Bank of Montreal 1997 Annual Report Download - page 37

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Bank of Montreal 180th Annual Report 1997 31
Benefits of Strong Asset Growth and Cost Control Offset by Narrowing Margins in Low Interest Rate Environment
Group Description
The Personal and Commercial Financial Services group (PCFS) provides financial services to roughly six million
households and commercial businesses across Canada, and represented 41% of our 1997 net income and 30% of our
total average assets.
Business Environment
PCFS faced several challenges in 1997 that will carry through to 1998. The retail banking industry is undergoing a trans-
formation that reflects a new technological age, competing financial choices and new customer preferences. Through
this transition, PCFS has had to balance the costs of infrastructure and multiple priorities for investments with the need
to competitively satisfy customer needs. PCFS is striving to build a world-class understanding of customers, their values
and needs, while continuing to build distinctive workforce competence through this period of unprecedented change.
PCFS’ key business strategies position them well to meet these challenges. The focus of these strategies will ultimately
enable PCFS to integrate products, channels and prices in a way that is compelling to customers.
Key Business Strategies:
•distribution network transformation
•relationship building
•distinctive workforce competence
•knowledge management
Personal and Commercial Financial Services
Transforming Distribution Network
•Commenced a reconfiguration of branches and auto-
mated banking machines (ABMs): merged 55 conventional
branches; expanded the functionality of ABMs; and
developed Pathways Financial Growth Centre, a unique
banking store where customers and non-customers alike
can explore and implement solutions to their financial
services needs in an interactive,friendly environment.
This
initiative will accelerate through the year 2000 as we
develop a network that is simultaneously more cost-
effective and market-responsive.
•Introduced several Internet customer options: mortgage
applications with instant approval, student loan and
MasterCard®applications, and PC and net banking to
perform everyday banking transactions.
•Completed a substantial restructuring of the Everyday
Banking program which:
• provides customers with a cost-effective array of every-
day banking plans that facilitate simplified channel
choices such as telephone and net banking and basis
of payment for everyday banking services; and
• establishes all-in-one package of borrowing,
investment and transaction services for the small
office/home office (SOHO) market, called the
FirstBank Plan for small business.
Relationship Building
•Established a streamlined organizational structure pro-
viding distinct areas of responsibility and competency
in sales and service. The new structure has enabled
PCFS to enhance its focus on identifying and satisfying
customer needs.
•Demonstrated leadership in non-traditional financing
through the Bank of Montreal Capital Corporation’s
expanded presence and growing reputation, as one of the
leaders in providing equity and quasi-equity financing
for small- to medium-sized Canadian businesses.
Distinctive Workforce Competence
•Expanded the capability of the workforce in meeting
customer needs through a series of diverse initiatives
which include: recruiting Trust & Investment Services
Managers, establishing a Bank of Montreal MBA
program at Dalhousie University for a select group
of high potential future leaders, and enhancing
the skill set of Financial Services Managers through
various training programs.
Knowledge Management
•Enhanced Data Base Marketing competencies through
the development and application of technology-based
tools and their integration into the PCFS marketing
process. This has resulted in improved decision-making
to support customer retention, product development
and focused, high-quality service.
Accomplishments in 1997
®
Bank of Montreal is a registered user of the trade mark owned by MasterCard International Inc.