Retail & Corporate Banking is a regional and local business. The Liechtensteinische Landesbank and Bank Linth are distinguished by their closeness to clients and the market. Our client advisers can assess the potential of private clients and companies, and they know the history and individual aspects of the region. The trust of the local people and businesses is our core capital, which we carefully nurture and develop – in the clear knowledge that our clients make parallel use of various channels for their financial transactions without wanting to lose the contact with their personal adviser. Our goal is to care for all generations, irrespective of how, when and where they transact their banking business.
Modern bank branch concept
The branches of Liechtensteinische Landesbank and Bank Linth deliver a bundle of services; they are providers of high-quality advice, competent service centers and a core of distribution activities. The LLB Group is continually refining its branch concept. For instance, the bank branch in Eschen, Liechtenstein, is not only an example of the LLB’s commitment to “green IT”, it also fulfils the role of a modern, communicative bank branch. At the same time, we couple the traditional bank branch with innovative client care concepts and modern communication systems.
Since June 2015, the new Bank Linth branch in Sargans, Switzerland has been providing clients with a special experience. The branch’s multi-media client zone makes the obtaining of investment advice into an inspiring encounter, while the self-service possibilities for carrying out bank and financial transactions are setting new standards. In 2015, Bank Linth also introduced its new “Distribution III” concept in the Sargans region. Later, this concept is to be implemented in all the LLB Group’s branches. The concept establishes standards for administration and team care for basic clients, as well as targeting clients with business potential.
Genuine client focus
In 2015, we again enhanced our service quality. In a structured advisory process, our client advisers take into consideration both the client’s risk tolerance and development perspectives. Empathy and a systematic approach are really important qualities; being able to perceive the client’s desires in order to formulate the appropriate solution at every phase in the life of the individual client or the business cycle of the company.
To find out more about the level of its clients’ satisfaction with its services and products, the LLB Group regularly holds customer surveys. In 2015, Bank Linth polled 3’000 of its private clients and 500 corporate clients. It also questioned its clients individually about their requirements in relation to the introduction of “Distribution III”. The trust of our clients is reflected in the trust of our employees. They have strong roots in the market regions in which the LLB and Bank Linth operate and are in contact with clients on a daily basis. As our staff survey in 2015 revealed, our staff have a very strong sense of belonging to the LLB Group.
Efficient lending process
Lending to clients continues to be an important business area for the LLB Group. Continually increasing lending volumes and the low interest rate structure however make this business particularly challenging. We do not expect this situation to change in the near future. The LLB is the number one address for around 37’000 clients in the Liechtenstein domestic market. For Bank Linth lending business represents a major earning stream in its eastern Swiss market region even though it faces fierce competitive pressure.
The LLB Group is not only optimising its credit risk management in line with the latest regulatory standards (see chapter “Strategy and organisation”), it is also thoroughly revising its lending processes with the goal of achieving front to back excellence. Within the context of a lean management approach, the key points are client focus, efficiency and cost savings. Accordingly, in 2015 we were able to considerably shorten the throughput times from the commencement of processing a loan application to the earliest possible disbursement.
In Liechtenstein the LLB is the market leader in private client business. Almost every resident is a client of our bank. In the highly competitive eastern region of Switzerland Bank Linth is the largest regional bank. To strengthen the position of the LLB Group in the fiercely contested market for individual clients in Liechtenstein and Switzerland, we provide intensive training for our client advisers. More and more they are taking on the role of supportive coaches. The demand for all this expertise from under one roof is constantly high. Private financial planning is a key business area in which the LLB Group can call on an interlinked and comprehensive pool of knowledge. Our unique service package includes retirement, asset structuring and estate planning, taxation advice, risk insurance as well as corporate and private pension provisioning.
Our concept ensures that we are there for our clients at every phase of their lives to provide solutions for every financial problem. For us, customer closeness and financial themes already begin in the school class room. By offering their “young Liechtenstein” and “young Linth”, for short “youli”, banking services, the LLB and Bank Linth are successively expanding their strong market position. In 2015, over 7’140 young people took advantage of our range of youth accounts. To fulfil the expectations of the young generation, who want to decide themselves on the time, place and channel to carry out their financial transactions, we must be agile, innovative and think digitally.
Customer Service Cente
Both the LLB and Bank Linth are in close contact with their clients on a daily basis. For example, at its three business locations in Liechtenstein the LLB records an average one million transactions at our ATMs and 35’000 bank counter visits by clients per year. The Customer Service Center in Vaduz (CSE) is the central service hub for around 65‘000 retail clients. Almost 24’000 of them are online banking clients and about 5’000 are mobile banking customers. Anyone calling the CSE can expect sound knowledge and efficient service. This applies to all questions concerning accounts, capital investments, stock market orders, EC cards or loans as well as for issues relating to legal, data protection and security regulations. In 2015, this dedicated team answered around 59’000 telephone calls, almost 5’000 e-mails and 2’000 bank messages.
By centralising the Infoline, Private Clients Support and Online Banking Departments in one organisational unit, the LLB has reduced the costs of these functions each year by 30 percent and ensured efficient services from one source. In 2015, the department broadened and deepened its knowledge and competence by attending training courses on the implementation of the US Foreign Account Tax Compliance Act (FATCA), the automatic exchange of information (AIA), the Cross-border Banking II directive in the LLB offshore markets and the revised due diligence ordinance, which came into force in Liechtenstein in 2016.
Our strong position in Liechtenstein and in the region means that we are traditionally the business partner of corporate clients. As a business bank, the LLB and Bank Linth offer small and medium-sized enterprises (SMEs) professional advice and excellent services. Since July 2015, corporate clients have been able to take advantage of a comprehensive advisory and service concept, as well as attractive SME box offers with transparent benefits and conditions. The SME concept combines standardised basic packages with attractive additional services. We aim to become the number one in Liechtenstein for SME clients. In January 2016, we underlined this by starting a collaboration with the Liechtenstein Chamber of Commerce, which focuses on supporting and fostering the owners, successors, business managers and senior executives of commercial enterprises. The LLB and the Chamber of Commerce want to explore other collaboration possibilities by summer 2016.
Especially in the case of SMEs, private and business assets are often closely interlinked. Our integrated and comprehensive financial planning, an offer unique in Liechtenstein, appeals to this group of clients both for personal and business matters. In order to further sharpen our client focus, we are planning a more intensive collaboration between our client advisory specialists in the Private Banking and Institutional Clients Divisions.