Greece

Banking services are expanding in Greece at a faster rate than in the rest of Europe because market penetration is still relatively low here. The banking sector in Greece remains highly concentrated, with the top five banks controlling 75 percent of the market. One of the top five - EFG - aims to be the Greeks' "bank of choice" by taking special care of its customers.

In a time of increasing competition in the financial sector and unstable stock market conditions, EFG Eurobank Ergasias has been able to achieve sustained profitability by expanding its market share and earning international recognition. EFG is the third largest banking group in Greece in terms of its size and balance sheet, but it is the largest bank in terms of market capitalization. Its CEO, Nicholas Nanopoulos, says: "We consider ourselves a local player. Our philosophy is to be the bank of choice for the Greek people."

EFG is currently the second largest company listed on the Athens Stock Exchange and has the largest number of local shareholders of any company in Greece - totaling more than 350,000. It is the quintessential Greek bank, with its ownership spread out through a cross-section of the population.
Nicholas Nanopoulos, CEO of EFG Eurobank Ergasias

The bank owes its current success partly to a policy of strategically selected acquisitions. "Our moves have helped us to expand our reach and increase our supply base," explains Nanopoulos. "They also help get us into certain key niche markets. For example, we acquired Telesis bank because of its strength in investment banking and stock brokerage. Now we are the number one stock brokerage company in Greece by far, with 12 percent of the market."

These achievements have not gone unnoticed internationally. EFG was twice named "Greek Bank of the Year" by The Banker magazine. It was also named "Best Equity House in Greece" by Euromoney magazine, and its internet page the "Best E-banking Website in Greece" by PC Magazine.

The bank created a single integrated fully operational IT platform for its clients to access. This has enabled EFG to cover the entire Greek territory, handling very large volumes of business with reliable systems and an advanced database.

"We only try to increase our market share in specific segments that will be profitable for the bank, and to increase its value for our shareholders," Nanopoulos adds. "The areas we find most interesting are retail banking, asset management, and value-added services for our large corporate clients." EFG is also the top provider of credit cards in Greece, with nearly 30 percent of the market.

The potential for growth is huge, especially in online banking. With the number of PC users in Greece still relatively low and internet use even lower, Nanopoulos looks forward to heady increases in online business in the future. "EFG uses the highest security measures available to protect our clients," he stresses. "We have never had an incident of fraud in our e-banking system."

Looking ahead, the Balkan region seems the ideal expansion area for EFG. Greece has close historical and cultural ties with countries in the area, and Greek companies have the knowhow to do successful business there. EFG already has a strong presence in Bulgaria and Romania through strategic alliances with AIG Group and Bank Post, and there are plans to expand the network even further. One thing is certain not to change: EFG will remain a "local" bank no matter how far it travels from its home turf.

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