the document - Crédit Agricole Consumer Finance

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Annual Report 2012
Tailor made Credit
profile
The Crédit Agricole Group is the market leader in France in Universal
Customer-Focused Banking and one of the largest banks in Europe.
As the leading financial partner of the French economy and
a major European player, the Crédit Agricole Group supports its
customers’ projects in France and around the world across the
full spectrum of retail banking businesses and related specialised
businesses: insurance, asset management, leasing and factoring,
consumer finance, corporate and investment banking.
Underpinned by firm cooperative and mutual foundations,
150,000 employees and the 29,000 directors of its Local and Regional
Banks, the Crédit Agricole Group is a responsible and responsive
bank serving 51 million customers, 6.9 million mutual shareholders
and 1.2 million shareholders.
In its efforts to support the economy, Crédit Agricole also stands
out through its dynamic and innovative social and environmental
responsibility policy. The Group features in the top 3 of Novethic’s
rankings concerning corporate social responsibility and responsible
reporting by Europe’s 31 largest banks and insurance companies.
www.credit-agricole.com
150,000
51 million
clients worldwide
employees
€10.6 billion
Gross operating income
€71 billion€
Shareholders’equity - Group share
€31 billion€
Revenues
11.8 %*
Core Tier One Ratio
* pro forma post completion of Emporiki disposal
The Group’s organisation
crédit agricole S.A.’s share ownership
6.9 million mutual shareholders underpin Crédit Agricole’s cooperative
organisational structure. They own the capital of the 2,512 Local Banks
in the form of mutual shares and they designate their representatives each year.
29,000 directors carry their expectations.
The Local Banks own the majority of the Regional Banks’ share capital.
The 39 Regional Banks are cooperative Regional Banks that offer their
customers a comprehensive range of products and services.
The discussion body for the Regional Banks is the Fédération Nationale
du Crédit Agricole, where the Group’s main orientations are decided.
Crédit Agricole S.A. owns around 25% of share capital
in the Regional Banks (excl. the Regional Bank of Corsica).
It coordinates, in relation with its specialist subsidiaries the various
business lines’ strategies in France and abroad.
56.3 
%
of share capital held by the 39 Regional Banks
via holding company SAS Rue La Boétie.
43.4 
%
of share capital held by:
01
Institutional investors: 27.9%
02
Individual shareholders: 11.1%
03
Employees via employee mutual funds: 4.4%
0.3 
%
treasury shares
A Universal Customer-Focused Bank
The Credit Agricole Group consists of Crédit Agricole S.A. along with all of
the Regional and Local Banks, and together they are developing the Universal
Customer-Focused Banking model. This model relies on synergies realised between retail banks
and associated specialised business lines.
Specialised
business lines
Savings management
Market-leading positions
in France and Europe
• No. 1 in factoring in France
• A leader in lease financing in France
• A key player in consumer finance
• No. 1 in bancassurance in France
• No. 2 in asset management in Europe
• A key player in private banking
in Europe
Retail Banking
The market leader in France and
a key player in Europe, with almost 11,300
branches servicing 32 million customers
39 Crédit Agricole Regional Banks
Cooperative companies and fully-pledged banks with
strong local roots, the Crédit Agricole Regional Banks offer
a full range of banking and financial products and services
to individual customers, farmers, professionals, businesses,
and public authorities.
LCL
LCL is a retail banking network with a strong presence
in urban areas across France, with four main business lines: retail
banking for individual customers, retail banking
for professionals, private banking and corporate banking.
International retail banking
Corporate
and investment
banking
An international network
in the main countries of Europe,
the Americas and Asia
• Financing activities
• Investment banking
• Debt optimisation and distribution
• Capital markets
Crédit Agricole is implementing its Universal
Customer-Focused Banking model internationally
and mainly in Europe, in its key Mediterranean
countries of operation.
Other specialised
subsidiaries
• Crédit Agricole Immobilier
• Crédit Agricole Capital
Investissement & Finance
• Uni-éditions
• Crédit Agricole Cards & Payments
Key figures
(at year-end 2012)
10,404
employees
Present in
Outstanding
loans
773.2
billion
Net banking
income
72,908
million
2/3outside
of business generated
France
23 countries
Standard & Poor’s
A-1 Short term
A Long term
FitchRatings
F1+ Short term
A+ Long term
Major consumer credit provider in Europe, Crédit
Agricole Consumer Finance is well-positioned on all
distribution channels, including direct sales, point-ofsale financing, partnerships and brokerage.
Subsidiary of Crédit Agricole S.A., Crédit Agricole
Consumer Finance has multi-channel expertise enabling
it to offer a wide range of financing and insurance
solutions in all consumer credit business lines.
Reflecting the important economic and social role of
consumer credit, Crédit Agricole Consumer Finance is
committed to responsible relations with its partners,
customers and employees. Its strategy focuses on
enhancing customer satisfaction, innovation and
operational efficiency.
CRÉDIT AGRICOLE
CONSUMER FINANCE
01 Profile
02 Interview with Chairman, Bruno de Laage
03 Interview with Chief Executive Officer,
Philippe Dumont
04 Corporate governance
06 Our presence
Adapting in a constrained
environment
10 The new face of consumer
credit in Europe
11 New consumer expectations
12 E
-commerce and M-commerce:
widespread use of distance sales
14 Crédit Agricole Consumer Finance
achieves its objectives
15 An ambitious Transformation plan
16 Reflection of adapting to a restricted
environment
A CONSUMER CREDIT
MULTI-SPECIALIST
20 A wide range of products and services
21 Car financing: financial partner of major
manufacturers
22 Financial partner of major retailers
24 Excellence serving Crédit Agricole Group
retail banking
25 Providing retailers with point-of-sale
financing
27 Serving customers
29 Brokerage: a year of consolidation
30 Insurance, needed diversification
A COMMITTED PLAYER
34 Actively preparing for change
36 Committed to safeguarding the
environment
37 Active in corporate citizenship
Reinventing the
business model
40 Restoring sustainable
competitiveness
44 Business transformation
45 Reinventing the business
02
Interview with
Bruno de Laage
Chairman of the Board of Directors of
Crédit Agricole Consumer Finance, Deputy Chief
Executive Officer of Crédit Agricole S.A.
Adapting the Group to the
new environment
“2012 was a watershed for Crédit
Agricole Group.”
What is Crédit Agricole Group’s
current economic and financial
environment?
The financial market crisis triggered an
economic slowdown that is still affecting
household consumption and business
investment. The economic recession and
fiscal pressure on households is impacting
purchasing power. And the banking
industry is still tackling major regulatory and
financial constraints. We have stepped up
preparations in line with the accelerated
Basel 3 implementation schedule, while new
banking legislation is underway.
How did the Group adapt to the
unfavourable climate in 2012?
2012 was a year of transformation and
refocusing for the Crédit Agricole Group.
We implemented a number of structural
changes to adapt to the new financial
and regulatory environment, including
divesting the Greek subsidiary Emporiki and
refocusing in Southern European assets.
The adjustment plan presented in
September 2011 was successfully
achieved, exceeding equity optimisation
and deleveraging targets. Group financing
requirements were reduced by €68 billion
and risk-weighted assets by €57 billion.
Several cost-cutting schemes strengthened
operational efficiency, and will enable us to
deliver sustainable financial performance.
Alongside the adjustment plan in the
corporate banking and consumer credit
business lines, we launched the MUST plan
to cut IT, purchasing and real estate costs
by €650 million across Crédit Agricole S.A.
What is the
outlook for 2013?
Crédit Agricole S.A. has undertaken vast
changes to adapt to the new regulatory
and financial environment. We have laid
the foundations for building the future by
controlling debt, reducing risk and making
organic growth a priority.
Crédit Agricole S.A. will improve its solvency
in 2013 without increasing capital, by
continuing to rigorously manage assets.
In Autumn 2013, we will implement a new
medium-term plan, setting a new direction,
after these turbulent years.
The plan will fix Crédit Agricole S.A.’s
objectives in line with the Group’s tenyear plan. There will be a dual strategy:
to consolidate business around universal
customer-focused banking, and to further
develop the specialised business lines.
What are the Group’s expectations
for the consumer credit business?
We have to congratulate Crédit
Agricole Consumer Finance’s teams for
successfully achieving the changes and
adaptation required of them. We now
need to strengthen synergies with other
Group entities, to enhance added value
and profitability further, and to continue
developing Crédit Agricole Consumer
Finance’s self-financing capacity.
03
Crédit Agricole Consumer Finance Annual Report 2012
Interview with
Philippe Dumont
Chief Executive Officer of Crédit Agricole
Consumer Finance
A successful business
transformation in 2012
“The transformation of Crédit
Agricole Consumer Finance is
underway. We are on track to
achieve our goals.”
How did Crédit Agricole Consumer
Finance fare in 2012?
It was a complex year for the business and
action-packed for our teams. In December
2011, we launched an adjustment plan
to rapidly deal with the liquidity crisis
in France and worldwide, and adapt
structurally to Basel 3 requirements, which
meant reducing refinancing from the
Group by €8 billion. We had achieved the
plan objectives by the end of 2012. They
included reducing outstanding loans by
downsizing business, disposing of doubtful
debt portfolios and further diversifying
refinancing sources. Despite the deep
structural changes in the landscape, we
won several victories in 2012: we reduced
overall risk (excluding Italy), maintained our
margins, and increased market share in
China, Scandinavia and Germany. Finally,
we launched Crédit Agricole Consumer
Finance’s Transformation plan in France:
ISEO. As we had promised, we limited the
social impact of the plan significantly.
What are the next steps in the
business transformation?
We have already achieved the first steps of
the transformation, including the employee
consultation phase. We are now in the
midst of practical implementation, with the
separation of Crédit Agricole Consumer
Finance Group’s business from the activities
of the entity in France.
It will enable us to pursue the three goals of
our new business model more effectively:
innovation, customer satisfaction and
operational efficiency. The challenge is
to differentiate our business and recover
our competitive edge sustainably, while
remaining customer-focused.
Given the sluggish economic
environment, what is the outlook
for 2013?
2013 will be another challenging year, with
a contraction in consumer credit business in
the first few months. The economic outlook
remains complex and lacklustre, while
regulatory constraints are intensifying with
the new Hamon law and plans to establish a
consumer credit database.
That is why Crédit Agricole Consumer
Finance had to undertake the business
transformation early, to ensure we keep
up with requirements in the continuously
changing environment.
What are Crédit Agricole
Consumer Finance’s strategic
goals?
We are now in a position to develop our
business model to make it more balanced
and sustainable, by focusing on innovation,
customer satisfaction and operational
efficiency. Crédit Agricole Consumer
Finance is now more autonomous in terms
of refinancing and has improved operating
efficiency, both of which enable us to
contribute more to Crédit Agricole Group’s
retail banking business. We were actively
involved in drafting the Group’s mediumterm plan and are working to update our
Moving Forward Together corporate project.
We have three key objectives: successfully
implement our new organisation, regain
profitability and improve value creation
for the Crédit Agricole Group. I am fully
confident that our teams are capable of
achieving these goals.
04
Corporate Governance
Crédit Agricole Consumer Finance is a wholly-owned
subsidiary of Crédit Agricole S.A.
Board of Directors at 31 December 2012
Chairman
Director
Directors
Bruno de Laage,
Jean Bouysset,
Gérard Cazals,
Henri Le Bihan,
François Mace,
Deputy Chief
Executive Officer
Crédit Agricole S.A.,
Head of Retail
Banking Activities in
France, Specialised
Financial Services
and Payment and
Transaction Systems
Former Executive
Crédit Agricole S.A.
