Retail banking

The sale of current accounts in 2021 was almost 365 thousand. The key product in support of new client acquisition was the Konto 360° account, for several years now one of the most preferred personal accounts in Poland. In 2021, the number of Konto 360º accounts in the Bank portfolio exceeded 1.84 million, with a definite majority opened by clients who had not yet used personal accounts in Bank Millennium. The Bank achieved market share in development of accounts above 9% in 3Q21 (according to PRnews report).

The 360º Account promotion in 2021 was supported by:

• new rounds of advertising campaigns on TV channels and the Internet,
• promotional activities involving the use of the goodie shopping app and in cooperation with external internet portals – almost 28% personal accounts were acquired online
• new rounds of the „Like it! Share it” referral program, under which you may receive attractive prizes for recommending Konto 360° or Konto 360° Student to others. In 2021 almost 276 thousand clients registered in consecutive rounds of the program.

The Bank concentrated on deposit offer simplification and maintaining desired level of customer funds. In total, the retail deposit portfolio increased by PLN4.9 billion in 2021, including ca. PLN4.15 billion for individual customers, while the market in this segment grew by PLN57 billion, which allowed the Bank to increase its market share to 6.77% and ca. 7.3% of the market growth.

The increase in market interest rates in 3Q21 and 4Q21 allowed a gradual recovery in the profitability of savings products and the ability to offer customers more attractive offers aimed at attracting funds to the Bank. The interest margin for the full year 2021 was approximately 0.4% with an increase to 1.14% in 4Q and approximately 1.8% in December 2021.

With regard to investment products, the Bank continued its strategy to offer a diversified portfolio that includes both its own solutions and products of external partners. Depending on the customer segment, the offering consisted of structured products, mutual funds, investment insurance products and bonds.

Due to pressure on yields of debt investment funds resulting from growing market interest rates, the Bank in cooperation with Millennium TFI changed the basic product offer and in October 2021 proposed new, more flexible and universal version of the Investment Program (Millennium TFI Investment Plans) available both in the Bank’s outlets as well as through electronic channels. New Investment Plans were also used in the new investment advisory service, which in the form of pilot was launched in mid-December for individual customers in electronic channels.

In order to make the offer more attractive, during the year the Bank launched cyclical promotions of funds with regard to the fee for their purchase. A special strategy was also introduced to reward use of remote channels by reducing to 0% the handling fee rates for purchase of selected TFI funds through Millenet and Mobile Application.

Rising interest rates also allowed the Bank to make its Structured Deposits offering more attractive and to reduce the minimum product term from 3 to 2 years, which contributed to a significant increase in customer interest in these products in 4Q21.

The Bank continued the process of digitizing its investment product offering and optimizing sales processes using modern tools. All newly implemented investment products were made available immediately in electronic channels and for processes carried out in outlets it was enabled to conclude transactions using the customer’s phone and Mobile Application i.e. in fully paperless process.

Cash loan sales in 2021 was higher than in previous year and reached the level of PLN5.6bn (+21% y/y) what helped to reach the sales market share equal 10.23%. Cash loan portfolio reached PLN13.6bn.

The Bank implemented additional system solutions allowing further digitalisation of credit process – functionalities with use of PSD2 enabled verification, new process for cash loan x-sell for POS loan customers, development of omnichannel loan consolidation process. As a result of implementation of these enhancements the share of loans sold through digital channels in 4Q reached 61%.

The omnichannel approach of closing the sales of cash loan in digital channels was especially successful for mobile application which was responsible for 80% of sales in digital in 4Q.

In 2021 cash loan sales was mainly supported by offer „PLN120 instalment for each PLN5 000 of loan” for loans in following amounts: PLN5 000, PLN10 000 , PLN15 000 or PLN20 000 granted for 58 months.

2021 can be described as a year of stable portfolio growth and maintaining an attractive offer. The Bank maintained its strategy of developing a competitive offer and sales process. The sale was supported by the following actions:

• the „Limit in the account for PLN 0 – 3rd edition” offer addressed to new customers of the Bank, enabling the use of the product in the first year without additional costs – the commission for activating the limit is PLN 0. These conditions are among the most attractive on the market.
• 7-day interest-free period, which allows you to use the limit without incurring interest costs in each settlement month.

At the same time, the market share calculated by portfolio was equal 13% at the end of December.

In 2021, the Bank continued to offer life and non-life insurance in branches and digital channels. The Bank’s customers were able to use a wide range of insurance products offered by Bank Millennium in cooperation with many Insurers. The distribution of insurance related to cash loans and mortgage products had a significant share in the revenues from bancassurance. The Bank’s customers were able also to take advantage of special offers, including promotions for motor insurance „Ubezpieczając więcej, zyskujesz podwójnie”.

