
direct impact for retail customers and encourage cross-selling. At the same time, improving customer
retention is an increasingly big challenge for the bank in a competitive environment, especially in its
European domestic markets.
The migrant segment was a key population to be addressed in such a context, and BNP Paribas has
built up an innovative approach with Maghreb communities.
BNPP Retail Banking international network coverage: a key asset to be leveraged to
address the migrant segment
The Group has built a wide retail banking network based on a strong historical footprint in Europe
with four domestic markets (France, Italy, Belgium and Luxembourg) and retail entities outside Europe
(United States, Asia, Mediterranean-Africa, Turkey and Central/Eastern Europe) with continuous
expansion into new territories.
BNP Paribas has launched several initiatives aimed at improving the customer banking experience
within the Group, reinforcing the image and competitiveness of BNPP as an international player, and
designing offer/service levels for specific targets (cross-border, mass affluent customers, migrants).
On the migrant segment, BNPP had existing assets:
• Significant retail networks in both the home and host countries of major communities (i.e. European
domestic markets, Maghreb, United States…)
• An existing large customer portfolio in countries of origin and of residence
• Specific products and services for migrants
• In addition, some communities represented greater potential in terms of deposits and money
transfers (i.e. migrants from Morocco).
European business models:
three different approaches to the market
*
Source: bnpparibas.com as of 1 November 2012
13. 13
BNPP approach towards migrants: develop acquisition in migrants’ countries of origin
(Morocco, Algeria and Tunisia) and improve existing customer retention in migrants’
countries of residence (mainly France and Belgium)
BNP Paribas decided to focus on the France - Maghreb migrant corridor, which represented the
highest potential in terms of banking equipment and benefited from its existing assets.
The Moroccan migrant community was a strategic target for banks (a strategic source for remittances
with ~30% of global remittances each year, and a source for cash deposits, with 30% of global local
cash deposits) and, since 2007, BNPP France and BNPP Morocco (BMCI) had started to develop
attractive dedicated products/services for this population that could be enhanced (transfers at
preferred price, prescription and remote account opening, dedicated offers…).
After three years, the partnership between French and Moroccan entities was a success:
• +50% account openings in this segment for the BNPP Moroccan entity (BMCI) and quality customers
• Satisfaction of Paribas France retail branches that significantly improved their customers’
experience by responding to specific needs linked to their personal situation/history
• Very positive customer feedback on the simplicity of the process and the competitiveness of the offer.
Based on this first successful initiative, the approach has been replicated in other Maghreb entities:
for Moroccan migrants in Belgium in 2012, and Algerian and Tunisian communities in France
in 2013. Very positive results have been achieved, even beyond the bank’s initial commercial
objectives (100% of objectives for Tunisia and 150% of objectives for Algeria).
BNP Paribas worldwide retail network
A strong potential identified on Maghreb communities
Source: BNP Paribas retail entities as of Nov. 2012 (source: bnpparibas.com), World Bank factbook 2011 as of 2010 data
• France-Morocco: 1.100K
Moroccan migrants
• Belgium-Morocco: 285K
Moroccan migrants
• France-Algeria: France, first
country of destination of Algerian
migrants with 1.200K people
(76% of worldwide Algerian
migrant population)
• France-Tunisia: France, first
country of destination of Tunisian
migrants with 600K people
(54% of worldwide Tunisian
migrant population)
14. 14
The migrants market: latest evolutions and outlook
A genuine offer to reward customer loyalty to the Group with dedicated benefits
adapted to each community’s specific circumstances
Migrants of Maghreb communities have common points, but with some specific needs due to their
home-country context, personal/family situation, link to their home country, personal projects. Hence,
BNP Paribas defined generic guidelines for a standard packaged offer, enabling local adaptation to
the context of each corridor.
Several points were highlighted by BNPP migrant customers as the ‘must haves’:
• A competitive daily banking offer package dedicated to existing BNPP France customers, including
cheap and secure transfers
• A high level of service including ease of customer path for opening an account from the country
of residence
• Dedicated products adapted to their context: boosted savings rates, cheaper loans and mortgages,
specific insurance for body repatriation
• Belonging to the same Group and the strong link between BNP Paribas France and its Maghreb
entities, as a major advantage providing customers with a feeling of security, assistance and
quality service continuity ‘here and abroad’
• Simplicity of the customer path to opening/managing their account remotely.
