For some years now, the International has been augmenting NMB Bank’s activities In Emerging Markets through the Financial Advisory and Consultancy Services (FACS) department. Operating under the wings of this International consultancy bureau is the Project Desk, called Developing Giro Systems Abroad. Hans Boon, Deputy Manager of this Desk, frequently visits countries In Eastern Europe such as Poland, Bulgaria, Czechoslovakia. Hungary and intends to visit Russia in the near future. His objective: helping and advising at the design stage and advising about the Implementation of a modern giro system and commercial development of recently set up Postbanks.
“The reforms in Eastern Europe have also had major consequences for the financial housekeeping in the banking industry and for private companies. These countries want to transform from a traditionally strong centrally planned and managed economy to a free market economy. Commercial banks and funds transfer are indispensable in this process of change. NMB Postbank Group is known in thus field and that is why these countries have asked us to help them,” said Hans Boon.
Big opportunities
At the request of the various banks in those countries in the years to come NMB Postbank. Group will concentrate on two things: setting up a commercial bank à la Postbank, and a modern giro system. Hans Boon: ‘There big opportunities open to the new Postbanks and consequently also for NMB Postbank Group. We can make a substantial contribution toward improving the financial infrastructure and thus aiding the exchange and transfer of money by giro. A team of specialists from NMB Postbank are advising on these initiatives.”
“Measured against the other eastern European countries where we are active, we have made the greatest progress in Poland. The approved plans for the construction of the gyro system and the financing of it are waiting for the go-ahead. Now it is up to the Polish governmental bodies to give the signal. It is expected that Poland will have between two and three million gyro account holders by the end of the century.”
Marketing support
Apart from constructing a giro system and making It operational, it is also intended that NMB Postbank will advise the Poles on the marketing of the gyro products and setting up client administration systems. “The years of experience we have in this field are of importance to the success of this project,” sad Hans Boon.
Exploration phase
Bulgaria, Hungary, Czechoslovakia and the Russian Federation are other countries where the Bank is involved to some extent in building up a modern financial banking system. In Bulgaria, a start will probably be made fairly soon on the preparations for co-operation on a gyro system. Czechoslovakia is now exploring the design of a new banking system. Together with the Austrian Insurance company, NMB Postbank is shareholder in the Postovni Banka a.s., the postbank of Czechoslovakia. An order hasn’t been issued yet for a study to be carried out
Broad range of bank services
NMR Bank opened its own operational office in Budapest, the capital of Hungary. This office has a broad range of bank services on offer. The possible constructions of a giro system is being talked about but there are no definite agreements as yet. Informative discussions are bing held with the Hungarian PTT and with the Hungarian Post and Savings Bank about what a giro system would mean for Hungary. Following a request from the Russian Federation to the EC, a strategic preliminary study will be started very soon by the Bank which should lead in the long run to the implementation of a large commercial Russian postbank. The study will be completed around the end of this year and will be submitted to the EC and the Russian authorities. “It is a big challenge for our company to contribute to the development of the financial infrastructure in these eastern European countries. Should these project be successful, then NMB Postbank will not only have gained a lot of goodwill, but we will also be able to boost our position in these countries,” added a very enthusiastic Hans Boon.
