Services Marketing: Activobank

Services Marketing

March 2012

Index

ActivoBank .............................................................................................................................................. 2

ActivoBank' Service Distribution Channels .............................................................................................. 3

Gaps Model of Service Quality applied in ActivoBank .............................................................................. 6

Gap 0: Customer Gap .......................................................................................................................... 6

Gap 1: Listening to Consumers ............................................................................................................ 6

Gap 2: Service Design and Standards Gap ............................................................................................ 7

Gap 3: The service Performance Gap ................................................................................................... 7

Gap 4: The Communication Gap .......................................................................................................... 8

Appendix 1: Branches' Locations ........................................................................................................... 9

Appendix 2: Questionnaire - English version ....................................................................................... 10

Appendix 3: Questionnaire - Portuguese version ................................................................................ 13

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ActivoBank

Controlled by Millennium BCP, ActivoBank can be considered as the pioneer of direct banks in Portugal.

Its foundation dates back to 1994, under the name of Banco 7, when it started as a telephone bank. Later and due to the opening of its internet banking channel and to its focus on the areas of asset management and trading, the denomination of Banco 7 was changed to Activo Bank 7.

In March 2010 and after an investment of 2M €, the Millennium BCP Group relaunched the bank, rebranding it as ActivoBank (by Millennium).

ActivoBank represents an all-new banking concept which is based on five pillars: simplicity, transparency, innovation, accessibility and trust.

It is targeted to customers with a young spirit, intensive users of new communication technologies and which emphasize a banking relationship based on simplicity.

This new banking concept marks a new phase in the life of ActivoBank, with a new logo and image, a new set of products and new service channels.

ActivoBank provides simple and modern products and service. One can open an account on the spot, and receive immediately the credit and debit cards associated with the new account. ActivoBank's servicing is not only distinctive but also available 24 hours a day, seven days a week, via the Internet at www.activobank.pt, and via smartphones.

Another new concept introduced by ActivoBank was the composition of mixed teams of banking employees and associates. Associates are not employees of the bank but they are people with large social and professional networks and flexible schedules who play a key role in recommending new customers.

Services Marketing and ActivoBank

Since ActivoBank can be seen as a response of Millennium BCP to meet emerging consumer needs, it becomes very interesting to analyze the way its services are being offered and if there is anything else the bank can do in order to provide a better customer service.

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ActivoBank' Service Distribution Channels

In a highly regulated sector environment where the compliance and complexity of the market make it harder to do business, where the company must be a fast mover thanks to the constant and permanent change for demand by innovation, where the customers are less loyal and more demanding, ActivoBank is trying to make a difference.

ActivoBank appears with a new image and with the endorsement of Millenium BCP reinforcing the values, solidity and credibility of the group, gather with a reconstruction of product portfolio adapted to the target segment, the young or IKEA generation.

Facing the challenge of the perceptions of "big and traditional banks not being attractive" for youngest segments and the tendency of not to spread their relations in a single bank, ActivoBank provide SIMPLE, TRANSPARENT, CONVINIENT, TRUST and INNOVATIVE options to their clients, simplifying all the operational processes, especially those which affect directly the customers:

- 20min rule when opening an account

- Instantly delivery of active debit and credit cards

- Checks booklet printed at the ATM

- User and Password for remote channel issued at ATM

- The language of all contracts are and must be easy to understand, without the hidden clauses - "no need for

instructions manual" policy - No management fees on account

- No annual card fees

- No deposits that yield little

- ActivoBank don't provide the old solutions to manage accounts

In all the service process of ActivoBank the five values mentioned before are present. The Bank divides their distribution channel into two objectives: the "capture" of new customers and the actual service of the customers.

ActivoBank has no limits to innovative approaches when it comes to contact and capture the customer:

- 14 Branches1or "Pontos Activos" inspired in other retail business with an attractive and inviting environment, thanks to its innovative model and design. Situated in few but prime locations as Malls, Office Centers, easy to get in and out by public transportation or with good parking areas.

1 Please see Appendix 1 for branches locations