On that last point, BNP Paribas has built up a specific service to make it easier for a BNPP
France customer to open their account in another BNPP Maghreb entity: BNP Paribas handles the
‘paperwork’ and the customer needs only to finalize the account opening by collecting their payment
facilities in the country of origin (see illustration below).
Client’s home network (country of residence)
Client A
Client request to open an account
in another BNPP entity
Request management by the Call Center
of the welcome entity and client face to
face appointment to finalize account opening
Welcome network (country of origin)
Network A Network B
Branch
Web
Call Center
Branch
Web
Call Center
15. 15
A complete distribution and communication organization has been set up by BNP Paribas in those
home/host entities to support the new offer launch and build up a perennial local acquisition dynamic:
• Dedicated/targeted sales promotion plan in France (effort limited to branches with the largest
number of customers to maximize ROI), and attractive financial incentives (for each account
opening) to maximize branch managers’ involvement
• Dedicated/targeted sales promotion plan in Maghreb entities (national with a dedicated central
sales promotion team)
• Call centers set up with multilingual services
• Communication campaigns at branch level in France (resident network) and national level in
Maghreb entities (origin country), based on multimedia support adapted to each context, and with
dedicated display and messages.
Transform regulatory constraint into opportunity:
• A ‘win-win’ operation for both sides: a way to better address French migrant customers’
needs and improve retention, as well as bringing new high-potential customers to Maghreb entities
• Such an initiative encourages collaborative work between entities: dialogue during
preparation and launch of the commercial operation, regular exchanges on commercial
results to set up coherent action plans in France and Maghreb entities…
– It favors financial synergies and the building of a Group culture that are positive from both
an internal and an external point of view.
• A simple customer path drives success: customers are very sensitive to the ease with
which they can open an account and perform their daily banking operations, including
remotely. The BNP Paribas service was designed especially for migrants, to facilitate all the
paper work involved in opening an account in their country of residence, so that customers
are only requested to go to a branch in their origin country to retrieve their credit card.
– A simple customer path guarantees maximization of the transformation rate.
• An offer designed based on migrant customers’ needs and expectations: common
needs between different communities, and specific needs for some communities (e.g., a
current account in € in Algeria)
• A smart allocation of investments to maximize the effects:
– Commercial efforts need to be focused on the key period for migrants, immediately prior
to their annual return to their country of origin.
– A targeted sales promotion plan limits the effort of the national commercial network to
those branches with the largest number of targeted customers.
– Significant financial resources need to be allocated to achieve objectives (i.e., financial
incentives for sales, budget for multimedia plan…)
• A close monitoring of commercial results and a close collaboration between entities
are key at launch and beyond: it is essential that commercial teams in entities communicate
with each other closely to fine-tune the process/offer based on early customer feedback, to identify
any issues and to set up an action plan for adjusting the sales promotion plan if necessary.
Key lessons learned
16. 16
The migrants market: latest evolutions and outlook
Bankamiz: A new Deutsche Bank division for Turkish people
Overview and results since 2006
Turks are the majority foreign community represented in Germany, with more than 2.7 million
people. Besides this fact, there are many other reasons to consider the Turkish community as an
attractive target for Deutsche Bank.
The Turkish community is very mature and well integrated into German society. Today, most Turks are
looking for a future in Germany, whereas in the past, first generations used to send large amounts of
money to their country of origin in order to be able to return there when they retired. Consequently,
remittances from Germany to Turkey have been decreasing significantly since 1995.
Moreover, studies have demonstrated that the Turkish community embraces a high potential saving
behavior and Turks are considered to be trustworthy and low-risk customers. (‘Diversity in European
Marketing: Text and Cases’, Thomas Rudolph, Bodo B. Schlegelmilch, András Bauer, Josep Franch,
Jan Niklas Meise, 2012)
Bankamiz website’s homepage, where clients can choose to browse in the Turkish language
Remittances from Germany Stock of Turkish origin population
0
1968 1978 1988 1998 2008
0.5
1.0
1.5
2.0
2.5
0
0.5
1.0
1.5
2.0
2.5
1968 1978 1988 1998 2008
$billions
millions
Source: German Federal Statistical Office
17. 17
Bankamiz, which means ‘our bank’ in Turkish, an exclusive offer dedicated to Turkish residents, was
launched by Deutsche Bank in 2006.