Chief Executive
Officer
CACI
Chairman
CRCA Toulouse 31
Chief Executive
Officer
CRCA Nord de
France
Vincent Delatte,
Chairman
CRCA ChampagneBourgogne
Laurent Paillassot,
Deputy Chief Executive
Officer
LCL
Marc Deschamps,
Chief Executive Officer
CRCA Centre France
Benoît Albert,
Deputy Chief
Executive Officer
LCL
Daniel Epron,
Chairman
CRCA Normandie
05
Group Executive Committee (left to right)
Kees Droppert, CEO of Crédit Agricole
Consumer Finance Nederland BV
Guillaume Lesage, Deputy CEO, Organisation,
Operations, Finances and Systems Group
Christophe Grave, Deputy CEO, General
Secretary and Credit Group
Véronique Goutelle, Head of Human
Resources Group
Philippe Dumont, Chief Executive Officer Group
Sylvie Robin-Romet, Deputy CEO, Distribution
and Marketing France
Alain Breuils, Deputy CEO, Communication &
Development Group
Jan W. Wagner, CEO of CreditPlus Bank (Germany)
Bernard Manuelli, Heaf of International and
Automotive Partnerships
Amir Djourabtchi,
Head of the other Business Units
(not on photograph)
Heads of business units at 30 April 2013
Alain Breuils,
Agos Ducato (Italy)
Ingebjørg Brown,
Finaref Nordic
(Finland, Norway,
Sweden)
Søren Kargaard,
Dan Aktiv
(Denmark)
Ludek Keltycka,
Credium (Czech
Republic and
Slovakia)
Gilbert Ranoux,
GAC-Sofinco AFC
Co.Ltd (China)
Jan W. Wagner,
CreditPlus Bank
(Germany)
Alain Bulbulyan,
Credicom Consumer
Finance (Greece)
João Miguel
Leandro,
Credibom (Portugal)
Kees Droppert,
Gian Luca de
Crédit Agricole Consumer Ficchy, FGA Capital
Finance Nederland BV
(Netherlands)
Laïla Mamou,
Wafasalaf (Morocco)
Philippe Maury,
Forso Nordic
(Denmark, Finland,
Norway, Sweden)
06
Our presence
(at year-end 2012)
United Kingdom
e2,385 million
of outstanding loans
FGA Capital
SWEDEN
e59 million
Forso Nordic
Finaref Nordic
NORWAY
e75 million
Forso Nordic
Finaref Nordic
IRELAND
FGA Capital
POLAND
e298 million
FGA Capital
BELGIUM
e136 million
FGA Capital
FRANCE
e27,965 million
CA Consumer Finance France
FGA Capital
SPAIN
e546 million
FGA Capital
PORTUGAL
e1,405 million
Credibom
FGA Capital
MOROCCO
SWITZERLAND
e426 million
FGA Capital
e25,092 million
Wafasalaf
(at year-end 2012 )
AUSTRIA
e194 million
FGA Capital
ITALY
e2,137 million
Key figures by business
unit or entity
HUNGARY
e3 million
Credigen
NETHERLANDS
e3,773 million
CA Consumer Finance
Nederland BV
FGA Capital
Agos Ducato
FGA Capital
Crédit Agricole Consumer
Location: Netherlands
Shareholding structure:
100% CA Consumer Finance
e3,561 million outstanding loans
339 employeess
Credibom
Location: Portugal
343 employees
Finance France
Location: France
3,734 employees
CreditPlus Bank
Location: Germany
450 employees
Credicom Consumer
Finance
Location: Greece
e551 million outstanding loans
264 employees
Agos Ducato
Location: Italy
Shareholding structure: 61% CA
Consumer Finance, 39% Banco
Popolare
2,095 employees
Wafasalaf
Location: Morocco
49% CA Consumer Finance,
51% Attijariwafa bank
570 employees
Credium
Locations: Czech Republic,
Slovakia
168 employees
07
FINLAND
e115 million
Forso Nordic
Finaref Nordic
DENMARK
e1,532 million
Dan Aktiv
FGA Capital
Forso Nordic
GERMANY
e5,146 million
CreditPlus Bank
FGA Capital
CZECH REPUBLIC
e383 million
Credium
SLOVAKIA
e62 million
Credium
CHINA
GREECE
e655 million
Credicom Consumer Finance
FGA Capital
e886 million
GAC-Sofinco Automotive
Finance Co.Ltd
SAUDI ARABIA
e17 million
Sofinco Saudi Fransi
Finaref Nordic
Locations: Sweden, Finland,
Norway
46 employees
Dan Aktiv
Location: Denmark
42 employees
Sofinco Saoudi Fransi
Location: Saudi Arabia
50% CA Consumer Finance, 50% Saudi
Fransi Bank
72 employees
Credigen
Location: Hungary
46 employees
FGA Capital
Locations: Austria, Belgium, Denmark,
France, Germany, Greece, Ireland, Italy,
Netherlands, Poland, Portugal, Spain,
Switzerland, United Kingdom
50% FGA
1,873 employees
Forso Nordic
Locations: Denmark, Finland, Norway,
Sweden
50 % Ford Group
124 employees
GAC-Sofinco Automotive
Finance Co.Ltd
Location: China
50% GAC
226 employees
Adapting in a
constrained
environment
Frankfurt, Germany
Proud to be involved in
diversifying our refinancing
sources
“In Germany, we have
developed a deposit business.
It was essential to diversify our
refinancing sources in order to
deal with the sovereign debt
crisis and resulting liquidity crisis.
Today, Crédit Agricole Consumer
Finance is more robust financially
and ready to face the new
regulatory challenges of Basel 3.”
Markus werz,
Head of the Treasury Department
and responsible of the
launch of the deposit business
CreditPlus Bank
10
Radical changes
Current situation
The new face of consumer
credit in Europe
€2,095 at year-end 2012. Two years before,
at year-end 2010, the average outstanding
loan per inhabitant was €2,200.
The breakdown between countries
remained uneven. Five countries (United
Kingdom, Germany, France, Italy and Spain)
accounted for more than 75% of total
outstanding loans, while only representing
63% of the population of the European
Union. Also, there is a clear distinction
between Northern Europe, which accounts
for 58% of outstanding loans (41% of the
EU population); Southern Europe (including
France) with 36% of total outstanding loans
(39% of the population) and Eastern Europe
with 7% of total outstanding loans (20% of
the population).
Impacted by the crisis, the
European consumer credit
market, which accounts
for nearly one quarter of
the global consumer credit
market, contracted between
year-end 2011 and year-end
2012.
Outstanding loans in the European Union fell
2.1% year-on-year to €1,056 billion at yearend 2012. The decline was most striking in
Eastern Europe, down 4.6%, and Southern
Europe, down 3.6%, with a limited 0.8%
decrease in Northern Europe.
The ratio of consumer credit to total
annual household consumption reflects
the actual penetration rate of consumer
credit. The indicator is useful in that it
eliminates variances due to differences
in living standards between countries. At
year-end 2012, the ratio was 14% in the
European Union, compared with 14.6% the
previous year and 15.5% in 2010. The ratio
has decreased in practically all European
countries.
Marked differences in average
outstanding loans
A characteristic of the European consumer
credit market is the marked differences in
average outstanding loan per inhabitant,
ranging from €186 per head in Lithuania to
€3,984 in the United Kingdom at year-end
2012. The average outstanding loan per
inhabitant in the European Union was €
Outstanding loans increased in only five of
the 27 European Union countries in 2012,
notably in Scandinavia (Finland: +3.5%;
Sweden: +1.4%), but also in Belgium
(+0.5%), Germany (+0.8%) and Slovakia
(+10.1%).
FINLAND
Differences in outstanding
consumer loans in Europe
e13.3 billion
SWEDEN
(+ 3.5 %)
e19.1 billion
ESTONIA
(+ 1.4 %)
(at year-end 2012)
e0.6 billion
(- 4.3 %)
LATVIA
DENMARK
e0.8 billion
e16.1 billion
UNITED KINGDOM
e251 billion
IRELAND
e14.2 billion
(- 1.2 %)
(- 15.1 %)
(- 10.6 %)
LITHUANIA
(- 3.7 %)
NETHERLANDS*
e25.9 billion
(- 2.7 %)
BELGIUM*
(- 0.1 %)
FRANCE*
e149 billion
(- 0.3 %)
(- 5.1 %)
(- 4.9 %)
e21.2 billion GERMANY
(+ 0.5 %)
e225 billion
LUXEMBOURG
e1.2 billion
e0.7 billion
POLAND
31.6 billion
(+ 0.8 %)
CZECH
REPUBLIC
SLOVAKIA
(- 0.6 %)
(+ 10.1 %)
e10.6 billion 2.9 billion
AUSTRIA
HUNGARY
(- 3.4 %)
(- 11.8 %)
e22.8 billion e4 billion
ROMANIA
SLOVENIA
e13 billion
(- 8.6 %)
BULGARIA
(- 6.4 %)
e2.5 billion
PORTUGAL
e11.8 billion
(- 12.7 %)
SPAIN*
e71.2 billion
ITALY**
e110 billion
(- 2.8 %)
Estimates by the French consulting firm Asterès
Source: Assofin
Note: reference exchange rate (annual average exchange rate for 2012)
**
(+ 0 %)
e30.2 billion
(- 8.3 %)
(- 7.9 %)
*
e3.9 billion
GREECE
MALTA
e0.4 billion
(- 0.7 %)
CYPRUS
e3.3 billion
(- 0.7 %)
11
New consumer
expectations
services that customers now expect
will have a strong competitive edge.
Because customers who are satisfied at all
relationship stages will become loyal and
generate value.
Multi-channel
customer services
How do we develop customer relationships?
Through a dedicated, customised,
interactive site where customers can find all
the information they require. For maximum
flexibility and consistency, the service should
be provided through all channels and at all
stages of the customer experience: from
the first contact by tailored solutions and
personalised advice, and also when life
accidents occur.
Consumption patterns and
consumer expectations
are changing fast. Better
informed, customers are
increasingly demanding,
seeking both flexible and
customised solutions from
all sales channels.
The era of empowered
consumers
Widespread internet use in the home
– the percentage of households with high
speed internet access in France was 70%
in 2011 compared with 30% in 20061 –
has made customers more autonomous,
better informed, but also more demanding,
volatile and disloyal. Consumers are now
empowered. They decide to give meaning
to their purchasing power. Adept at more
responsible consumption, they seek an
exclusive relationship with a brand or
company and are free to weigh up their
products and actions.
Adapting to new
expectations
Improving customer relations is an effective
way of dealing with increasing web-based
consumption, with a 23% increase in active
retail websites between 2010 and 20112.
Crédit Agricole Consumer Finance plans to
develop customer services in line with this
new trend.
Increasing customer satisfaction means
providing an increasingly customised
service experience, with financing solutions
tailored to needs. It means listening and
supporting customers at each step of their
lives. Cultivating personal relationships is
a key driver for Crédit Agricole Consumer
Finance’s business development. Firms
capable of providing the personalised
Consumers are now permanently connected
to several media and need to discuss and
communicate continuously. So we have to
use the right channel at the right time and
combine emails, web services, telephone
calls, text messages, and even television
and video. For instance, customers may
apply for financing online – today more than
seven in ten applications for personal loans
are made online - and then follow-up by
filing the application in a Sofinco agency or
by having a customer relations manager call.
1. Source: Digital Market Observatory
2. Source: Fevad
Adapting in a constrained environment
Changing consumption patterns
12
Radical changes
Changing retail circuits
E-commerce and M-commerce:
widespread use of distance sales
Supporting e-commerce
growth
Supporting mobility
and m-commerce
Online shopping has become so
commonplace that ecommerce sites are
now points of sale and consumption in
their own right. In many countries their
revenue has increased significantly. The
EU e-commerce market was estimated
at €305 billion in 2012, growing 22%
compared with 20111.
