Bank of Montreal 2000 Annual Report Download - page 54

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2000 Accomplishments
■In Canada, increased mortgage loans by 6.4%, credit cards and other
personal loans by 6.7%, and loans and acceptances to commercial
enterprises, including small businesses by 8.4%.
■Sold or consolidated 100 branches and opened 41 new locations, while
growing the number of our telephone banking and online customers
to 1.7 million.
■Launched the first wireless banking services in North America and
signed up more than 90 large-volume mailers, including the City of
Toronto as customers of EPOSTTM4
, North America’s first electronic
post office and electronic billing service.
■Reduced the expense base by $78 million without affecting customer
service.
■In Chicagoland Banking, grew consumer loans by 15%, with total loans
increasing by 12%.
Review of Client Groups Performance
30 ■Bank of Montreal Group of Companies Annual Report 2000
Group Description
The Personal and Commercial Client Group (P&C) is committed
to providing integrated, seamless and high-quality service
to seven million personal and commercial accounts across
Canada and in the United States. P&C offers a full range of
products and services through 16,000 highly skilled financial
service providers in more than 1,100 Bank of Montreal and
Harris Bank branches as well as directly through bmo.com,
harrisbank.com, BMO mbanx Direct
®
and a network of
1,987 automated banking machines.
Personal and Commercial Client Group
Client Profile
P&C’s client base includes individuals and small and medium-
sized businesses throughout Canada and in the United States.
To provide clients with the high-quality service and product
choice that are the foundation of strong customer relationships,
P&C works closely with the Private Client and Investment
Banking Groups.
Distribution Network
Distribution comprises the multi-channel network through which we deliver
financial services to our customers. This includes branches in Canadian com-
munities from coast to coast, supermarket branches and automated banking
machines as well as BMO mbanx Direct, which provides customers with a
full range of anywhere, anytime service via the Internet, telephone and
wireless devices.
2000 Objectives
■Continue to transform the branch network through the consolidation of
105 branches and the opening of 45 in-store branches.
■Redesign the business model for the direct channel.
■Expand functionality in Internet and telephone service areas.
2000 Accomplishments
■
Substantially completed our three-year branch transformation program
with the sale or consolidation of 100 branches. Of this number,
62 branches were sold to credit unions in Western Canada.
■Opened 28 in-store branches in Western Canada, Ontario and Quebec
and purchased 12 branches from TD Bank and Canada Trust in high-
growth markets in Ontario.
■Merged mbanx and TeleBanking under the new branch of BMO
mbanx Direct, an initiative that involved over 1,000 job changes and
the migration of 150,000 clients to Everyday Banking Plans and a
segmented sales and service business model.
■
Redesigned the enterprise web site with a common look and feel, easy
navigation and enhanced self-service and wireless access features.
2001 Objectives
■Pursue an integrated approach to branch and electronic banking
to ensure that all our employees work in concert to help simplify our
customers’ financial lives.
■Pursue an integrated, strategic approach to the development and
marketing of personal banking products.
■Provide more customized service and otherwise aggressively target the
high-growth and underserved small business banking market.
■Build on our leadership position in the key and relatively underserved
commercial segment of companies with annual revenues of $100 million
to $300 milllion.
■
Through continuing expansion of technology, state-of-the-art risk
management techniques and strict internal discipline, achieve asset
growth while maintaining existing high asset quality standards.
■
In the United States, focus internally on a major opportunity to ramp up
retail/small business lending by more than $1 billion.
2000 Objectives
The Personal and Commercial Client Group is the largest contributor to the Bank’s earnings. Through an extensive branch and automated banking machine
network as well as a diverse electronic distribution system, P&C serves over five million personal and 450,000 commercial clients across Canada.
In 2000, P&C’s goal was to capitalize on its strong position in the Canadian market, primarily by moving to an integrated product relationship with
customers. To achieve this objective, P&C focused on a number of key performance indicators. These included:
■Outpace market rate of growth in deposit and loan balances.
■Continue to transform customer access channels.
■Increase e-business capabilities.
■Reduce cost structure.
■For Harris Chicagoland Banking’s community banks, the objective was to achieve strong growth in deposits and consumer and small business loans.