Business model and the value creation model

Business model

Bank Millennium operates according to a business model predicated on five pillars:

We are the most customer-focused bank that is constantly developing. We want to be the most personalized bank operating on a mass scale.

We are the leader in digital banking by offering high quality services blended with an extensive reach.

We are one of the fastest growing banks in terms of soliciting clients for whom we are their primary relationship

We have the leading cost effective business model built using the most sophisticated technology that is flexible when it comes to changes and the Bank’s growing size.

We have a flexible operating model, an organizational culture that facilitates rapid response and digital and data analysis competences.

[GRI 102-16] The firm’s values form the foundation of our business model: building relations based on trust, a passion for quality and innovation, employee development and promoting collaboration and the ever constant ambition to aim higher.

Value creation model

The Bank Millennium Group’s capital poises it to grow its business as it simultaneously creates value for its Stakeholders.

The Bank Millennium Group’s capital...

PLN 97.2 bn Group total liabilities
PLN 6.7 bn Group total equity
PLN 103.9 bn Group total assets

Friendly workplace, focus on employee development, attention to diversity

7,079 – number of Group employees
38.9 – average number of training hours per Group employee per year
Mandatory training on the Code of Ethics
Winners of numerous competitions in the area of service quality
Modern infrastructure, environmentally friendly solutions in the headquarters buildings

Culture of rapidly responding to change (agility), sophisticated infrastructure and IT systems, digitization and optimization of processes making it possible to develop innovative products and offer high quality services, organization’s cost effectiveness.

Focus on growth and innovation, with full understanding of client needs
Active development of open banking services
46.2% Group cost/income ratio
Reducing resource consumption and the carbon footprint of buildings

Investments in modern technological solutions and innovations, the bulk of IT development is in-house, internal start-up goodie, internal UX Design time.

New business strategy for 2022-2024 – ESG issues are part of it
The Millenet internet banking system and the mobile application have been designed with users in mind and jointly with them in the spirit of Human-Centred Design
Cooperation with Universities
Extensive internal training program

Quality of relations with the environment, Bank reputation, transaction safety, enhancing the society’s financial awareness.

94% retail clients satisfied with the Bank’s services
Nearly PLN 1.6 million provided by Bank Millennium Group for donations and sponsorships in 2021
Cybersecurity education activities for clients
Financial education programs of the Bank Millennium Foundation and support of local communities as part of employee volunteerism

…they support business development through:

Process optimization and digitization
Facilitating access to non-banking services
Creating a work culture to facilitate rapid response to changes
Marketing products and banking services making everyday life easier
Designing the goodie smart shopping platform
Organic growth and synergies after the merger with Euro Bank

...and create value for stakeholders:

Banking for all – no physical, infrastructural and digital obstacles

Constant development of mobile and internet banking services
70% of own branches are accessible to persons with disabilities
100% of the ATMs are accessible to persons with disabilities
“Wrocław Without Barriers” award for Bank Millennium
Golden CSR Leaf of the Polityka weekly – an award for companies with the highest corporate social responsibility standards

Non-banking digital functionalities, e.g. e-administration

Over 1 million clients with access to e-administration
Mobile app as a hub for managing daily affairs, not just finances

High quality of service

51 – NPS for retail customers
The Best Bank in Poland for 2021 according to Global Finance magazine
In the last edition of the „Newsweek’s Friendly Bank” ranking, Bank Millennium took first place in the main category “Every One’s Bank” and second place in the category “Remote Banking”.

Employee turnover ratio

4% – employee turnover ratio

Education and development

Millennium Campus – a program to develop knowledge and skills with the objective of supporting the growth of innovation across the organization. The offer to participate in this program is addressed to all of the Bank’s employees.

Respect for diversity

The Bank was included in the „European Diversity Leaders 2022” ranking. In the latest Financial Times list, 850 employers were selected from among 15,000 European companies as supporters and promoters of diversity in their organizations.

Profitability

13.6 – return on equity (ROE) (adjusted for significant extraordinary events)

Solid capital base

17.1% – TCR (Total Capital Ratio)

High standards of ESG management

Member of the WIG-ESG index at the Warsaw Stock Exchange, adherence to the Best Practices for WSE Listed Companies and Corporate Governance Principles

Ethical cooperation

83% of all invoices paid within a range up to 30 days

Responsibility in the supply chain

100% of newly-executed contracts have a clause obligating suppliers to apply the principles of the Bank Millennium Group’s Code of Ethics

Employee support fund

PLN 1,000,000 in Special Bank Millennium Group Employee Support Fund in case of COVID-19 infection (contribution of the Bank’s funds) – fund established in 2020, the money from the fund are made available on an ongoing basis also in 2021

Financial education

In November and December 2021, as part of the seventh edition of the “Financial ABCs” project, the Bank Millennium Foundation conducted 200 workshops in 54 kindergartens.
Over 5,000 preschoolers aged 3 to 6 participated in these workshops.

Promoting Culture

Bank Millennium has been a sponsor of the Millennium Docs Against Gravity documentary film festival for 16 years and has signed an agreement to extend its cooperation for 2022-2024.
In September 2021, the 18th edition of the Millennium Docs Against Gravity festival took place, for the second time in the hybrid formula. The 2021 hybrid edition of the festival attracted a total audience of 134,000.
The Golden Culture Atlas Award for patronage over the Sacrum Profanum festival

Minimizing the environmental impact

Greenhouse gas reduction targets set out in the new business strategy
Reducing resource consumption and the carbon footprint of occupied buildings
Since implementing the Mobile Authorization, clients have effected approximately 1,6 million transactions, which made it possible to abandon hardcopy printouts and save 32,000 reams of paper
New head office in Wrocław, meeting high environmental standards
Model green branch in Gdańsk