SME Banking Masterclass

SME Banking
Masterclass

913 Jul 2018
UK, London
£4,995 + Vat
The aim of this course is to explore how leading banks deploy bestpractices to boost performance of their
SME businesses, how delegates' banks could upgrade their own approaches to worldclass standards, and how
other banks could enter successfully this key business.
Course Instructor
The course director has extensive experience of helping many banks to increase profitability greatly. In some
cases, profits were doubled or trebled over a year or so while risks were maintained at acceptable levels. He
has been both a top banker and bank strategist, and has advised the leaders of over 160 banks based in
more than 60 countries.

Course Description
Benefits of the Course
The course gives delegates the opportunity to:
l Understand the Major Contributions Made by SME’s in Most Countries: Essential Services, Employment,
Innovation, Competition and Taxation
l Appreciate the Major Opportunities for Banks Presented by SME’s: Opportunities to Lend But Also to Sell
Many Other Products & Services
l Examine How to Focus Marketing Strategy Across SubSegments of the SME Market: SubSegments That
Need Loans But Also Those That Want to Save and Invest
l Evaluate How to Intensify Selling & CrossSelling to SME’s: Business Centres, Mobile Sales Forces and a
Distinctive Brand for SME’s?
l Assess the Best Ways to Organize SME Banking: A Separate Division or Part of Corporate Banking or Retail
Banking?
l Review How Leading Bank’s Appraise, Train and Reward Their SME Bankers
l Understand How to Reach WorldClass Standards of SME Credit Management: SME Credit Policy, and Credit
Processes and Organization?
l Explore How Leading Banks Plan & Control Business With SME’s
l Set Priorities for Boosting SME Business and Performance at Their Own Banks
Learning Level
This is an intensive general management level course for:
l Senior bankers involved in SME banking and who wish to learn more about bestpractices for improving the
organization, growth and profitability of their existing SME businesses
l The leaders of banks who wish to enter SME banking successfully
Methodology
The course is intensive and participative. Various methods are used:
l Formal presentations with discussions, including many real case histories from across Europe, the Arab
world, Africa, AsiaPacific, the Americas and former Soviet countries
l “Question & Answer” plenary discussions with the course leader
l Case studies that illustrate the application of the approaches examined
l Group work in which delegates discuss improvement priorities for their own banks
Half of the time at the course is spent on group work and case studies so that delegates can share their
experiences and “learn by doing”. Because the course covers serious, “hard”, subjects the programme includes
specific numerical examples and a range of practical, analytical methods.
Main Themes of the Course
Subjects covered at the course are grouped under five main themes:
l Theme 1: The Nature & Important Contributions of SME’s
l Theme 2: Marketing & Selling to SME’s
l Theme 3: Organizing for Effective SME Banking
l Theme 4: WorldClass Credit Management for SME Banks
l Theme 5: Planning & Controlling Business With SME’s
l Theme 6: Priorities for Progress at Delegates’ Banks
Agenda
Day 1

Session 1: Introduction to the Course
l Course Themes, Subjects and Timetable
l Introduction of Delegates and the Course Leader

THEME 1: THE NATURE & IMPORTANT CONTRIBUTIONS OF SME’s

Session 2: Definitions by Governments and Banks of SME's
l The Importance of Having Clear and Agreed Definitions of SME’s
l Definitions Used in the European Union:
Autonomous Enterprises
Partner Enterprises
l Linked Enterprises
l Definitions Applied in the USA
l Definitions of SME’s Used by Illustrative Banks Around the World
Session 3: Important Contributions Made by SME’s
l Provision of Numerous Goods and Services, Many Crucial to Modern Living
l Provision of Employment, Usually Large in Most Countries
l Stimulation of Innovation
l Spurring of Competition
l Generation of Tax Revenues
l Common Barriers to the Development of SME Banking
Session 4: WorldClass Standards & Examples of SME Banking
l The Challenge of Achieving High Profitability in SME Banking
l Main Elements of SME Banking:
Key SME SubSegments
Main Management Functions
l WorldClass Standards of SME Banking
l Examples of Successful SME Banking
l Discussion: Priorities for Upgrading SME Banking at Delegates’ Banks

