The year 2018 brought about further improvement of income on term deposits with unchanged interest rates while maintaining deposit base stability. The total value of corporate banking deposit funds (including SME), as on 31 December 2018 reached the value of 18.5 bn PLN i.e. showing 9% growth y/y.
Corporate banking customers have access to comprehensive offer incorporating transactional banking products for companies, supported by efficient and ergonomic internet banking system, mobile app and solutions based upon web service technology. In 2018, the Bank offered, in addition, SWIFT Net service to facilitate sending files with payments through the SWIFT network via SWIFT FileAct solution. With respect to transactional products and services, the bank offers solutions supporting management of collection of receivables, payment settlements, liquidity and financial surplus management and payment cards.
In effect of consistent development of services and electronic systems a significant increase in transaction rate has been recorded. In 2018 the number of domestic transfers increased by 13%, 17% increase in number of foreign transfers was recorded as well as 21% increase in number of card transactions. This brought growth of the volume of money on current accounts, reaching the record-high level of 9.6 bn PLN (+22% y/y) in December 2018. The share of funds on current accounts in deposit portfolio amounted to 39.5%. The total value of deposits funds of business customers (including SME) was 18.5 bn PLN (+9 % y/y).
In 2018 a new cash management module in the Millenet system was made available. The new functionalities facilitate management of one-off and periodical open withdrawals. Currently, more than 50% withdrawals are ordered automatically through Millenet.
Another improvement for customers using cash products included provision of access to open and close payments in Poczta Polska outlets and provision of armoured transport service. These services are specifically important for customers selling goods in small townships or out of town location with limited access to bank branches. Furthermore, electronic Banking Payment Evidence (eBDW) containing the QR code was implemented to accelerate the process of close payment booking and improve booking quality.
In the Millenet internet banking system the cross-border transfer module was improved and this led to a significant increase to almost 100% of the ratio of transactions done completely automatically. In addition, an option was offered to open, in the system, consecutive PLN and FX accounts. Already in the second month after opening of the service, nearly 40% of accounts were opened this way.
The Bank also conducted implementation projects resulting from changes in applicable regulations. According to the Act of 15 December 2017 amending the act on value added tax and certain other acts, on 1 July 2018 the Bank offered to companies a split payment mechanism available in the electronic banking system. In this service the Bank opened an additional VAT account for every company and introduced a new type of bank transfer, also online – split payment transfer/VAT transfer. Information on the new solution was delivered, inter alia, during the cycle of 10 business breakfasts.
The Bank has been intensively developing MillenetLink (a module of direct communication between the ERP systems of companies and electronic banking) to enable automation of sending transactions as well as recovering banking information. The service permits strong reduction of costs of everyday banking transactions; hence for many companies it is a basic necessity solution. MillenetLink supports data exchange in standards popular on the market thereby facilitating implementation and integration of many banks from the ERP system level.
In the second half of the year the Bank performed a pilot launch of the new Millennium Leasing customer electronic service system. Companies, which are simultaneously customers of Millennium Leasing and Bank Millennium, can have access to lease products in Millenet without the need for an additional logon. The lease module enables access to current information about agreements, the schedule of lease payments as well as receiving electronic invoices.