The TBC Bank Takes Leading position in the SME Market
Friday, November 15
The SME is considered as one of the most dynamically growing segments of the Georgian Economy and one of the major job-creators in the country. The role of the banks in developing this segment of economy is becoming more and more important. In spite of the strong competition, the TBC bank has obviously succeded in taking the leading position as the SME best partner bank.
In fact, the majority of the SME companies are clients of the TBC Bank. Since 2009, the number of the SME clients has doubled and at the moment, the TBC Bank has approximately 43,000 SME clients.
In view of the active clients, the TBC Bank holds 44% of the entire market. Last year, the TBC Bank held 38% of the entire marker, which indicates that the number of the TBC SME clients has increased more than the number of the SME clients in the market. This increase in the number of the SME clients shows that more and more such companies choose the TBC Bank, including the clients of other banks as well.
At the same time as the number of the SME clients increase, their portfolios are also dynamically increasing: the annual increase in SME credits portfolio is 28% on the average. The SME account portfolios in the TBC bank increase by 43 % on the average annually.
What’s the strategy, that has enabled the long-time leader in the retail and large corporate clients’ market - the TBC bank to become a leader in the SME segment as well?
Following are some of the factors that have played an important role in the success of the bank’s strategy:
• high professional level of the bank’s SME service employees;
• well-developed and sophisticated service channels;
• the highest quality service;
• the innovative program to support the SME “ Seven Steps to Success”;
#1 The bank, according to the client satisfaction level
Indisputably, one of the main factors that has enabled the TBC Bank to succeed in the SME segment is the bank’s “trade mark: quality” and high level of client satisfaction.
At the present, the TBC Bank holds the first leading position for the client satisfaction level. According to the results of the research conducted in 2013 by Market Intelligence Caucasus, license of TNS Global in South Caucasus, the TBC Bank holds the 1st position by “Customer Retention Index”.
The Customer Retention Index is based on the customer satisfaction and loalty to the bank. European banks have 64 on the average. In case of the TBC bank, the index is 63. The other Georgian banks that hold the second position in Customer Retention have just 59 Index.
Therefore, from the point of view of customer satisfaction and customer loyalty, the TBC bank is best in Georgia and is on par with European banks.
According to the same afore-mentioned research, 34% of the TBC bank’s clients are the so-called “envoys” of the bank; which means that they are loyal supporters of the TBC bank, they don’t contemplate moving to another bank and strongly recommend others to become clients of the TBC bank.
The same research shows that the second-rating bank’s only 28% of the clients are “envoys” for the bank. For European banks, it’s 36%. Hence, the TBC bank is once again in par with European banks.
Other bank customer surveys show that the TBC bank has the highest rates for comfortable and agreeable subsidiaries (bank’s offices), fast procedures, friendly and pleasant employees, etc.
All of this is the result of the bank’s consistent policy and countless efforts to improve customer service and client satisfaction level.
An absolute novelty in the market – the project that has covered not just Tbilisi, but also Kutaisi and Batumi
Several months ago the TBC bank launched a new, innovative business support project “Seven Steps to Sucess”. This project is designed to support the development of SME.
“Since the future of the country’s economy depends on the development of small and medium business, we wish to increase our activities in this regard. This is the main reason why we have decided to build a new platform for fostering relations with the SME business. In the framework of this new platform we plan to offer the SME long-term partnership not just by providing SME with bank products, but also free business consulting services. This approach will assist in growth of the SME and hence, be very good for the country’s economy,” – says the CEO of the TBC bank – Vakhtang Butskhrikidze.
The business support program of the TBC bank consists of 7 components:
1. Free trainings (classes) for SME representatives;
2. Information web-platform, which encompasses numerous information sources for SME representatives;
3. Thematic conferences to share experience and to improve communication;
4. Free consulting for specialists in various fields;
5. Internet banking for entities;
6. Mobile banking for entities;
7. SMS service forentities;
Free trainings in Tbilisi, as well as in Kutaisi and Batumi
The TBC bank launched the first component of its new business support program – Free Trainings in April 2013. In summer of 2013, the trainings’ program encompassed Kutaisi and Batumi.
At the moment, the trainings cover three subjects: social media marketing, effective human resource management and finances. Over 700 people went throught the training in Tbilisi, but this number will increase by 2,000 people by the end of the next year.
Unique Web Platform – Free Resource for business management
The next stage in business support program, after free trainings, is informative (educational) web platform. This web platform will be created by the TBC bank and will represent an information resource for small and medium business companies.
“This will be a web-page where companies will be able to find necessary information, business deals and profit-loss patterns, etc. Moreover, this web page will be interactive, which means that the users will be able to ask our auditors and consultants questions and receive answers” - says the CEO of the TBC bank – Vakhtang Butskhrikidze.
Another component of the program is Thematic Conferences. The TBC bank will organize special thematic conferences for small and medium size business representatives. The TBC bank plans to invite well-known specialist to conduct these conferences, so they can share their own experience, offer advice and inform the participants of the conference about the novelties in their sphere of interest.
In addition, the TBC banks is planning to offer small and medium size business companies free consulting services – this will give SME representatives an opportunity to consult lawyers, auditors, etc. “Most importantly, we plan to continue looking for other ways and methods to make our service more effective. In this regard, we may conduct a survey to find out what sort of trainings and conference would be most helpful to them,” - says the CEO of the TBC bank – Vakhtang Butskhrikidze.
In additiion to non-financial services, the TBC bank plans to offer small and medium size business companies various technological services, within the framework of the business support program. One of components of such services, namely internet banking for entities, is already in place. The other two services, mobile banking and sms service for entities will be in place by the end of the year.
The afore-mentioned technological services will allow the bank’s clients to switch to modern management methods that will assure their business success. At the moment, 80% of non-cash transactions are conducted via online services.
The internet banking for entities has already brought the bank an international recognition – “The Global Finance” Magazine has awarded the TBC bank in the nomination for the best internat bank for entities in central and eastern Europe.
Seven Steps to Success – 2013 Best Direct Marketing Campaign
The budget of the business support program launched by the TBC bank is rather high. However, the management of the bank believes that this will be a great investment in the economy of the country overall and have a positive influence on the entire sector. “We hope that our program will assist in the effective development of the companies; hence, our bank – as a financial institution, will get a more steady business partner and the country will have more jobs and better economic environment,”- says the CEO of the TBC bank – Vakhtang Butskhrikidze.
In addition to the business and economic benefits, the innovative project “Seven Steps to Success” has already received an significant international recognition – just recently the TBC Bank’s project “Seven Steps to Success” was nominated as the “2013 Best Direct Marketing Campaign” at the internation marketing contest “Business Awards for Marketing Brilliance”. It was for the first time that Georgia was participating in this contest.
Such an evaluation by the judges that represented independent experts, the Google, the Guardian Group, the American Express, the Nokia and other world leading companies is an obvious proof of how unique, innovative and effective this project launched by the TBC bank really is. Such a rewarding evaluation by the world leading companies is significant both for the TBC bank’s SME clients as well as this segment of business overall.