Annual report 2019

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Personal Finance

The Personal Finance Segment is responsible, in particular, for preparing the product offer and managing consumer loans distributed through the Retail and Business Banking branch network and external distribution channels.

Its offer includes the following major product groups:

  • cash loans: distributed mainly through the branch network, the Contact Centre, service points operated by Carrefour, the Bank’s specialized brokerage partners and via the internet, including the Internet Banking System and the Mobile Banking System (the GoMobile smartphone app);
  • instalment purchase loans: offered to retail customers in stores belonging to the Bank’s commercial partners, with whom the Bank has cooperation agreements in place. This includes traditional stores, internet stores and stores on the Allegro e-commerce platform;
  • car loans: for new and used vehicles, initiated primarily by second-hand car dealerships and authorised car dealerships;
  • operating and finance leases: also in cooperation with BNP Paribas Leasing Services Sp. z o.o., offered mainly by second-hand car dealerships and authorised car dealerships;
  • lease advance – offered in cooperation with BNP Paribas Leasing Services Sp. z o.o., mainly by second-hand car dealerships and authorised car dealerships;
  • long-term vehicle rental in cooperation with Arval Service Lease Polska Sp. z o.o. offered by selected authorised car dealers;
  • credit cards: offered to customers by the Bank’s branch network as well as the Bank’s credit card desks located in shopping centres and by retail chains and commercial partners with whom the Bank has cooperation agreements in place.

The Personal Finance area provides the Bank with strong support in attracting individual customers, generating income and increasing profitability.

It also assumes responsibility for the following key processes:

  • authorisation of consumer loan, mortgage loan and micro-enterprise loan applications, as well as loan approval based on specific criteria;
  • debt collection (from retail customers and micro-enterprises);
  • telephone customer service via the Contact Centre (including loan sales for retail customers over the phone) and marketing campaigns (including CRM/cross-selling).

Key achievements in 2019

  • Implementation of the cooperation program with Opel: offer for retail and corporate clients
  • Implementation of a remote car loan application process
  • Implementation of a new, simplified and faster sales process for cash and consolidation loans
  • Implementation of a new target credit card offer
  • Successfully completed migration to the bank’s target systems for cards and loans (November 2019)
  • Implementation of a „paperless” process of card agreements conclusion

Product offer

In 2019, the Bank launched the following products related to cash loans:

  • a new, simplified and shortened process of submitting an application for a cash loan and a consolidation loan
  • new special offers, such as:
    • an attractive interest rate of 4.40% offered in connection with a TV advertising campaign and the “Final Year without Interest” campaign, concerning loans for a term of over 24 months;
    • Happy Days offer – commission-free loan,
    • consolidation loan offer with reduced financing costs,
    • dedicated offer with attractive financing costs within the campaign „Let’s Support Neighbourhood Business”,
    • Black Friday offer,
  • the possibility of completing a loan application process (started through the Contact Centre) online: via TeleOnline,
  • further automation of the loan approval processes which shortened the average process duration by 20%,
  • wider availability of cash loans in the GOmobile mobile banking system,
  • successfully completed migration to the Bank’s target systems for cards and loans (November 2019)
  • a new simplified and shortened loan application process.

The Bank has been offering instalment loans since 31 May 2016, i.e. since its merger with Sygma Bank Polska. The loan is offered to retail customers for purchases of goods or services that are not connected to the customer’s business activity or profession. Instalment loans of PLN 50 to PLN 60 thousand are available for a term of 3 to 120 months. At present, the Bank offers instalment loans through more than 10,000 retail partners (online and in traditional stores) that provide funding for purchases. The terms of instalment loans are linked to the loan offer provided by the Bank’s commercial partners at a given time.

From July 2018, customers can sign paperless contracts: electronic loan agreements. It is available in all of the Bank’s partner stores which offer purchase financing in cooperation with the Bank and is currently the leading form of concluding agreements by individual clients.

This process, implemented in cooperation with the Autenti company, was awarded the ‚Golden Banker’ award in the Fin-Tech Innovation category in 2019.

The Bank offered special offers to its individual clients in selected retail chains:

  • free loan for up to 60 months,
  • first instalment postponed by up to 6 months;

In 2019, the Bank, continuing the diversification strategy successfully expanded the circle of its business partners to include: companies selling photovoltaic systems and other renewable energy sources to individual customers (over 350 new cooperation agreements). The Bank established cooperation with innogy Polska and other leading retail companies and financed 3.3 thousand installations,

The Bank cooperates also with the telecommunications industry: in cooperation with Play, the Bank finances purchases made by individual customers. In the second half of 2019, the loan application and agreement finalization processes were improved.

In the second half of 2019, the Bank continued cooperation with Opel and extended cooperation with importers of Kia and Hyundai cars. At the same time, in December the agreement was signed with the Ford brand importer, under which from 3 February 2020 the Bank will be the sole supplier of retail products to the Ford dealership network under the Ford Credit brand.

In the second half of 2019, the Bank introduced a new, remote process of applying for a car loan, which makes it possible to submit a loan application over the phone during a recorded telephone conversation. Additionally, in cooperation with BNP Paribas Group Service Center, a platform for managing competitions for trading partners was introduced.

In addition to car loans, the Bank offers operational and financial leasing (including financial VAT Margin) in the amount of PLN 15 thousand (from PLN 5 thousand for new motorcycle dealerships) to PLN 500 thousand for new and used vehicles. Leasing is offered through a leasing company – BNP Paribas Leasing Services – for passenger cars, lorries up to 8 tons, buses, agricultural tractors, scooters, motorcycles, quads and campers.

In the second half of 2019 the following were introduced into the car leasing offer:

  • new promotional offer including importer’s subsidy for Hyundai and KIA dealers – leasing 102%,
  • register of trusted authorized new car dealers – the possibility to automatically change suppliers,
  • an application to monitor the car registration process
  • atomization of the UBO process

In the second half of 2019 the Bank continued cooperation with Arval Service Lease Polska Sp. z o.o. as part of TCM product sales (long-term rental). The Arval sales platform has been modified and adapted to fulfill the needs regarding cooperation with car dealers.

The Bank offers payment cards in all of its branches and 67 Customer Service Points located in shopping centres and retail chains cooperating with the Bank with respect to purchase financing. Another important element of the acquisition process is the cross selling of credit cards, whereby cards are sent to customers who have signed a cash loan agreement, a car loan agreement or an instalment loan agreement with the option of receiving a credit card. The available limits range from PLN 2 thousand to PLN 10 thousand.

The Bank offers credit cards to customers from all segments, both individual and corporate, in addition to co-branded partner cards issued in cooperation with leading retail shops and leading industry brands.

Furthermore, in 2019 the Bank developed its cooperation with the largest e-commerce platform in Poland – Allegro. Customers can finance purchases in instalments (“Raty od nowa”), based on a revolving credit limit. The solution is unique on the Polish market.

Considering customer satisfaction and easy access to information, Allegro customers have been provided with convenient access to the GOmobile bank mobile application. Over 50,000 customers have already used this option by downloading the application and then registering as users.

In 2019, consistently implementing the digitization strategy, the Bank using the solution previously created for installment loans offered the possibility of concluding a credit card agreement in the process without paper documents, so-called „Paperless”.

In addition as part of the operational merger, the product offer in the field of credit cards for the customers of the merged bank was unified and new functionalities for card holders will be made available. At the same time, with the launch of the new GOonline online banking, customers have gained the possibility of convenient card management without the necessity to contact the Bank.

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Annual report 2019

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