This initiative is based on an affinity approach developed with customization of existing products
(e.g. credit cards with visual affinity), appropriate communication (e.g. dedicated website in two
different languages) and significant efforts on the distribution network.
Until 2011, Bankamiz recorded more than 60,000 customers through 50 corners based in Deutsche
Bank branches in all significant Turkish neighbourhoods. Between 2011 and 2013, Bankamiz, lost
some 5,000 customers and closed five corners.
Nevertheless, Bankamiz is still quite positive: according to Mitat Cinar, Sales Marketing Manager
at Deutsche Bank for Bankamiz, “Bankamiz is still very profitable [...] the revenue per customer is
higher than the average revenue per customer at Deutsche Bank”. The loss of customers, directly
linked to the departure of several Bankamiz Relationship Managers, led to the conclusion that a
commercial promotion based on proximity and real person-to-person relationships with customers are
the key success factors.
Consequently, over the next five years, Deutsche Bank plans to extend its Bankamiz offer to all 7,000
branches throughout the country.
Distribution network of Bankamiz: 45 corners
through Germany
Bankamiz credit cards with visual affinity
Source: M. Cinar, Bankamiz, Kurt Salmon interview
18. 18
The migrants market: latest evolutions and outlook
An in-depth understanding of needs and cultural code to propose an adapted
offer and communication:
• Being aware of the different critial moments of the customer experience and proposing
special dedicated ‘emotional products’, such as: Bankamiz Private Credit, which proposes a
credit line from €5,000 to €50,000; or Bankamiz Fixed Interest Savings for saving for and
organizing a wedding.
• Communication based on emotion, with proper Turkish symbols: the brand’s icon is a glass of
tea, the symbol for Turkish people of friendship and hospitality. Many marketing campaigns
highlight other typical symbols.
• Physical presence across all Turkish channels to attract new customers: Bankamiz participates
in many Turkish cultural events (soccer competition, Turkish association sponsorships…) and on
Turkish media.
Key lessons learned
“We make your dream come true” and “Welcome to your own home”: two commercial brochures
highlighting the eye-shaped protective amulet (“nazar boncuğu”)
“Save for the most beautiful goal of your life”: two wedding rings engraved with the words in Turkish
“hope” and “desire”
continued...
19. 19
Proximity and trust to attract and retain customers
Bankamiz understood that reaching Turkish people implies that the relationship manager has
to be close to the community, being integrated into the community and speaking Turkish, for
example, as well as being aware of its fundamental values:
• Customers’ trust in their relationship manager is more significant. For instance, during the
financial crisis, Deutsche Bank noticed that Bankamiz customers were less vindictive than
other customers.
• Customers feel more comfortable and less anxious; thanks to the confidence they have
in their relationship manager. For instance, Bankamiz customers are more active and the
banking equipment (including credit loans) is more complete than the other customers.
20. 20
The migrants market: latest evolutions and outlook
Extrabanca: the first pure player in the migrants market
Overview and results since 2006
Founded in 2010, Extrabanca is the first bank in Italy aimed specifically at serving mainly foreign
citizens living in Italy, represented by families and businesses. Extrabanca is owned by a consortium
of several wealthy entrepreneurs, insurer Generali and the Cariplo Foundation. And, following a new
road show in 2013, Extrabanca successfully achieved a capital increase.
The reason why Extrabanca decided to target migrants is because Italy is one of the most important
destination countries for migrants to Europe: around 5 million regular migrants live in the country
(some 8% of the total population) and the annual growth rate of migrant presence is the highest in
the European Union. (Source: IOM, International Organization for Migration)
“Immigrants resident in Italy do not represent a niche any more but a large market, growing fast and with
very significant revenues. Small companies run by immigrants are getting fundamental in many business
sectors. Traditional retail banks do not know how to properly address their specific needs.”
Source: Extrabanca corporate presentation, 2012
21. 21
Extrabanca’s model relies on friendlier staff, products tailored to immigrants and longer opening
hours (including Saturdays). The network currently comprises three branches in Milano and Brescia
but it is expected soon to get wider, with new openings in Prato which has a huge Chinese
community), Rome (the first largest market in Italy), Bologna and Florence.
