Retail Banking

The NLB Group provides the general public with topnotch and comprehensive financial services in Slovenia and abroad, always complying with its clients’ and individuals’ diverse requirements. Skilled advisory personnel in the branch offices provide customers with a comprehensive package of financial services including traditional banking services as well as specialized financial services offered by NLB’s Group members (e.g., pension insurance plans, funds, banking insurance, etc.). NLB complies with the global trend by providing modern marketing channels and services and offering customers continuous and quick access to financial services without having to visit a branch office.

NLB has a business network, including 159 branch offices for retail banking and 42.2% of all Slovenian ATMs at customers’ disposal throughout Slovenia. NLB’s branch office and ATM network is completed by an additional 370 branch offices and 337 ATMs throughout the markets of SE Europe.

NLB has the leading market share in traditional bank services in Slovenia, with its other financial services gaining ground as well. At the end of 2008, NLB had a 38.5% share of all personal accounts in Slovenia.

In 2008, NLB focused on adjusting its portfolio to meet the specific interests and requirements of its various segments and target groups. It offers private banking to the most demanding and most affluent customers, as well as excellent service, quality asset management, and other specialized financial services. For demanding personal banking customers, it offers services tailored to the client’s highest financial power, while ensuring various benefits at point of sale, healthcare, legal consulting or real estate services, and so on. Personal and private banking is already used by 10% of NLB’s clients. NLB has special offers tailored to the young, from birth to full employment, as well as to retirees. A number of new features are being prepared that will allow services tailored to individual target groups and comprehensive services in line with customers’ wishes and needs.

The NLB Sales Portal facilitates a personal approach for every customer, specially-tailored consulting, and marketing services in line with clients’ needs and financial means.

In retail deposits , NLB actively promoted the provision of own funds and the restructuring of funds to long-term investments. At the end of 2007, the share of long-term deposits in all deposits of natural persons of NLB was 14.5%, whereas in 2008 it had increased to 29%. The growth of all fixed-term deposits in 2008 was 38%, whereas the growth of long-term deposits amounted to 178%. The successful marketing, communication, and sales campaign “Super Deposit” resulted in NLB obtaining a 51% market share of all long-term deposits of Slovenia’s population.

The growth of all household deposits amounted to 22.7% in 2008. Due to the circumstances on the stock markets, clients directed fewer funds into other investment vehicles offered by the NLB Group (14 NLB Skladi mutual funds, 2 guaranteed funds, and 6 bank-insurance funds). Noticeable results were achieved regarding other investment vehicles by marketing innovative "package" offers. In 2008, the NLB Group rounded off its portfolio by adding the specially segmented services NLB Vita Prvo for the young and NLB Vito Senior.

In retail loans, NLB’s business network achieved a 26.3% increase in 2008. In long-term loans, the fastest growing are mortgage secured loans, which grew by 51% compared to the end of 2007.

In credit card operations, the Bank increased customer confidence by developing the EnKa loyalty scheme in 2008. EnKa on NLB payment cards provides the customer with numerous benefits or discounted shopping at more than 500 retail establishments throughout Slovenia. Along with introducing the EnKa scheme, NLB also upgraded its cards with chip technology, thus additionally increasing the security of business operations via NLB payment cards. In March, the service of secure text messaging for holders of NLB payment cards was introduced, which represented a new feature on the market and ensures cardholders additional confirmation of the transaction’s authenticity. NLB patrons held 1.28 million cards, with which they made purchases totaling €1.8 billion. At 74%, debit cards still prevail. The NLB Group members in SE Europe are active in developing and marketing bankcards, which is reflected in the rapid increase in the number of cardholders as well as purchases paid by card.

In 2008, NLB Klik e-banking was supplemented with new features to expand its sphere of use for customers (SEPA automated payment transactions, possibility to receive, check, and pay e-invoices, access to and transfer of means to authorized accounts, access to NLB funds, archives, etc.). At the end of 2008, NLB Klik covered a good quarter (27%) of appropriate personal accounts.

In order to increase marketing functionality, NLB also revamped its NLB Web Portal. Its user numbers already exceed 800,000 per month.

On the SE European markets, the NLB Group mainly focused on modernizing the branch offices to comply with NLB standards and thus enable banks to utilize modern business operations and to change from transaction to advisory banks. Above all, the NLB Group expanded its network of branch offices in line with opportunities and in areas of low presence. The Bank further optimized its business network by merging banks (NLB Prishtina). Therefore, in 2008 the absolute number of branch offices did not essentially increase. In 2008, the ATM network grew by more than 30%. The number of retail establishments that accept cards has been increasing at the same pace. In individual markets of SE Europe, by number of customers, business network distribution, and business volume, practically all the NLB Group member banks are among the leading banks.

The NLB Group offers its clients withdrawal of cash from NLB Group ATMs at the rate applied to withdrawals from ATMs of the parent bank.

In 2008, the NLB Group banks gradually introduced personal banking services for their best clients. The changed and adapted services provide services of the highest quality and contribute to reinforcing client satisfaction. Client acceptance of the change was excellent.

In 2008, all banks operating in retail banking included NLB Gradual Saving in their portfolio. NLB Gradual Saving was introduced by a joint campaign and launched simultaneously at all NLB Group member banks. Although it was an innovation in most markets, this new service was excellently accepted, which is also reflected by the first sales results.

NLB Group
Annual Report 2008