Unicredit Group: a Model of Consumer Education Good Practice · 2008. 11. 19. · 4 Unicredit Group at a glance…. The Unicredit Group is the result, among other, of the merger of

Unicredit Group: a Model of Consumer Education Good Practice

Emanuela AngoriDeputy CEO Staff

June 3rd 2008Public Hearing at the European Parliament, Brussels

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Objective of the presentation

This document aims to present the initiatives related to some inThis document aims to present the initiatives related to some initiatives itiatives

on Consumer Educationon Consumer Education that Unicredit Group has carried out also with the that Unicredit Group has carried out also with the

Italian Consumer Protection Associations (Italian Consumer Protection Associations (CAsCAs) , trying to create a model of Good Practice.) , trying to create a model of Good Practice.

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Corporate Responsibility@Unicredit Group

The Relationship between Unicredit and the Italian CAs : a Model of Good Practice

Unicredit Group at a glance…

New challenges ahead

A view on some Educational Initiatives

Agenda

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Unicredit Group at a glance….

The Unicredit Group is the result, among other, of the merger of nine Italian banks, and then of the

mergers with HVB Group in Germany, with BA CA in Austria and with Capitalia Group in Italy.

Employees: ~180,000

Customers: over 40 million

Branches: ~ 10,300

Banking operations in 23 countries

International network spanning ~50 countries

Global player in asset management: € 227 bn in managed assets

Strong regional player in Investment Bankingwith leading position in CEE

Some main figures

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Market Cap in Eurozone (Euro bn)4 Market Cap World Wide (Euro bn)4

Soc Generale

Credit Agricole

Fortis

Deutsche Bank

ING

BBVA

IntesaSP

BNP Paribas

UniCredit

SCH 87.4

65.8

62.6

61.1

56.1

55.8

40.9

38.0

36.2

34.6 UniCredit

Mitsubishi UFJ

Citigroup

Bank of China

SCH

JP Morgan Chase

BoA

CCB

HSBC

ICBC 146.9

133.5

129.9

109.4

102.6

87.4

83.5

83.3

74.6

65.8

Unicredit Group is the 2nd major bank in Europe and the 10th world wide

Unicredit Group at a glance….

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<< …Banking is not about generating transient short-term profits, but about

returning sustainable long-term value to our customers, our employees, the communities, and other stakeholders we depend on.

At UniCredit Group, we have been focusing on sustainability

for some considerable time. Our mission is to generate value over time for society and our customers, employees and shareholders,

and for current and future generations >>

Alessandro Profumo

Unicredit Group CEO

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The four pillars that drove Unicredit sustainability in 2007 :

Long-term Economic Value Generation

Long-term Economic Value Generation

Customer-centricityCustomer-centricity Identity & People Management

Identity & People Management

GovernanceGovernance

In order to better understand and meet consumers needs, Unicredit decided to collaborate with the Italian

Consumer Protection Associations - CAs, by listening to their needs and discussing possible solutions, thus

setting up a dialogue that allowed both parties to grow together focusing on customer-centricity.

The Italian Consumer Protection Associations are private non-profit organizations, registered at the CNCU (National Council of Consumers and Users) - at the Italian Ministry for Economic Development.

They are focused on different topics concerning the consumer protection, such as, among others: home, credit and savings, insurance, telecommunications, tourism, transports, health and food safety.

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Unicredit Group and the EU Consumer Policy

Empowering EU consumers through accurate information, market transparency and the confidence that stems from effective consumer protection

Ensuring a high level of consumer protection through better consultation and better representation of consumers’ interests

Better monitoring of consumer markets

UniCredit Group Consumer Education initiatives go hand in hand with the European Consumer Policy goals :

The relationship between UCG and the CAs has been developed also through some Consumer Educational Initiatives aimed at:

Making consumers more informed when dealing with banking products

Raising consumers information rights awareness by carrying out internal and external education activities

Reducing the distance between the Bank and the Consumer

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A view on some Group Educational Initiatives in Italy

Information Services in the

Branches

Accademia Banca di Roma

Educational Activities on Banking Products

and Services

The Bank opens its doors …

Guide toProducts Use

“Agenzia Tu”

together with CAs

together with CAs

together with CAs

out of the framework of CAs partnership

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Starting from 2005, the Group has carried out an innovative project called the “Dialogue Project”, with 14 Italian Consumer Protection Associations recognized at Governmental level.