Source: Extrabanca corporate presentation, 2012
0
1971
12%
10
20
30
40
50
0
2
4
6
8
10
1260
1470
1981
14%
2011
23%
7.5%
2% over 65 years
2030f
13.5%
1992
0.6%
2002
2.3%
2011
7.5%
2006
4.1%
Over 65 years
Foreign origin
Italian population (million) Italian foreign population (million)
Transform regulatory constraint into opportunity
A unique service model approach to respond to a lack of offer in Italy: Extrabanca
understood that the migrant market offers a window of business opportunities for banks.
Using a risk-based approach, they no longer consider migrants as a marginal segment but
even more reliable than other customers.
Key lessons learned
22. 22
The migrants market: latest evolutions and outlook
Migrants are often considered as a marginal segment, highly risky, finding it difficult to understand
and which banks are reluctant to serve. In fact, migrants are less risky because of their status:
to build trust with bankers, they pay much more attention to their finances, and when there is an
incident, it is principally due to a lack of understanding.
Simple and efficient, Extrabanca’s service model responds to customers’ essential needs:
• Accessibility: extensive opening hours, barrier-free branches…
• Simplicity: 40 products to serve families and SMEs, with a transparent pricing structure
• Counselling: a sales team composed of multilingual financial advisors has to ensure that
customers have a good understanding of the bank’s products. They should be like coaches for
customers, helping them to find the right tools to manage their finances. Consequently, interviews
typically last far longer than in traditional banks (more than 1 hour).
Source: Extrabanca corporate presentation, 2012
Deposits
Loans
Services
Money transfer
Immigrants
15%
15%
65%
5%
120
Italian mass market
45%
21%
34%
100
Higher revenues than the average Italian Mass Market
“Extrabanca mainly targets the segment of immigrants with a premium offer: our
intention was to create a branch with a comfortable and aesthetically appealing
environment, able to give back dignity to people who might have obtained a
university degree in their countries of origin and who are now in a context that does
not always recognize them as qualified people.”
Alberto Rabbia – Extrabanca Chief Operating Officer
23. 23
An original distribution model to attract customers and promote the brand image
Extrabanca’s brand image is based on emotion, sensitivity and human values. In order to enhance
customer intimacy and proximity, Extrabanca has put in place an innovative approach:
• Branches are built in a ‘boutique’ style, well-structured and divided into different areas: an entrance
to be attracted to go inside, a central welcoming area with accessible information, open stations
with benches and large portals emphasizing the space. Decoration in warm and embracing colors
makes the branches pleasant and cosy places where customers feel at home. Moreover, branches
are not only a point of sale but also a place for culture and art exhibitions.
• Extrabanca is also highly present in the
different communities with its participation
in and sponsorship of various associations
and cultural manifestations. For example,
Extrabanca was the main sponsor of Miss
Sri Lanka Italy and visibly present at the
Philippine Festival in 2013.
• Furthermore, Extrabanca effectively uses
traditional approaches from mass-retail
industries: street marketing (e.g. €20
vouchers for a first money transfer operation),
or Members get Members campaigns (e.g.
€25 gift for both sponsor and new customer)
to attract new customers and numerous SMS
campaigns (to promote special offers) to
entertain customers.
24. 24
The migrants market: latest evolutions and outlook
These case studies clearly show how approaches rely on purpose:
• Considering migrants as international customers (the BNPP model)
• Considering migrants as an affinity segment of mass retail customers (Deutsche Bank and Extrabanca)
Therefore, values and levers are clearly different!
– Basic offer of banking services easy to understand with a transparent pricing structure
– Must have: Money transfer services at competitive prices
Supporting clients’ domestic needs
in their host country
Affinity marketing approach
Resident needs
Proximity and hospitality
A ‘feel of home’ feeling
Cultural codes
Emotion
Accessibility
Multi-cultural environment
Expatriate needs
Reliability
Quality of the services
Speed of the services
Transparency
International clients marketing approach
Supporting clients’ needs
in their origin country
Define your micro-segmentation is instrumental to push the right offer:
• Migrants segment is a combination of various clients profiles.