THEME 2: MARKETING & SELLING TO SME’s

Session 5: Case Histories: Successful SME Marketing Strategies
l Market Segmentation in Banking
l The Nature and Contributions of SME Marketing Strategy Focused on Profitability
l WorldClass Standards of SME Marketing Strategy in Leading Banks
l Examples of “Winning” and “Losing” SME Marketing Strategies
l How WellFounded and Executed Marketing Strategies Can Increase Bank Profits by 30%
l Important Practical Lessons
l Discussion: Priorities for Upgrading SME Marketing Strategy Across Delegates’ Banks
Session 6: Group Work Segmenting the SME Markets of Delegates' Banks
l Choosing and Defining Segments of the SME Market
l Estimating the Sizes and Contributions of SME Market Segments
l Technical and Political Barriers to Market Segmentation
l Practical Steps in Segmenting a Bank’s Whole Customer Base
l Training Bank Personnel and Customers About Segmentation

Day 2

Session 7: SME Products, Services and Channels Provided by Leading Banks
l SME Products & Services from Leading European Banks
l SME Products & Services from Leading Banks in:
Russia
The Middle East
Asia
l SubSegments of the SME Market Being Targeted by Banks
l The Growing Range of Specialized Channels Used by SME Banks
l Key Perspectives and Conclusions About Developments in SME Banking
Session 8: Group Work Setting SME Product & Channels Development Priorities for Delegates' Banks
l Product & Service Development Priorities, including:
Deposit, Savings and Investment Services
Loans and Mortgages
Insurance Services
International Banking Services
Business and Support Services
Discussion: SME Product Development Priorities for Delegates’ Banks
l Sales & Delivery Channels Development Priorities, including:
Mobile Sellers Focused on SME’s
TeleSelling to SME’s
Dedicated SME Websites
Traditional, NonSegmented Branches
StandAlone Business Centres for SME’s
SME Business Centres Within Dual or Multiple Segment Branches
Discussion: SME Channels Development Priorities for Delegates’ Banks
Session 9: Case Study Formulating a Winning SME Marketing Strategy
l Defining MutuallyExclusive Segments of the SME Market
l Assessing the Attractiveness of SME Market Segments
l Assessing a Bank’s Competitive Strengths in Different SME Market Segments
l Setting Development Priorities Across SME Market Segments
l Specifying Action Plans for Moving Ahead
l Setting Profit Improvement Targets for Individual SME Market Segments
l Setting the ROE Target for the Whole SME Customer Base
Session 10: Case Answer Formulating a Winning SME Marketing Strategy
l Delegates’ Answers to the Case Study in Session 9
l Presentation of the Model Answer
l Discussion About Advancing SME Marketing Strategy at Delegates’ Banks
Session 11: Case History: How One Ambitious Bank Intensified Selling to SMEʼs
l The Meaning of “True Selling” as Used by WorldClass Banks
l How Selling Intensity Drives Up CrossSelling and Profitability
l WorldClass Standards of Selling & CrossSelling
l Case History: Steps Taken By One Bank That Intensified Greatly Selling to SME’s
l Impact of Steps Taken on the Bank’s Growth and Profitability

Day 3

Session 12: Group Work Intensifying Selling to SME's by Delegates' Banks
l Estimating the Current Selling Intensity Across Delegates’ Banks
l Increasing the Number of Existing Types of Selling Job
l Creating New Types of Selling Job
l Transferring Personnel from CostGenerating Jobs into IncomeProducing Jobs
l Increasing Selling Time in All Selling Jobs
l Reengineering Delegates’ Banks to Reach WorldClass Standards of Selling Intensity

THEME 3: ORGANIZING FOR EFFECTIVE SME BANKING

Session 13: Case History: Building a Successful SME Division
l Alternative Locations for the SME Division Pros & Cons:
Within Corporate Banking?
Within Retail Banking?
Divided Between Retail and Corporate Banking?
A Separate Division Alongside Retail and Corporate Banking?
l Organization of BranchBased Selling
l Organization of Mobile (Direct) Sales Forces
l Organization of Product Management
l Organization of Key Support Functions: Strategic Planning, Marketing & Sales Support, Credit Management,
Financial Control, Human Resources Management, IT Liaison
Session 14: Case Study Segmenting Branches to Boost SME Sales, Service, Productivity & Profitability
l Information About the Case Study Bank, its Segments and Strategic Options
l Adjusting Service Quality Levels for SME and Other Market Segments
l Improving the Ratio of Front to Back Office Staff Across the Network
l Boosting Branch Selling Intensity
l Establishing Special Branches for SME’s and Other Key Market Segments
l Adjusting the Role and Size of Head Office
Session 15: Case Answer Segmenting Branches to Boost SME Sales, Service, Productivity & Profitability
l Discuss About Segmenting the Branch Networks of Delegates’ Banks
Session 16: BestPractice Relationship Management of SMEʼs
l The Objectives of BestPractice SME Relationship Management
l Choosing Key SME Customers and Organizing Relationship Teams
l Focusing SME Relationship Managers on to Sales & Service
l Planning & Controlling Key SME Customer Relationships
l The “12 Rules” of BestPractice SME Relationship Management
l Discussion: Priorities for Upgrading SME Relationship Management in Delegates’ Banks
Session 17: Assessing, Training & Rewarding SME Relationship Managers
l Performance Appraisal Criteria for SME Relationship Managers
l Types of Training Provided to SME Relationship Managers by Leading Banks
l Reward Systems for SME Relationship Managers

