Union Investment’s business model has always been based on partnership. The Volks- and Raiffeisen banks serve as the primary distribution channel, while Union Investment provides the products and supporting services. This division of labor is deeply rooted in the cooperative structure.
But market conditions are changing. Customers increasingly expect digital interactions, while at the same time, capacity for in-person consultations is becoming more limited. In response to this need, Union Investment is further developing its traditional business model. At the heart of this effort is an approach that does not replace but rather expands its collaboration with the Volks- and Raiffeisenbanks.
Traditionally, Union Investment operates on a B2B model: products, campaigns, and sales support are made available to partner banks, which handle direct customer contact. With the „B2C4B“ approach—Business to Customer for Business—an additional layer is now being added. Union Investment helps banks reach out to customers directly, though always on behalf of and in the name of the respective bank. The customer relationship remains entirely with the banks. The goal is to relieve banks of the burden in areas where digital customer engagement, marketing, or sales processes are becoming increasingly complex. At the same time, banks retain the freedom to choose: they can make full use of the services, use them partially, or continue to handle these tasks themselves.
This expansion of the business model requires new skills. While the focus used to be primarily on supporting consultants, today the entire customer journey has taken center stage. To this end, expertise has been developed in areas such as digital marketing, customer insights, and customer journey management. A consistent customer perspective is crucial here: To successfully support customers, one must understand their needs, identify where they require assistance, and pinpoint where digital processes might break down.
One of the biggest challenges was to encourage banks to change their mindset: moving away from the desire to control every step themselves and toward a willingness to delegate responsibility in a targeted manner. This is because the model requires banks to transfer part of their customer engagement to Union Investment. This requires transparency, clear coordination, and the assurance that the banks’ interests will be safeguarded at all times. The trust built up over decades of close cooperation within the cooperative framework was initially essential for taking this step. However, this shift in perspective has since proven to be a genuine success factor. For many institutions, the very fact that they do not have to worry about every operational step is now a key reason for collaborating with us.
The nature of this development is particularly noteworthy. New modules and offerings are tested and refined in collaboration with partner banks. Some institutions are involved in the development process from the very early stages, testing new approaches and providing valuable feedback for further development. This creates a continuous learning process in which real-world experience is directly incorporated into new solutions. Currently, around 45 banks are collaborating on this approach to varying degrees.
The evolution of the business model shows that innovation does not necessarily mean breaking down existing structures. Progress often arises precisely when strong partnerships are further developed. The combination of cooperative collaboration, digital expertise, and joint innovation efforts creates new opportunities for banks and their customers. Or to put it another way: Successful networks thrive not only on shared interests, but above all on the mutual giving, receiving, and learning.
As part of our podcast "MutOffensive," we're talking with various partners in our ecosystem in the current season about how collaboration, innovation, and transformation work in practice. A new episode is released every week.
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