• Some are used to banking products. Others are not.
• Some send money every month to their origin country but never fly back; Others go there every
summer and do not send money.
• Some need mortgage in their origin country, others need a card…
• Banks will have to determine these profiles and consider which niche they have to invest on.
After that, addressing their target will go through a wide range of possibilities:
• From ‘High level Offer’: quality of the relationship management, dedicated multilingual advisors,
specific distribution model with targeted corners…) for high ROI-potential target.
• To ‘Light banking’ concept that only covers the basic needs without any affinity products to focus on
volumes and boost acquisition.
Key lessons learned
25. 25
The migrant segment, a successful experience
of new trends in retail banking
From ‘mass-marketing’ to ‘niche-marketing’
After the two historical axes (age/potential), the use of ‘belonging to a community’ as a third axis for
segmentation has proved to be an effective means to acquire, equip and retain.
Beyond the experiments presented in this study, several players have successfully positioned in even
more ‘micro’ segments. Of note is Caisse d’Epargne in France, which several years ago opened a
dedicated branch for Japanese residents in Paris, a market of fewer than 15,000 people.
These initiatives are all the more secrete as they are very profitable… Which leads us to believe that
‘the smaller the target, the higher the profit per customer’!
If we take a look at other industries, this seems to be a clear trend of marketing and distribution.
For many years, major retailers (e.g. Walmart, Carrefour, Auchan…) have been using different
segmentation criteria to organize merchandizing: even small supermarkets already have shelves
dedicated to:
• one country of origin (e.g., Mexico or Vietnam in the US),
• one region of origin (e.g., Corsica or Pais Basco in France),
• one religion (e.g., Kosher or Hallal shelves),
• fair trade products and organic products…
But the most symptomatic illustration of this trend is clearly the evolution of direct marketing. Direct
marketing cells, which used to work on three or four annual campaigns dedicated to the whole
customer base, now work on more than 50 activities a year, using a ‘test-and-learn’ approach in
micro-segments. And, quite naturally, rates of return are much higher this way.
But if micro-segmentation and niche marketing seem to be the future of financial marketing, one may
wonder about the future of:
• Banking offers: what about a new axis to package products?
• Distribution networks: how many different branch formats are the most efficient?
• Advisors’ profiles: which criteria should be used to organize portfolios?
26. 26
The migrants market: latest evolutions and outlook
From selling to counselling…and financial education
The migrant experience is also interesting insofar as it seems to remind us of the fundamentals of the
banking relationship and customer needs.
First, migrants express the need to understand what they consume, even when it concerns banking
products. European players that have succeeded in this market, or more broadly on the ‘mass-
market’, have understood this point.
The Extrabanca case study teaches us that a simple lever is to increase the duration of interviews
between customer and Relationship Manager. Thus, A. Rabbia, Extrabanca COO, tells us that the
average length of an interview at Extrabanca is about 1 hour 30 minutes, as against 45 to 50
minutes in a traditional bank. Indeed, it seems to be very important to allow time for the customer to
ask questions and for the Relationship Manager to ensure that everything is clear at the end of the
interview, for two reasons:
• To build a counselor/counselee relationship and to establish trust
• To prevent risks. According to A. Rabbia, most financial problems with migrants are due to a
misunderstanding.
The misunderstanding of the basics of financial literacy and banking products seems to be general all
over Europe.
A recent study conducted by ING-DiBa showed that less than half of the west European population
had received a financial education.
Thus, many retail banks have understood this issue and a lot of financial education programs have
been implemented in both Eastern and Western Europe for children…as well as for parents.
A few examples are:
• In Ukraine, Platinum Bank has educated 25,000 children
• In Italy, Unicredit offers customers and non-customers free participation on courses
• In Germany, Easycredit has implemented free independent debt counseling (online and over the phone)
This awareness has also brought product innovation. Indeed, the Austrian bank Erste Bank has set up
a system with two accounts for its low-income customers in Romania--one hosting direct debits and
credit transfers and one dedicated to ‘pocket money’.
These different examples show how an understanding of banking products is not a constraint to be
dealt with but an integral part of the banking relationship.
27. 27
New values to guide offers, customer relationships and distribution
The values that migrants look for in their relationship with banks seem to be shared with most mass-retail
customers: trust, proximity, transparency…But are banks really operating in line with these values?