Acquisition results and spending on cards in 2021 showed a large rebound after the period related to COVID-19 restrictions. Thanks to many supporting actions, the acquisition of credit cards increased and was higher than the market dynamics. This made it possible to achieve an increase in the market share of credit cards sales to the average level of 10.1%. The flag product remains Impresja card, which offers its holders a 5% money back from transactions in partners of the program.

The credit card portfolio at the end of 2021 amounted to 486 thousand cards and increased by over 9 thousand cards (+ 2.0%) in 2021. With decreasing number of cards on the market, this allowed for increase of Bank Millennium’s share to 7.9% in volume of the credit card portfolio.

The number of debit cards increased along with the increase in the number of current accounts, where the main sales product was a debit card issued to Konto 360. The Bank’s debit card portfolio at the end of 2021 amounted to 3.1 million cards and increase YoY by 95 thousand (+ 3.2%). In 2021, Bank Millennium expanded its offer and introduced debit card for children over 7 years of age.

Thanks to intensive card’s activation actions in portfolio and improvement of the overall market situation, 20% increase of transactions amount on debit and credit cards was achieved. Bank Millennium’s market share in terms of card spending increased to 9.8% for credit cards and 7.9% for debit cards.

At the same time, the Bank focused our activities on promoting paid services among cardholders.

2021 was a record year for Bank Millennium, both in terms of the volume of newly concluded mortgage credit agreements and disbursed credits. The Bank’s market share for the year was 12.47% (data according to SARFIN ZBP). The Bank concluded 34.4 thousand new contracts with a total value of PLN10.5 billion (increase over 45% y/y). The value of the disbursed credits is PLN9.75 billion.

Throughout the year, the Bank actively worked on increasing the attractiveness of its mortgage loan offer and increasing the efficiency of  the credit granting process. Bank Millennium was awarded the Golden Banker for the best product on the market. The changes were aimed at shortening the processing time of the credit application through numerous automations and digitization of the process of accepting and analysing credit applications. The bank also improved the after-sale service of credits. It was made possible for our clients to remotely deliver insurance policies for the credit via electronic banking and a mobile application. The main change to the product was the introduction of a credit with a periodically fixed interest rate. Alternatively, the client can choose an offer that is most suitable for him – with a periodically fixed or variable interest rate. The bank also conducted a large-scale training process in the field of changes in the process and product, reminding them how to communicate the details of the offer to the client in a clear, reliable and transparent way.

Similarly to the previous year, the Bank’s lending campaign was based on an unconditional 0% commission for granting the loan and a 0% commission for early credit repayment. The price offer was kept stable in the main LTV ranges, even in the difficult pandemic period.

In 2020, the Bank continued its activities to offer special conditions for customers who have credits in CHF, which relate to currency conversion, partial and full repayment of the credit. The Bank continued to proactively negotiate the exchange rate and credit parameters after currency conversion or partial credit repayment. At the same time, it took into account an individual approach to the client’s situation and his expectations.

Prestige is an offer addressed to customers with min. PLN200 thousands assets or PLN10 thousands  monthly inflow. For these customers, Bank enhanced the existing service model by proposing fully remote relationship development. Both traditional and remote service models offer access to an individual expert, supporting clients in daily banking and important financial decisions with parallel digitalization process. The offer includes advanced investment products, provided by Polish and foreign investment funds, as well as structured products with a guarantee of capital protection. Wealthy clients also have wide access to convenient forms of financing their needs.

The condition for entering the Private segment is PLN1 million assets. Private Banking customers can use Millennium MasterCard® World / Elite ™ credit cards with access to the World / Elite Privileges Program, insurance package as well as Assistance and Concierge packages.

At the end of 2021, the Bank was covering 57 thousands clients under the affluent service model.

In the Private segment, the number of clients at the end of December 2021 was stable at the level of 4 thousands.

Business offer is addressed to individuals running sole proprietorship businesses, partnerships and commercial law companies with annual revenues up to PLN5 million.

In 2021, 26 thousands business current accounts were opened as result of:

• utilisation of the capacity to open business current accounts in the Millenet internet banking system for the Bank’s current and new retail clients. In 2021 36% of business current accounts were opened online by using possibility to open accounts remotely via open banking,
• special offers for clients opening business current accounts online,
• increase in the level of cross-selling of business accounts in the Bank’s branches.

