Bank of Montreal 1999 Annual Report Download - page 52

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Personal and Commercial Client Group
46 Bank of Montreal Group of Companies 1999 Annual Report
Residential Mortgages
1999 Accomplishments:
Introduced two new products: the 18-year Open Term and the
Investment Option Mortgage, as well as the enhancement of a
popular prepayment feature.
Established Mortgage Lending Specialists to improve
client focus
and service in key markets.
Completed purchase of IMC Company, a Canadian originator of
sub-prime mortgages, enabling us to offer mortgages to several
underserved market segments.
Small Business Banking
1999 Accomplishments:
Introduced a comprehensive set of Everyday Banking Plans for
Business, with pricing and service levels based on frequency of
usage and the differentiated cost of serving distribution channels.
Developed an Internet site dedicated to the specific needs of the
Agriculture sector.
Launched a highly customized financial service program tar-
geting the needs of Chartered Accountants and Certified General
Accountants across Canada.
Commercial Mid-Market Banking
1999 Accomplishments:
Created a fully mobile Commercial sales force supported by state-
of-the-art computers and communication infrastructure.
Continued to expand the Corporate Finance teams to
deliver leading-
edge financial solutions.
Strategies for 2000:
Aggressively and selectively target high-growth/value
businesses in key industry sectors and regions and continue
to leverage our Corporate Finance capabilities.
Enhance sales force competency through additional training/
accreditation and highly targeted intake programs.
Strategies for 2000:
Continue to improve our cost position through the introduction
and improvement of lower-cost telephone and Internet delivery
channels, centralization of processes and systems efficiencies.
Continue to build strong capabilities in credit adjudication,
automated and risk-based pricing decisioning, propensity/
predictive modelling and behavioural scoring.
Simplify and improve the product offering to save clients
time
and provide more value through industry-specific solutions.
Strategies for 2000:
Enhanceprofitabilityandgrowthofresidentialmortgageproducts
through client value management and product improvements.
Expand into new market segments by leveraging our loan
decisioning capabilities, and develop new capabilities in
related businesses.
Continuously improve operating efficiency in our systems and
processes to ensure delivery at the lowest possible cost.
Consumer Finance
1999 Accomplishments:
Bank of Montreal and Newcourt Credit Group formed FinanciaLinx,
an innovative Internet auto leasing alliance. This product provides
automotive dealers a new source of revenue generation.
Developed electronic consumer loan application capabilities for
our Mobile Sales Force.
Leveraged our industry-leading loan decisioning technology to
expand into new client segments, which significantly increased
yields and loan revenue, while maintaining credit quality.
Everyday Banking
1999 Accomplishments:
Implemented changes to our Everyday Banking Services which
restructured pricing and services. These changes more appropriately
price services to our clients, based on transaction frequency and
the differentiated cost of serving distribution channels. More than
2.1 million of our clients are members of our Everyday Banking Plan.
Implemented segment pricing. Youths under 21,
students under
25 and seniors over 60 can now do the most common Everyday
Banking transactions for no charge.
Insurance
1999 Accomplishments:
Recognizing the profitability of our Creditor and Reinsurance
operations, this line of business was identified as a key priority
for the future, and key leadership positions were staffed.
Re-engineered the Creditor Insurance products relating to Personal
Loans. This resulted in a more attractive product that is easier to
sell and has led to immediate increases in sales.
Strategies for 2000:
Continue to expand the scope of our international
reinsurance
operations, particularly in markets where
some of our key
strengths can be leveraged.
Continue work on product/process re-engineering coupled
with expert sales support and training to achieve top tier
performance in creditor insurance.
Selection of optimal participation strategies for the non-
authorized insurance market.
Strategies for 2000:
Continue to focus on differentiated pricing based on transaction
volumes and channel preference.
Significant product development to address changing client
needs and competitive offers.
Strategies for 2000:
Improve and expand product offering by simplifying and
rationalizing the current total product suite to make it easier
for our clients to address all of their personal credit needs.
Improve the delivery of our offerings through the expansion
and development of new distribution channels including In-
Stores, mobile lenders and online lending.
Reduce operating costs by improving lending systems efficiencies.