Businessweek

BBVA Banco Francés S.A. provides financial services to corporations, medium and small companies, and individual customers in Argentina. The company conducts capital markets and securities operations directly in the over-the-counter market and indirectly in the Buenos Aires Stock Exchange. The company’s branch system operates as a distribution network for all the products and services that it offers to its customers. As of December 2011, it had a network of branches throughout Argentina, including there were 268 branches, 240 of which were retail branches, and 28 were specialized in small and medium enterprises. Corporate banking included seven business units grouped by industry. The company also had 13 branches at company and 3 points of sale complemented by other distribution channels, such as 654 automatic teller machines (ATMs), a telephone banking service, and an Internet banking service called Francés Net. Banking and Financial Services The company focuses on the brokering business, primarily in the private sector. Customized service is offered to approximately 16,000 customers in 190 branches in Argentina (28 of these branches have middle market service). The company’s VIP provides specialized services to 94,200 customers. It also offers a new telephone service model, which has a team of operators for its VIP. These operators are primarily trained to handle VIP customer inquiries. In 2011, the company launched MasterCard Platinum, a credit card with which the company expanded its offer of credit cards and that complements MasterCard Black and Visa Platinum. The company has a position in this line of business with an offer through a network of authorized car dealers. This also includes car financing through financial companies organized with Renault and Peugeot. The company started a new credit card sales circuit called ‘Virtual Card’. The card is processed directly at the point of sale that offers this promotion, including shopping malls or stores, and the customer's application is processed and approved online with the possibility of starting using it. A plastic card is produced and delivered to the customer’s residence. The company offers various investment alternatives, with customized advisory service, by providing various possibilities to high-net worth customers that seek alternative investment instruments to improve their portfolios: Variable Interest Rate Deposits (Depósitos a Interés Variable - Diva I): This investment product was launched in June 2011. It had three return possibilities, such as Soy (Chicago), Gold (London), and S&P Index (New York) with the principal being guaranteed and approximately 15% of appreciation. In August and September 2011, the company re-launched two mutual investment funds for high-net worth customers who had no investments at the company. The advertising included technical information about both mutual funds, including FBA Saving Pesos (FBA Ahorro Pesos) and FBA Total. All these transactions were handled by BBVA Francés Asset Management S.A. In September and October 2011, the company launched a LAN Certificate of Deposit (Plazo Fijo LAN) campaign, through which instead of actual interest, customers received LANPASS miles to use with LAN Argentina S.A. (LAN). Variable Interest Deposits (Depósitos a Interés Variable - Diva II): This product is launched with three yield possibilities, such as Soy (Chicago), Gold (London), and S&P Index (New York), with the principal being guaranteed and a minimum interest of 10% and a maximum interest of 15%. The company’s Web page had 60 million visitors in 2011. It offers Francés Go, which allows the customers of the company to make transactions directly from their mobile phones. These transactions include obtaining balance information of all accounts; delivery of utility and services maturity dates; accreditating details; checking debits and rejections; swift payment of utilities; and transfers to third parties (all of the above using text messages). The company provides advisory services to its customers in the selection of the coverage of risks related to life and personal accidents, as well as home and A