BPER Banca Business Model Canvas

BPER Banca actively cultivates key partnerships, notably in bancassurance, and utilizes internal product factories like Bibanca. This dual approach allows them to offer specialized financial services, including consumer finance and insurance products, thereby broadening their appeal to a diverse customer base.

These strategic alliances are crucial for BPER Banca's revenue diversification strategy. By focusing on capital-light, high-quality non-interest income streams, they aim to enhance profitability. For instance, in 2023, BPER Banca reported a significant increase in its fee and commission income, partly driven by its bancassurance activities.

BPER Banca's strategic partnerships are crucial for its growth and operational efficiency. Collaborations with entities like the European Investment Bank (EIB) in 2024 provided significant financing for Italian businesses, particularly supporting SMEs and the green transition. Furthermore, alliances with technology leaders such as IBM are central to modernizing core banking systems and advancing digital transformation, enhancing customer service across all channels.

These alliances extend to bancassurance and internal product development through entities like Bibanca, diversifying revenue streams with a focus on capital-light, high-quality non-interest income. BPER Banca also invests heavily in its workforce through a five-year agreement with Digit'Ed to establish a corporate academy, equipping employees with essential digital and technological skills aligned with its 'B:Dynamic Full Value 2027' plan.

The bank's acquisition strategy, exemplified by the integration of Banca Popolare di Sondrio, relies on partnerships with specialized firms for post-merger integration, synergy realization, and risk management, reinforcing its competitive position in a consolidating banking sector.

BPER Banca is making significant strides in digital transformation, focusing on upgrading its IT backbone with hybrid cloud solutions and embracing AI, including generative AI. This strategic push aims to deepen customer relationships through digital channels and make internal operations smoother.

In 2024, BPER Banca continued its investment in technology, with digital initiatives expected to drive efficiency gains. The bank's commitment to an omnichannel approach is evident as it seeks to provide a seamless customer experience across all touchpoints, from online banking to physical branches.

BPER Banca's core banking activities involve managing deposits and providing loans and mortgages, serving both individuals and businesses. Their focus on asset quality is evident, with a reported Non-Performing Loans (NPL) ratio of 3.6% as of Q1 2024.

The bank also offers comprehensive wealth management and investment solutions, managing significant assets under management (AuM) and custody (AuC). This is driven by a strategy to increase fee and commission income through specialized advisory services, a trend seen across the Italian banking sector in 2024 with growing investor demand for diversified portfolios.

Digital transformation is a key activity, with BPER Banca investing in IT upgrades and AI to enhance customer relationships and operational efficiency. This omnichannel approach aims for a seamless customer experience across all touchpoints.

Additionally, BPER Banca provides specialized financial services like leasing, factoring, and consumer credit through dedicated product factories, broadening its offerings beyond traditional banking. These segments, particularly leasing and factoring, continued to be significant business drivers in 2024.

BPER Banca boasts a robust capital base, underscored by a Common Equity Tier 1 (CET1) ratio that consistently surpasses regulatory minimums. As of the first quarter of 2024, their CET1 ratio stood at an impressive 13.4%, demonstrating significant financial resilience.

This strong capital position, coupled with substantial financial assets, provides BPER Banca with the stability needed to support its lending activities, pursue investment opportunities, and fund strategic growth plans. Their ability to generate capital organically further bolsters this financial strength.

BPER Banca's key resources include its extensive physical branch network, a dedicated workforce of nearly 20,000 employees, and a robust IT infrastructure featuring hybrid cloud and AI. The bank also leverages proprietary product factories like Bibanca and Banca Private Cesare Ponti, alongside a strong capital base with a CET1 ratio of 13.4% as of Q1 2024, and a well-established brand reputation built since 1867.

BPER Banca is heavily investing in digital convenience, offering robust online banking platforms and mobile applications. This digital-first approach allows customers to manage their finances anytime, anywhere, a key driver of customer acquisition and retention.

The bank is actively developing an omnichannel experience, seamlessly integrating digital channels with its physical branch network. This means customers can start a transaction online and finish it in a branch, or vice versa, providing flexibility and enhanced support. By mid-2024, BPER reported a significant increase in digital transaction volumes, reflecting customer adoption of these convenient services.

Further enhancing this digital convenience, BPER Banca is integrating Artificial Intelligence and Generative AI technologies. These advancements aim to personalize customer interactions, offer proactive financial advice, and streamline service delivery, making banking more intuitive and efficient for all users.

BPER Banca offers a comprehensive financial ecosystem, providing a full spectrum of banking, investment, and insurance products tailored to diverse client needs. This integrated approach simplifies financial management for individuals and businesses alike, as demonstrated by their €96.1 billion loan portfolio in Q1 2024.

The bank's value proposition is further enhanced by its commitment to digital innovation, offering seamless online and mobile banking experiences, and its strong focus on sustainability through green finance products, which saw significant expansion in 2024.

Furthermore, BPER Banca's robust financial health, evidenced by a 13.4% CET1 ratio in Q1 2024, instills confidence and positions it as a reliable financial partner.

