2016 Performance
In Retail Banking we are continuing with the consolidation process initiated in 2014, which has two main lines of action: increase customer satisfaction and improve productivity. Both will make banking more profitable and efficient.
Customer satisfaction is one of Banorte’s great strengths. We have conducted studies on what customers value in our bank and found that the quality of personnel gives us an edge against the competition.
To continue with this advantage, we are working on automating processes, in order to provide faster and more efficient service and thus spend more quality time with clients, which will allow us to provide better advice and increase the opportunity to cross-sell.
Some indicators of greater efficiency and speed in services: the mortgage lending process has been reduced from 35 to 12 days; we finished pilot testing that managed to get the SME lending process reduced from 35 to less than 4 days and for car loans, we modified the process to respond to clients by the same day or within a maximum of 24 hours, of whether the loan was authorized or not.
Productivity allows us to be more profitable and at the same time, improve customer satisfaction and services. In 2016 we continued to improve service efficiency in branches and to increase alternate channels, that helps us to serve less profitable customers, that freed up capacity in branches to serve priority customers.
We continue with the branch transformations, with an information system, in handling queues, which enables us to foresee the types of operations that each type of customer carries out and thus assign them to the most appropriate teller or executive. This information system has prevented long queues at teller windows, by calculating the necessary service times in advance. The Oro Sena branch in Mexico City is an example of the new servicing efficiency of this channel.
To strengthen efficiency, we use specialized sales forces, who attend to customers whereever they are, without them having to go to bank branches.
In alternate channels, we provide services through Oxxo stores and mobile branches, the latter being an important social responsibility project.
Manuel Romo Villafuerte
Managing Director
Methods of Payment
“We had a very good year in the loan portfolio, with double digit growth.”
Manuel Romo Villafuerte
Managing Director
Methods of Payment
Products
Deposits
The accumulated deposits exceeded Ps 10 billion in the year, thanks to a 15% growth. As well as ensuring a better experience for existing customers, we provide banking services to new segments, allowing them access to more and better financial services. Banorte has highly competitive deposit products that meet the financial needs of different customer segments.
As part of the innovations and improvements that we mentioned we launched the new Personal Account Link, to service the Demand deposits for individuals segment. Among this account’s attributes: from mobile and electronic banking as digital attributes, includes the customer’s choice of a checkbook and promotes the debit card as a method of payment. It is important to point out that an offering of deposit products is better with a simple offer focused on the customer’s needs.
15% increase vs. last year
This year we are investing in campaigns to encourage users use more banking services and a more active use of the debit card for payments. In addition we have allocated resources to spread remittances via deposits in accounts. As a result, we doubled deposits in this segment.
CONSUMER LOANS
2016 was a year of great efforts to increase our efficiency in the products that we offer to Mexican families so they could realize their personal projects and thereby improve their quality of life.
CREDIT CARDS
The bank is committed to increasing its market share in the credit card business. Banorte’s Ti credit card was launched, which helped the bank to exceed market growth in the use of the card.
CAR LOANS
Ps 15.047 billion in Performing Loans
and a 21% increase v.s. last year
We continue to work to provide swifter services, with an expert sales force in car dealerships to respond on site and save the customer the trouble of having to go to the branch. Motorcycles and recreational vehicles are included in car financing, we also estaablished an alliance with a new brand of automobiles which began marketing in Mexico. During the year we provided financing to 49,414 families and companies for the purchase of this car, a 14% increase vs. the previous year.
MORTGAGES
Ps 114.718 billion in the Performing Loans Portfolio,
a 15% YoY growth
Mortgage placements increased 35%.
We have reduced the time it takes for borrowers to conclude the process of obtaining a mortgage from 35 to 12 days.
We started a program to send specialized sales agents to promote loans in real estate developments.
PAYROLL LOANS
Payroll loan customers have a new service at their disposal. Now, instead of having a branch executive leave the branch and get distracted from the services he provides, we have hired specialized executives to go to companies to sell on-site to customers.
2017 PROSPECTS
We will continue working to improve customer service, focusing mainly on speed and access to the various service channels.
Among the most important challenges for the retail banking division is for branch models to work with greater agility than they already do. One of our objectives is to have 400 working branches by the end of 2017 and 805 by 2018; as well as modernization processes.
At the same time, we want to continue to modernize mobile channels, while we create new agile, and profitable products to benefit clients, such as the Fide Vida trust. We seek the same for mortgages, car loans and the rest of the consumer segment.
Hector Abrego Perez
Deputy Managing Director
Channel Development and Innovation
“We had a very good year in the loan portfolio, with double digit growth.”
Hector Abrego Perez
Deputy Managing Director
Channel Development and Innovation
CHANNELS
TRADITIONAL CHANNEL
BRANCHES
Banorte’s main objective is maintaining a humane treatment at branches. The great challenge is to eliminate branch saturation through the modernization of the same and the use of the alternate channels to serve large masses of clients and those less profitable. Therefore branches will have more time to attend to preferred customers.
Canales alternos
Nos hemos esforzado por mejorar e incentivar el uso de canales como la banca por internet y la banca móvil. El objetivo es que los clientes que quieran trabajar desde su celular también accedan a los servicios por internet o en sucursales y que en todos haya la rapidez y eficiencia que se requieren.
Carlos Eduardo Martinez Gonzalez
Managing Director
Retail Banking
“2016 was the year that GFNorte demonstrated its financial strengths by achieving positive figures, as seen in the following section, with information based on audited consolidated financial statements.”
Carlos Eduardo Martinez Gonzalez
Managing Director
Retail Banking