Reshaping the banking landscape
How the crisis felled Argentina's banks
| |
Jorge Stuart Milne: trying to
reconstruct relationships
with corporate clients |
ENRIQUE CRISTOFANI HAD a simple plan to win back customers for his bank. The chief executive of Banco Río, Argentina's second-biggest bank, introduced a scheme whereby anyone using one of Río's credit cards to pay at the local cinema or supermarket would get a discount.
It was not an unusual idea but something needed to be done. Argentina's banks were reeling from the sovereign's debt default and the devamilluation of the peso in 2001/02. Some were struggling to stay afloat; even the very best were losing money. Recovering customers was imperative.
Cristofani's move paid off. When the scheme was introduced in June 2002, Río's share in the credit and debit card market was hovering just above 11%. Since then its market share has risen by 1%...