Shopping, simply transferring money or
managing bank accounts is simple from a
mobile device. Revenue from m-commerce
in Europe is expected to increase from
€1.7 billion in 2011 to €19.2 billion in 20172.
14% of online customers, or more than
4.3 million people in France, have already
bought items using their mobile phone
(excluding downloading mobile apps)3.
Growth in the industry was particularly
strong in Eastern European countries
(25%-30% increase), such as Poland and
the Czech Republic. In France, Germany,
Italy, Belgium and Spain e-commerce
expanded by between 19% and 25%.
Three countries represent nearly 70% of
the total EU market: the United Kingdom,
France and Germany.
Companies need to be close to their
customers by offering tailored services
through m-commerce. Operators and
manufacturers are racing to innovate and
develop secure, user-friendly applications to
support the trend.
Crédit Agricole Consumer Finance
is a pioneer on the e-commerce
market, having offered online
financing via its dedicated website
sofinco.fr since 1997.
Now, Sofinco’s mobile site is
available. It has been developed
using responsive web design
technology, which adapts the
layout to the viewing environment,
whether mobile phone or tablet.
And since 2002, Crédit Agricole
Consumer Finance has supported
online retailers by providing
financing solutions integrated into
their online point of sale.
Eventually, it should also be possible to
take out consumer credits and reschedule
monthly payments by phone, as it is already
the case online.
Rise of person-toperson (C2C) purchases
Whether smart or responsible,
second-hand shopping between
individuals is an increasing share
of consumption. Today, it is
estimated that more than one in
two internet users (51%) have sold
or bought goods on C2C trading
sites in the last six months4.
Specialised financing companies
like Crédit Agricole Consumer
Finance need to innovate and
support these new consumption
patterns by offering technical
solutions and adapted financial
services.
“M-commerce is a challenge for
all companies: mobile devices
enable us to be closer to our
customers.”
Julien Lecron, Director of
Innovation France
27 %
of world smartphone users say they have recently
used their phone to make a purchase5.
In the APAC (Asia Pacific) and BRIC (Brazil, Russia, India and China) regions,
there are 42%. In Europe, mobile purchases are less common with
only 18% (12% in France). In the 50-64 age range, only 15% currently
use this means of purchase.
1. Source: E-commerce Europe, November 2012
2. Source: Forrester, July 2012
3. Source: Médiamétrie, May 2012
4. Source: Baromètre Fevad/Médiamétrie/NetRatings, 2012
5. Source: Ipsos Global @dvisor, October 2012
Changing financial and regulatory framework
What the Lagarde law has changed in France…
The Law of 1 July 2010 on consumer credit
reform, known as the Lagarde law, concerns
the entire consumer credit value chain, and
primarily revolving credit. While its effects
were apparent as early as 2011 on new
account openings, the volume of outstanding
loans and even the market structure, they
continued in 2012. In 2009 revolving credit
accounted for 40% of total consumer credit
production for all ASF6-member finance
companies; in 2010 it decreased to 37%
(implementation of the law mid-2010), then
to 33% at year-end 2012.
Since the new legislation was passed,
revolving credit business has changed
considerably, with a significant decrease in
distribution, lower amounts financed, shorter
repayment schedules and lower costs for
consumers.
Revolving credit distribution decreased by
5.3 million between 2010 and 2012.
At year-end 2011, 83% of open revolving
credit lines were for amounts less than
e3,000 compared with 72% 18 months
before. The average repayment schedule for
a revolving credit of e3,000 has decreased
from 78 months to 31 months.
The average cost for the consumer, that is,
the average interest charged, was divided by
2.5 between 2008 and 2011. Interest rates
declined by more than 3 points between
2008 (18.8%) and July 2011 (15.4%). The
decreased cost resulted from changes in
the calculation of the usury rate, which will
be fully effective by April 2013, and shorter
repayment schedules.
“The Lagarde law has
instigated a structural
transformation, requiring
all financial institutions to
make major changes.”
Christophe Grave, Deputy CEO,
General Secretary and Credit Group
Source: Athling report
The Athling report on the impact of the Lagarde law
On 24 September 2012 Athling Management published a report commissioned by the Comité
Consultatif des Services Financiers, CCSF (Consultative Committee of the Financial Sector)
on the impact of the so-called Lagarde consumer credit law. The law introduces structural
changes in the industry as did the Scrivener (1978) and Neiertz (1989) laws, with provisions
impacting the entire credit distribution chain (advertising, products, pricing, distribution and
even over-indebtedness).
The consumer credit market contracted again in 2012 by 4.9%. Over the last five years,
consumer credit production has fallen by 20%. The law on consumer credit reform has
refocused revolving credit on its two primary objectives: household cash flow and minor
purchases. This law is a significant and necessary step in consumer interests. However, it
means that specialised consumer credit players will have to adapt their business model to the
new regulatory framework.
6. French Specialised Financial Companies Association
Changes in the Italian
regulatory framework
There were substantial changes in consumer
credit legislation in Italy this year. A decree
adopted in June and published in October
introduced new requirements in terms of
consumer information and transparency in loan
contracts. An annual survey will be conducted
on changes in the cost of loans for consumers,
enabling close monitoring by the authorities and
Parliament.
But the main focus of the new legislation is
insurance policies linked to consumer loans.
Under the Centaro law of March 2012 insurance
contracts now grant rights for a two year
period. Tacit renewal clauses in insurance
policies are prohibited as of January 2013 and
insurance companies have customer information
obligations. Overall, it will be more difficult and
costly to combine the sale of credit with an
insurance policy.
14
Radical changes
Changing financial and regulatory framework
The liquidity crisis in Europe
The sovereign debt crisis has continued,
leading to scarcer liquidity. Some countries
(Greece, Spain, Portugal...) hardly fulfill
their financial obligations: debt repayments,
retirement pensions, state employee salaries.
Austerity plans have been implemented
everywhere in Europe, strongly impacting
household consumption and purchasing
power.
intervened by lending to banks over longer
periods and with various guarantees for longterm financing. New banking regulations
(Basel 3) will require banks to modify their
financing structure. They impose higher
capital requirements and require banks to
ensure that they have stable resources to
support long-term borrowing.
For macroeconomic and regulatory reasons,
banks have reduced their outstanding loans,
thus lowering their refinancing requirements.
The European Central Bank (ECB) has
“The European
liquidities market has
stabilised, but it is still
shaky.”
Claude Grandfils, Group Chief
Financial Officer
Adjustment plan
achieves its objectives
In September 2011 the
Crédit Agricole Group
announced an adjustment
plan to strengthen its solidity,
particularly by reducing its
dependence on the financial
markets. The objectives
imposed on Crédit Agricole
Consumer Finance as part
of this plan have been
achieved: business has been
downsized, refinancing
sources diversified,
doubtful debt divested
and a redundancy plan
implemented. We now have
to go further…
The aim of the adjustment plan was to
reduce business and diversify refinancing
sources. Outstanding loans were reduced
by lowering lending activity (tightening
grant conditions, terminating low-profit
partnerships, discontinuing business in
certain entities) and disposing of doubtful
debt, mainly in France and Italy for a total
€1.2 billion. At year-end 2012, outstanding
loans totalled €73.2 billion, down €5.2 billion
from June 2011, due to the slowdown
in the European consumer credit market
and implementation of the adjustment
plan. Crédit Agricole Consumer Finance’s
minority interest in Finalia (Belgium) was
sold at year-end 2012. At the beginning of
2013, Credigen finalised the sale of its entire
portfolio and Crédit Agricole Consumer
Finance sold its interests in Sofinco Saudi
Fransi to its partner.
At the same time, Crédit Agricole Consumer
Finance has diversified its refinancing
sources by €7 billion since June 2011,
of which €2 billion in the fourth quarter of
2012.
Crédit Agricole Consumer Finance has thus
achieved the objective set by the Crédit
Agricole Group to reduce its refinancing
requirements by €8 billion, and has
strengthened its financial solidity.
77
billion
from diversifying
refinancing
sources since June 2011
15
France
An ambitious
Transformation plan
In France, where Credit
Agricole Consumer Finance
faces particular challenges
due to the severe contraction
in the domestic market and
increased regulations and
competition, Management
has adopted an ambitious
new business plan. Focusing
on innovation, customer
satisfaction and operational
efficiency, the aim of the
plan is to build sustainable
competitiveness.
The Transformation plan presented to
Crédit Agricole Consumer Finance France’s
employees in April 2012 is built on three
pillars: innovation, customer satisfaction
and operational efficiency. The company’s
structure has been redesigned to address
these challenges. Departments have been
created dedicated to customer satisfaction,
innovation and customer relations for all
business lines.
The Marketing, Finance and Project
Management departments gather the teams
working in these areas. Finally, governance
in France has been separated from Group
governance. The strategy aims to
guarantee competitiveness in the long
term and respond to Crédit Agricole
Consumer Finance’s challenges.
A limited social impact
Employee representatives were consulted
and informed of the plan. An opinion was
issued on 9 November and 15 November
2012. The redundancy plan concerning
119 net job losses was negotiated with the
unions and an agreement signed by the
majority of those involved. By providing
for a period of voluntary redundancy, the
impact of the plan was limited to 20 job
losses. All employees concerned were
offered internal job transfers.
The new organisation resulting from the
Transformation plan became effective on
1 April 2013.
16
Radical changes
Financial results
Reflection of adapting
to a restricted environment
Since Summer 2011,
Finance has been toiling
in a sluggish economic
and financial environment.
2012 was marked by the
implementation of the
adjustment plan, the
deterioration in Agos
Ducato’s cost of risk, and the
continuing negative impact
of regulatory changes in
France and Italy.
reported a loss of €1,605 million for 2012
taking into account goodwill impairment
of €1,496 million registred in the Crédit
Agricole S.A. account1.
The goodwill impairment reported by Crédit
Agricole S.A. was due to new prudential
requirements (Basel 3), the increase in
regulatory constraints on consumer credit
and the deteriorated economic situation
in some countries, particularly Italy, along
with Agos Ducato’s difficulties. They have
no impact on Crédit Agricole Consumer
Finance’s equity ratios (solvency) or cash
flow. Adjusted for impairment, Crédit
Agricole Consumer Finance reported a loss
of €109 million, a sharp decline in earnings
compared with 2011 (€363 million), due to
the deterioration in Agos Ducato’s cost of
risk and lower income.
The decline in net banking income for
2012 (down 13%) resulted from increased
refinancing costs (longer maturities to secure
financing), the decrease in outstanding loans
under the adjustment plan, and the Lagarde
law, effective in France since the second half
of 2011.
Credit Agricole Consumer Finance key figures (at year-end 2012)
Net banking income
Cost of risk
72,908
-71,974
million
Income contracted further: due to the decrease in
outstanding loans under the adjustment plan, longer
refinancing maturities, and unfavourable regulatory
developments particularly in France and Italy.
million
Excluding non-recurring items and cost of risk in Italy,
-4.1% improvement in cost of current risk.
managed Outstanding loans
773.2
Gross operating income
71,6441
million
Contraction in net banking income partially offset
by continued improvements in operating efficiency
(operating expenses down 7.8%2, despite
greater fiscal pressure in 2012).
billion
FitchRatings
F1+ Short term
A+ Long term
Standard & Poor’s
A-1 Short term
A Long term
17
The cost of risk was up 41% in 2012,
mainly due to the deterioration in Agos
Ducato’s portfolio and provisioning by the
subsidiary. New management implemented
a robust action plan to enhance collection
and litigation, and measures to limit loan
production. Adjusted for provisions in Italy
and exceptional items, the cost of current
risk decreased by 4.1% year-on-year.
