Retail banking

Individual clients are invariably most interested in Konto 360°accounts. At the end of 2016 their number reached more than 631 thousand and more than 80% of all the new accounts were opened by new clients who did not have current account in Bank Millennium. 95% of these accounts were opened with a debit card.

Last year promotion of Konto 360º account was supported by:

• successive phases of the advertising campaign conveying information on TV, on the internet and in cinemas;
• successive rounds of “Gain 360 zloty” special offer in which the Bank promoted mobile banking, card and BLIK transactions;
• offers created in cooperation with group sales portals – for instance: Groupon;
• “I Recommend Bank Millennium” recommendation program, in which the Bank rewarded the clients who recommended its offering.

Additionally, in the period from September to November 2016, a promotional campaign for Konto 360° Student was executed in universities and schools. This action was supported by special offer Konto 360° Student with free ISIC card’ prepared in cooperation with the Association that issues the International Student Identity Card in Poland. These activities were well received by young clients and resulted in record high account sales numbers in that period.

Based on the analyses of clients preferences as regards current account, in May 2016 the Bank introduced new product ‘My Business’ account for entrepreneurs.

2016 was for Bank Millennium a year of significant successes in the deposit base management. In the volume of individual deposits the Bank achieved total growth of PLN 4.1 billion (11% y/y) to the level of PLN 39.7 billion

These results were recorded despite the low interest rate environment and aggressive competitive offers in the first half of 2016.

The Bank continued its acquisition efforts promoting comprehensive Konto 360 current account and Savings Account with attractive interest rate for new funds, supported by TV and internet campaigns encouraging savings with flexible access to funds. Consequently, the market share in individual deposits increased from 5.69% at the end of 2015 up to 5.76% at the end of November 2016.

Due to the low interest rate environment, in May 2016 the Bank presented to its clients an improved offer of savings and investment products for better diversification of funds. The offer featured the novelty – Convenient Duo – combination of a deposit and Convenient Portfolio insurance and investment programme. Also a new formula of deposits with Millennium TFI investment funds was introduced – DuetPlus, where instead of a fee for purchasing the units, client pays the costs only upon earlier sale of the fund units.

In response to the growing clients’ needs as regards placement of their surpluses in foreign currencies, in July 2016 the Bank introduced to its offer savings accounts in EUR and USD. An additional incentive was promotional interest rate for new funds.

One of the significant initiatives taken in 2016 was implementation of a savings and investment model, i.e. model for client conversations about growing funds, starting from deposit products (term deposits, savings accounts) to investment deposits, investment funds, bancassurance products and regular savings plans. The effect is significant improvement in the quality of sales of products and communicating to clients the most reliable information about the products on the offer.

In 2016, Bank Millennium encouraged also regular, long-term pension savings and maintained the most attractive interest rate on the market: 3% on the Individual Retirement Account deposit.

Over the period from January to September 2016, in the cash loan category the Bank promoted the liabilities consolidation service offering its clients, in two rounds of „Great Instalment Reduction” promotion, lower interest rates for the loans transferred from other banks to Bank Millennium. The offer concerned the consolidated amount with repayment insurance and guaranteed clients fixed interest rate of 4.99% in the first and 5.99% in the second round. Another strong point of the standard offer was lack of commission on the consolidated amount. The promotion was popular among the clients, which translated into higher value of sales of the consolidation loan – up 20% per month versus the regular period. Between April and October, the new Bank’s clients who decided to purchase the loan with simultaneous purchase of the repayment insurance did not pay the cost of origination commission. More than 2/3 of the cash loans involved purchase of insurance. The special „Welcome Promotion” offer was met with high clients’ interest and resulted in doubling the value of sales in the target clients’ group.

