BLC Bank: Strategic Differentiation in Women’s Market Yields Significant Profits

BLC Bank of Lebanon began looking at the Women’s Market

BLC BANK AT A GLANCE
opportunity in 2010 and quickly recognize its potential - not only as a
 A family-owned bank founded growth market, but also as a competitive differentiator. Soon
in 1950, BLC Bank has almost thereafter, BLC Bank became a member of the Global Banking Alliance
tripled its asset base in the last for Women (GBA) and launched its We Initiative Women’s Market
five years. program. Today, BLC Bank has thoroughly embedded We Initiative into
 BLC Bank holds US$5.4 billion in its corporate culture, and the program has achieved substantial
total assets and operates business returns. The Bank’s Women’s Market strategy has given it an
through 55 branches across advantage over competitors, and its best practices have become a
Lebanon and Cyprus, with a model for banks around the world.
representative office in Abu
The Women’s Market: Developing s Competitive Edge
Dhabi, UAE.
 The Bank serves more than BLC Bank operates in a highly “We are absolutely
31,000 women customers, with competitive environment, with more convinced, as a bank, that
a loan portfolio of US$180 than 70 banks serving a population of 4 there is a very good business
million and deposits of US$750 million. As it sought to differentiate case for targeting the
million. itself, the bank began conducting Women’s Market.”
 BLC Bank was the first bank in research on the female economy in Raoul Nehme
Lebanon to introduce a Lebanon to understand its potential. The General Manager, BLC Bank
Women’s Market program, a opportunity was significant: Although
business award program and a women represent more than half of Lebanon’s population and half of
dedicated women in business its university graduates, they are 47% less likely than men to have a
award. bank account. Women represent 27% of the country’s workforce and
 The bank was the first in the own 33% business, but receive only 3% of bank loans.
Middle East to become a
Observing these gaps, BLC Bank realized the value of women both as a
member of the Global Banking
market and a strategic differentiator. The Bank set out to find ways to
Alliance for Women and the
reach this untapped market, beginning its journey by becoming a GBA
first in the region to be part of
member, and attending the 2010 GBA Annual Summit hosted by the
its Governing Board. BLC Bank
International Finance Corporation (IFC) and the 2011 Summit hosted
was also the first in MENA to
by Westpac. Drawing on ideas it learned from fellow GBA members
commit the UN Global Compact
and with support from the IFC, BLC Bank launched the We Initiative
Women’s Empowerment
program in 2012 – just 7 months after the start of its feasibility study.
Principles (WEPs).
 BLC Bank was awarded the In only 2 years, We Initiative started generating significant business
Women’s Empowerment returns. It currently represents more than 18% of the Banks profits,
Corporate Leadership Award in with double-digit growth projected for the next 3 years. We Initiative
2012 by the The New Economy has positioned BLC Bank as the Bank of Choice for women in Lebanon
(TNE) Magazine. and as a global example for Women’s Market best practices.
 Women currently make up 43%
Strategizing Success: The CVP and Marketing
of senior management, a “We kept asking
number that is expected to about products, To develop its Customer Value Proposition (CVP)
increase to 50% by 2020. More and they kept
for women, BLC Bank’s team conducted
replying, Service.”
than half of the Banks staff extensive research among both male and female
members are women. Karyl Akilian customer and non-customers. The results
Head of Brand surprised them: Women felt disrespected by and
Management BLC
Bank mistrustful of banks, and while they were mostly
satisfied with BLC Banks existing products, they
wanted better support and more personalized
service. The CVP the Bank developed includes both financial and non-financial services. Many of the elements
already existed in the Bank – the challenge was to integrate them into a cogent CVP.
KEY RESEARCH FINDINGS CVP PRODUCT / SERVICE
 Rely on family fundings to obtain a loan ACCESS TO  Collateral-free loan
 Value financial independence FINANCE  Mother-child account
 Dislike feminized products  Access to all regular banking products and services
 Lack understanding of banking and skills to start and grow ACCESS TO  Business Power Sessions
business KNOWLEDGE  Technical Roadshows and trainings
 Want information delivered in a way that is relevant to  Advice from mentors and experts
needs, lifestyle and learning style  Access to [Link]
 Lack access to strong network and market exposure ACCESS TO  Roadmaps and networking events
MARKETS  Brilliant Lebanese Awards
 Digital presence: [Link]
 Think banks disrespect and misunderstanding them ACCESS TO  Staff training
 Have a relationship with a banker, not a bank SERVICE  Improved processes to increase efficiency and
 Distrust hard sell; prefer to see benefits, not figures EXCELLENCE turnaround times
 Are time crunched  Alternative delivery channel: 24/7 Banking: Smart
ATMs, Mobile & E-Banking, Mobile Payment
 Like banks that give back to the community ACCESS TO  UN Global Compact signatories
CSR  Strengthen work with community organizations