Despite higher over-indebtedness, Crédit
Agricole Consumer Finance France’s cost
of risk decreased by 14% year-on-year, the
fourth quarter being the lowest since the
third quarter of 2008.
and the Portuguese entity remained stable
despite the difficult economic context.
These results illustrate the need for
Crédit Agricole Consumer Finance to
continue adapting to changes in its
business environment by strengthening its
international reach through the creation
of its Corporate Center, and improving
competitiveness. In France, this means
implementing the Transformation plan to
build sustainable competitiveness using the
new business model based on innovation,
efficiency.
Efforts by all entities
All entities strove to improve operational
efficiency, bringing operating expenses
down 7.8%2 year-on-year, despite higher
fiscal pressure in 2012.
International automobile partnerships
performed well, boosted by the sharp
increase in Jaguar Land Rover partnership
business (for FGA Capital) and growth in
the Chinese subsidiary GAC-Sofinco AFC,
which doubled business in one year. Among
the other entities, the German, Scandinavian
and Moroccan businesses were strong
1. Excluding allocation of Crédit Agricole S.A. expenses
2. Adjusted for recurring items and 2012 tax increase
A consumer
credit
multi-specialist
Paris, France
Proud winner of Élu
service Client de
l’Année 2013 1 award
“Every day, I serve
my customers. I offer
customised solutions
enabling them to finance
their projects and buy the
things they need. I am
very proud that Sofinco
won the Élu service Client
de l’Année 2013 1 award.”
MEHDI CHKARAT,
Deputy-manager of the
muti-channel agency in Évry
Finance France
1. Customer service of the year 2013
Specialised services
20
A wide range
of products
and services
Through its different brands Crédit
Agricole Consumer Finance provides
individual customers and retail
professionals with a wide range of
customised financing solutions.
Loan repurchases
(or debt consolidation)
Installment loans
Insurance
Installment loans are granted to purchase
goods or services. The repayment period
is set contractually, generally with a fixed
monthly payment schedule. There are two
types, personal loans that are contracted
through branches, online or over the
telephone, where the borrower receives the
amount loaned directly, and point-of-sale
loans provided by retailers and linked to a
sales contract.
Crédit Agricole Consumer Finance offers
customers a diversified range of insurance
solutions with its credit products (such
as borrower and credit card insurance)
covering goods sold or financed by
partners and credit providers (extended
guarantees, additional car insurance,
breakdown, theft and vandalism cover) or
standalone insurance (funeral insurance,
legal protection, accident assurance,
credit card insurance, etc.).
Revolving credit
For instance, borrower insurance covers
the repayments due from the borrower in
the event of the borrower’s death, loss of
employment or disability.
This is a permanent credit line, which
can be used at any time by a customer
within the pre-approved credit limit. It is
replenished by customer repayments.
It may be associated with a bank card
or private payment card (payment card
associated with a retail brand).
Lease purchase agreements
The lessee pays a guarantee deposit then
monthly lease payments. The financial
establishment retains ownership of
the asset financed until the customer
exercises the purchase option at the term
of the agreement.
Long-term leases
This product is used to finance corporate
vehicle fleets. The company selects
new vehicles, which are purchased and
financed by the leasing company, which
retains ownership. In addition to providing
vehicles for use, long-term leases
include services such as assistance and
maintenance.
This enables several outstanding loans
to be combined in one single loan, with a
single monthly repayment.
Savings
Since 2011, Crédit Agricole Consumer
Finance has provided savings products for
institutions through its German subsidiary
CreditPlus Bank. In 2012 it set up savings
for individual customers.
21
Klaus Tragesser,
Director sales finance
CreditPlus Bank
Motorcycle financing:
new partnership between Triumph
and CreditPlus Bank
The Manufacturer Triumph Motorcycles and
CreditPlus Bank join forces in a partnership
effective from 1 January 2013. Motorcycle
buyers in Germany and Austria will enjoy
special conditions and rapid processing of
their financing applications. Thanks to new
online loan software, applying for customised
financing and being accepted only takes
minutes at Triumph dealerships.
Car financing
Financial partner of
major manufacturers
Finance is a major provider
of car financing. The business
is mainly operated through
joint ventures with leading
car manufacturers, and also
through specific national
and international partnership
agreements.
Crédit Agricole Consumer Finance provides
car manufacturers with car financing
expertise, particularly in terms of risk and
financial management, through the joint
ownership of captive finance companies.
Crédit Agricole Consumer Finance also
partners car manufacturer by providing
financing solutions to their customers and
for the inventories of car dealers. Three
examples illustrate the partnership model.
FGA Capital, a joint venture set up in 2006
between Crédit Agricole Consumer Finance
and Fiat Group Automobile, now handles
all customer and dealer financing in thirteen
European countries for the Fiat, Lancia, Alfa
Romeo, Fiat Professional, Abarth, Chrysler
and Jeep brands. Since 2009 FGA capital
has also been the financial partner of the
Jaguar and Land Rover brands in several
European countries. FGA Capital offers
customers extended guarantees combined
with financing solutions for new or secondhand vehicles. FGA Capital also offers
retailers legal protection.
Forso Nordic AB, created in 2008, is the
captive finance company operating for the
Ford, Mazda, Volvo, Jaguar and Land Rover
brands in the Northern European countries.
In Norway, “Super Saturday” events were
held to boost car sales using financial
leveraging. Forso Nordic AB financed 90%
of sales generated at the events.
GAC-Sofinco Automotive Finance CO
Ltd (Gac-Sofinco AFC), the car financing
business launched in 2010 with Chinese
car manufacturer Guangzhou Automobile
Corporation (GAC), exceeded its objectives
while effectively controlling the cost of risk.
It handled financing for more than 40,000
individual customers in 2012 representing
€500 million in new loans. Including the
financing of dealers’ vehicle inventories, the
joint venture reported a total €900 million of
outstanding loans. Four manufacturers work
with CAC Sofinco AFC: GAC Honda, GAC
Toyota, GAC Motors and recently
GAC Fiat. GAC-Sofinco AFC performed
well with the GAC Motors network due to
exclusive advertising campaigns and sales
of GAC Motors’ highly successful SUV.
At year-end 2012 nearly 800 points of sale
worked with GAC-Sofinco AFC in almost all
the Chinese provinces.
Renewal of the
agreement with Mazda
Finance
Mazda and Crédit Agricole
Consumer Finance renew the
partnership agreement set up
in 2009 for five years. It covers
two main activities: financing
individual customers’ vehicle
purchases under the Mazda
Finance brand and financing
dealers’ inventories of vehicles
for sale and demonstration.
Today, thanks to the venture
between Mazda and Crédit
Agricole Consumer Finance, one
in every three vehicles are sold
with financing.
A consumer credit multi-specialist
“Our expertise and dynamic teams enabled
CreditPlus Bank to win this new partnership with
one of the world’s most established motorcycle
manufacturers.”
22
Supporting retailers and specialised distributors
Financial partner of major retailers Consumer credit has always
played a major role in
retailing and commerce.
It enables customers to
purchase goods and finance
the purchase in the same
place at the same time.
Financial partner of major
retailers and specialised
distributors in various
sectors, Crédit Agricole
Consumer Finance provides
customised and innovative
financial services.
A broad, highly-diversified
portfolio
Crédit Agricole Consumer Finance has
two types of relationships with its partners:
business partnerships and structured
partnerships. Business partnerships entail
paying retailers for bringing customers
and business through their retail stores
or websites. In exchange, Crédit Agricole
Consumer Finance offers financing
products. This model is used by Printemps,
Fnac or La Redoute.
Structured partnerships can be joint
ventures with a brand, as is the case for
Castorama and Darty. In this case, the
financing solutions provided in stores or
through other channels carry the brand
name.
Partnerships play a key role in Crédit
Agricole Consumer Finance’s development.
They allow the company to attract
approximately 900,000 new customers per
year and generate nearly €4.5 billion in new
loans. Open window on other marketing
practices, they constantly encourage
excellent service quality, innovation and
responsiveness. Crédit Agricole Consumer
Finance adapts its procedures and retailing
methods to its partners, in line with
customer requirements and expectations.
By redesigning products, modernising
infrastructure, and implementing paperless
procedures, customer experience is
enhanced and long-term profitability of the
constantly-changing business is assured.
An innovative solution:
e-statements
Paperless statements are a new secure,
rapid and simple customer service.
Customers receive an email when their
statements are available. They can be
viewed in the online customer space along
with the archives for 36 months. Free,
e-statements fulfill customer requirements
and improve customer relations by
optimising the customer experience,
building loyalty, and backing up information
and exchanges. Offered to Sofinco’s
Réserve Couleur® customers since 2010,
paperless statements were launched
successfully for customers of La Redoute,
Finaref and Castorama at the end of
September 2012. The objective is to have
10% of customers opt for e-statements by
2013.
Free Mobile, a connected partner
63 %
of customers that have
opted for e-statements
are happy with the system
(survey of Sofinco customers
conducted in June 2012)
Crédit Agricole Consumer Finance supports Free Mobile by enabling the
operator’s subscribers to buy new phones and pay in several installments
at no additional cost or via customised financing solutions. Financing is a
key means of differentiating from competitors. Subscribers are aware of
the actual cost of their telephone, unlike the usual offers where the cost is
hidden in a “phone plus service” package. At the end of December, more
than 140,000 accounts had been opened, 60% of which were new customers
for Crédit Agricole Consumer Finance.
Interview WITH OPHÉLIE ROBIN
Manager of the Printemps partnership
Guiding our
partners through
regulatory changes
What is «sales training»?
Why to opt for e-learning?
Sales training is one of the items defined
by the Law on Consumer Credit. While the
implementation decree was only published
in 2012, Crédit Agricole Consumer
Finance set up e-learning courses to train
partners’ salespeople in selling financing
as early as 2011. The key objective of the
courses is to explain the main principles of
consumer credit. They specifically focus
on promoting responsible credit by betterinforming customers on their contracts,
making lenders, retailers and customers
more responsible, and avoiding overindebtedness. They also explain the major
changes resulting from the new regulatory
framework on consumer credit products.
There are several benefits. The first is
traceability, which ensures that all financial
advisors in stores have been trained. The
second is training course content. The
e-learning format is identical for all and is
user-friendly and flexible. Salespeople can
take the courses whenever they are free.
The third benefit is e-learning modularity,
enabling training and content to be
adjusted to each partner’s profile.
24
Supporting Crédit Agricole Group’s ambition
Excellence serving Crédit Agricole
Group retail banking
Finance contributes to the
success of Crédit Agricole
Group’s strategy, aimed
at becoming the leader
in universal customerfocused banking, by
forging partnerships with
the banking networks and
insurance businesses and by
providing teams, resources
and products to customers
through all networks.
In France, Crédit Agricole Consumer
Finance draws on its knowledge of risk
management, marketing and debt collection
to serve Crédit Agricole’s Regional Banks
and the LCL banking network. In 2012,
Crédit Agricole Consumer Finance further
contributed to developing the consumer
credit services offered by Crédit Agricole’s
Regional Banks. Today, Crédit Agricole
Consumer Finance provides Cartwin/
Supplétis revolving credit in partnership with
35 Regional Banks.
As a centre of excellence, Crédit Agricole
Consumer Finance provides expertise and
know-how to Crédit Agricole Group’s retail
banks in France and abroad.
In Italy, Agos Ducato supports Crédit
Agricole’s Cariparma network branches.
