by Markus Hinterberger, Euro on Sunday
Whe who wants to define the word “homegrown” in the banking industry will find a prime example in Marion Höllinger. The Lower Bavarian started a banking apprenticeship at what was then Bayerische Hypotheken- und Wechselbank more than 30 years ago and has remained loyal to her employer ever since. In the meantime, the 50-year-old has arrived on the executive floor of the HVB Tower in Munich. Here she is regarded as the beacon of hope for private customer business. While other banks pay high advertising bonuses to potential new customers, Höllinger and her people try to listen to the customers. Customers were surveyed and new ideas tested over a period of months.
HVB is growing steadily, especially in business with private customers, and is considered a profit maker for the Italian parent UniCredit. This is also due to the fact that the bank reduced its branch network to 300 branches earlier than others. In return, HVB customers were the first to be able to make video calls to their advisor outside of normal business hours.
Höllinger has now taken the next step and launched a free depot. The idea behind it: HVB should be the only bank account for its customers and not just one of many. In an interview with €uro am Sonntag, the bank manager explains why she finds advice from people so important and at the same time is a fan of artificial intelligence.
€uro on Sunday: Ms. Höllinger, the Hypovereinsbank recently started offering a free online custody account. Does your bank want to become an online bank?
Marion Hollinger: No, certainly not, we will remain a bank with a branch network that can be reached via all possible channels. We want to be an omnichannel bank.
So are other banks.
You may also reach other banks online, in branches, via chat, telephone and so on. However, we have consistently and completely networked all of these options. Our new Smart Depot is now another building block in our offer, with which our customers can get everything from us from a single source and at a good price.
How much does the order cost you?
0.25 percent of the traded amount, but at least 8.90 euros, will be charged per trade.
It’s not a competitive price, rather upper midfield. Their offer is priced at those of competitors such as comdirect, Consors and ING.
This is exactly where we want to address current and future customers. The free online depot and at least an attractive transaction price put us in a new market position. We don’t want to be the cheapest in the securities business, but we want to offer the full range.
Why should the customers of these banks come to the Hypovereinsbank of all places?
Some of our customers have a current account with us, but their deposit is still with an online bank, for example. We now offer a very convenient alternative: everyone who has an account with us should have as little “work” as possible with their financial affairs and should get everything from a single source.
So the offer is only valid for those who already have an account with you?
No, the Smart Depot automatically also includes a clearing account that is just as free and is also open to new customers and therefore to everyone.
Who are you primarily addressing with the new depot?
In addition to our existing customers who may have a custody account with another bank, in particular the digitally savvy so-called self-deciders, i.e. everyone who already knows how they want to invest their money and sometimes needs advice.
The decision-maker who then needs advice sounds like a contradiction. What are the topics of the conversations?
Our test phases have shown that all sorts of questions can be involved. This can be construction financing or very practical things, such as how to set up your exemption order correctly, but also the question of how to set up your depot now.
How should you behave now?
Philip Gisdakis, our chief investment strategist, regularly makes podcasts, writes publications and provides tips at online events. He is currently advising longer-dated bonds and only investing more in equities in the autumn.
Then the employees on site should not only be able to advise on pensions or construction financing, but also be investment professionals.
They don’t need that. We can connect experts from the head office or larger branches live in a video conference at any time.
How much does the consultation cost?
If you do all the trades and account reorganization online yourself, there is no additional charge for the advice.
What sticks with you?
The customer relationship. We want our customers to settle all their money matters with us. And the more you do with us, the cheaper the prices become in the course of our customer advantage program, which we have been doing with our checking accounts for a long time.
How many customers want advice?
That’s difficult to quantify. My experience is that this depends on the complexity of the issue the customers are dealing with.
How will the voicebots they introduced in 2021 be accepted?
Around a third of our inquiries are now answered via the voice computer. Artificial intelligence can now help with 485 different questions and the number is growing. Six months ago it was 300.
At some point, will we only talk to machines and call that consulting?
No, I think it’s more simple questions like “How do I set a stop course?” or “What are the extras on the exclusive account?” be answered by robots, while people will continue to answer complex questions such as pension schemes, the deposit structure or mortgage lending.
What role did Corona play in this?
The pandemic was a catalyst that accelerated many of the innovations that had been in the offing.
Also personal advice?
her too. Most of the talks now take place in the form of video conferences. During the pandemic, older people have also lost their fear of technology. If you zoom with your grandchildren, you want to do the same with your bank.
Inflation and rising interest rates worry many people. Which ones do you encounter the most?
The need for advice is huge and goes through all areas of private customer business. People whose real estate loan is subject to fixed interest rates are wondering what they should do. Others are wondering when interest on fixed deposits will return, and still others are wondering if they should stay invested.
What is your advice to borrowers who will soon need follow-up financing?
If you want to protect yourself against rising interest rates, you cannot avoid a forward loan. And once the customers have decided, depending on the remaining term, we recommend longer fixed interest rates.
The Bundesbank repeatedly warns of possible real estate bubbles. Are you worried about loan defaults?
Many of our existing customers have been financing with fixed interest rates for 20 or 30 years for some time and have therefore also built in a decent buffer should things get financially tight. Most of our customers have calculated very precisely what they can afford and act very rationally.
Even today? Some brokers are already reporting that there is some form of panic buying due to rising interest rates.
I don’t see that yet. It is rather an issue that many people – also because of the high inflation – want to buy a house or an apartment and cannot find anything in the short term.
How can these people who want to buy or build but haven’t found anything secure low interest rates?
Building society contracts are experiencing a renaissance here. They currently offer the opportunity to secure low interest rates for the future.
However, savers have low interest rates on savings and high closing costs.
That’s true, but with construction financing for a six-digit sum, an interest rate that is only 0.2 or 0.3 percentage points higher can amount to many thousands of euros. It’s worth counting.
The savings banks are already sounding the alarm that customers can no longer save because many have just enough money to make a living. What does that look like at HVB?
The savings behavior of our customers has not changed significantly up to now. An even larger proportion of the money is now flowing into securities savings plans and here most of it is going into ETFs.
Are your customers becoming more cautious?
In part, many know that the macroeconomics greatly affect the financial markets will have. On the other hand, we advise customers who, for example, save for old age with securities savings plans to remain invested, because their investment horizon is still long enough to wait out phases of low prices.
And you yourself?
I don’t expect a classic recession. Energy prices will make many things more expensive, but I hope that on the one hand our industry will find ways to use less energy and on the other hand that the war in Ukraine will end soon. I myself continue my investment projects in every market situation, since price fluctuations smooth out over time and, in my opinion, cheap subsequent purchases of ETFs or funds should also be worthwhile in the end.
CV:
The customer understander
Marion Höllinger has always been close to the customer. It all started when she began her banking apprenticeship at the Bayerische Hypotheken- und Wechselbank in Eggenfelden in 1991. She continued to run branches or branch networks until August 2021, when she was appointed to the board of directors for retail banking.
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Image sources: Monika Höfler/Hypovereinsbank
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