Over the period from June to August 2016 a number of simplifications were introduced into the credit process for all the clients, who are planning to use cash loans.  The changes concerned a loan available in the so called Fast Credit Process, where client may get a loan under simplified principles on the basis of declaration on the amount of their income. Clients with credit worthiness and credit capacity may get a loan ranging from the amount equivalent to average monthly pay in the corporate sector up to the multiple of this amount, depending on the length and extent of their history of cooperation with the Bank. Client may purchase such loan at the Bank’s branch, over the phone on the recorded line or „on-click” in the transactional banking system. Last year, the cash loan portfolio grew 11% up to PLN 4.92 billion and 2016 sales were slightly lower than assumed and totalled PLN 2,265 million.

In 2016, in the area of cash loans through internet banking system and mobile application the cash loan application process for the Bank’s clients was reengineered and thus the application/agreement conversion rate was increased. The change consisted mainly in improved friendliness of the user interface and reduced number of steps in the process of filling out the application to conclude the agreement.

In November, a special offer „Promotion 3,2,1…start!” was introduced. It was addressed to all the clients who in the last 12 months before applying for the loan in the promotion, did not have this product in the Bank, decide to purchase also repayment insurance and want to spread the amount of the loan into instalments. In this promotion, the client who fulfils the terms and conditions gets fixed loan interest rate at 3% with 2% origination commission.

The value of new mortgages sold in 2016 amounted to PLN 895 million growing by 30% compared to 2015, after the promotional campaigns in the 4th quarter of 2016.

In the entire 2016 Bank Millennium continued application of a number of improvements for CHF mortgage borrowers – in particular, reduction of FX spread to 3% as well as offered its clients CHF to PLN loan conversion at the NBP’s average rate with simultaneous reduction in the up-to-date loan margin.

Furthermore, at the beginning of the year the Bank offered its clients with FX loans and LTV above 100% a new solution supporting change in the loan security into the property to be purchased, using so called security deposit account.

In connection with the effective date of the Act of 9th of October 2015 on Support for Borrowers in Distress, who had taken housing loan, starting from 19th of February, the Bank offered applications for support from the Borrowers’ Support Fund. It is worth to point out, however, that the quality of mortgages at Bank Millennium is high, and the ratio of impaired loans remained stable and amounted at the end of the year 2.5%.

2016 is yet another year of the Home for the Young programme. Throughout the year, the Bank offered loans in the Home for the Young programme under „0% Commission for Mortgage Granting” promotion, thanks to which the costs of granting such loans were significantly reduced.

In 2016, the credit card market recorded a change in the up-to-date trend, which both in Q2 and Q3 materialised as increase in the card portfolio by 0.6% and 0.4%, quarterly respectively. The same pattern was also followed by Bank Millennium, which recorded the first increment in the portfolio, by 0.2%, in Q3 2016. This tendency was consistently maintained until the end of the year, whereby in 2016 Bank Millennium credit card portfolio grew by more than 2 600 cards, which was significant improvement on the previous year (in 2015 the portfolio shrank by 18 thous.).

Importantly, the Bank increased the card portfolio in the time of difficult business decisions such as withdrawal of AMERICAN EXPRESS credit card from the offer and consequential higher number of closings. Better results were also observed in the area of retention, where the so-called save ratio was the highest since 2015 and in December totalled 36%.

However, first and foremost, in 2016, thanks to intensive marketing actions, acquisition of credit cards was doubled, growing from 2.7 thous. in December 2015 to more than 5 thous. in December 2016.

The key credit card sales channel are still branches that deliver 79.4% of the new cards. Nonetheless, a material and systematic increase was also recorded in the telephone and online channels. Impresja and Alfa credit cards held their place as the flagship products with 84.2% share in the result.

Throughout the previous year, the number of debit cards on the Polish market was growing systematically. Thanks to its successfully selling product – 360 account, Bank Millennium has been following the market trend. Importantly, the positive dynamics of the Bank Millennium portfolio was higher than the market. Number of debit cards of Bank Millennium amounted to 1,572 thous.