Survey
In France, Crédit Agricole’s Regional
Banks are highly satisified with the
services provided through Banking
Partnerships with Crédit Agricole
Consumer Finance France. In an
online satisfaction survey conducted
in 2012, Crédit Agricole’s Regional
Banks gave the services provided by
Crédit Agricole Consumer Finance’s
Bank Marketing department 7.7
out of 10 for satisfaction. They
particularly appreciated the
sharp 2013 marketing plan and
relationships with the Banking
Partnerships’s Marketing teams.
Crédit Agricole’s Regional Banks
applauded the expertise and highquality listening and people skills of
staff.
713.3
billion
outstanding consumer loans
managed for the Crédit Agricole
Group at year-end 2012
For LCL, the year was devoted to bringing
products into compliance with new
regulations, particularly by launching a new
credit repurchase product.
Expanding the Group’s
insurance business
“Insurance” business entails designing,
creating and distributing insurance and
assistance, in line with Crédit Agricole
Consumer Finance’s global strategy
and essentially with the support of the
Group’s insurers.
The insurance market has real
development potential for Crédit
Agricole Consumer Finance. The
service offering ranges from borrower
insurance for consumer credit to
accident protection and goods
insurance, in France and abroad. Crédit
Agricole Consumer Finance aims to
extend such services to all countries in
which it is present, by strengthening
its partnerships with Crédit Agricole’s
insurance companies (Crédit Agricole
Creditor Insurance, Pacifica et
Predica).
provides consumer credit to numerous
customers.
CACI is Crédit Agricole Group’s
borrower insurance specialist.
Borrower insurance guarantees that
the lending financial institution is
repaid when circumstances arise
preventing the borrower from paying.
25
Point-of-sale financing
Providing retailers
with point-of-sale
financing Retailing and commerce
are part of the DNA of
Finance, with some brands
originating in retailing. Pointof-sale financing reflects
Finance’s presence close to
its partners and customers.
Finance provides financing
for vehicles, home equipment
and home improvements.
The electronic processing of applications for
car financing has boosted the market. To
support growth in dealers’ business, Viaxel
(Crédit Agricole Consumer Finance’s brand
dedicated to point-of-sale vehicle financing
in France) has created a new customerfriendly pricing application. Available for
all smartphones, the “c-ready” appli was
launched in December 2012 at the Paris
Motor Show. The pricing application
enables car dealers to simulate financing for
individual customers and small businesses
and access a full financing plan. Dealers
can also view information on all associated
services and sales pitches on the financing
products. •••
Number
1 Credibom is the leader of car
financing in Portugal
“The c-ready solution is
great sales lever for car
dealerships.”
Patrice Locussol, Manager of Viaxel
Car financing market France
26
••• The c-ready application has also been
developed for Viaxel’s retail partners in the
home equipment, recreational vehicles and
yachting markets. It has proved a great
success, having already been downloaded
by more than 5,000 users.
Viaxel also provides car, motorcycle and
recreational vehicles dealers a tool for
developing online sales. @TOUTFI is a
simulator directly integrated into the dealer’s
website. It can be customised and offers
a full range of financing, insurance and
associated services, such as maintenance
and extended guarantees. Since 2012 @
TOUTFI has also provided an integrated
database enabling dealers to contact
customers that have used the simulator.
Interview with Catherine Chamroux
Product Manager, Crédit Agricole Consumer Finance France
equipment, insulation) or in terms
of well-being (swimming pools).
Sofinco offers innovative guarantees
enabling customers to make the
most of purchases. Heat and sunlight
are guaranteed, otherwise monthly
payments are reimbursed.
How is Météassur
innovative?
Innovation
serving our
partners
Météassur won the 2012 Silver
Insurance Trophy for product innovation.
The product covers weather risk and is
provided alongside Sofinco financing for
home improvement markets (heating,
windows, insulation, swimming pools
and photovoltaic material).
What does the
product promise?
Innovation
One of households’ main objectives
when making home improvements
is return on investment: either in
terms of energy savings (new heating
systems, windows, photovoltaic
Taking out a loan
using a tablet
A new application for tablets was
launched in the last quarter of 2012 by
some equipment retailers. It is a major
innovation enabling the entire financing
application process to be made online.
Retailers fill out credit applications with
their customers before photographing
the required documents. Using an
electronic signature, customers sign
the loan contracts directly. They receive
a reply within ten minutes, after the
applications have been assessed Crédit
Agricole Consumer Finance’s teams,
who directly verify the e-applications.
CreditPlus Bank,
Number 2 credit provider for
German dealers
The Bank Monitor market
survey published by the Autohaus
magazine in 2012 ranked
CreditPlus Bank second among
independent credit providers for
car dealers. Among the thirty
criteria assessed, CreditPlus Bank’s
responsiveness, expertise and
quality assistance were particularly
appreciated by the 1,000 dealers
surveyed.
It is the first insurance covering weather
events in the home improvement market.
It automatically reimburses customers
without requiring claims or other
procedures. The offer is customised
to the location of customers’ homes
(French administrative department) and
is fully transparent being based on the
weather conditions reported by the
French weather station Météo France,
which acts as a trusted third party.
Information can be viewed on a website
designed for customers.
27
Direct sales
Serving customers
Crédit Agricole Consumer Finance’s strategy is to make
consumer credit conveniently available for the maximum
number of people, by using a wide range of complementary
distribution channels. Services can now be accessed in
branches and over the phone, but also online and via mobile
applications.
Sofinco won Élu service Client
de l’Année 2013 1 award
Nearly one in two people in France have
contacted customer services during the
last 12 months. High quality customer
relationships are essential, as 84% of people
in France believe that companies’ overall
image is affected by customer service.
75% of people are willing to decide against
buying a product if they are disappointed
with customer service.
Customer satisfaction is one of the
pillars of Crédit Agricole Consumer
Finance’s strategy. Structural changes
were implemented in 2012 in order to
optimise the quality of customer services:
deployment of an effective system for
measuring customer satisfaction, staff
training, awareness campaigns and
technical development of customer
relationship management tools.
On October 18, Sofinco, Crédit Agricole
Consumer Finance’s brand in France, won
Élu service Client de l’Année 20131 award
in the “Credit institution” category. The
award is recognized by the general public
and small businesses as a measurement
of the quality of customer service in French
companies. It exemplifies Crédit Agricole
Consumer Finance’s key strategy on
customer-focused services. The teams are
proud of the award, which reflects their daily
commitment and the commitment of the
entire firm to serving customers.
1. Customer service of the year 2013.
Survey conducted by Inference Operations Viséo Conseil from May to July 2012 using
the mystery shopper technique at 215
telephone, email and web-based touchpoints.
“Customer satisfaction is
essential in our business.
An unhappy customer can
damage the company’s
reputation, whereas a
satisfied customer will
spread the good word.”
Élodie Devauchelle, Marketing
Manager, Partnerships Department,
France
28
Agos Ducato’s new campaign
“The crisis has made financial institutions
adopt more responsible behaviour toward
customers. For Agos Ducato, offering
consumer credit is first and foremost
providing support for their projects.”
Alain Breuils, Chief Executive Officer of Agos Ducato
CREDITPLUS Bank on the social networks
CreditPlus Bank is present on social networks such as
Facebook and Twitter and has a dedicated brand blog
www.creditplusblog.de. The blog discusses new issues each
month, such as “How do teenagers use money?”, positioning the
brand as an expert in daily money management. The brand also
uses the German professional social network, Xing, to post job
offers and market the company, and Twitter to keep in contact
with journalists and professional bloggers. These new media
enable the bank to sustain a modern, open and transparent
dialogue with a community of experts and customers.
Agos Ducato officially launched a
new communication campaign during
the last quarter of 2012. Its aim is to
underline the company’s commitment
to Italian families: hands-on presence
and support for their projects. With
the slogan “Italy still deserves credit”,
the campaign carries a strong message
encompassing the economic environment
and financial difficulties facing the
country. The message was disseminated
through a poster campaign in the Italian
cities of Milan and Rome and through
advertisements in daily papers.
3rd
CreditPlus Bank takes
place in tests by the German economic
weekly “Euro am Sonntag” gaining a “Very
good” rating with 80.1 points. Ten German
credit providers’ installments loans were assessed on the basis of the following criteria:
loan conditions, price/quality relationship,
service and advice.
29
Credit brokerage
A year of consolidation
Crédit Agricole Consumer Finance provides credit brokerage
in the Netherlands through the Ribank, Interbank and DNV
NVF brands. During 2012 it strengthened the market position
of Créditlift Courtage, gaining a firm foothold in France in
the new distribution channel.
Leader in the Netherlands
CA Consumer Finance NL consolidated
its leadership position, in a sluggish credit
market, achieving nearly 24% of the market
share of outstanding loans.
To adapt and improve customer satisfaction,
Crédit Agricole Consumer Finance NL
launched a number of projects to enhance
customer relations and operational
efficiency. They included deploying a new
sales system and revamping customer web
applications.
Given the gloomy outlook for 2013, Crédit
Agricole Consumer Finance NL will focus
on diversifying its distribution channels and
products.
using a consumer loan (without any
guarantee). The advantages? Once the loan
has been granted, customers have a single
monthly payment for a smaller amount, in
line with their budget. The HypoLift range
comprises two products: HypoLift Conso,
which is a personal loan with a mortgage
guarantee and HypoLift Immo, which is a
real estate mortgage loan.
In the increasingly stringent economic and
regulatory environment, being close to
customers to listen and advise are key to
developing this distribution channel, due to
its strong positioning on complex products.
11%
CréditLift Courtage
market share in 2012
24%
Crédit Agricole
Consumer Finance NL
market share in 2012
CréditLift Courtage, a key
player on the credit brokerage
market in France
The purpose of Créditlift Courtage, Crédit
Agricole Consumer Finance’s brand
specifically dedicated to brokerage, is to
serve bank intermediaries and customers
by providing credit solutions and associated
insurance products.
In 2012, CréditLift Courtage expanded
significantly increasing business by 13%
year-on-year, while the market contracted
by 5%. The strong performance was due to
three factors combined: a new sales drive
with a differentiated range of services by
brokerage type (VIP, Privilège, Premium),
further optimisation of operating processes
and the launch of the new mortgage
repurchase offer, called HypoLift, which was
welcomed by the market.
This product meets highly specific needs. It
offers an alternative to restructuring debt for
customers that wish to buy their first home
but their debt is too high to repurchase
“The launch of HypoLift is a major new step in our
development strategy. The new product positions Crédit
Agricole Consumer Finance – via its CréditLift Courtage
brand – as a key brokerage provider in France, as we now
have the full range required to serve the market.”
Philippe Corion, Brokerage Sales Development Director,
Crédit Agricole Consumer Finance France
30
Savings and Insurance
Insurance, needed
diversification Historically present on the
borrower insurance market,
Finance has diversified its
insurance business
by launching new
products in France and in
other entities.
Crédit Agricole Consumer Finance is now
present in all lines of insurance business,
from borrower insurance taken out with
loans, to accident insurance, financial
loss insurance, credit card insurance and
insurance on personal property items.
Insurance services are offered in all countries
where Crédit Agricole Consumer Finance
operates, except for the Netherlands.
The retail force of Crédit
Agricole Consumer Finance
serving insurance
Alongside the revamped borrower insurance
services, additional car, goods and personal
insurance products were introduced in
2012. A new comprehensive insurance
policy was welcomed at the 2012 Paris
Boat Show. In terms of accident insurance,
hospitalisation coverage was launched in
2012, while an injury guarantee providing
for the payment of capital in the event of
an accident or fracture, was launched in
2013. These new products are the fruit of
close cooperation between Crédit Agricole
Consumer Finance and Crédit Agricole
Assurances including CACI.
In addition, the recent creation of a single
customer relations centre should provide
a 360° view of all a customer’s insurance
contracts, in the long term. Such services
are in line with the Group’s clear strategy to
improve customer relations.
