As many as 1,340 new banking branches have been opened in the last year and a half, to 4,854 in late May, which entailed an increase in the number of employees in the industry by almost 8,500, to 60,856, according to the data banks reported to the NBR.
The territorial expansion of networks has gained speed constantly, with a rising number of banks discovering the importance of being as close to customers as possible in terms of boosting their retail business, even in parallel with the development of alternative distribution channels.
Some players were reluctant to continue to rapidly increase the number of branches due to the booming rents and salaries for the personnel needed to operate them. However, the high pressure exerted by the most aggressive banks has pushed almost every bank to join this expansion race. The main solution large players identified was concentration on small spaces, for which five banking employees are needed at most, located close to some areas as crowded as possible.
Costs related to the opening of new branches are the main reason many bankers quote for the slowing growth or even decrease of net incomes.
Rasvan Radu, executive vice-president of UniCredit Tiriac, considers this cost category does not have such a major role since it is amortised over several years.
The impact of a major investment in the network is quick to be felt, however. BRD, for instance, operating the largest network at present after CEC, with over 635 branches, maintains the opening of new branches in Q1 2007 led to an increase in the number of retail customers by around 200,000, to some 2.2 million active customers.
Last but not least, bankers are still complaining about the significant increase in salary costs in the industry amid the high demand for specialised personnel. Pressures are augmented by the arrival of some new players on the market, both by taking over some small existent banks and by opening subsidiaries or even branches from scratch. Obviously, each investor arriving on the market is trying to lure as many specialists as possible, by offering double and triple salaries.
The market has come to seriously feel the need for bankers. Many banks see themselves having to resort to expats, though the hiring of foreigners for retail operations is not highly regarded, given that being well acquainted with the specific features of customers and the direct communication with people in the network are considered as highly important.
However, the figures reported to the NBR point to a series of fluctuations in terms of the net average salary per bank in recent months.
From a peak of 3,115 RON last May, the salary in fact dropped gradually to 2,482 RON this May.
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