Portuguese Banking: Carving out a new role
Banco Comercial Português is the largest private-sector bank in its home market. Until the euro came on stream that meant it took the initiative and other banks responded. "People expected us to come out on top," says Fernando Adão da Fonseca, chief strategist and head of the euro team. It's nostalgic acknowledgement that a leading position in Portuguese banking is not decisive nowadays. "Things are changing so fast," Fonseca says. "Portugal will be a captive market only for a while, and being local is less and less advantageous."
Being market leader in Portugal was rewarding but it did not always keep BCP on top of the latest trends in banking. "We are less advanced than in other countries because the needs of the Portuguese market are less strong," Fonseca admits. Put another way, Portuguese clients were once less demanding. Retail clients now expect the same level of automated service and the same choice of investment products as in other countries.
But relationships still count for something when it comes to winning mandates. "If I have the same information as Merrill Lynch, I will get the business with Portugal Telecom," Fonseca says.