Credit du Nord: La banque et le développement de l'activité Assurance

The Credit du Nord is one of the five major French banks. Its customers are mainly individuals (140,000 small customers and another 60,000 having a high heritage potential but also companies (of which 85% are SMEs). One in five companies having an import/export related business is a customer of Credit du Nord. The Group Credit du Nord is made of seven regional banks plus an Asset Management Business (Etoile Gestion) as well as the brokerage firm: Gilbert Dupont. 10000 employees work for the Group Credit du Nord in about 936 branches. The Group has had to undergo some drastic changes over time, mainly about mergers and acquisitions, as well as the introduction of Dexia as a major shareholder in the financial capital of Credit du Nord (2000). Since 2004, Credit du Nord has greatly expanded its business following an ambitious strategy plan to open a hundred new branches throughout France. In this perspective of development, it is important to mention that the banking industry is changing fast towards the 'bancassurance' (banking and insurance service providers) business. Therefore, it is an imperative for Credit du Nord to engage in this area too. In this fragile economic climate, one may ask himself several legitimate questions with regards to the development of an insurance activity. Given the overall stability of the insurance business, one wonders if the launch of an insurance activity is just an answer to a fad or if this new activity might help banks to create customers’ loyalty and increase their market share. The Group Credit du Nord enjoys a strong awareness and reputation among its customers, (2008 Palme d'Or for Best CRM for their call centre), therefore it is an imperative for its leaders to think about a development strategy that will maintain its image with the insurance business.