A Case Study On Banque Accord: A Closer Look

Banque assign is a supplementary of financial giant the Auchan Group1. Founded in 1983, Banque harmonise was established in two stages In 1983, with the exit of fit sell tease in Auchans hypermarkets and, in 1987, with Auchans acquisition of Banque Delort, a marcher and affiliate of the chamfering group known as Credit Commercial de France2. Auchan subsequently called its newly acquired assert as Banque distribute 3.The newly acquired desires mission was to customize the rules that have proven successful in the argona of retail distribution and bring it to the financial services field, by allowing consumers to avail of simple tho innovative discounted products and services. 4 Essentially, Banque combine operates as a bank aligned with the reference and retail industries in general5. Put simply, Banque tally brings electronic banking functions to retailers, and payment and financing options resembling fliers and consumer credit, closer to its consumers.As a rule, the leverage of financial resources is backed by sound ratings from globally respected institutions desire Moodys and Standard & Poor. For the year 2006, Banque Accord received higher ratings compared to the previous year6. Moodys gave the bank an A2 grade, while S&P gave it an A or Stable rating7. To note, the word Accord suggests being able to agree on financial solutions for the telephoners clients8. The dynamism of Banque Accord, which eventually became well-respected in international financial circles, is due to the fact that it is wholly-owned by a bank and a retail group.Since its inception, Banque Accord has noteworthy achievements, four of which are9 (1) consolidating in the same organization electronic banking, issuing of retail control boards and providing credit to consumers (2) creating a network of banking peters in shopping centers (3) an ever-widening range of goods and products procurable to clients (such as payment cod facilities and services, revolving credit, traditional credit, and the like. 10) and (4) its takeover of Egg France in 2004, permitting direct online access to a lower place the monicker Oney.fr/ These portions, combined with the trade genius of its Chief Executive Officer Damien Guermonprez, Banque Accord has evolved in 2006, into an international front line with operations in nine countries, and a database of 4,800,000 customers11. 1 (Dauchy, 2007, p. 2) 2 (Dauchy, 2007, p. 3) 3 (Dauchy, 2007, p. 4) 4 (Dauchy, 2007, p. 4) 5 (Dauchy, 2007, p. 16) 6 (Dauchy, 2007, p. 16) 7 (Dauchy, 2007, p. 16) 8 (Dauchy, 2007, p. 3) 9 (Dauchy, 2007, p. 3) 10 (Dauchy, 2007, p. 3) 11 (Dauchy, 2007, p. 3) Banque Accord A Case Study 1In Banque Accords financial disclosures for 2006, the party reflected a EUR353,167,000 increase in assets in just 12 months12. Banque Accord also reported a net income of EUR34,413,000 in 2005, as compared to EUR24,206,000 in 200413. Despite the potential for provided international growth, Banque Accord has to vie with possible areas of difficulties, which involve14 (a) the use of mobile phones as potential replacement for bank cards in transactions (b) innovations in consumer credit and (c) the development of e-business in the retailing industry.Regardless of these trends that Banque Accord has to contend with, the bank continue to be innovative and continues to explore newer concepts to maintain its prestige and originality in the banking and retail industries. 12 (Dauchy, 2007, p. 17) 13 (Dauchy, 2007, p. 17) 14 (Dauchy, 2007, p. 17) 15 (Dauchy, 2007, p. 3) Banque Accord A Case Study 2 I. The Auchan Group Founded in 1961 by Gerard Mulliez, the Auchan Group started out in the North area of France with one hypermarket, which, simply defined, is a commercial message complex which combines a department store with a supermarket16.Currently, in 2006, the Auchan Group runs 360 hypermarkets spread across 11 countries. In France, Auchan operates 654 supermarkets 17. Since the inception of Auchan, the confederacys vision has remained the same. That is, to improve the purchasing power of its customers 18. Banque Accord is an Auchan subsidiary which has developed an identity of its own within the Auchan Group. Nevertheless, Banque Accords mission is identical to Auchans, and in essence, the bank has a dual vision 19 customer oriented providing its clients with a means to purchase and merged oriented assisting Auchan in maximizing turnover and revenue, therefore aiding the Group to reduce costs. Accordingly, Banque Acords mission, The bank for consumers is aimed towards Auchans clients at the hypermarkets 20. Banque Accord achieves its mission by making available to Auchans clients, certain services like discounted financial options and payments which are directly accessible to these clients.Being a part of the Auchan Group is a contributing factor to Banque Accords human resources practices By training a group of responsible professionals who consider their jobs ful filling, the company is able to achieve growth and guarantee their clients quality service21. II. Banque Accords Internal Strengths In examine the case of Banque Accord, one is accosted with the companys inherent strengths. Whatever weaknesses there might be for the company, these are easily addressed found on the operating standards adopted by the Bank. Nevertheless, inherent strengths of Banque Accord include A. European Market ShareThe modes of payment offered by Banque Accord is characterized by diverseness, restrictive and technical issues and the intricacy of the comfort chain of the industry22. Cash payment is predominant in 16 (Dauchy, 2007, p. 4) 17 (Dauchy, 2007, p. 4) 18 (Dauchy, 2007, p. 5) 19 (Dauchy, 2007, p. 5) 20 (Dauchy, 2007, p. 5) 21 (Dauchy, 2007, p. 5) 22 (Dauchy, 2007, p. 6) Banque Accord A Case Study 3 Spain, Italy and Germany23. However, majority of Banque Accords clients in Great Britain and France use bank cards24. The bank card is considered a pivotal product for the company that issued it25.The card can be very much compared to a traditional banks checking or current account, which is most convenient for customers to use. Retailers or outlets that have