During the past five years, banks have made great efforts to simplify their offers and bring more
transparency in pricing, particularly in response to regulation.
But for many years, banks have highlighted security and confidentiality in an attempt to encourage
people to keep their money in banks rather than to build an uninvested nest-egg. Thus, many
branches are still similar to safety deposit-boxes, made of marble and metal.
But mass-retail customers, especially low-income customers, feel as though those branches are not for
them: especially following recent bank failures, they feel that banks charge a lot, that the little money
they have does not justify those security resources, and don’t feel really welcome in branches.
So the success of Extrabanca is not surprising: welcoming, ‘boutique-style’ branches, accessible
Relationship Managers who do not look different from customers.
Thus, while trends clearly show that mass-retail customers are more willing to go to branches than
premium customers, who are more eager to have remote banking, one may wonder if the banking
distribution network is still well adapted to its market…
28. 28
The migrants market: latest evolutions and outlook
Since former migrants study, institutional figures have confirmed the weight of the migrants market
growing at an outstanding path, overcoming global moribund economic situation, exchange rates
and oil prices.
One of the main changes we observe is the legal context, bound to stimulate remittances flows in the
coming years: increasing transparency, shortening delays, enhanced competition and thus reducing
fees, are forcing banks to update their business model as regard to migrants segment, going beyond
cash transfer tight competition to focus on their major assets: banking and advising.
The three business models we studied could illustrate that several competitive advantages can lead
to success:
• Leverage on your international network so that each entity can mutually enhance acquisition/
equipment/retention.
• Develop an in-depth understanding of your segment and extend proximity to build trust all along
the client lifecycle.
• Address a too neglected multi-origin segment with a simple offer to answer the customer’s essential needs.
Key success factors to approach migrants market rely on mastering micro segmentation, light banking
but adding value, and having a good command of distribution models: tactical mapping, branches
vs. boutiques, accessibility, portfolio management reflecting the bank strategic objectives.
Conclusion
29. 29
Acknowledgements
For their contribution to the case study, the authors would like to thank the following experts:
• Sébastien Roger, BNP Paribas
• Olga Girardot, BNP Paribas
• Mitat Cinar, Bankamiz - Deutsche Bank
• Alberto Rabbia, Extrabanca
For their strong commitment to deliver this study, we are grateful to Alexis Beau, Hélène Cambournac,
Julie Bousquet, Leila Bridja and Daniel Verschaere.
31. 31
About us
As a global not-for-profit organisation, Efma brings together more than 3,300 retail financial services
companies from over 130 countries. With a membership base consisting of almost a third of all large
retail banks worldwide, Efma has proven to be a valuable resource for the global industry, offering
members exclusive access to a multitude of resources, databases, studies, articles, news feeds and
publications. Efma also provides numerous networking opportunities through working groups, online
communities and international meetings.
For more information: www.efma.com or info@efma.com
Kurt Salmon is a management consultancy focused on business transformation with 21 offices in
North America, Europe, Asia and Africa.
Our 1,400 consultants advise companies’ top management on projects that have a tangible
impact on the success of their businesses and, in particular, their transformation projects. The firm’s
success lies in our ability to build long-lasting client relationships based on trust and to achieve the
outstanding results that make us standard-setters for the consulting sector.
Contacts
Hélène Cambournac, Manager
helene.cambournac@kurtsalmon.com
Aude Arkam, Manager
aude.arkam@kurtsalmon.com
Joël Nadjar, Global Partner
joel.nadjar@kurtsalmon.com
For more information: www.kurtsalmon.com
@KurtSalmonFR
24, rue Salomon de Rothschild - 92288 Suresnes - FRANCE
Tél. : +33 (0)1 57 32 87 00 / Fax : +33 (0)1 57 32 87 87
Web : www.carrenoir.com
INEUM Kurt Salmon
INE_06_0409_Logo_CMYK
14/12/2010
QUADRICHROMIE
M100 Y100
K100
M65 Y100
Ce fichier est un document d’exécution créé sur
Illustrator version CS3.
32. 32
The migrants market: latest evolutions and outlook
The migrants market
Latest evolutions and outlook
March 2014