In 2016 the income was driven mostly by two factors: regulatory changes (Recommendation U and the new Insurance Act) and the level of cash loan sales. Last year the bancassurance market concentrated on adjustment to the new regulatory and market environment.

In the due time, the Bank adjusted its activity to the new Act on Insurance Activity and developed, in the structures of the Bank Millennium Group, the competencies to be the agent performing agency services for the group insurance portfolios of PZU SA, PZU Życie SA, Europ Assistance and Generali. Last year, we introduced into the Bank’s offer some new insurance products with our new partner (Ergo Hestia Group). Since 3 November Bank was selling motor insurance (TPL/extra coverage car insurance, Assistance, NNW, car glass) through Millenet and mobile application using in the sales process the technique of scanning the Aztec code from the vehicle registration certificate. The huge advantage for the Bank’s clients is also the possibility to spread the premium into monthly payments, especially in the context of significant hikes in TPL premiums.

Bank Millennium bearing in mind the needs of its customers and the latest trends, successfully launched omnichannel in communication with customers including branch offices, call centers, Internet banking and mobile. It is worth noting an increase in the share of digital sales channels, products and services of the bank – in 2016 23% of cash loans and 41% of new quotas and increases in the account has been granted the use of electronic channels. Online being carried out 99% of transfers, remote-expected 87% of term deposits.

At the end of 2016 the number of branches totalled 369. According to the strategy, Bank continuously modernizes and improves functionality and increases the efficiency of branches. Modern architectural interior, strengthening the role of advisory services team, attractive customer area, the introduction of modern information media are the main advantages of the new branches. New service centers were opened in shopping malls, frequented by customers C.H. Manufaktura in Lodz C.H. Matarnia in Gdansk and in the  Katowice downtown.

2016 brought further development of e-banking. Bank Millennium offered numerous innovative functions and for some of them as the first on the market.

One of the key projects implemented in 2016 was sale of motor insurance, fully online, in the Bank Millennium Millenet internet system and mobile application, or through both channels simultaneously. The purchase process is innovative and has been developed in-house. As the first one on the market, Bank Millennium applied the technology of scanning the Aztec code from the vehicle registration certificate. After scanning the code, the vehicle’s data are automatically fed into the application form and, which is unique on the market, the data are seen both in the application and in the online banking system. Client’s personal data are also automatically fed into the form and the insurance purchase is finalised with a password. Client’s application may be saved and according to the omnichannel philosophy, the process may be continued on any device.

Throughout 2016, Bank Millennium supported development of e-administration allowing its clients, as one of the first on the market, to access public administration services through Millenet online banking system.

Early April 2016, in cooperation with the Ministry of Family, Labour and Social Policy and the Ministry of Digital Affairs, Polish Bank Association, Social Insurance Company and, at the final stage, Municipal and Communal Welfare Centres, Bank Millennium implemented the Family 500+ project. The Bank’s clients were given an option to file their applications for the benefits from the governmental programme through Millenet. Some of the data required to fill out the form are automatically retrieved from the system and the finished application is directly sent to the office indicated by the client. Thus, the application may be filed with no visit to the office needed.

Continuing its cooperation with the Ministry of Family, Labour and Social Policy and the Ministry of Digital Affairs, in October 2016, Bank Millennium provided its clients access to ZUS Electronic Service Platform through its online banking system.

As the first on the market, Bank Millennium provided in its online system the SIM card registration function. Thus, clients with prepaid phones may perform their card registration duty without the need to visit their operator’s outlet – fully online and free of charge.

In 2016 Bank Millennium optimised the online cash loans process. The process was shortened and modified according to the so-called user experience, which significantly increased the conversion rate. Furthermore, a cash loan process was implemented for those who are not the Bank’s clients yet. An important improvement in the use of credit products through online banking is also the function of spreading the credit card transaction payments into instalments. Moreover, for increased security, an option was provided to set transaction limits on payment cards for online shopping.