Introducing new insurance
products in Portugal
In Portugal, Credibom’s borrower insurance
business performed well. New insurance
products are being developed and should
be launched by the end of the first half
2013.
22 %
of managed insurance premiums
by Crédit Agricole Consumer
Finance no longer relate to
borrower insurance
Interview with Stéphane Roger
Director of Intermediated Financing and Insurance
Crédit Agricole Consumer Finance France
What were the significant events in
2012 for Crédit Agricole Consumer
Finance’s insurance business?
Following on from the Moving Forward
Together plan, we created an insurance
business line to help the various entities
to work together, maximise best practice
and strengthen our bargaining power with
insurers.
What are the activities of the
business line?
It focuses on three key indicators:
developing insurance business,
diversifying insurance premiums and
insurance services provided within the
Crédit Agricole Group.
How do you work within the Crédit
Agricole Group?
We aim to develop insurance services that
are designed and managed internally by
the Crédit Agricole Group. Today, 53% of
premiums are contracted between Group
companies. In France, the percentage is
as high as 85%. We also intend to become
more specialised, by transferring all our
claims management in France to the
Crédit Agricole Creditor Insurance (CACI)
platform.
Festgeld: a new CreditPlus Bank
savings product
In June 2012, CreditPlus Bank launched a
deposit collections business for individual
customers, to diversify refinancing
sources. The new Festgeld savings product
enables CreditPlus Bank’s customers to
invest between e5,000 and e500,000
in term deposit accounts. It is available
exclusively online to individual customers
residing in Germany. Money deposited by
savers is invested on the German market
for a period ranging from 12 to 72 months
at the saver’s choice. Interest is paid out
annually or capitalised in the
Festgeld account.
A committed
player
Lyon, France
Proud to have
participated in
Sidaction 2013
“Crédit Agricole Consumer
Finance has supported
Sidaction for several years.
I am proud to be able to
contribute to this cause, and
proud that my company
supports me by mobilising
resources.”
Arthur BERNE,
Customer services manager,
Lyons multi-channel agency
France
34
Commitments
HR Commitments
Actively preparing
for change Crédit Agricole Consumer Finance is committed to responsible relations with
employees, partners and customers. In terms of human resources, Crédit
Agricole Consumer Finance supports employee expectations and development
by providing training and managing change and careers. It promotes citizenship
through social development policies.
Actively preparing
for change
Training policy is aimed at developing
employees to enhance collective efficiency
and promote a common corporate culture
within Crédit Agricole Consumer Finance.
In 2012, Crédit Agricole Consumer
Finance continued to implement the action
initiated in 2011 as part of the Moving
Forward Together plan, to develop and
support managers. The company’s top
200 managers were given training on the
management principles.
After recalling the model’s objectives
in terms of Crédit Agricole Consumer
Finance’s strategy, managers were given
practical experience of implementing the
associated principles and key behaviour
and establishing their own professional
development plan. In line with the
company’s Transformation plan, Crédit
Agricole Consumer Finance provided
managers with specific support on change
management. Training was offered from
the year end to prepare managers to
handle and accompany their teams through
change.
management application and view the
associated offer or register for open
sessions held by the Human Resources
Department. The system provides managers
with a complete view of their teams’ training
activities enabling them to better manage
employees’ requests for training.
A broader individual training
programme
Courses were promoted to boost
employees’ professional development.
Individual training was given particularly on
career-path development and for employees
in the second half of their careers. The
training teams held information sessions
throughout 2012 to ensure that employees
were fully aware of and understood the offer
and specific procedures and processes.
72.86
million
dedicated to training in 2012,
plus an exceptional allocation of
€450,000 for the Transformation
plan
A “self-service” system was set up
enabling employees to enter their training
requirements into an internal career
CAREER MANAGEMENT SYSTEMS
During 2012, the team appraisals process was enhanced to identify resources and facilitate mobility both within
Crédit Agricole Consumer Finance and Crédit Agricole Group. It will enable human resources to be managed in line
with future developments in the company and various divisions, and succession plans to be prepared for the most
strategic positions. Crédit Agricole Consumer Finance organised interviews for 230 employees with their career
manager as part of its policy for senior employees. In connection with the reorganisation, more than 100 employees
had seized internal mobility opportunities at 31 December 2012, including 35 transfers to the Group.
Finally, more than 1,000 Crédit Agricole Consumer Finance employees participated in 51 information meetings held
with Crédit Agricole S.A., LCL and the Regional Banks to improve knowledge of the Group’s businesses and activities,
in connection with Crédit Agricole Consumer Finance’s Transformation plan.
35
=
143
interns on sandwich courses
in 2012
600
managers received training
in the prevention
of psychosocial risk
1
=
new agreement signed on
equal opportunities for men and
women in the workplace
has signed several agreements and
charters:
– Charter on Diversity
– Charter on Parenthood
– Charter on Sustainable Development
– Agreement on Equal Opportunities for
Men and Women in the Workplace
Finance, committed to
solidarity and citizenship
Crédit Agricole Consumer Finance also
provided support to schools and training
organisations for disabled people.
In 2012, Crédit Agricole Consumer Finance
further implemented its policy to foster equal
opportunities and diversity both at national
and local level.
Moreover, Crédit Agricole Consumer
Finance confirmed its commitment to
supporting disabled people by signing the
third Crédit Agricole S.A. agreement, which
introduces new measures to support the
professional development and career paths
of disabled employees.
Promoting the employment of
disabled people
adopted a proactive policy to promote the
recruitment and sustained employment
of disabled people. Five disabled people
were recruited in 2012. Various measures
were also undertaken to fund specialised
transport, adapt workstations, fund hearing
aids, adapt vehicles, and enable teleworking
and more subcontracting to firms that
employ and provide disabled people with
special facilities and support.
As part of a week for the employment of
disabled people, all employees were made
aware of disability issues through webbased communication, poster campaigns
and theatre shows.
=
Equal opportunities
for men and women
A new agreement on equal professional
opportunities for men and women was
signed on 6 July 2012. It sets out a
specific training programme to promote the
advancement of women and their access to
management positions.
Young people
More than 143 interns on sandwich courses
joined the company in 2012, along with
125 secondary school interns including 28
young people aged 14-15 and 306 summer
interns.
Local presence
As member of the proactive corporate social
responsibility network IMS-Entreprendre
pour la Cité, Crédit Agricole Consumer
Finance held three IMS 91 meetings in
its premises, while interview simulation
workshops were held to support jobseekers
at the Évry job centre in France.
Psychosocial risk
Crédit Agricole Consumer Finance’s 600
managers received training in the prevention
of psychosocial risk as part of the Aim for
Top Health plan. Employees were given the
opportunity to discover stress management
techniques through sophrology workshops.
A committed player
Crédit Agricole Consumer Finance Annual report 2012
Key figures in France
36
Commitments
Corporate Social Responsibility (CSR)/
Environmental Commitments
Committed to safeguarding
the environment
Main developments in FReD
To develop and strengthen its corporate
social responsibility policy, Crédit Agricole
Consumer Finance has adopted the
approach initiated by Crédit Agricole Group:
FReD. After a pilot phase in 2011, the policy
was deployed in all the subsidiaries in 2012.
FReD is the acronym of the three-fold
programme: F for FIDES reflecting the
company’s responsibilities towards
customers, Re for RESPECT covering
employee and citizenship-related plans and
D for DEMETER, centralising environmental
conservation measures. It combines 15
corporate action plans, validated by the
Executive Committee on company-wide
issues such as human resources, energy,
ethics and customer relations. All employees
are encouraged to actively participate in the
action undertaken.
FReD provides support and greater capacity
for Crédit Agricole Consumer Finance’s
CSR commitments. To assess progress
in action plan implementation, Crédit
Agricole Consumer Finance performs an
annual performance assessment using
an independent evaluator. The average
progress points for each action plan
determine the FReD index. The average
of the indices for each entity determines
Crédit Agricole S.A.’s global CSR index. In
2012, Crédit Agricole Consumer Finance
was second in the Group in terms of index
progress.
The Sustainable Development representative
is also the FReD or Corporate Social
Responsibility (CSR) manager. Joint action is
undertaken continuously with Crédit Agricole
S.A., particularly by regularly sharing best
practice with the CSR representatives in the
Group’s subsidiaries.
Various FReD measures have been
undertaken: an inter-company car-pooling
platform was set up in 2012 in Northern
France. Several teams work regularly with
vocational rehabilitation centres for disabled
workers and only a few months after the
launch of the go paperless scheme, already
9.3% of statements are paperless.
Involving all stakeholders in
CSR policy
Purchasing
As part of CSR policy, social and
environmental clauses have been included
in contracts and calls for tender. They
mainly concern commitments to corporate
citizenship, environmental conservation,
respectful human and employee relations,
ethics and sustainable development. A
questionnaire is included as part of tender
documents, enabling the analysis of
suppliers’ policies in terms of Corporate
Social Responsibility.
CARE in the Netherlands
In mid-2012 Crédit Agricole Consumer
Finance NL launched an environmental
programme called CARE. It aims to
boost environmental concerns in daily
activity. The objective is zero use of paper,
waste sorting, energy savings, reuse of
coffee cups... all initiated as part of the
programme, which has its own logo and
internal communication campaign.
Transport
In order to promote public transport for
commuting from home to work, Crédit
Agricole Consumer Finance subsidises a
substantial portion of the cost of transport
passes. Given the company’s multi-site
structure, it has substantially increased
tele-conferencing and video-conferencing
facilities. The company car fleet is selected
based on consumption and C02 emissions.
A campaign was held in 2012 promoting
0% financing for electric vehicles.
Waste and resources processing
Waste sorting and processing has been
set up in the main sites in France for paper,
batteries, bulbs, aluminium cans, printer
cartridges and office equipment. Similarly,
all telephone equipment is now collected
and recycled by local companies with the
vocation to employ and adapt facilities
for disabled people. The go paperless
statements plan continued and online fax is
currently being set up in the retail branches.
And a policy to control and reduce energy
and water consumption was established in
conjunction with the operational real estate
division of Crédit Agricole Immobilier.
37
Active in corporate
citizenship
Finance encourages
employees who wish
to engage in social or
humanitarian projects. In
2012, the company provided
staff and equipment for
several solidarity events.
CreditPlus Bank promotes
financial education
Since 2010, CreditPlus Bank employees
have participated in a financial education
scheme for young children. In 2012, they
taught children from a primary school
in Stuttgart how to manage a budget
responsibly. They showed the children how
to assess and better identify the risk relating
to financial management. The schoolchildren
also visited CreditPlus Bank’s offices to learn
about the banking business.
Since the beginning of 2012, CreditPlus
Bank has extended its financial education
scheme to other organisations, which offer
workshops for disadvantaged adolescents
on various subjects including financial
education. CreditPlus Bank’s staff drew the
adolescents’ attention to the risk of overindebtedness and then invited them to visit
the bank’s headquarters in Stuttgart.
event was also held with the children’s
institution Lyreio, in order to improve the
living conditions of the children and young
residents. Credicom volunteers contributed
significantly. In order to mobilise all staff,
emails were sent specifying the children’s
requirements. The volunteers and Human
Resources Department joined forces to
collect the objects donated by staff for
Lyreio. Information on the entire programme
was sent to the Group’s partners and
suppliers with the year-end greetings.
Credicom supports vulnerable
groups
In Greece, Credicom Consumer Finance
provided support for the second
consecutive year to seven nonprofit
organisations, through donations and the
collection of clothes and food for orphaned,
disabled and sick children. A community
Sidaction Report
30, 31 MARch and 1 ApRIL 2012
270
Supporting
employees’
commitments
staff volunteers
For the fifth consecutive year, Crédit Agricole
Consumer Finance provided call centre
facilities for Sidaction. On 30, 31 March
and 1 April 2012, Crédit Agricole Consumer
Finance was one of the top three companies
in France in terms of time donated. The 270
staff volunteers collected €234,552 in pledges,
which is more than 5% of total pledges
nationwide.