The Bank offers a broad range of transaction banking and credit products to Biznes clients, in particular an attractive leasing offer as well as modern internet and mobile banking services.

The value of credits granted in 2021 for Biznes segment customers was more than 2.5-fold increase in comparison of 2020. Usage of de minimis guarantee from Bank Gospodarstwa Krajowego increased significantly with over 80% participation in value of loans granted by Bank Millennium in 2021.

As of 31 December 2021, Bank Millennium had above 115 thousand active Biznes segment customers, posting a 11% y/y increase.

Bank Millennium is one of the leaders in innovation and digital banking, as confirmed by numerous national and international awards, including the title of The Best Digital Bank in Poland in the Global Finance magazine ranking. Electronic channels provide easy access to banking and additional services (VAS). Services in the mobile application and the internet banking system are constantly developed to provide customers with full support and a comprehensive offer available online. The bank cooperates with partners from public agendas, fin-tech and other industries and implements innovations, including those related to the use of artificial intelligence or biometrics. Additionally, the opinions of users of digital channels are monitored and they are included in the process of creating new services thanks to UX-Lab tests, which are a permanent element of the work on each new solution.

In 2021, the number of active users of digital channels steadily increased, as well as the disproportion between customers already using the bank’s services exclusively on mobile devices and those logging in on a computer. Today’s users appreciate full service available on the go and in one place, and Bank Millennium e-banking services give them a single platform on which they can easily manage their finances and daily affairs. Especially young people, accustomed to services available in the virtual world, now treat mobile solutions as a standard. The share of digital channels in the sale of individual products is also growing year by year.

Bank Millennium develops services using an omni-channel approach and focus on mobile solutions in the processes. In 2021 the Bank developed existing processes, but new solutions were also implemented to support customers in daily financial management on mobile device or computer. The Bank also continued the educational activities undertaken with the beginning of the pandemic, aimed at supporting customers in the use of online services. The digitalization project primarily included people who previously preferred to be served at branches. The second important group included in these activities were those who used electronic channels to a limited extent. Customers were targeted by campaigns promoting convenient online solutions also outside banking, e.g. Trusted Profile.

Opening a current account online. Today, new customers can use three online paths to open a personal account in Bank Millennium. The account can be opened fully remotely on a mobile device with „selfie” or by logging into another bank to confirm identity. In these processes, the account is active in about 15 minutes since sending the application. In the third possible path – the customer fills out an online application on the Bank’s website and signs documents delivered by courier. Almost a third of new customers open a current account without visiting a branch, of which almost half confirm identity by logging into another bank.

Credit processes. In 2021, the Bank further improved the credit processes available in online channels and in the hybrid sales model – started in a branch or during a phone call with a consultant and ended with signing an agreement in Millenet or in a mobile app. Apart from the improvements visible to customers, the Bank introduced changes, which facilitate hybrid sales for branch employees and call centre consultants. The share of digital channels in cash loan sales in 2021 was as high as 69% (in 2020 it was 49%). The bank has also introduced a satisfaction survey in the cash loan process. In the survey, customers can express their expectations and review the process. Customers with access to e-banking but without a current account gained the ability to open an account directly on the loan process. 2021 also brought changes to the external debt consolidation process. The bank expanded the process online and in hybrid sales.

Digital mortgage. In 2021 Bank Millennium continued the project of digitalization of mortgage loans. Solutions in this area have been introduced for several years, and the work on digitalization of the application process is currently the most intensive. The Bank designed and implemented a number of facilities that significantly optimized mortgage loan processing and positively impacted the customer experience. Customers applying for a loan can approve the loan application with an SMS code and track the status of the application in the mobile application and in the Millenet web service – each time they receive information when the application status changes. Customers can also use e-operat, which is a convenient, electronic process of property valuation. In November 2021, the Bank made available the ability to remotely attach external insurance policies in e-banking for customers with a mortgage loan.

Investment products. Bank Millennium customers can invest their savings from their computer, tablet or phone. In 2021 the Bank has extended its offer of investment products available online, mainly in the mobile application. Currently in the Bank’s offer are available: individual investment funds of Millennium TFI (for customers from Prestige and Private segments also funds of external companies); ready-made investment plans with different risk levels, and structured deposits. Also MiFID questionnaire can be completed and updated online. Some fund instructions ordered in the branch may be conveniently confirmed by customers via mobile application without the need to sign paper documents.

Mobile Authorisation in branches. In 2021, Bank Millennium expanded the array of instructions that customers can confirm at branches on their phone using Mobile Authorisation, without signing paper printouts.

