A Snapshot of Sales and Risk Relations at Hungarian Banks in 2022

Koltai, József and Tarpataki, Eleonóra (2023) A Snapshot of Sales and Risk Relations at Hungarian Banks in 2022. ECONOMY AND FINANCE: ENGLISH-LANGUAGE EDITION OF GAZDASÁG ÉS PÉNZÜGY, 10 (4). pp. 321-339. ISSN 2415-9379

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Abstract

Banks’ corporate lending strategy changes from time to time, but in any case, the implementation of that strategy requires cooperation between two functions, namely the business (corporate/project contact persons, sales) and the credit approval (risk management or risk) team. Smooth cooperation may foster optimised decision-making, and improve the efficiency of banks’ processes, employee satisfaction and commitment, which, in turn, may reduce employee turnover. The benefits on the client’s side are transparency, reliability and predictability, which may increase confidence in, and satisfaction with, the bank. Therefore, it is worthwhile to review periodically how the two functions get along. We have taken such a ‘snapshot’ in our exploratory study of 2021/2022. In this study, we collected answers from 16 respondents working at banks in Hungary through an anonymous questionnaire and written in-depth interviews. The results show that the relations under scrutiny ‘leave room for improvement’. Our survey also focused on how cooperation between the two functions could be made better and more efficient. Setting up transparent and well-regulated internal processes at banks and reinforcing risk-awareness in employees proved decisive in responding to the challenges of the future.

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