Financial and
ESG report 2020

Ethical standards in customer service

[GRI 103-1, 103-2, 103-3, FS15]
Ethical sales activities place a strong emphasis on the compliance of service with the applicable regulatory requirements and meet the following assumptions:

the tools and guidelines in client call scripts are aimed at ensuring the best quality of customer service by providing full and precise information on the individual products and processes

client call scripts address the need to examine client needs and propose products adequate to client’s expectations and situation

assumptions and tools pertaining to product models are reviewed by the Compliance Department

The sales standards (including sales ethics) are implemented in the sales units by means of initial training, e-learning and post-implementation activities of persons and units appointed for that purpose (including managers). 

The guidelines of the Book of customer service Standards obligate employees to do the follow in particular: analyze client needs, clearly present the Bank’s offer, discuss the rules on how the product operates, present cost-related information, diagnose client doubts, provide explanatory information and finally – confirm that the rules on the product’s operation are intelligible to the client prior to signing an agreement. 

At the Bank Millennium Group, ethical sale of products is regulated not only in such guidelines as the Code of Ethics, Book of Standards or legal regulations. Attaching great importance to the quality and a high level of ethical sales, the Bank also drafted Client Call Scripts about daily banking products, credit products and saving and investment solutions. These scripts have been in operation for several years and are gradually being updated and optimized. Each implementation of a new script involves mass implementation of the solution among direct customer service employees and training. All modifications to call scripts focus on providing clients with thoroughly transparent information and education to ensure that they are fully aware of the Bank services they utilize.  

Observance of Client Call Scripts and customer service Standards is monitored continuously and the results are delivered to the Bank’s management board and the direct superiors of the assessed employees, and are also used to take remedial actions at the level of the Bank as a whole. The monitoring of compliance with sales standards and ethics is also conducted independently of the Bank by various types of service quality rankings, to which the Bank attaches great importance and takes into account all the conclusions resulting from them. 

Regarding insurance products, the Bank has implemented standards in line with the guidelines of Recommendation U on good bancassurance practices and the Insurance Distribution Act. 

Separate ethical sales regulations are in force in the companies. Millennium Dom Maklerski has implemented a number of documents governing the rules for showing due diligence in client contacts. The most important ones are the rules and regulations for providing brokerage services, contracts executed with clients and the “Policy of executing orders and acting in accordance with the best interest of the Client at Millennium Dom Maklerski SA”.  

M2020-055 M2020-055

Before offering a product, the Bank checks client needs to ascertain his/her knowledge about credit products and financial standing, whereby it is possible to tweak the manner of communication and align the product to his/her circumstances. The risk of over-indebtedness and household budget mismanagement is minimized owing to advanced methods of assessing clients’ creditworthiness and capabilities used by the Bank. These methods make it possible to identify situations in which a client should not take out any more debt. The Bank offers its clients the opportunity to consolidate unsecured debt being repaid to other lenders, which often allows them to reduce their monthly credit charges in their household budgets and improve their financial security. Clients using online transaction banking may take advantage of advanced tools for managing expenses enabling them to deepen their knowledge on how to manage their budget effectively.  

[GRI FS16] The Bank Millennium Foundation continued the “Financial ABCs” educational program for kindergarten children and created “A guidebook for parents – How to teach finance to children”. One of the articles was entitled “Loans and debt or what is liability”. This way, the Foundation continued to educate the youngest ones in the area of savings, the credit needs and the role of money in life.  

The Finance Manager available in Internet banking is an example of an interesting tool. It is a free of charge service that allows the clients to manage their household budget comprehensively, and to easily control both spending and savings. 

Bank Millennium offers a debt consolidation loan to clients who intend to reduce the costs of loan repayment with the option to amortize their debt in other banks. In addition, clients may take advantage of a deferred payment of one installment of a cash loan or a consolidation loan, which is very helpful for those who must use the funds for an installment payment in a given month for other purposes. 

If a loan is not repaid, the Bank first seeks to reach an amicable settlement, offering clients an opportunity to enter into restructuring agreements.  

Debt restructuring applied by the Bank in the process of pursuing retail clients’ receivables involves the execution of an annex to the original agreement (in a traditional form at the Bank’s outlet or via electronic channels) or a separate restructuring agreement whose content modifies the binding debt repayment terms binding for the client, as appropriate to the clients standing and financial capabilities.  

The restructuring and collection of receivables is carried out by dedicated organizational units of the Bank, separate for receivables due from corporate and retail customers (including Business customers), acting in line with both internal (instructions and guidelines) and external regulations. For instance, the Bank enabled customers to benefit from relief measures introduced by the government, such as the suspension of interest and principal installments or a non-legislative moratorium implemented in connection with the spread of the COVID-19 pandemic in accordance with the European Banking Authority’s Guidelines on legislative and non-legislative loan repayments moratoria.  

The process of recovery of retail clients receivables is performed with the use of an IT support system, linked to the Banks operating system and credit card administration system, enabling identification of bad debts, their review, monitoring, recording of activities, progress and effects of the recovery, dispatch of key correspondence, as well as reporting and management of the specific receivables.  

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