7234,552
pledges
A committed player
Commitments
to society
Reinventing
the business
model
Hong Kong, China
Proud to have transformed
a start-up into a profitable
business
“I am proud to have been
involved in transforming a
start-up into a profitable
company and driving GACSofinco AFC’s growth in China.
Three years after setting up
this joint venture, we have
over €900 million in managed
outstanding loans, and we
granted around 44,000 loans
to individual customers in
2012.”
Mr. Zeng Zhaoxi,
Credit Risk Department Manager
GAC-Sofinco AFC
40
2013 Outlook
Transformation – ISEO
Restoring sustainable
competitiveness The Moving Forward Together strategic plan launched in 2011 enabled us to prepare
for various changes in the consumer credit business. The worsening of the economic
environment means that Crédit Agricole Consumer Finance has to transform more quickly
and more extensively.
Moving Forward Together, a
common vision
The sovereign debt crisis of summer 2011
strongly impacted banks, which announced
plans to restructure and deleverage in order
to reduce their exposure to the financial
markets by the end of 2012. Due to the
highly restrictive environment we refocused
the strategic goals of the Moving Forward
Together business plan launched in 2011.
“Let’s go beyond
simply adapting, to
restore sustainable
competitiveness. Our
new business structure
enables us to take on new
challenges. The business
transformation has given us
the opportunity to reinvent
our business with projects
that strengthen our
foundations: innovation,
customer satisfaction and
operational efficiency.”
Philippe Dumont,
Chief Executive Officer
and also the three cornerstones of
Transformation plan in France: innovation,
efficiency.
Moving Forward Together should ensure
that all projects under way in the short and
medium term are consistently aimed at
“sustainable competitiveness”.
This entailed a two-stage process:
• Identifying eleven priority measures to
develop insurance business, diversify
refinancing sources and improve customer
satisfaction.
• Conducting a new phase of reflection
on the business plan, from the end of
March 2012, to take into account the
new economic and financial environment
Focus on two Moving Forward Together initiatives
Group customer satisfaction
The aim of the customer satisfaction initiative of the Moving Forward Together
business plan is to establish a standardised performance measurement system
for customers and partners based on two key indicators: customer satisfaction
and willingness to recommend. Surveys were conducted by the same firm for
the pilot entities: Agos Ducato, Credibom, CreditPlus Bank and Crédit Agricole
Consumer Finance France. The objective of the second phase is to set up
a permanent system and extend it to other countries, while structuring the
operating divisions so that they focus on the levers to improve quality.
Diversifying refinancing sources
Diversifying refinancing sources has entailed several securitisation
transactions in France and the launch of deposit collections business in
Germany. It has enabled €7 billion to be raised since June 2011, including
€2 billion in the fourth quarter of 2012.
41
Consumer Finance has decided to reinvent
its business model.
opted to rethink customer relations.
Increasingly demanding, customers expect
customised solutions better adapted to their
ever-changing requirements. So it is now
essential to focus on enhancing customer
relations. A customer-centric strategy,
organisation, services and procedures
is key to differentiation and sustainable
competitiveness. This is why Crédit Agricole
In France, the Transformation plan provides
for the transition to a business focusing
on customer relations, which is ready to
anticipate and fulfil their expectations and
requirements. To achieve this goal, Crédit
Agricole Consumer Finance has founded
its organisation on three guiding principles:
innovation, satisfaction and operational
efficiency for a sustainable relationship.
Crédit Agricole Consumer Finance’s Ambition
Customer-centric strategy as a key to differentiation
and sustainable competitiveness
Innovation
Customer
relations
Operational
efficiency
Reinventing the business model
Specific challenges in France –
The Transformation plan
Innnovation
To respond to changes in consumption
patterns, Crédit Agricole Consumer Finance
will innovate and offer products that are
increasingly tailored to customer requirements.
With innovation as the cornerstone of Crédit
Agricole Consumer Finance’s growth, the
company is also preparing to build sustainable
competitiveness. It is required to adapt to
changes in:
• expectations,
• customer profiles,
• retail channels.
Customer relations
Customer confidence supports company
growth. Customer satisfaction and loyalty will
enable Crédit Agricole Consumer Finance to
restore sustainable competitiveness.
Operational efficiency
The objective is to increase operational
efficiency across all Crédit Agricole Consumer
Finance’s businesses by streamlining and
removing the inefficiencies remaining from the
merger in 2010. Customers are increasingly
demanding, requiring greater efficiency.
Recognising, Mobilising and Supporting Teams
Innovation
Innovating to remain one step ahead
Crédit Agricole Consumer Finance has to adapt
structurally in order to innovate as required.
Customer expectations change, widespread use of
information technology is developing fast, while new
entrants are entering the market. Innovation is a key
differentiator in this mature market.
How?
B
y implementing innovation governance, with a dedicated
budget and identified representatives within all departments,
to tap into Crédit Agricole Consumer Finance’s existing
innovation potential.
2013 Outlook
42
“The more we invest in customer relations
at each stage of life, the more we encourage
loyalty, the more we differentiate, the more we
ensure sustainable business development.”
Sylvie Robin-Romet, Deputy CEO, Distribution
and Marketing, Sponsor of the
Customer satisfaction programme
31,500
number of customers polled
in the satisfaction survey in 2012
(France, Italy, Germany, Portugal)
Customer satisfaction
Counting on customer relationships
Customer confidence underpins company
growth. Customers are now highly
demanding with volatile purchasing
behaviour. We have to actively listen to
customers in order to achieve high levels
of satisfaction and loyalty. By investing in
knowing the customer and developing a
special rapport with them, Crédit Agricole
Consumer Finance can better fulfill their
expectations.
How?
b y creating a unit responsible for
measuring and monitoring customer
satisfaction;
by creating a Customer Relations
Department to harmonise and
streamline customer experience;
by combining marketing forces
(partners and direct sales) and creating
a «service offering» entity to enhance
consistency and better meet customer
expectations;
by redefining agency models and
streamlining the network in line with
customer potential;
by designing an agency for the
prevention of over-indebtedness to
initiate, test and deploy best practice.
Measuring Customer
Satisfaction in France
Customer-focused strategy entails regularly
measuring satisfaction. The indicator used
across the whole Crédit Agricole Group
is the Customer Recommendation Index.
It is a performance indicator that shows
the relationship between the brand and
the customer, giving an overall view of the
company’s market positioning, and enabling
it to identify areas for improvement. Crédit
Agricole Consumer Finance has also set up a
tool to measure satisfaction throughout the
customer experience. Called the Customer
Experience index, it is common to all sales
departments and involves a questionnaire for
customers and a questionnaire for partners
and business finders.
Operational efficiency
Improving performance
Gaining efficiency to perform better when
serving customers. Gaining consistently
across all Crédit Agricole Consumer Finance’s
business lines. Sharing best practice and
improving local presence are the keys to
improving operational efficiency.
How ?
c reating a Corporate Center to enhance
the coordination of subsidiaries, make
customer satisfaction and innovation
priorities at Group level, and strengthen the
focus of teams in France;
s pecialising the central sites in France to
improve managers’ presence and share
best practice;
r egrouping steering and administrative
activities to improve efficiency, simplify
reporting procedures and enhance
decision-making.
Why create
a Corporate Center?
Initially part of the Moving Forward Together
plan, a “Corporate Center” enables centralised
management and enhanced operational
efficiency. The new organisation of Crédit
Agricole Consumer Finance with the Corporate
Center is more appropriate for managing an
international Group. Its aim is to develop Group
functions, while separating them from the
functions dedicated to business in France, to
increase the exchange of best practice with other
Group entities. Finally, the «“Corporate Center”
will make innovation and customer satisfaction
priorities and facilitate the focus on these
functions across the Crédit Agricole Consumer
Finance Group.
Agricole Consumer Finance’s strategic plan as
set out in the new business model. The overall
plan is to reduce the number of sites from eight
to four in the North and île-de-France regions.
Streamlining the central sites should result
in a sustainable, more flexible, efficient and
consistent structure and also decrease lease
expenses and strengthen operational efficiency.
Streamlining the central
sites in France
Announced in 2011, streamlining operations
in France was one of the objectives of Crédit
Develop Group
functions
internationally
Coordinate
the exchange of
best practice
Unify innovation
policy
corporate
center
Centralise
administrative
operations
Centralise
the management
of Group entities
44
2013 Outlook
Information System
and Telephony
Business transformation Crédit Agricole Consumer Finance is continuing to invest heavily in developing information
technology, to modernise its telephone infrastructure and upgrade its information system.
The new systems are fully in line with Crédit Agricole Consumer Finance’s strategy to boost
innovation, customer satisfaction and operational efficiency.
“In 2012, we made key
steps forward and strategic
investments, particularly by
integrating telephony and
workstations.” 
Guillaume Lesage, Deputy
Chief Executive Officer, Operations,
Finance and Systems
Information systems,
a new step forward
integrated, state-of-the-art, telephone
system by 2015.
Horus, Crédit Agricole Consumer Finance’s
multi-annual plan to merge information
systems, has reached a key milestone with
the deployment of integrated One Horus
workstations. This new customer relations
interface provides staff with a more userfriendly working environment, which is more
responsive and boosts sales performance.
The programme challenge is essential for
enhancing the quality of customer relations
and satisfaction. As a touchpoint between
customers and the company, telephone
services need to be effective and modern to
facilitate customer relations. Until now, each
business line had its own telephone system.
Thanks to the AIDA programme, Crédit
Agricole Consumer Finance France’s system
will process customer calls nationwide. By
better identifying customers and requests,
the company will be able to put customers
into contact with the most appropriate
advisor for their requirements.
One Horus marks a significant step forward
in the Horus programme. It is the first visible
component of Crédit Agricole Consumer
Finance’s future information system. The
system provides staff a 360° view of all
contracts held by customers through
a single access point and password. It
enables them to offer a wider panel of
solutions to customer requests.
A state-of-the-art
telephone service
The objective of the AIDA programme to
improve telephone intelligence and call
distribution is to ensure excellent customer
relations in branches and call centres
through the deployment of an effective,
Since its launch in June 2012, several
programme milestones have already been
reached. A national loop connecting all
Crédit Agricole Consumer Finance France’s
sites now enables management of the
associated sites via virtual call centres.
Thus a customer’s call can be processed
in the same manner from any site and can
be directed to the site with the fewest calls,
enabling the shortest waiting time possible
for customers calling.
Credibom in Portugal revamps its customer relations
management platform
“AIDA is a company-wide project to
improve telephone intelligence and
call distribution systems based on
the three cornerstones
of Crédit Agricole Consumer
Finance’s strategy. It is key to
customer relations
and operational efficiency.”
Patrice Germain, Deputy sponsor
of the AIDA programme
Credibom boosted operational efficiency in 2012 through several projects.
New customer relationship management software was deployed to optimise
the sales process by providing sales teams with a 360° view of customers.
The software also enhances marketing campaigns and enables real time
monitoring of salesforce activity. The second phase of deployment, launched
at the end of 2013, will make the platform accessible for after-sales services.
A new telephone system set up in all Credibom call centres has improved
performance and customer services and reduced communication costs.
Alongside these two major investments, a new system has been deployed
to manage outstanding loans, with a new collection strategy and improved
document management.
45
Reinventing the business model
Customer promise and
prevention of over-indebtedness
Reinventing the business
Large-scale projects have been undertaken as part of Crédit Agricole
Consumer Finance’s Transformation plan.
