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19
Interview with Dr Hannes Schmid and Director Perkounigg
‘Trust is a currency of
unsurpassable value,
and never more so
than in
times of crisis.’
Dr Hannes Schmid
Dr Hannes Schmid
However, if we look back over the past decade, we can see
that we were able to meet every demand made of us, not least
thanks to the Raiffeisen association and the Raiffeisen network.
I’m convinced that we will be able to overcome every challenge
while also retaining our current structure.
Naturally it’s possible that Raiffeisen banks will draw togeth-
er and cooperate with each other more strongly than previous-
ly, but we won’t become a single banking institution in future. If
we did, we would lose the great advantage that our cooperative
philosophy gives us, and that would make us replaceable.
2012 was the International Year of Cooperatives. In an
era of profit maximisation one could argue that this busi-
ness form is outdated. However, Raiffeisen has come
through the economic crisis in the best shape. Why is
that?
Director Perkounigg:
The situation since 2008 has shown that
the cooperative structure decried by many as being old-fash-
ioned retains its worth: working with trusted institutions and
people whom you know because they have local roots, has sud-
denly become very modern once again.
The Raiffeisen structure means that many of our customers are
simultaneously the owners of the bank, and due to the cooper-
ative’s democratic constitution they have a corresponding right
to a say in the running of the organisation, above all when it
comes to choosing the elected representatives, and they there-
by also influence the bank’s leadership and direction.
When it comes down to it, the cooperative company form is the
epitome of transparency.
In 2013, the Tyrolean Raiffeisen banks are celebrating
the anniversary of 125 years of Raiffeisen in Tyrol. What
remains of your original founding mission?
Dr Schmid:
Essentially our founding mission remains intact and
unaltered. After 125 years it retains its legitimacy, otherwise we
wouldn’t be here any more. A key element was and will remain
helping people to help themselves: the community can achieve
things that one individual cannot.
For us the spirit of our founding mission is that profit maximisa-
tion is not the overriding priority. Rather, we place the needs of
our members and customers at centre stage.
That massively differentiates us from group units at European
level, who are listed on a stock market and are required to opti-
mise every last individual transaction.
Also still intact, of course, are our commitment to solidarity and
the democratic decision-making principle. However, the key el-
ements of our founding mission are self-reliance and autonomy.
We remain active locally as businesses, with our own adminis-
tration, our own employees, our own balance sheet and individ-
ual responsibility for risk. Naturally things have changed over
the course of time in response to competitive pressures; larger
cooperatives have formed or several have merged into one, but
despite this we remain true to our founding principles.
In your opinion, does Raiffeisen have the potential to
remain in business for another 125 years? And what do
you think the banking industry of the future will look like?
Does a business model founded on personal advice
have a future in the era of the Internet generation?
Dr Schmid:
I view the future with great optimism, despite the
fact that we in the financial services industry will be facing
greater changes than any other sector over the next five years.
Changes in the product range, and non-banks offering bank-
like services, will create a competitive environment in which ever
greater doubt will be cast on banks’ classic retail business.
However, Raiffeisen continues to specialise in this retail busi-
ness, and we know the needs of our customers. That is why I’m
confident that we will remain successful in future.
Admittedly we must look to the future. The key to our success
going forward lies in cooperation and cost reduction within the
Group, in the quality we offer as well as the skills of our employ-
ees and directors. We can maintain our high competitive quality