tie-ups with bank cards are able to mete out progressively, in coordination with various financial services like cross-selling or up-selling26. The European market where Banque Accord mainly operates was reportedly worth EUR930 billion in outstanding credit in 2005 (Source Lobservateur Cetelem), and is manifesting unwavering growths in many countries27. Within Europe, where Banque Accord operates, there are distinct differences between countries.In Great Britain for example, the total outstanding credit per household is double that of Frances28. In simple words, buyers in Great Britain have greater use for bank cards than customers in France do. The differences between countries may be attributed to diverse cultural orientations, regulatory requirements and marketing procedures 29. Another example is frequently, young people are refused credit on the grounds that they do not have a stable means of paying it. On the other hand, it is quite honey oil for a consumer to accumulate excessive credit30.A solution to this would be the use of regulatory systems and which monitor and prevent evil debts. B. Positioning and Diverse Services The business of Banque Accord is30 (a) issuing various lawsuits of payment cards like for example, retail cards, gift cards and bank cards (b) proffering consumer credit and other related services and (c) managing its retail partners electronic processing of monetary transactions. Electronic Banking is a technical service directly given by Banque Accord to its retailers, which is a source of pride to the bank31. Its electronic banking services is geared towards functioning as a bank receiving transactions providing the life in the retailers issuance of cards, managing authorization, 23 (Dauchy, 2007, p. 6) 24 (Dauchy, 2007, p . 6) 25 (Dauchy, 2007, p. 6) 27 (Dauchy, 2007, p. 6) 28 (Dauchy, 2007, p. 8) 29 (Dauchy, 2007, p. 8) 3-0 (Dauchy, 2007, p. 8) 31 (Dauchy, 2007, p. 9) Banque Accord A Case Study 4 2005, to form a share called loosenOps33. Being owned by a retailing group, Banque Accords aim is ATMS, payment terminals, etc 32. Banque Accords electronic banking services were grouped together in proximity to its customers, and minimizing costs of electronic banking.The impression business of Banque Accord is the issuing of a range of cards, which have different functions. The banks cards may be a typeface of payment, a retailers marketing tool, a support product of the bank that is incorporated in its associated services34. It is widely said that an Accord card may be likened to a Swiss Knife with flexibility in functions credit card, payment card and loyalty card 35. Various examples of an Accord cards use are36 (a) specimen 137 Card Type Retail Card Function A payment card issued or released b y retailerBanque Accord Auchan cradholders total 4,000,000 in Europe, and the card is accepted by other retailers (b) Sample 238 Card Type Loyalty Card Function Retailers marketing instrument which could be used to attract and maintain a loyal base of clients Banque Accord N/A (c) Sample 339 Card Type Bank Card Function A traditional card issued by banks, this card may be used overseas Banque Accord MasterCard Accord and VisaCard Accord (d) Sample 440 Card Type Gift Card 32 (Dauchy, 2007, p. 9) 33 (Dauchy, 2007, p.9) 34 (Dauchy, 2007, p. 9) 35 (Dauchy, 2007, p. 9) 36 (Dauchy, 2007, p. 10) 37 (Dauchy, 2007, p. 10) 38 (Dauchy, 2007, p. 10) 39 (Dauchy, 2007, p. 10) 40 (Dauchy, 2007, p. 10) Banque Accord A Case Study 5 Function This type of card may be utilized to personalize service, and enhances customer relationships. Banque Accord Auchan Gift Card wherefore a card is useful to ? the retailer, because it can be used as a marketing instrument and promotes consumer loyalty and ? the consumer, because it is convenient means of financing and payment41There is a distinct connection between owning a card, how the type of card benefits the customer and the retailer, and the amount of business the customer does with the retailer42. It is established that a customer who has access to credit through cards increases his or her purchasing power. A client who has no card hardly visits a retailer in a month, owning a loyalty card enables a customer to make trey visits. Having a retail card allows the client to make four visits per month to the favorite retailer and having a bank card gives the client the opportunity to make at least five visits to the retailer 42.Banque Accord boasts of an orientation which is discount-oriented and customer-oriented43. Banque Accord has two selling and pricing concepts44 annual subscription and cash back, which is defined as the specie paid to the customer related t his or her card use. For example in France, Banque Accord gives a 40% discount incentive to annual subscribers for a refular Visa Card, and 60% discount on a Visa Premiere Card45. Based on the spending habits of the customers, an annual subscription increases the potential for the cleints purchasing statistics. Other pecuniary ProductsApart from cards, Banque Accord also offers its clients other services, lilke46 (1) in-store credit wherein the individual retailers define their own credit policies along with different formulas for achieving revenue (2) personal loans, which are granted to customers as a come-on, at interest rates based on current market prices (3) revolving credit, which is built up by a credit reserve 41 (Dauchy, 2007, p. 10) 42 (Dauchy, 2007, p. 10) 43 (Dauchy, 2007, p. 10) 44 (Dauchy, 2007, p. 10) 45 (Dauchy, 2007, p. 12) 46 (Dauchy, 2007, p. 10) Banque Accord A Case Study 6 (4) Auchan savings account(5) life insurance, which is a tieup with Suravenir and offers life plans at simple and reduced costs and (6) non-life insuranc e. As evidenced by the wide range of other services that Banque Accord offers, its value chain is wondrous by a huge number of product alliances47. Thus, Banque Accord has been known for its flexibility. As a result, the bank has largely-increased the potential spending capacity of its client-base. Sometimes, the banks products are managed by other partners at times their competitors depending on which countrified the operation is in48.