“We designed the BLC Bank found two particular gaps women faced that could be addressed with slight product
non-financial modifications. First, they adopted a legal workaround that enable women to open accounts
services to provide on behalf of their children – ordinarily prohibited by Lebanese law. Second, BLC Bank
solutions to critical designed a collateral-free loan to provide greater access for women small business owners.
challenges women
entrepreneurs face, Beyond Finance: Helping Clients Do Better
creating a useful,
The bulk of BLC Bank’s innovation lies in its non-financial services offer. Developed on the
intuitive, and
basis that if clients do better, they become better clients, services are centered on three
differentiated
customer
areas:
experience both 1. Learning and development: BLC Bank found that women feel they the skills to start
online and offline.”
and grow their business. To address this, BLC Bank developed Business Power Sessions, an
Maya Margie Younes intensive business education program that supports both female and male entrepreneurs
Head of Marketing, through business fundamentals modules and networking opportunities. To cater to more
BLC Bank
remote areas, BLC Bank launched technical roadshows and partnered with specialized
associations.
2. Market exposure: Recognizing the importance of networking and the many social
and business constraints women face, BLC Bank developed programs to connect women
business owners to suppliers, mentors and experts. BLC Bank also organized the manual
Brilliant Lebanese Awards, which includes a Woman Entrepreneur of the Year Award. In 2013
and 2014, the awards show was broadcast on national television, raising the honorees
profiles and creating role models for women entrepreneurs across the country. In 2014, BLC
Bank also partnered with local TV station to produce a 16 – episode series that showcased
real-life stories of successful BLC Bank women entrepreneurs.
3. Information and guidance: BLC Bank developed an online platform that provides
business tools, article, access to experts and mentors, and opportunities to network with
other members. BLC Bank was also selected by the IFC as a local partner for its SME Toolkit
website.
Optimizing Procedures

BLC Bank adapted some of their procedures and communication strategies based on their research findings. The loan
application and approval process were streamlined to reduce turnaround time; loan documents processing was
modified to occur in stages and reduce the burden to customer; and a tracking system is being implemented to allow
customers to monitor the status of their applications. Additionally, marketing messages were tweaked to appeal
more to women, and targeted materials and visuals were developed.

Training for Change

“The most crucial Excelling in Selling to Women
thing is to secure BLC Bank knew that staff training was key to driving culture
employee buy-in change. Three modules were developed: Excelling in Selling to Female customer:
and internal Women, Gender Intelligence, and SME and the Women’s  Want to connect
alignment. It’s all Market. These integrate such research findings as the with bank employees
about training.” importance of establishing a relationship instead of focusing  Feel connected
Hani Hoyek on a hard sell, and selling product benefits, not just attributes. through talking
Head of Strategic  Are detail-oriented
Gender modules have since been integrated into BLC Bank’s
Development,  Prefer collaboration
BLC Bank induction training for all new hires. to conflict
 Are interested in
products that benefit
Diversity Matters them, their
community
BLC Bank realized it would need to become the employer of choice for women in  Notice
order to become the bank of choice for women. To achieve this, a number of inconsistencies
human resources practices and policies were updated. BLC Bank:  Shop around for
best-suited product
 Added gender equality as one of its five corporate value. and ideas
 Implemented access to part-time work with 2 months of full pay for  Are aware of non-
employees returning from maternity leave and introduced paternity leave. verbal cues
BLC Bank also is aiming to implement flexible working hours.
 Adopted a grievance policy.
 Established internal mentoring programs to ensure new staff members and staff in middle management
have career support.
 Enhanced diversity KPIs and established targets for women, including recruitment, staffing levels,
renumeration, employee NPS, employee development and turnover. BLC Bank also publicly announced a
target of 50% women in senior management by 2020.
 Ensured diversity was incorporated into procurement practices.
 Aligned its practices with international principles and increased its accountability by signing on to the WEPs.
 Empowered female employees to establish the We Club.

As a result of many of these changes, BLC Bank’s female employee representation grew from 47% to 51% since
the launch of We Initiative.

Women at BLC Bank “We“We

understood
understoodfromfrom
thethe
start
start
that
that
weweneeded
neededto become
to become thethe
 51% women staff employer
employer
of choice
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 35% women in middle management become
becometheir
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bank
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by by
adopting
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evolutionapproach
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 43% women in senior management (2015) and 50% by 2020
rather
rather
than
than
a revolution
a revolution
one.”
one.”
 77% women attendees at internal leadership trainings
 3.5 overall employee turnover Souheil
Souheil
Younes
Younes
Head
Head
of Human
of Human
Resource
Resource
Group,
Group,
BLCBLC
Bank
Bank
Empowering the Distribution Network

Rather than create a dedicated unit for We Initiative, the platform was mainstreamed across all functions in the
Bank. A We Project Team was established, with cross-functional representation from implementing team members,
to ensure on an ongoing basis the successful development and execution of the program. A We Steering Committee
of senior managers was also created to provide high-level guidance on major decisions about the program.

