Annual Report 2016

Oliver Saake and Christina Kunz

Simpler, more structured advice for investment customers – with an optimized product portfolio

Securities business for customer account is a cornerstone of the relationship management for retail customers in the cooperative financial network. Volksbanken Raiffeisenbanken customers are looking for investment products that are easy to understand and offer the potential for attractive returns, especially in the prolonged period of low interest rates.

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Oliver Saake and Christina Kunz

DZ BANK – the central institution for the Volksbanken Raiffeisenbanken and their subsidiary partner in the securities business – develops a range of products for a variety of customer needs, in terms of both potential returns and investor risk appetite.

This led to growth in the range of structured securities products over the years. However, more than ever before, investment customers now expect to be informed and advised about the selection of banking and investment products suitable for their needs (which in some cases have changed), and the further development of DZ BANK’s range of products therefore seemed appropriate.

+56% from 2015 to 2016 Significant increase in revenue from investment certificates since optimization at the beginning of 2016.
Covering customer needs with a focused product range

“We set out to offer the advisors in the Volksbanken Raiffeisenbanken support that would enable them to provide customers with even better and clearer advice. The objective of our initiative was therefore to simplify the range of structured securities products,” explains Oliver Saake, Head of Product Management for Structured Products at DZ BANK and the creator of this initiative.

Within the framework of the initiative, DZ BANK completely overhauled its investment product offering in its customer business and reconstructed the portfolio. Following the merger of DZ BANK and the former WGZ BANK, the differing product ranges from the two banks were also analyzed and appropriately combined at the same time. Overall, it was important to DZ BANK to reduce the complexity in the range of investment products while continuing to satisfy customer needs. “It goes without saying that we therefore obtained feedback from our customers and incorporated their responses when redesigning the range,” adds Christina Kunz, who advises the local cooperative banks from a sales perspective and is their first point of contact for relaying their expectations and requests.

“We scored very well in a customer survey carried out in December 2016. We are trying to integrate new ideas from the survey immediately.”

Oliver Saake

Transparency and clear structures for advisors

The product range is now clearly structured and easy to understand. Product names are intuitive and can be quickly identified by advisors in the Volksbanken Raiffeisenbanken. The range focuses on product structures based on the EURO STOXX 50 index, complemented by products derived from traditional individual equities such as Daimler or BASF. The products are offered with or without a subscription period, although the subscription periods are focused on just two different periods.

Customer feedback is particularly important in a transition process of this nature. “We scored very well in a customer survey carried out in December 2016. We are trying to integrate new ideas from the survey immediately. For example, we are working together to continuously add improvements using new media such as flip books and explanatory videos,” says Oliver Saake.