Optimised distribution network
The LLB Group is making further progress in developing its branch concept. The branches of Liechtensteinische Landesbank and Bank Linth are the venues for the provision of high-quality advice, competent services and the core of distribution activities. In 2013, we decisively adjusted our branch portfolio to suit changed market conditions. In doing so, we closed five Bank Linth banking locations and the two branches in Schaan and Triesenberg of LLB AG in Liechtenstein.
The LLB is still the only bank in Liechtenstein which, in addition to its headquarters in Vaduz, operates bank branches: one in Balzers and one in Eschen, both of which fulfil the new role of a modern, communicative bank branch (see the chapter «»). Furthermore, Liechtensteinische Landesbank AG and Liechtensteinische Post AG have extended their business cooperation. Since the middle of 2013, LLB clients have been able to withdraw and deposit cash at the post offices in Schaan and Triesenberg. At the same time, the LLB has installed pay in cash machines in Vaduz and Schaan.
Expansion of digital channels
A plethora of communications possibilities enable the modern client to be permanently networked in today’s media world. The LLB Group is constantly adapting to changed client behaviour; it is expanding its digital channels for the benefit of its clients, and is connecting mobile, web-based applications to stationary services. Since December 2013, our clients have been able to take advantage of an innovative application for LLB Mobile Banking on smartphones and tablets. From payments, to account statements and stock market orders, our mobile banking app provides almost the same scope of functions as our well-proven LLB Online Banking for desktop computers. With the «Scan and Pay» function payment slips can be conveniently and easily scanned using a smartphone. Our mobile banking app can be easily and intuitively operated while at the same time fulfilling the highest security standards.
Strategic client focus
Retail and corporate banking is a regional and local business. Clients and shareholders expect relationships based on trust and solidarity with the region from the LLB Group. Both the Liechtensteinische Landesbank and Bank Linth are distinguished by their very close ties to markets and clients. At the end of 2013, we completed our client segmentation process based on business volumes. The intensified market and target client focus results in improved, customized client care and service, which takes into consideration both the client’s needs, as well as his risk tolerance and development perspectives. Consequently, using made-to-measure customer relationship management (CRM), we are able to coordinate our market knowledge with the requirements of our clients more effectively.
As part of our special efforts to strengthen our position in the fiercely competitive individual clients segment, we provided intensive training for our client relationship managers in the year under report. Our goal in 2014 will be to focus even more intensively on the needs and expectations of our clients. Our primary aim is to be there at every phase of each client’s life and to create added value for him in every phase. Our services in the fields of retirement, financial and succession planning, as well as tax advice and corporate and private pension provisioning strongly appeal to our clients. The demand for our expertise in these fields – all of which is available from one source – is consistently high. In 2014, we shall develop further business activities. One key point will be private financial planning, a field in which the LLB possesses unique, comprehensive and interlinked knowledge.
As a business bank, we offer small and medium-sized enterprises (SMEs) in our home markets of Liechtenstein and eastern Switzerland professional advice and premium quality services. Especially in the case of SMEs, private and business assets are often closely interlinked. Our financial planning specialists take care of clients’ personal and business concerns. Our experienced corporate client advisors represent a cornerstone of our service offering, which we want to expand systematically in 2014. We also foresee attractive future opportunities in our business with corporate clients. Our objective is to systematically exploit cross-selling potentials in particular. In 2014, we shall further optimise the cooperation between the client segments.
Management of credit risks
The LLB Group is one of the most important credit providers in its home markets of Liechtenstein and eastern Switzerland. On account of the increased pressure on margins and new regulatory provisions, credit risk management has evolved into a major competition factor. Our credit policy has the goal of limiting the growth of the mortgage lending market on a risk basis. As a consequence of this, from 1 July 2012 we tightened our standards with respect to the amount of own capital to be deposited, financial eligibility and collateral value limitations.