Two new positions were created at the head office: the We Initiative Brand Manager, with the main responsibility of
planning and coordinating program strategies, and the We Specialist, responsible for working with the branches to
ensure uniform branding and implementation of the program, support Bank staff in approaching women-owned
companies and support them in meeting KPIs for the Women’s Market program. In turn, each branch has a We
champion who ensures that his or her location has We Initiative branding; promotes We workshops and other non-
financial services to customers and prospects; and liaises with local municipalities, women’s associations and NGOs
to coordinate and market these activities. Finally, program ambassadors work at the regional level as We Initiative
liaisons to the team at the head office.

What Is Measured Gets Done

“We wanted to ensure buy-
in across all levels of theBLC Bank understood that setting up an effective performance management system
Bank. We selected branch- from day one was essential to the program’s long-term success. The first step in this
level representatives to do
process was adopting the MIS to ensure that all customer data would be sex-
this consistently and
disaggregated moving forward. The Bank repurposed an unused field in the MIS to
efficiently.”
track account ownership be sex and updated applications to collect this information.
Youssef Eid BLC Bank also leveraged strong Know Your Customer information in their systems to
Head of Retail Banking Group,
identify prospects. Tagging existing accounts, however, was less straightforward.
Assistant General Manager
BLC Bank Identifying the sex of a personal account holder was relatively easy but in the case of
businesses, the Bank had to manually review each account and tag it as woman-
owned based on the sales team’s knowledge of its clients. This effort took considerable time and resources, but it
was very important as it allowed the Bank to establish a baseline.

Establishing Definitions:

When updating its systems, BLC Bank decided to use Lebanon’s country- level definitions for small, medium and large
business, which are based on number of employees and company sales. The Bank’s definition of a woman-owned
enterprise is based on the IFC’s definition and includes two variables: ownership and decision making.

Strengthening Alignment Trough Targets

Once a baseline was established, BLC Bank incorporated performance targets for all We Initiative segments and
products into the Bank’s existing incentive structure. The targets helped ensure employee performance. They were
tied to results and were set to be achievable, measurable and consistent with the program strategy. BLC Bank also
updated its monthly performance scorecard to give Women’s Market incentives a higher weight.

A Comprehensive Approach to Measurement

We Initiative performance is measured across Financial Services, Non-Financial Services and Diversity and Inclusion.
Each area has its own set of metrics:

Financial services (by segment/product) Non-financial services Diversity and inclusion

Loan disbursed to women # of events (roadshows, trainings, % women in lower, middle and upper
etc.) management
# of new women clients Events evaluation rating % of promotions by gender
Outstanding deposits to women # of award applicants Turnover by gender
# of women deposit clients # of website visits, # of page views, Average salaries by gender
#of visitors by source
Salary increases by gender
 Proving the Business Case
“It’s clear to me that the
Women’s Market is a great Beyond program performance, BLC Bank quantifies the contribution of the Women’s
differentiator for BLC Bank.” Market to the Bank in terms of number of products per customer, portfolio
Tania Moussallem outstanding, profitability, acquisition rate, non-performing loans and clients Net
Assistant General Manager, Promoter Score.
BLC Bank

What Other Banks Can

Learn from BLC Bank:

1. Integrate, don’t
segregate:
Integrating the
Women’s Market
value proposition
across all
departments of the
Bank was a critical
success factor for
the program. In addition, BLC Bank performed an extensive analisys to calculate the overall project
2. Training, training, IRR and Economic Value Add to the Bank. Estimating the marginal cash inflows for all
training: segments of the Women’s Market program since program launch and calculating all
Cultural barriers, the program’s expenses., BLC Bank determined that, on a conservative growth
and conscious and
scenario, We Initiative’s IRR in excess of 33%.
unconscious biases
could only be
eliminated through ROA Comparison by Segment
extensive training Women Men
at all levels of the Retail ROA 7,62% 7,64%
organization. Small business ROA 8,61% 8,16%
3. Establish a Medium business ROA 8,07% 7,56%
comprehensive Large business ROA 7,98% 7,66%
performance
management
system from the “While paying attention to the Women’s
start: Market, we are not rendering a service to
By working with women themselves as much an as we are
the Bank’s existing catering toa market influence on our global
culture of sales economic growth.”
targets, BLC Bank
Joe Baddour
was able to
Head of Corporate Banking Group
incentivize women Assistant General Manager,
as a valuable and BLC Bank
profitable segment.

Source: [Link]