BPER Banca is significantly boosting digital engagement with user-friendly online banking and mobile apps. These platforms allow customers to handle transactions and manage their finances independently, making banking more convenient and accessible. The bank reported a notable increase in digital transaction volumes throughout 2024, underscoring the growing reliance on these self-service channels.

BPER Banca prioritizes personalized relationships, especially for private and corporate clients, leveraging dedicated managers and specialized teams in 2024. The bank also champions community investment, allocating over €100 million in 2023 to social and territorial initiatives, supporting over 500 local projects and facilitating 10,000+ employee volunteer hours. This commitment fosters loyalty and reinforces its image as a responsible institution.

ATMs and self-service kiosks are crucial touchpoints for BPER Banca, offering customers 24/7 access to essential banking functions like cash withdrawals and deposits. These machines significantly extend the bank's operational reach beyond traditional branch hours, catering to immediate customer needs. In 2024, BPER Banca continued to leverage its extensive ATM network, which serves as a vital bridge between its physical and digital banking platforms, ensuring convenience for a broad customer base.

BPER Banca leverages a multi-channel strategy to reach its diverse customer base. This includes its extensive physical branch network, robust digital platforms, accessible ATMs, and dedicated contact centers. Specialized advisory services cater to private and corporate clients, with Banca Private Cesare Ponti playing a key role in investment offerings.

The bank's digital channels saw over 65% of customer interactions in 2023, demonstrating a clear shift towards online and mobile banking. This digital focus is complemented by the ongoing strategic use of its approximately 1,100 branches and extensive ATM network, ensuring broad customer accessibility.

Contact centers are vital for customer support, handling millions of interactions in 2024 to resolve queries and issues efficiently. The bank's premium channels, particularly for private banking, are a significant growth driver, with assets under management increasing in 2023.

BPER Banca serves large corporations and institutional clients with a full suite of corporate banking, investment, and advisory services. This includes specialized offerings like global transaction banking, structured finance, and capital markets access.

The bank is actively enhancing its capabilities for this segment, focusing on a new corporate product factory to better meet their complex needs. This strategic push aims to secure a greater share of their financial activities.

In 2024, BPER Banca continued to strengthen its relationships with these key clients, evidenced by a reported increase in its corporate loan portfolio by 3.5% year-on-year, reflecting growing demand for its tailored financial solutions.

BPER Banca caters to a diverse clientele, ranging from millions of individual retail customers requiring everyday banking to large corporations and institutional clients needing sophisticated financial solutions. The bank also places significant emphasis on supporting Small and Medium-sized Enterprises (SMEs) with crucial business finance and actively serves high-net-worth individuals through its specialized wealth management divisions.

The bank's strategy involves deepening relationships across all segments, enhancing product offerings, and leveraging digital capabilities. In 2024, BPER Banca continued to focus on its core retail and SME base while also expanding services for corporate clients and private banking customers, aiming for growth and increased market share.

BPER Banca's commitment extends to public entities and the Third Sector, providing tailored financial services that support social and territorial development. This broad customer segmentation allows the bank to maintain a robust and diversified revenue stream, adapting to the evolving financial needs of each group.

Administrative and Operating Expenses encompass the day-to-day costs of running BPER Banca, including branch network upkeep, utilities, and marketing campaigns. These are essential for maintaining customer access and brand presence.

In 2024, BPER Banca continued its focus on optimizing these costs. For instance, the bank is actively pursuing digitalization to streamline processes, which directly impacts overheads like paper usage and manual processing. This strategic move aims to enhance operational efficiency across the board.

BPER Banca's cost structure is heavily influenced by personnel expenses, with a significant investment in its workforce of nearly 20,000 employees in 2024. The bank also allocates substantial resources to IT infrastructure and digital transformation, including over €500 million for projects like hybrid cloud and AI integration as part of its 'B:Dynamic Full Value 2027' plan. Administrative and operating costs, such as branch upkeep and marketing, are managed through digitalization efforts to enhance efficiency.

Fees from investment services, encompassing assets under management (AuM) and assets under custody (AuC), represent an increasingly significant revenue stream for BPER Banca. In 2024, the bank continued to emphasize this area, aiming to bolster its fee-based income.

BPER Banca's strategic focus on high-value added products and the expansion of its wealth management services are key drivers for growing these fee revenues. This approach helps to build a more resilient and capital-light revenue model, reducing reliance on more volatile income sources.

BPER Banca's revenue diversification is further supported by income from specialized financial services, including leasing, factoring, and consumer credit. These activities not only broaden the bank's income base but also cater to specific client needs, contributing to overall financial health.

The bank actively pursues growth in its consumer finance and other specialized offerings as a strategic imperative. For instance, the consumer credit segment showed robust performance in 2023, positively impacting both net interest income and fee and commission income streams.

Gains and losses from financial activities, encompassing trading, investment, and hedging, add another layer to BPER Banca's revenue profile. While inherently variable, these operations contribute to the bank's total operating income, with positive contributions noted in Q1 2025.