Background
The Greek banking sector has long been dominated by four major systemic banks, while smaller financial institutions have faced challenges in maintaining competitive positions. Two such smaller banks recognized the need to consolidate in order to enhance their market position, strengthen their financial standing, and improve operational efficiencies.
To facilitate this complex transition, a strategic planning initiative was launched, led by Oliver Wyman and our expert consulting team. This collaboration aimed to ensure a seamless merger, leveraging international expertise alongside deep knowledge of the local banking landscape.
Setting the Foundation
The primary objective of the project was to design a strategic roadmap for the newly formed bank, maximizing its potential to operate competitively within the Greek financial sector. The focus areas included:
- Assessing the financial health of both banks, including historical challenges such as non-performing loans.
- Defining a sustainable competitive positioning strategy for the new entity.
- Structuring an efficient organizational model, integrating technology, operations, and customer service networks.
- Developing a five-year financial projection to evaluate long-term profitability and growth.
The Road to Integration
Over the course of three intensive months our consulting team examined every aspect of the merger. Key steps included:
- Independent Financial and Market Assessments:
- Analyzed the financial structures and loan portfolios of both banks.
- Evaluated market opportunities and competitive positioning.
- Strategic Roadmap Development:
- Identified high-potential market segments for expansion.
- Outlined operational synergies and efficiency gains post-merger.
- Operational and Technological Integration:
- Reviewed existing branch networks and proposed an optimized distribution strategy.
- Assessed IT infrastructure to ensure seamless digital transformation.
- Regulatory and Compliance Considerations:
- Developed documentation for regulatory approvals from the Bank of Greece.
- Ensured adherence to legal and financial compliance requirements.
One of the primary challenges was the tight deadline for submission of the merger approval documentation. To overcome this, our team leveraged extensive prior experience working with both banks. Having collaborated with one of them since 2017 and the other for the past three years, we had a deep understanding of their structures, operational nuances, and strategic objectives. This allowed us to expedite key deliverables without compromising on quality or thoroughness.
A Blueprint for Future Growth
The strategic merger blueprint enabled the two banks to transition into a single, stronger financial institution, creating the 5th largest bank in Greece based on estimated assets. The newly formed entity was positioned to:
- Improve financial health through risk mitigation and enhanced asset management.
- Compete more effectively within the Greek banking landscape.
- Deliver greater value to customers through improved services and digital offerings.
This case study highlights the importance of strategic foresight and expert-led planning in banking consolidations.
The collaboration between Oliver Wyman and our consulting team ensured that the merger was carried out with precision, leveraging a balance of international best practices and localized expertise. The result was a forward-looking financial institution with a robust foundation for sustainable growth in Greece’s evolving banking sector.