For more effective assistance to the Millenet clients, a consultant chat function was provided, featuring a screen sharing service – a unique solution in Poland. It allows direct support of the client inside the transaction system. In the online chat session consultant may see what the client’s problem is and may help him to solve it even faster. All these actions translated into the number of active Millenet clients, which at the end of December 2016 reached 980 thousands.

2016 brought in further development of the mobile application and innovative solutions, and at the end of December, the number of mobile banking users exceeded 596 thousand rising almost 38% y/y.

As the first on the market, Bank Millennium introduced the functionality to approve 3D Secure card transactions in the internet with fingerprint and also offered the first-in-Poland motor insurance, which can be purchased fully online.

A significant project was introduction of mobile contactless payments – a service that supports smartphone payments similar to those with a contactless card. This solution is based on HCE technology and supports issuance of a virtual payment card in the bank mobile application. Thus, clients may make fast and convenient payments with no need to carry around cash or plastic cards. At the end of 2016, banks in Poland had in total 234 thous. active HCE cards and since November 2016 after 2 first months i.e. from introduction of the HCE debit card at Bank Millennium as many as 17 thous. users received such card and have been actively using it since.

Another novelty in the mobile application was introduction of PUSH messages about the account and card transactions. Also chat function was provided – an additional communication and support channel for the Bank’s clients. Fingerprint login option was implemented for Android 6.0 system devices and this solution has been becoming increasingly more popular among the users.

Moreover, Bank Millennium prepared a new version of application for the Windows Phone systems. Now users of Windows Phone smartphones may enjoy comfort of mobile banking – make payments, withdrawals, transfers and issue BLIK cheques. Also the application for BlackBerry-based phones was up-dated.

Furthermore, the Bank released an application for the users of Android Wear – the most popular system for smartwatches. This application supports BLIK payments, reception of PUSH messages, balance checks and assists you in finding your closest ATM or checking FX rates.

In 2016, the promotion of the Mobile Deposit – a deposit opened with use of Augmented Reality technology – was continued. In this way, clients could open a three-month deposit at a premium interest rate. The solution turned out to be extremely popular – Bank Millennium clients opened the highest number of deposits with mobile application on the market.

In the area of credit products available in mobile banking, the mortgage loan process was revamped and a Convenient Instalments option for card transactions was introduced.

Also mobile BLIK payments were developed. One-ClickShopping function was introduced whereby paying with BLIK in online shops has become even simpler. Instead of copying your BLIK code, now you just need to make one click in your application.

Prestige is an offer for affluent Clients with assets from PLN 100 thous. to PLN 1 million or clients making monthly payments of at least PLN 10,000 to their accounts.

Private Banking in Bank Millennium is an offer addressed to more affluent individual clients with assets above 1 million PLN, expecting high quality customer service and customised financial product offer. The Bank offers also an extensive range of investment and investment-insurance products, including domestic and foreign investment funds, investment programmes and structured products. Additionally, Private Banking clients could benefit from the Millennium MasterCard® World Signia/Elite™ credit card with access to the World MasterCard Rewards programme, World Signia/Elite Privileges Programme, an insurance bundle and Assistance and Concierge packages.

As at 31 December 2016 Bank Millennium had more than 33 thousand active Prestige clients and more than 3.5 thous. active Private Banking clients.

High quality of products and services offered by Bank Millennium was met with wide recognition on the domestic and international markets.

In 2016, Bank Millennium yet again was awarded in the independent ranking “Newsweek’s Friendly Bank”. Moreover, for the first time ever and as the only bank in the to-date history of this ranking, our Bank reached the top 3 in all 4 categories (2nd place in the Bank in the internet category, 2nd place in Mobile Banking, 3rd place in Traditional Banking category and  3rd place in “Mortgage Banking” category).

Yet again, the Bank triumphed also in the competition organised in the independent magazine „Global Finance”. The Bank was awarded as the best online bank in Poland and recognised for its best online deposit, credit and investment products in the Central and Eastern Europe.