The Project was based on 5 main working areas, involving the joint activities of the Group together with CAs:

Information Services in the Branchesto inform the consumer and help him/her in solving a range of common everyday life issues through CAs experts

Transparency of Contractsto simplify the contract wording, to analyze the “burdensome” provisions and to simplify the signature procedures

Complaints Managementto unify the complaint procedure through different commercial banks of the Group and identify a Conciliation Procedure for difficult cases

Communication and Trainingto improve the communication between banks and customers

A Path of Growth Together with the Italian CAs : the “Dialogue Project”

Commitments Charterto improve the transparency of values and behaviour

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Main figures on the Project:

300 branches involved throughout Italy

around 500 experts involved from the CAs

7 main areas of interest for the Community (home, transport, etc)

around 70.000 requests of assistance received in the branches

1 research on Italian consumer needs released and presented within a dedicated Conference

The “Information Services in the Branches” Project - launched on 24th October 2005 - aims at meeting the customer information needs on common everyday life issues.

The customers can benefit from free, guaranteed and independent information provided by the experts of the Italian Consumer Protection Associations operating 2 days a week in some Groupbranches throughout Italy.

The presence of the Consumer Protection Associations experts in the branches represents

the idea of a modern bank willing to build up a transparent dialogue with its customers and non customers also through

information and education services

A Path of Growth Together with the Italian CAs: the Information Services in the Branches

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How does the “Information Services in the Branches” work?

To provide the service each CA refers to a central tutor that manages for the CA the relationship with the Group,

coordinates the experts of the CA providing the service in the branches, follows up and supports their activities if needed.

……

… ……

……

……

……

…

14 Tutors from CAs - 1 for each Italian CA

Customers of the Group Non Customers – Community

Tutor of CAs

Esperts of CAs in the Group branches


CAstutors

CAsexperts

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Within the Project “Information Services in the Branches”, the Group together with CAs has developed an innovative and unique web site – the Consumers Desk.

- InsuranceInsurance (policies, claims reports, reimbursement process, rights and obligations) - HomeHome (purchase and rental contracts, safety, utilities)

- Trade and GuaranteesTrade and Guarantees (purchase contracts

and guarantees, CE labels, etc)

- Public AdministrationPublic Administration (self-certification,

on-line document renewal requests, requests

for certificates to be received at home, etc)

- TransportTransport (Highway code, fine management,

points for licenses, info on public transports)

- TourismTourism (passenger rights, luggage loss,

travel cancellation, etc)

- FoodFood (labeling, consumer protection in case of law violation, etc)

The Consumer Desk is a tool with approximately 1000 “Links and Faqs” about the following main issues:


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The following information have come out from an analysis on data registered on the Consumers Desk web site at

28.02.2008, providing also indications to the CAs for a better information service in the territory:

The service is required mostly in the South / Center of Italy, where customers have a low-average income

and the information services provided in the territory are limited

In big cities services are required in fringe areas, where

customers have a low-average income and the information

services provided in the territory are limited

Percentage of questions for geografic areas

18%

60%

22%

North

South

Center

Most of questions are registered in branches in small

towns (between 15.000 and 600.000 inhabitants).


Following an immediate answer on 97% of customers questions, a high customer satisfaction on the services

has been registered in the branches.

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In 2006/2007 it has been developed the Project “Accademia Banca di Roma”, a free educational initiative addressed to customers and non customers in the Banca di Roma branches in Italy and focusing on issues such as :

- main characteristics of loans: how to select a loan without surprises - selecting a financial investment in an informed way for “acquainted” customers - trade and guarantees: how to buy commercial products in an informed and aware way- how to use internet in the right way also for internet trade and relevant payments

Main data and results on the Accademia meetings:

Approximately 40 educational meetings organized in Italy14 CAs involved40 CAs experts contributing to the spreading of information to the Community, together with 40 branches directorsaround 1500 people involved in the meetingsMost of the participants expressing satisfaction after the meetings (consumers’ opinions on the quality of meetings: average 4,3 in a scale from 1 – low – to 5 – high)

A Path of Growth Together with the Italian CAs: “Accademia Banca di Roma”

The experts of the Consumers Associations provided free 3 hours educational courses on Saturday morningsin Banca di Roma branches to customers and non customers : a service for the community

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A Path of Growth Together with the Italian CAs: Guide to Products Use

Some initiatives have been developed in order to make the consumer aware and informed when using the banking services.

