Lenders look to ladiesaa‚¬a„¢ leu

Now, more than ever, local lenders need to diversify their customer portfolio in order to amass new clients. Women seem to be a solution, as they are responsible for more than 80 percent of purchases, according to international statistics. While in other economies women are one of the main targets for marketers, for banks active in Romania they are still a niche but one with great potential for the future.

Anda Dragan

For many global players women are no longer just a niche. According to international statistics, females are responsible for 83 percent of acquisitions: furniture – 94 percent; vacations – 92 percent; houses – 91 percent; home appliances – 55 percent; cars – 60 percent; choosing a new bank account – 89 percent. But on the Romanian banking scene, women remain a minority demographic, which experts say is normal for an emerging market. It is obvious that this group of consumers represents a huge opportunity for every marketer. Many local lenders have noticed this potential and tackled the segment, mainly through bank cards. Libra Bank, Volksbank and GarantiBank are some of the lenders that have decided to launch a card that targets women as financial consumers.

Libra Bank has enriched its card portfolio with Libra Jolie, designed exclusively for women. Users enjoy special discounts of 3 to 25 percent in over 150 partner locations: doctors’ and dentists’ surgeries, health and beauty centers, gyms, clothes shops for women and children, accessories and lifestyle outlets. As well as the practical benefits, the Libra Jolie card incorporates some graphics inspired by women’s areas of interest, intended to make it a modern accessory. “Through its specifics, the Libra Jolie card addresses the basic aspirations of a modern woman, closely linked to maintaining health and beauty and working on a balanced lifestyle,” says Alina Popa, manager of the marketing and communication division of Libra Bank.

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Elsewhere on the market, Volksbank Romania has also come up with a novelty on the card scene, launching Pink, a shopping card with large discounts throughout its partner network. The card can be used for acquisitions, from jewels and accessories, clothes and cosmetics, to beauty and medical centers, wellness and fitness centers, pubs, clubs and restaurants. And GarantiBank recently launched the credit card Bonus Card, which comes with a mirror attached. Representatives of the lender attributed the launch to the statistic that almost 60 percent of the 80,000 users of Bonus Card are women. “We launched this product in Turkey three years ago and it enjoyed a significant commercial success, as a result of its double functionality – credit card and mirror – and its benefits,” says Ilgaz Kaya, manager of the card division at GarantiBank.

But how can women’s financial behavior be defined? Are banks wise to lump all females together as a homogenous group? “I think that from the outset we should draw a clear distinction between single women and those who manage a household, whether they are married or not,” says Roxana Marin, account manager at 2activePR. In her opinion, single women go for debit and credit cards and short-term personal loans. “In this period of their lives, consumers are focused either on shopping and travel or on financing their studies – in Romania and abroad. In this case, sub-segmentation is made in connection with the type of individual: women who are keen to progress quickly in their career and so are continuously investing in professional development, and those that are focused on meeting more minor needs such as clothing or travel,” adds Marin.

Women who are managing a household – regardless of their marital status – are also responsible for financial resources and are the main factor in the big purchase decisions. “Overall, in this period of life, women adopt more conservative financial behavior than men. According to a study released by the BBC last year, one of the significant investments is in audio-visual equipment and cars, and generally this comes down to men,” says the 2activePR representative.

As for the possible changes in financial behavior as a result of the current crisis, the general trend is to opt for saving products or short-term personal loans in the local currency, in order to avoid exposure to currency fluctuations. “Most of the promotional campaigns launched at the end of 2008 were focused on this type of product. But I think that the financial behavior of each person depends on many more factors and not necessarily on a short-term situation which exists on a specific financial market at any one time,” says Marin.

In general, lenders have homed in on the women’s segment mainly through bank cards. Why? According to Marin, cards can be obtained and carried regardless of a person’s social status, whereas credits is taken out mostly when people are more established in their careers or if they start a family.

How great is the potential of women as financial customers, and what other products could lenders launch for them? The consensus is that the potential is high as long as lenders are launching products with tangible benefits for their customers. “Women tend to be more analytical, partly because they are often responsible for managing their household. So the sales and promotional processes of products with new features – when the Romanian banking market is developed enough – will need to have relevant and rational benefits,” says Marin.

Of course, innovation on the banking scene has its limits while products are more or less similar. Plus, lenders have little wriggle room on the interest they offer for credit, deposits or credit cards while the National Bank of Romania’s (BNR) regulations are so strict. In any case, price wars are not suited to lenders’ marketing strategies. In Marin’s opinion, the way lenders set the initial target and package and promote their products can help players gain an edge on the market. “I don’t think that niche products are so connected with the development or sophistication of the market. Instead they are in close connection with consumers’ preference for the new. The local market has shown that Romanians quickly embrace novelty – as we can see on the telecom, automotive and home appliances markets. This often generates a boom in sales shortly after the launch of the product. We will see how quickly saturation point is reached and how loyal Romanians are to a lender or to a bank product with specific characteristics,” says the account manager.

As for communication, she advises lenders to consider other potential customer categories when addressing a niche with a product.