Bank of Montreal 1999 Annual Report Download - page 51

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Bank of Montreal Group of Companies 1999 Annual Report 45
Personal and Commercial Client Group
Group Description:
It is the goal of the Personal and Commercial Client
Group (P&C) to create a distinctive, high-quality service
for clients. P&C currently provides financial services to
about seven million households and commercial busi-
nesses across Canada and the United States.
Client Profile:
P&C provides a full range of products and services to both
individuals and small and medium-sized businesses in
Canada and the United States.
P&C works in partnership with the Private Client Group
and the Investment Banking Group to provide high-quality
service and choice in products and access channels.
Client Sales and Service Network
mbanx Direct
1999 Accomplishments:
Launched mbanx Direct, which consolidates mbanx and Telebanking.
The number of direct banking clients increased by 48% to nearly
one million. Growth in transaction volumes reflects the increased
use of mbanx Direct services, compared to traditional channels.
mbanx continued to lead all Canadian banks in customer loyalty scores.
Redesigned and combined the mbanx and netbanking Internet
sites which improved efficiencies and increased functionality from
13 to 34 services.
Branch Network
1999 Accomplishments:
Continued to restructure the branch network. As the volume of
Everyday Banking transactions in branches declines, our strategy
is
to reduce the aggregate space devoted to transactional service,
while maintaining approximately the same number of total outlets.
Opened 33 new In-Store facilities, extending our successful
alliances with Canada Safeway in the west, and with A&P in
Ontario. This brings the total number of In-Store branches to 43.
Opened two new remote-service locations, in Moose Factory, Ontario
and Deline, NWT.
Consolidated 62 branches.
Strategies for 2000:
Continue investment in technology, and leverage of customer
knowledge group, enabling close interaction with the branch
system.
Further development and expansion of direct banking capabil-
ities for our commercial clients.
Personal and Commercial Client Group
–
Canada
Client Knowledge Management
1999 Accomplishments:
Implemented a Comprehensive Retention Management Program
which helps us retain clients.
We have also initiated a pro-active
client contact program aimed at client retention.
The customer knowledge-based decision system has increased our
understanding of our clients
–
products held, channels of distribution
used, transaction behaviour displayed and resultant profitability.
Enhanced information tools were provided to Financial Service
Managers to help manage their client portfolios in
terms
of retention and growth
.
Strategies for 2000:
Expand and improve the customer information database.
Develop and implement an enterprise-wide sales and
service platform.
Strategies for 2000:
Consolidation of 105 branches.
Opening of 45 In-Store branches.
Environmental Overview:
Low interest rates and inflation, as well as reduced
unemployment, are creating increased demand for con-
sumer and commercial loans. The continued flattening
of the yield curve, caused by short-term interest rate
increases during 1999, reduced net interest margin, thereby
mitigating the impact of loan volume growth on results.
Competition in Canada and the United States is increas-
ing, from both the global banking sector and new non-
bank and niche players. Increased competition leads to
lower fees and places further pressure on spreads. To
address these challenges, P&C’s key business strategies
are aimed at meeting the needs of clients through prod-
uct devel
opment and a high-quality workforce, supported
by value-
driven technology.
Key Business Strategies:
Invest in those
businesses with the potential to add significant value,
using the Value Based Management discipline
.
Align and integrate our distribution channels to provide integrated, high-quality solutions for our clients.
Redesign the branch network to reflect changing client needs.
Improve client knowledge management to profitably retain and grow client relationships.
Develop our workforce, to achieve a high-performing sales culture.
Invest further in e-commerce initiatives and direct banking distribution channels.