According to Bank Pekao’s strategy, its growth among retail clients is driven by the significant acceleration of growth in the number of accounts, among others thanks to its new personal account offering, a new proposal for young people and the cutting edge mobile banking solution.
Due to its scale and growth potential, Retail Banking is considered a priority area for the bank’s development. The strategic activities carried out in 2019 were chiefly aimed at: a significant and sustainable increase in the number of clients acquired, growth in the portfolio of consumer loans and mortgage loans, improvement in profitability through intelligent price management, strengthening of relations with client through active cross-selling based on an extensive proposal of investment and insurance products, development of the business client segment (microenterprises). These objectives were pursued by a variety of activities, including by tapping into the client acquisition potential in digital channels using the latest biometrics solutions, automation of the lending process for cash loans and development of cooperation with the PZU Group in the field of insurance and investment products. At the same time, the implemented solutions ensure the highest quality of loans granted. For clients taking out a cash loan, the bank extended the product offering to include new PZU insurance bundles available to clients purchasing loans both through remote channels and in branches.
In 2019, Bank Pekao consistently promoted acquisition strengthening activities, acquiring clients with the help of its new and simplified offering of current accounts (Mega Beneficial Account) and payment cards (including the particularly promoted Revolutionary Card) as well as based on effective marketing techniques and streamlined sales processes in all distribution channels. These activities translated into record-breaking sales results in terms of the establishment of new accounts, which throughout the year reached the level assumed in the strategy of 455,000. In 2019, Bank Pekao rolled out the option of opening an account online using a computer or smartphone. Identity is verified by using biometric measurements of a face and a personal ID. In the second half of 2019, the share of sales initiated in remote channels was approx. 20%.
Pekao keeps strengthening its leading position among banks focused on acquiring young clients. The largest increase in the number of clients occurred in the group of young people aged 13-17. In 2019, the number of newly acquired clients aged 13-17 was 58% higher compared to 2018, and the increase in the number of acquired clients under the age of 26 was 12% y/y.
Bank Pekao holds a leading position in terms of accounts for foreigners. The most sizeable group are citizens of Ukraine for whom the bank has prepared a broad range of products and services, including a helpline in Ukrainian, a full set of necessary documentation in Ukrainian the PeoPay mobile application, the Konto Przekorzystne (Mega Beneficial Account), a multi-currency card with an option of free international ATM withdrawals, including in Ukraine.
In 2019, Bank Pekao continued to develop its cooperation with PZU in the area of bancassurance, expanding its offer in the branches with two insurance products securing the repayment of loans. In cooperation with PZU, Pekao was involved in various activities aimed at supporting the sales network in improving knowledge about the products and sales skills. Almost 3,000 employees took part in the product training and over 750 new employees took the license examination. In Q4 2019, the volume of loans with CPI insurance increased 37% compared to Q1 2019. In Q4 2019, the value of the insurance premiums associated with sales of cash loans in remote channels increased 14% compared to Q1 2019. In the segment of property insurance covering buildings and residential premises, written premium in Q4 2019 was 40% higher than in Q1 2019.
Bank Pekao’s electronic channels conducted active sales campaigns of PZU’s tourist insurance offered through the mojePZU portal.
The microenterprise segment is one of the most significant and promising segments for the bank. Within the framework of business development activities carried out in this area, a number of initiatives were pursued in 2019 to improve the attractiveness of the proposal (including a new offering of card payment terminals, a selfie account and the proposal “PLN 600 for a good start with Pekao”) and to boost sales efficiency through optimization of service processes. Bank Pekao was the first bank in Poland to roll out a simple and convenient account opening process for microenterprises that requires no visit to a branch. Self-employed individuals may open a business account through remote online channels. The account holder’s identity is verified online by permitting the user to take his or her own ‘selfie’ and a photograph of his or her ID card. The service is available on a 24/7 basis. Business clients have the possibility of contacting the bank via a chat, video and voice connection with the bank’s hotline via the internet.
The Bank is steadfastly pursuing its growth strategy in the Small and Medium Enterprise segment. In 2019, activities aimed at intensifying sales and strengthening relationships with existing clients were continued. Such activities included, in particular: development of a service model based on mobile relationship managers, remote channels and product specialists, strengthening of employee competences by acquiring high-quality specialists, various initiatives focused on intensifying acquisition efforts.
Other focus areas included activities aimed at improving client satisfaction through continued streamlining and optimization of key processes, products and services. Owing to these activities, the number of acquired clients increased significantly (up 18% compared to 2018). For instance, clients from the SME sector may choose from a broad range of products involving FX Spot transactions and transactions designed to hedge their exchange rate risk, which until recently were available only to clients in the corporate segment.
As part of the Cashless Poland Program, Bank Pekao offers POS terminals to clients on attractive terms. The total number of payment terminals provided to clients in 2019 was 71% higher compared to 2018.
In 2019, two types of loans related to environmentally oriented activities were introduced to the bank’s offering. The PrzEKOrzystny (Mega Beneficial) loan is intended for funding RES generation in the form of the borrower’s use of photovoltaic panels for own needs. The loan is secured with a gratuitous BGK Biznesmax guarantee, which lets the clients obtain a preferential interest rate and, during the first three years of loan repayment, also a 5% refund of interest.
Moreover, Pekao has signed an agreement with the European Investment Bank to provide funding for the execution of projects aimed at improving energy efficiency, including modernization of thermal insulations, replacement of machinery and use of renewable energy sources, owing to which business operators in Kujawsko-Pomorskie Voivodship can obtain a low-interest loan. The Energy Saving Loan is only available from Bank Pekao. The bank is able to offer the low interest rate thanks to funding from the EU’s Regional Operational Program.
As part of its offering for corporate clients, Bank Pekao, as a leading corporate bank in Poland, took a number of initiatives in 2019 focused on strengthening relations with its clients, improving its product offering and increasing profitability by enlarging the share of income obtained from sources other than loans. Dedicated activities supported by product and sector specialists were focused on boosting the volume of strategic cross-selling products such as leases and factoring as well as transactional banking products. These initiatives contributed to the increase in the share of income obtained from sources other than loans in the segment’s total income by 36 basis points compared to 2018.