Among others, Unicredit Group collaborated with an Association specialized in active citizenship, on the following initiatives:

“Guide to read the contract”Following the consumers needs expressed by CAs, it was drawn up a guide and a glossary of key words in order to explain the products listed in some contracts (current account, credit cards, mortgages .. )As a result, the customers can more easily read the contract and gain transparency.Jointly, a new format for the statement of current account has been released.

GUIDE TO READ

THE CONTRACT

“Investigating the use of monetary and payment systems”Due to the Italian consumers’ limited and unclear use of the electronic payments underlined by CAs, the project investigated the levels of public understanding and changes in payment methods and the issues that affect usage patterns.At the end of this investigation, an informative brochure was released offering advice to consumers on the proper and secure use of electronic payments.

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Information and Education Activities for Target People:“Agenzia Tu”

“Agenzia Tu” branches have been opened in Verona, Bologna, Milan, Rome, Turin and Treviso, while new openings are in the pipeline for Brescia, Florence and Genoa.

Within the “Agenzia Tu” branches, some initiatives have been developed in order to help the consumer be more aware on banking product s and services, such as:

Tutoring Oriented Approach: mother tongue experts (speaking languages from Albania, Romania, Greek, Morocco, etc) supporting the customer to better understand the products content and the use of internet banking services

A Guide to help the customer to better understand thebanking products and services such as current accounts, internet banking services, credit cards, mortgages, etc

A Glossary and Frequently Asked Questions listfor customers, to simplify the language and try to guaranteea better understanding between the bank and the customer

Agenzia Tu is a new UniCredit Banca initiative focused on new segments of theeconomy and labour market: foreign citizens and ‘atypical' workers of all nationalities, who generally encounter difficulties in building up long-term relationship with a bank, often perceived as a distant and too complicated subject.

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Through educational initiatives, the Group has opened its doors to 14 CAs, trying to bridge the gap in terms of

education / information and trying to create a relationship model of Good Practice.

The innovation of the model stems from :

CACA

CACA

CACA CA

CA CACA

CACA

CACA

CACA

CACA

CACACA

CACA

CA

CACA

CACA

1. Top Management

2. Middle Management

3. Branches employees

Top - down Bottom-up

The Relationship between UCG and the CAs : a Model of Good Practice

The acceptance of a diversified and “variegated” approach

through the involvement of different “voices” to have all the final

stakeholder “voices” better represented

The involvement of both parties (UCG and the CAs) in the

educational activities in the territory at different levels, benefiting

from the advantages of top-down and bottom-up approaches

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TransparencyTransparency

Both parties listen to each other

Both parties work together to compare their points of view

Both parties analyses consumers gap in terms of information

Both parties discuss possible solutions to meet customers requirements

Both parties are transparent in the relationship

Each party respects the other’s role

Both parties are independent A real partnership creating added value for both parties:

Producing outputs meeting consumers needs

Developing a new approach to consumer needs oriented to education

Creating awareness of customers information rights

ListeningListening

Win – winpartnership

Win – winpartnership

GOOD PRACTICE

The values underlying the Relationship Model betweenUnicredit Group & the Consumer Protection Associations are :

The Relationship between UCG and the CAs: a Model of Good Practice

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• Enhancement of the information services in the branches both with a better focus on financial issues and with a reorganization of the services in the territory where needed

An evolution of the activities is “under construction” mainly focused on :

• Workshops throughout Italy to spread education on consumer rights,

with the involvement of both Consumers Associations and Unicredit Group

management

• Extension of internal and external educational activities on “consumerism”

Educational Initiatives for customers through a continue dialogue with CAs create added value for a Company and

are really an asset to invest on for the present and the future in order to support sustainability behavior within a

Company and to really meet the needs of an increasingly informed and aware Consumer.

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Contacts

For more information please contact

Emanuela Angori

UNICREDIT GROUP

Deputy CEO Staff - Global Banking Services

+ 39 06 6707 0428

[email protected]

Thanksfor your attention !

Documents

Unicredit Group: a Model of Consumer Education Good Practice · 2008. 11. 19. · 4 Unicredit Group at a glance…. The Unicredit Group is the result, among other, of the merger of