In a few words, could you present Sparkassen Country Desk and its international history ?
The S-Country Desk was founded in 2003 by a the so called “G25” – Germany´s 25 largest Sparkassen (saving banks). The purpose was to support these Sparkassen in serving their clients abroad. Like this, we established a network covering specific countries. A significant milestone was reached in 2016 with the launch of a mobile application, providing easy access to economic data across numerous countries. With the demands for the S-Country desk rising, I was hired as CEO in 2023 to help expand the organization’s service line.
Today we no longer merely serve as a network management organization for the G25 but coordinate international activities for most of Germany’s 338 Sparkassen. Our primary objective is to support the Sparkassen and S-Internationals by coordinating the international network and in harmonizing foreign trade as well as interest rate, FX and commodity risk management products and processes. The purpose is that clients, whether in Munich or Hamburg, feel they are dealing with a single, global organization capable of guiding them anywhere in the world. That is why our partnership with Altios is important for us.
What have been the key stages of your international development ?
Our international growth was built around the creation of an impressive network that now covers 153 countries. Rather than approaching end clients directly, we positioned ourselves as a strategic support system for local Sparkassen advisors. Let us look at an example: if a small German company requires assistance in Bangladesh or South Africa, its local bank calls upon our network’s expertise. This expansion follows a logic of necessity for the “Mittelstand“ (German SMEs). Faced with very high energy and labor costs, as well as strict regulations in Germany, many specialized SMEs are pushed to offshore their production. They often must “follow“ their major clients, i.e. German car manufactures, as they open factories abroad, in order to secure their supply contracts.
The key stage was therefore building this global infrastructure to support these agile companies, often world leaders in specific niches, in their expansion beyond German borders.
What was the most defining decision in your international development ?
In the development of the S-CountryDesk there have been two major developments. The first major turning point was the 2016 launch of our application and the “S-Worldwide” platform, which digitized access to international information for the Sparkassen. Instead of merely putting people in touch with one another, we decided to provide concrete tools: economic reports, real-time data, and regulatory monitoring. The second turning point was the establishment of a central business management unit for the foreign trade activities of the Sparkassen and S-Internationals.
Which international success are you most proud of? Why?
What we are most proud of is having managed to keep our organization up-to-date for over 20 years despite rapid technological changes. Our greatest achievement has been successfully uniting the majority of the 338 German Sparkassen over the last 2 years by establishing a common entity. This has been a massive challenge because generally and naturally each Sparkasse is entirely autonomous with its own management. Seeing a small rural Sparkasse support a local client’s expansion into Vietnam or Brazil through our network is a source of immense satisfaction for me. This success proves that our decentralized model is effective and capable of competing with large international private banks. In short, my and my team´s pride lies in the transformation of an informal network of contacts into a structured centralized collective force serving the Sparkassen and S-Internationals for their clients.
What has been your greatest international difficulty ?
There are – like in any other business – minor day to day challenges. Looking at geopolitical developments of past few years, it is obvious, that numerous businesses have been subject to high amounts of uncertainty. Hence, international business has become increasingly unpredictable.
How do you concretely manage geopolitical risks in your international operations ?
In an uncertain world that is gradually moving away from multilateral cooperation, geopolitical considerations are increasingly moving to the forefront when companies decide to take their international activities to the next level – particularly with regard to investment decisions. Geopolitics is therefore no longer an issue only for multinationals; it affects SMEs just as much. That is the point, where the Sparkassen and the S-Internationals come in. The question for a banker is not: What is happening in the world? But: What could interrupt the clients´ revenue, payments or compliance in terms of deliveries. There are a lot of banking products existing, which reduce these kinds of risks.
This is the classical banking business, and of course, the Sparkassen and S-Internationals provide the entire necessary product portfolio, too. However, there is one additional benefit of the Sparkassen, and S-Internationals compared to other banks: They directly support their clients when they seek to relocate or expand business activities abroad. Backed by an international network, they can rely on us from the very first step. Like this, clients benefit from local knowledge and hands-on support. This enables them to address complex geopolitical challenges on a country-specific level and base their international business decisions in a safer, more sustainable, and strategically sound manner.
In your opinion, what are the major shifts that SMEs must integrate to adapt to the “new international reality“? Why? How?
The primary shift is that the growth of a large number of German companies will no longer come from within the country, but from abroad. SMEs must accept that remaining solely in Germany is becoming a potential risk due to high production costs (labor and energy) and the burden of regulation. The “new reality” is therefore often a shift toward internationalization: many SMEs have confirmed that it was because of their international activities that they were able to enforce tremendous product innovation and development. Hence, internationalization is not only a growth driver, but also a significant factor for sustainable competitiveness.
For the S-Country Desk this means our role as a coordinator will become even more important especially when an increasing number of small companies, unaccustomed to such moves, will need to take the leap into exporting and setting up global subsidiaries or offices.
What role should a partner like Altios play in the future to help you accelerate internationally?
The crucial role of a partner tomorrow is to provide deep industry expertise and perfect local knowledge to save my time as an executive. A good partner must help us navigate local regulations to avoid costly mistakes. That´s the reason why the cooperation with Altios is so valuable.
How can you get your teams on board for complex international projects in the future?
Clearly, an international awareness should be instilled on bank apprentices at an early stage. Field experience, notably through internships or stays abroad (e.g. organized trips to London for young professionals), are the best way to appreciate the complexity of global markets. Over time, trainees will then develop a feeling for and desire to solve complex international work.
If you had three pieces of advice for an SME executive wanting to accelerate internationally, what would they be?
In short:
- An in-depth understanding of the target market.
- A clear and strategic planning process.
- A local anchor in the desired entry markets.
One factor that must never be forgotten is time.
A successful internationalization process does not happen ad hoc, but through thorough preparation and persistence.
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