New customer promise in
France
Prevention of overindebtedness
The purpose of the new customer
promise is to better respond to customer
expectations and recognise loyalty. Directly
related to customer satisfaction, the
customer promise is an essential means
of highlighting Crédit Agricole Consumer
Finance’s real commitment to meeting
customer expectations. Customers
primarily expect customisation, recognition
of loyalty, support in difficult times, clarity
and responsiveness. Consequently, seven
major company-wide schemes have
been implemented in all Crédit Agricole
Consumer Finance France’s business
lines to translate these expectations into
company commitments. Medium and
long-term action has already been taken to
finalise the new customer promise. A major
part of the fundamental change required for
the customer promise will be implemented
under the Transformation plan in France.
In order to contribute more actively to
developing responsible credit in France,
has launched a programme to combat
over-indebtedness, as part of the
Transformation France strategic plan. The
programme comprises several projects
aimed at understanding and modelling
customer experience: actively involving
all employees in better understanding
the phenomenon of over-indebtedness;
improving the system and process
used to deal with over-indebtedness;
and finally,coordinating Crédit Agricole
Consumer Finance France’s action
with that of all stakeholders involved in
combatting over-indebtedness.
Customer support
branch in France
France launched the Customer Support
Agency as part of its prevention
of over-indebtedness programme
initiated in July 2012. The objective
of the new entity is to identify and
support customers who are financially
vulnerable. To restore their financial
health, they are offered internal
solutions or are redirected to a
partner chosen by Crédit Agricole
Consumer Finance. The agency plays
an important role in Crédit Agricole
Consumer Finance’s programme to
prevent over-indebtedness. It deals
with the issue on both an economic
and social level.
Crédit Agricole Consumer Finance France joins the Crésus platform
On 15 March 2012 Crédit Agricole Consumer Finance France joined the Over-indebtedness Programme set up
by the Crésus federation of regional nonprofit organisations for over-indebtedness. The purpose of the public
interest nonprofit organisation is to actively listen, understand and prevent the over-indebtedness of vulnerable
households throughout France. A trial platform for assisting vulnerable people was launched in cooperation
with eight institutions and financial organisations. When a partner financial organisation identifies a vulnerable
customer, it offers help in budget management. The platform plays a dual role. First, budget assistance entails
moral and psychological support, along with advice and recommendations. Then, the household is offered
budget intermediation. This means assessing the household’s capacity to repay loans given their disposable
income, before simulating solutions and negotiating directly with financial institutions to reschedule debt.
2013 Outlook
46
Customer relations: fundamental changes Interview WITH Sylvie Robin-Romet
Deputy CEO, Distribution and Marketing France
How can we better fulfill customer
expectations?
“We need to change our
offering, processes and
sales techniques to fulfill
our commitments. These are
large-scale changes.”
Fulfilling customer expectations first
means identifying them, then offering more
adapted solutions to more customers. It
also means recognising customers’ needs
and providing support at all stages in their
lives, even the most difficult times, through
a clear customer-focused relationship.
Customers also expect accessibility,
responsiveness and the recognition of
loyalty.
What does this mean in practical
terms for the credit business?
We have to provide made-to-measure
services. The objective is not to sell more
to a small portion of our customers, but to
sell to a greater number in a responsible,
reasonable way. This means developing
new products and services, such as
Sofincare or the locked revolving credit,
which will be launched in 2013.
What does it mean for customers?
Customers will see that we are committed,
that we keep our promises, that our staff
are proud of their work, that the products
are adapted to their requirements and
that they are recognised as people. They
will enjoy the more balanced, customised
relationship.
CA Consumer Finance: French public limited company (SA) with share capital of €346,546,434 – Rue du Bois Sauvage – 91038 Évry Cedex
France – 542 097 522 RCS Évry.
Photo credits: V. Arbelet – P. Caron – M. Danvard – T. Gasparini – A. Goulard – H-J Kamerbeek – K. Kiriaki – C. Martigny –
Hell Moss – Radovan – M. Richter – P. Robin – O. Seignette – Subin – G. Tordjmann – Yu Yiming – DR CA Consumer Finance – Corbis.
Thanks to: Staff of Crédit Agricole Consumer Finance.
Editors: Corporate Communication (A. Barat, F. Lagier, C. Langlois), avantgarde.
Design and production: avantgarde.
This document has been printed on Forest Stewardship Council (FSC) paper. FSC certification guarantees that the paper is made from
wood derived from forests managed according to internationally recognised environmental and social criteria and principles. It was
printed using a Imprim’Vert printer, which does not use toxic products and ensures the disposal and secure storage of hazardous toxic
waste.
Agos Ducato
Via Bernina 7,
20158 Milano,
Italy
www.agosducatoweb.it
CreditPlus Bank
Augustenstrasse 7,
70178 Stuttgart,
Germany
www.creditplus.de
FGA Capital
Corso Giovanni Agnelli 200,
10135 Torino,
Italy
www.fgacapital.com
Credibom
Av. General Norton de Matos,
71-3º, Miraflores,
1495-148 Algés,
Portugal
www.credibom.pt
Credium
Office Park,
Bucharova 2657/12,
15800 Praha 13,
Czech Republic
www.credium.cz
Forso Nordic
Torpavallsgatan_9
Gothenburg 41673
Sweden
Credicom Consumer Finance
187, Syngrou Avenue
171 21 Nea Smyrni
Athens
Greece
www.credicom.gr
Dan Aktiv
Delta Park 46
DK-2665 Vallensbaek Strand
Denmark
www.danaktiv.dk
Finance France
Rue du Bois Sauvage,
91038 Évry Cedex,
France www.ca-consumerfinance.com
Tiilitahtaankatu 7,
04200 Kerava,
Finland
Wafasalaf
72, Angle Rue Ram Allah
et bd Abdelmoumen
20000 Casablanca
Morocco
www.wafasalaf.ma
Postboks 555
1411 Kolbotn,
Norway
1012
Entrada 600,
1096 ET Amsterdam,
Netherlands
www.ca-consumerfinance.nl
Finaref Nordic
Box 932,
50110 Boras,
Sweden
GAC Sofinco AFC
17th Floor, North Tower,
Jinbin Dragon-Fly Building,
49 Huaxia Road Pearl river new town,
Tianhe District,
Guangzhou (510623),
China
www.ca-consumerfinance.com
Rue du Bois Sauvage,
91038 Évry Cedex France
@
@
What is the role of
consumer credit in this
ever-changing world?
Consumer credit drives economic growth and local development.
It is essential for household consumption.
How can we help customers
to carry out their projects?
Consumer credit enables consumers to equip and improve their home: install
an integrated kitchen, change the furniture, renovate the children’s bedroom
or the bathroom. Retailers that offer customers point-of-sale financing help
customers to carry out their projects.
Interview WITH Christophe Gazel
Managing Director of the French Furniture
Market Observatory (Institut de Prospective et
d’Etudes de l’Ameublement)
The importance of consumer
credit in the home universe
How is the furniture and home improvements
industry doing?
Compared with other consumer universes, the home improvements industry
performed well in 2012. Buying intentions remain favourable for 2013, with
22% of French people planning to buy furniture and 31% home appliances.
How does financing help them?
Credit enables consumers to opt for higher range products from general
furniture retailers or to choose specialists for their living room or kitchen.
55% of people that buy an integrated kitchen seek financing. For mass
retailers, offering deferred payments at no extra cost is a way of boosting
sales.
How can we help customers to achieve their goals?
Home improvements often involve high budgets. In times of crisis, such
projects tend to be postponed. Retailers that offer customers payment
facilities for changing furniture help tip the balance in favour of making a
purchase.
Has e-commerce changed
the way we buy?
Today, 80% of internet users buy online. E-commerce has changed buying
behaviour, as customers are better informed and more volatile. Retailers
can build customer loyalty by offering choice in terms of product range,
payment facilities and delivery options.
Interview WITH Marc Lolivier
Delegate of Fevad1
E-commerce, a high growth
industry
What are the current e-commerce industry trends?
E-commerce is performing extremely well despite the challenging economic
environment. In 2012, sales were up by 19%. In 2013, revenue is expected
to reach €50 billion, as the increasing offer of online services stimulates
demand.
What is its impact on retailing?
32 million French consumers have adopted e-commerce and 80% of
internauts shop online. The internet has also changed buying behaviour in
brick-and-mortar retail stores, with customers using it to obtain product
information before entering the store.
Why is consumer credit important for the
e-commerce industry?
Credit has always played a role in distance sales. At the outset, few credit
facilities were offered by e-commerce retailers. Today, things have changed,
with the main retailers offering online financing solutions.
1
French federation of e-commerce and distance selling
How to prevent
over-indebtedness?
Over-indebtedness is not a fatality. Non-profit organisations, such as
Cresus, work hand-in-hand with credit institutions to help households
manage their budgets better and renegotiate their bank repayments.
Interview WITH Jean-Louis Kiehl
President of the Cresus national federation
Supporting vulnerable
customers and preventing
over-indebtedness
What is Cresus’s vocation?
Cresus aims to prevent over-indebtedness due to life accidents such as
unemployment, sickness or excessive debt resulting from contracting too
many loans or being unaware of the associated fixed expenses.
Why has Cresus joined forces with Crédit Agricole
Consumer Finance?
Over-indebtedness is not a fatality. Through partnerships with financial
institutions we aim to develop a model to detect over-indebtedness early,
enabling vulnerable consumers to avoid the double punishment of financial
and social exclusion.
How does the partnership work?
Crédit Agricole Consumer Finance’s customers that have been identified
as being “vulnerable” will be guided, after a preliminary interview, to our
Strasbourg platform. Our volunteers will then analyse their budget and
help them negotiate with their bank manager or reschedule their debt
repayments.
What is the purpose of
financial education?
It helps households learn how to manage their budget.
The Consultative Committee of the Financial Sector encourages schools,
institutions and banks to participate in people’s financial education.
Interview WITH Emmanuel Constans
Chairman of the Consultative Committee of the
Financial sector
Financial education: learning
to manage a budget
What is the purpose of financial education?
Financial education prepares young people and helps households to use
financial and banking tools to take the right budget decisions. It is important
to understand what cheques are for, what an overdraft is and whether to opt
for short, medium or long-term savings.
How do you plan to develop financial education?
The Consultative Committee of the Financial Sector will encourage all
stakeholders, the education authorities, banks, non-profit organisations
and the media to intensify and coordinate their efforts in terms of financial
education. Helping households to take informed decisions will contribute to
economic recovery and consumer confidence.
What role do credit institutions play in education?
Providing high quality advice and information to people opening an account
or taking out a loan is an essential form of financial education. It can enable
customers to avoid mismanagement and financial difficulties.
@
@
How have customer
relationships changed?
Customers have become more demanding. They now want fast, highquality services. The crisis has forced consumers to think carefully about
what and how they buy. Internet has empowered consumers. Company
strategy is now customer-centric.
Interview WITH Minter Dial
Chairman of The Myndset Company1
Customer relationships have
changed
How can we define customer relationships today?
Customer relationships are a key differentiation lever. They define a brand,
making it palpable, human and tangible.
How have they changed?
Today, customers demand faster and higher quality services. The crisis
and the web have essentially driven this change. The crisis has forced
consumers to think twice before buying. The web provides greater
transparency and empowers consumers.
What are the new challenges in terms of customer
relationships?
Customers are more demanding than ever. They now interact with brands
through multiple touchpoints (website, social networks, telephone, etc.). So
companies need to provide a unique fast, integrated customer experience at
all times, extending far beyond the sale of products or services. They need
to be customer-centric, which means listening and coordinating more and
being more responsive.
1
Digital consulting firm

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