Newcomers on the Romanian banking market have a good chance of success, as only 39 banks are currently active in the country, Jose Toscano, General Manager of Millenium BCP Romania, told Business Standard in an exclusive interview.
BCP Millenium, one of the largest players on the Portuguese banking market, will open its first subsidiary in in the second half of 2007. Toscano said “there is enough room for new players on the Romanian market, who can provide high quality financial products to a rising population that works more and more with banks,” he told Business Standard.
Toscano added, however, that the fight for a comfortable position on the market will be tough. The competition is harsh on the Romanian banking market, “but if we add our products to the advantages we will provide, we are optimistic about facing the challenge,” he said.
The 39 banks currently operating in each have different clients and do not provide the same products at the same time, so “there is space for us too,” Toscano said.
The bank is also taking into consideration the rapid development of the Romanian financial sector. “A process that required 10 years in to develop needs significantly less time here. This means that the prospective is huge,” he added.
Toscano denied recent rumors in the media that Millenium BCP Romania plans to recruit an entire department from a competitor. “There were rumors in the market, but if you ask me, I do not think such a thing has happened,” he said. Toscano explained that the bank has been recruiting employees for some time now, and one of the requirements is that the staff be professional. “One can find experienced professionals in banks also. It is natural that people coming to us have previously worked in financial institutions,” he said.
Millenium BCP’s financial report for 2006 shows the bank will allocate some €40 million for developing its operations in
. Portuguese bankers expect €30 million in losses this year, and forecast no profit before 2011.
The Romanian network of BCP Millenium will initially have 40 branches. Bank officials plan to expand to 110 branches by 2011.
Operations in
will focus mainly on the corporate sector and on clients with above average incomes, according to the bank’s report. Millenium BCP Romania will also operate in the consumer finance field and the activities will be carried out by a specialized structure.
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