Bank Millennium used the potential of PSD2 to support innovation and is a market leader in this area. The popularity of services based on open banking is constantly growing. Tens of thousands of our customers have already benefited from them. In 2021, the existing services of account aggregation, payment initiation and confirmation of income and identity were expanded – the availability of other banks in these services was extended. Further solutions were also implemented: a new path for opening an account online and an instalment loan application at partners’ online stores. Additionally, the bank started to use open banking to give customers tailored offers. Based on the history from another bank, we can calculate loan proposals and suggest savings and investment products.

For several years now Bank Millennium has been cooperating with government agencies and playing its part in building digital society and popularizing e-government solutions. Individual customers of the Bank can use the Trusted Profile, log in to PUE ZUS using credential to Millenet, apply for 500+ and 300+ benefits via online banking (from 2022 it will be possible also in a mobile application).

For several months now the interest in online shopping and transactions has been growing steadily, therefore Bank Millennium is developing solutions related to e-commerce and facilitating access to such services for customers. In 2021 the integration of banking channels with the goodie shopping platform continued. Customers can easily access goodie from Millenet and the mobile app, link their payment card to their goodie account and enjoy special discounts, promotions and cashback offers.

In 2021, transaction volume using BLIK was record-breaking. Throughout 2021, more than 1.3 million of our customers (+32% y/y) used BLIK mobile payments at least once. Customers performed 79% more BLIK transactions than in 2020. Bank Millennium actively participates in the development of new BLIK services under the Polish Payments Standard (Polski Standard Płatności).

In May 2021, the Bank, in cooperation with e-commerce partners, made available online instalment loan. The process is based on open banking solutions and can be used by customers of popular stores with household appliances and audio/video devices, who have an account in one of the 8 banks available in the service. The loan process is unique, the bank supports the customer in filling in the application form, and the verification processes take place in real time and in the background, thanks to which the customer can receive the final credit decision right after filling in the application form.

The Bank Millennium mobile application is a modern and convenient platform for managing everyday life. Customers can e.g. pay for parking, motorway or public transport tickets, buy a cinema tickets or insure their vehicle. The app allows for purchase of travel insurance with an innovative travel assistance service. It also allows to update the identity document data and conveniently use credit products or invest savings. It provides access to quick assistance,
e.g. via live chat, or self-locking a lost card. In 2021 a contextual live-chat was made available, on a cash loan application among others.

Huawei Mobile Services. In 1Q 2021, the app was integrated with HMS and is now available on AppGallery. It can be used by customers with the latest Huawei mobile devices.

BLIK contactless. In July 2021 Bank Millennium was the first in Poland to provide customers with BLIK contactless payments. Within six months from the implementation of the service customers performed in this way over one million transactions.

App for Apple Watch. The bank has released an innovative app that can be paired with Apple smartwatches. The application works on the watch independently from the phone and allows to pay with BLIK, confirm transactions ordered online and some instructions ordered at the branch.

Milla Chatbot. The mobile application uses solutions based on AI. Customers can benefit from the support of an automatic assistant 24/7. In 2021, new speech recognition and intention understanding modules were uploaded, which allow Milla to better recognize the words pronounced by users and even more accurately match prompts.

Mobile app for children. In the first half of 2021, the bank released a version of the app for children aged 7-12 with a unique „Ask for pocket money” feature. Upon activation, the app recognizes the user and adapts the version to their age. The app for kids is not only a helpful gadget, but also a tool to introduce children to the world of finance and safe use of technology. Customers have also gained the ability to open an account for a child through electronic channels.

New design and UX. The appearance of the mobile application main screen before and after logging in has been refreshed. Shortcuts to the most popular services available immediately after logging in are a new solution. The mobile application activation process has been simplified. The ability to manage card limits has also been added to the application and management of other daily limits has been made easier.

With the start of the pandemic, the number of scams using electronic channels increased markedly. Since then, the Bank has significantly strengthened its security solutions and cybersecurity education campaigns. Security issues are addressed in a variety of contexts, including when establishing a relationship with a new customer.

Customer education campaigns are conducted using available channels:

• banners on the portal, in the mobile application and Millenet,
• PUSH messages in the mobile application,
• Messages in the contact box accessible from both Millenet and the application,
• SMS messages to customers less active in electronic channels.

The campaigns are refreshed regularly, and additionally the communication is strengthened each time new methods of fraudsters’ activity or intensified attacks on customers are observed. Communication plans and content are the result of collaboration between several departments. Campaigns are targeted both to customers with access to an online account (about 2 million) and to selected groups based on prepared risk profiles.