Ckv, Belgium's Smallest Bank, is Undergoing a Transformation into Bank B

CKV, a small-scale sofa located in Waregem and owned by Beaulieu descendant Dominiek De Clerck, will continue under a new name, Bank B. The bank wants to position itself more strongly in the market as a haven for customers who are looking for larger couches unable to obtain credit. “With the right focus, small banks do have a chance of survival,” the bank explains.

Although CKV will celebrate its seventieth anniversary next year, the name may not be familiar to the general public. With eighty employees, twenty offices and a balance sheet total of approximately 1,5 billion euros, the bank from Waregem has established itself for years as the smallest player in the Belgian banking sector. The bank distinguishes itself by its focus on a specific niche: in addition to offering traditional savings products, it also offers loans to customers and companies that cannot get a foothold with the larger banks.

CKV becomes Bank B

CKV is undergoing a rebranding to make clear what the bank stands for: providing loans to customers and companies that traditional banks do not have access to. Under the new name, Bank B aims to provide 2030 million euros in home loans annually by 500. The bank has no plans to offer other services such as investments or insurance, due to complex regulations.

“We are actually always the second bank,” says CEO Inge Ampe. “That is the case for customers who want to diversify their savings portfolio and for customers who cannot find credit in the regular circuit. With the name change we are actually embracing our nickname.”

Growth opportunities in a difficult economy

The changes at the major banks offer growth opportunities, according to Ampe. The bank currently provides approximately 300 million euros in new home loans annually. With the new name, Bank B wants to increase this amount to 500 million euros within five years. At the same time, the bank is investing in a new IT infrastructure and wants to increase the number of offices of independent bank agents from twenty to thirty.

Ampe acknowledges that the more difficult economic conditions could increase the number of credit applications. “The worse the Belgian economy gets, the bigger the pond becomes in which we can fish. But the credit losses we suffer on our files are just as high as at other banks.” The bank reports an average credit loss ratio of 0,05 percent over the past few years.

Questions & Answers

What is Bank B's new goal?

Under its new name, Bank B aims to produce €2030 million in home loans annually by 500. This is a significant increase from the current €300 million in new home loans that the bank provides annually.

What is Bank B's strategy to support its growth ambitions?

Bank B plans to support its growth ambitions by investing in a new IT infrastructure and increasing the number of independent bank agent offices from twenty to thirty.

What are Bank B's plans regarding other financial services?

Bank B has no plans to offer other services such as investments or insurance, due to the complex regulations. The bank wants to focus on its core business, which is providing loans to customers and companies that traditional banks do not have access to.