Over the past few decades, cross-border business has experienced unparalleled growth due to advances in communication and IT, privatisation and deregulation in emerging economies and the emergence of the global consumer. As the era of globalisation continues to manifest itself through the emergence of global companies, the importance of Global Customer Relationship Management has become increasingly significant.
In December 2009, CIB established the Global Customer Relations Department (GCR), with a team of credit certified calibers with strong interpersonal and marketing skills.
The GCR model has proven globally to be an effective method in accelerating business outcomes through superior customer support/service. The model may be relatively new in Egypt, but it has been adopted globally over the past 25 years.
Primarily, the GCR’s vision was for CIB to become a one-stop shop as a financial solutions provider rather than a product provider. With this vision in mind, our mission was to maximise customer satisfaction and revenue generation, through making the most of customer value across the global customer portfolio within the Bank.
In February 2016, the board decided to adopt key institutions’ best practices of applying a model where the GCR assumes the function of customer acquisition/maintenance, supported by product officers. Under the new model, the GCR function is responsible for the client and product profitability, share of wallet (SOW) and product penetration rates, among other things. Client profitability is composed of various products including GTS, treasury and corporate credit.
- SCZone: After successful and unwavering efforts, an MOU with the SCZone was signed, marking CIB’s leadership in the market as the first bank to undertake this initiative. The MOU entails the cooperation of both entities in the execution of the SCZone’s development plan through providing our distinguished commercial, retail, automation, corporate banking and advisory services as well as all other financial services provided by the Bank. The MOU of significant importance to CIB, letting us provide our advisory and technical consultancy services to the SCZone on projects presented for investments in the Economic Zone along with the needed financing for these projects either bilaterally or through arranging the necessary syndications.
- Renewable Energy: Immense efforts were exerted in the field of renewable energy during the year, making CIB the sole mandated bank for many major deals, translated in the issuance of LGs amounting to EGP 211 million.
- Digital Solutions: In keeping with GCR’s continuous effort to promote newly launched digital services, CIB Smart Wallet was launched with success, with clients signing 112 Smart Wallet applications. Some 18,130 ACH system transactions were implemented. CPS (Corporate Payment) transactions for CIB amounted to 50% of total e-finance volume. Transactions for one GCR client amounted to EGP 226 million, representing 16.3% of CIB and 8% of total e-finance transactions.
- Vodafone Cash: CIB signed an agreement with Vodafone to support Vodafone Cash by migrating approximately 1.8 million wallet users to the MasterCard platform. The service reflects CIB’s strategy of promoting financial inclusion in Egypt and attracting various segments of customers under the umbrella of banking services by providing a range of innovative electronic solutions that meet customers’ needs. Total mobile line subscribers stand at more than 90 million while the total number of bank clients do not exceed 10 million. This means the agreement between CIB and Vodafone, the leading mobile operator in Egypt, will help expand the base of mobile banking services customers and enhance Egypt’s general banking awareness. Offering banking services through electronic channels such as Vodafone Cash is one of the most significant and important steps in attracting Egypt’s substantial informal economy.
- 4G Financing: Capitalising on its close ties to the industry, CIB financed mobile operators to acquire ground-breaking 4G licenses in the form of contingent and direct facilities, for EGP 490 million and EGP 2.8 billion respectively, with a 41% SOW.
- Portfolio: Increased the loan portfolio to EGP 40.8 billion in 2016. Increased the deposit portfolio to EGP 13.54 billion in 2016
Strategy Going Forward
Given GCR’s newly expanded role and the healthy economic signals that have begun to emerge since October 2016, going forward GCR’s strategy will focus on:
Maximise CIB’s profitability through three major channels:
- Explore new business opportunities via market screening for newly sound customers.
- Increase SOW, penetration rate, profitability, asset quality and RAROC of all customers.
- Grow the retail banking business through marketing retail products and services to existing and new clients.
Strategic collaboration with all CI family, with a specific focus on CI Capital along with the GTS team to provide fully rounded solutions to clients.
Focus on FDIs, especially from the Gulf region after the EGP float.
Major attention will be given to mega projects located in the Suez Canal Zone in addition to the energy (conventional/renewable), EEA, infrastructure, transportation, logistics and ports sectors in line with the government’s announced directives and expansion policies.
Exert more effort to recover problematic/underperforming accounts to safeguard the quality of CIB’s asset portfolio.