Day 4

THEME 4: WORLDCLASS CREDIT MANAGEMENT FOR SME BANKS

Session 18: WorldClass Standards of SME Credit Risk Management
l The 250 Elements of SME Credit Risk Management
l WorldClass Standards of SME Credit Risk Management
l The Credit Risk Assessment Methodology – “CRAM”
l Case Histories: How Illustrative Banks Became WorldClass at SME Credit Management
Session 19: Case Study Pricing SME Loans TargetROE RiskAdjusted Pricing “TRAP”
l Explanation of TargetROE RiskAdjusted Pricing of SME Loans
l Calculating Margins Needed to Meet the Bank’s Target Return on Equity
l Estimating Margins to Cover Funding and Opportunity Costs
l Building in Margins to Pay for SME Credit Operating Costs
l Calculating Margins Needed to Cover SME Bad Debts
l Adjusting Margins to Exploit Competitive Dominance in SME Banking
l Discussion About Strengthening SME Loan Pricing at Delegates’ Banks
Session 20: Case Answer Pricing SME Loans TargetROE RiskAdjusted Pricing
l Discussion About Strengthening SME Loan Pricing at Delegates’ Banks
Session 21: Case History: Strengthening SME Credit Management in a Major Bank
l Changes to Overall Credit Policy
l Changes to SME Credit Policy
l Advancements to SME Credit Processes
l Improvements to the Organization of SME Credit Management
l Enhancements to SME Credit Training and Certification
Session 22: Group Work Advancing SME Credit Management in Delegates' Banks
l Assessment of Important Elements of SME Credit Management at Delegates’ Banks Against WorldClass
Standards Using the CRAM Methodology (Abbreviated):
SME Credit Policy: Segmentation, Formulation, Documentation, Communication
SME Credit Management Processes, Including Credit Scoring, TRAP Pricing, Loan Applications Processing,
Early Warning Systems, Remedial Management & Recoveries, Portfolio Monitoring & Management, and
Operating Costs
l Identification of the Main Improvements Needed to Reach WorldClass Standards
l Development of an Action Plan and Timetable for Reaching the WorldClass Standards

THEME 5: PLANNING & CONTROLLING BUSINESS WITH SME’s

Session 23: Case Study Measuring the Profitability of SME Customer Relationships
l Understanding the Case Study Bank’s Balance Sheet and Profit & Loss Account
l Assessing Transfer Rates for Defining SME Profitability and Selecting the Best:
“Psychological” Transfer Rates
CostofFunds, Single Pool and Dual Pool Rates
MarktoMarket Rates
l Calculating and Attributing ALM Profits: “Gapping” Profits and “Structural” ALM Profits
l Calculating and Attributing SME Customer Profits: Deposit Profits, Lending Profits
l Restructuring the Case Study Bank’s Balance Sheet to Balance Profits and Risks

Day 5

Session 24: Case Answer – Measuring the Profitability of SME Customer Relationships
l Discussion About Upgrading SME Profitability Measurement at Delegates’ Banks
Session 25: Case History: How One Bank Boosted the Profitability of SME Business Greatly
l Introduction to the Case History Bank
l BestPractice Calculation of SME Banking Profitability
l The “Drivers” of SME Banking Profitability
l Impact on SME Profitability of Individual BestPractices
l Impact on SME Profitability of Combined BestPractices
l Priority Actions for Boosting SME Banking Profitability

Session 26: Focusing Bank Planning & Control on to SME's
l Overview of SMEFocused Planning & Control
l Building Superiority with Strategic Planning
l Action Planning: Translating Strategy into Practical Action
l SMEFocused Budgeting, Financial Control and Key Performance Targets
l SMEFocused Performance Appraisal
l Key Challenges to Overcome
l Examples of WorldClass SME Planning & Control Systems
l Discussion: Establishing BestPractice SME Planning and Control at Delegates’ Banks
Session 27: Group Work Setting Key Performance Targets for SME Banking
l Measuring SME Profitability Success
l Tracking Selling Success
l Controlling CostEffectiveness
l Monitoring SME Bad Debt Performance
l Assessing Adherence to Policies and Procedures
l Determining SME Customer Satisfaction
l Appraising Development of Human Resources

THEME 6: PRIORITIES FOR PROGRESS AT DELEGATES’ BANKS

Session 28: Group Work – Priorities for Developing SME Banking in Delegatesʼ Banks
l Setting Priorities for Establishing SME BestPractices
l Defining the Actions to be Taken
l Proposing Timetables for Moving Ahead
Session 29: Summary of the Course
l Presentation of Certificates
l Closure of the Course
About the instructors
Chris Batt has extensive experience of helping banks to boost profitability. He is an internationallyrecognised
authority in advising the owners, boards and top management teams of leading banks and other financial
institutions, worldwide. He has worked with over 160 banks and other financial institutions in more than 60
countries across Europe, the Middle East, South EastAsia, other parts of the AsiaPacific region, Africa, North
and Latin America.

Chris was elected a Fellow of the Chartered Institute of Bankers (FCIB) in the United Kingdom in recognition
of his status in the UK banking industry and his educational services to top bankers.

Primarily, he works with commercial, private and merchant banks; mortgage and savings banks; investment
and securities companies; and competitors to these types of organisation. He also works with central banks
and has extensive consulting experience in the insurance field including life, pensions and general insurance.

Chris’ assignments focus on profit improvement, corporate governance, domestic strategy, international
strategy, marketing strategy and selling intensity, credit and market risk management, asset and liability
structure policies, technology strategy, human resources management, reengineering and reorganisation,
planning & control procedures, management information systems and matters of management style and
culture.

Over his career, Chris has held senior positions in six banks/financial institutions and five wellknown
management consulting firms:
Jordan Ahli Bank in Jordan, Chief Executive Officer (CEO)
Large Russian Bank: Chairman of the Group Credit Policy Committee
Visa International, USA Member of Executive Committee, Head of Global Strategy
Large Spanish Commercial Bank: Strategy Adviser to the President and to the CEO
Grindlays Bank, UK General Manager of Specialised Finance, General Manager of Group Planning
NatWest Bank, UK Group Planning Manager, Head of Management Sciences
He has master degrees from Cambridge and London Universities, and a Diploma from Imperial College. He
was elected a Fellow of the UK’s Chartered Institute of Bankers in recognition of his status in UK banking and
training services to senior bankers
Courses run by this instructor
The Strategic Management of Banks
Venue
Central London Hotel Venue, London, UK
All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a
training environment of the highest quality, to ensure that the whole learning experience exceeds your
expectations.

Your training venue will be confirmed by one of our course administrators approximately 34 weeks before the
course start date. If you need help booking accommodation for your visit to our training courses, please
contact accommodation@euromoneylearningsolutions.com and one of our partners will help you get the best
rate possible.

Who Should Attend
This course is for top bankers, senior executives who are expected to reach this level, and those who support
directly the top management teams of their banks:
The leaders of banks who are keen to enter or boost business with SME’s:
CEO’s, members of boards of management and top executive committees
Owners of banks and their supervisory board directors
General managers, executive vice presidents and directors who are:
Directly involved in SME Banking
Working for subsidiary companies that provide specialized services to SME’s, for example, insurance,
leasing, investment and software services
Senior executives responsible for “support” divisions, including Strategy, Marketing, Sales Support, Risk
Management, Credit Risk, Market Risk, Operations, Finance, Human Resources, Information Technology, Legal,
Internal Audit and Compliance
“Highflyers” with potential to “rise to the top” will also find the course broadening and beneficial.
Why Us
Why us

We have a combined experience of over 60 years providing learning solutions to the world’s major
organisations and are privileged to have contributed to their success. We view our clients as partners and
focus on understanding the needs of each organisation we work with to tailor learning solutions to specific
requirements.
We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve
your goals and accelerate your career:
Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score
awarded to us by our clients is nine out of ten.
Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over
250,000 professionals.
Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and
commentators, ensuring our knowledge base is second to none.
Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online,
using simultaneous translation to delegates from over 180 countries.
Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an
independent review by Feefo we scored 96% on service and 95% on product

SME Banking Masterclass

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SME Banking Masterclass

Uploaded by

Copyright:

Available Formats

You might also like