Retail banking and Private banking

We are intensively developing digital channels as well as quick and convenient service processes. We seek to enable retail clients to handle almost any matter online. The digitization rate of nearly 100% is one of the key strategic aspirations

The PeoPay mobile application becomes the main channel of contact with the client. We plan to make even greater use of advanced data analytics and modern sales support tools in order to personalize the offer, improve service quality and increase the tendency to recommend our services. The key measure of success that we strive for is a leap advance in customer satisfaction rankings.

In the Institution of the Year 2021 ranking, 15 branches of the Bank were awarded the title of „The Best Banking Branch in Poland”, the award was granted for the quality of service during a visit to the branch.

We can also pride ourselves on the high quality of our infoline service. Pekao Direct took first place in the ranking of customer service quality on bank helplines and in contact by e-mail, the survey was conducted by ARC Rynek i Opinia.

In 2021, we moved up from 10th to 4th place in the „Best Bank for Business” ranking.

In November 2021, we completed the migration process of over 270 thousand Idea Bank customers to our systems.

At the beginning of 2021, we were the first to implement the process of quick company registration in the Central Register and Information on Economic Activity (CEIDG). Thanks to this, a customer with access to Pekao24 can, through one application, register a company, obtain NIP, REGON, open Konto Przekorzystne Biznes or auxiliary accounts and receive a debit card. From the first half of 2021, we also launched this process in the PeoPay application.

In the fourth quarter of 2021, we introduced acquisitions among clients waiting to start a business. We have enabled logging in with one identifier (individual customer ID) to an individual and company account and a quick process of adding proxies for company customers.

We have expanded the offer of payment terminals with modern android portable terminals, which are very popular among customers from all corporate segments. In the business segment, the value of POS transactions increased by 14% in 2021 compared to 2020.

In 2021, the number of active mobile banking customers increased by 355 thousand (+17% y/y) to 2.4 million and was 43% higher than two years ago. The number of active mobile customers using the PeoPay application increased by 386 thousand. (+23% y/y) to 2.0 million and was 49% higher than two years ago.

At the end of 2021, 79 thousand of customers actively used mobile banking for companies, and 222 thousand from electronic banking (an increase by 50 thousand compared to the 2020).

In the fourth quarter of 2021, the Bank’s customers could already use the PeoPay application version.

The PeoPay 4.0 application and subsequent versions were prepared by specialists from the Bank. While we were developing the latest version of the application, we listened to the opinions of customers who tested the application. The developed interface allows very convenient access to accounts and products, but above all, it facilitates everyday mobile banking. In response to customer needs, new functionalities and services will be added to the application, not necessarily directly related to banking.

Our PeoPay KIDS application is dedicated to children aged 6-13 and offers access to the Konto Przekorzystne for young people, the My Skarb savings account and the PeoPay KIDS debit card. Thanks to the application, children can learn to save and manage their own funds in an easy and accessible way, and thanks to the payment card they can make cashless payments in stores and withdraw cash from ATMs. The application also includes the function of a trainer who introduces the child to the world of finance.

The PeoPay KIDS application is connected with PeoPay mobile banking and Pekao24 internet banking, which allows the caregivers to view and authorize the child’s finances. In the panel, the parent can, among other things: check the child’s expenses, view the account balance, set functions that will be visible in the child’s application – phone top-ups or purchase of game codes. And also set a spending limit on the child’s payment card, make a quick transfer or order a permanent pocket money transfer. In the fourth quarter of 2021, customers who opened the PeoPay KIDS Package could take advantage of many attractive promotions, such as: „5.00% to the savings account Moj Skarb z PeoPay KIDS” and „First pocket money to the PeoPay KIDS account”, under which you could receive up to PLN 100. At the end of Decemebr 2021, young customers had 65 thousand PeoPay KIDS packages (+74% increase by 2020), 90 thousand virtual virtual moneyboxes for individual purposes, for which they have accumulated over PLN 34 million. The children using PeoPay KIDS cards made nearly 2.5 million transactions.

The PeoPay KIDS application is very popular among children and receives very high ratings in Google Play and the App Store.

At Pekao24 and PeoPay, we systematically develop self-service processes, thanks to which customers can submit an instruction for a housing loan, student loan, loan, bill or card without leaving home, including a certificate of the amount of debt, issuing a bank opinion or preparation of documents for establishing a mortgage.

We have also developed the PekaoID digital identity and trusted profile services, enabling remote confirmation of the identity of retail clients. Thanks to the integration with the eIDAS National Node, PekaoID activation increased significantly. By the end of 2021, the number of customers using PekaoID amounted to 1,5 million.

From November 2021, through Pekao24 electronic banking, we provide clients with the option of submitting an application for the redemption of the PFR 2.0 Financial Shield

In December 2021, we were preparing to implement the application for the Family Care Capital benefit and the 500+ application, which will be made available to clients from 4 January, 2022.

We strive for business growth in the most profitable market segments, product groups and areas of untapped potential, which will result in improved profitability, i.e. consumer finance and in the micro-enterprises segment. Over the next four years, Pekao wants to acquire over 400 thousand individual customers every year and increase its market share in cash loans from 7% up to 10%. Moreover, we will seek to rejuvenate the demographic structure of the retail customer base. The goal is to acquire over 600 thousand customers under 26 years of age by 2024.

We also focus on digital growth in investment products. By 2024, over 80% of the sales volume of investment funds will be realized in remote channels. We are also strengthening business synergies with the PZU Group, which will result in an increase in sales of insurance products and a twofold increase in the gross written premium by 2024.

The conducted promotional campaigns and an attractive product offer contributed to the good sales result. In December 2021, the Savings Account returned to our offer with an interest rate of 2.5% for 6 months up to PLN 20 thousand.

We have prepared attractive promotions for customers who can sign up for the Mastercard Bezcenne Chwile loyalty program and gain additional bonus points. Customers for recommending Konto Przekorzystne to their relatives and friends can receive a bonus of up to PLN 100.

We actively supported families by accepting applications for 500+ and Dobry Start (300+) benefits, which can be submitted by clients in electronic banking and the PeoPay application. In 2021, we handled 385 thousand applications for 500+ (+11%) and 276,000 o Dobry Start (+12%).

In June 2021, in cooperation with PZU, we introduced the „Comfort Package” to the offer, which is one of the few combinations of banking and insurance products available on the market with such a wide scope of protection. The „Comfort Package” gives customers, among others the possibility of immediate payments and insurance of internet purchases, assistance in the event of a breakdown at home, insurance of personal belongings.

The key factor in the implementation of our new strategy is the growth of the payment card portfolio. At the end of 2021, we handled over 4.6 million cards for individual customers, i.e. by 140 thousand. more than a year earlier. In 2021, the value of non-cash transactions reached the highest level in history and was over 22% higher than the year before. We have carried out a number of initiatives that encouraged customers to use cashless payments, emphasizing their convenience and security. We prepared the EKO Lottery, which promoted non-cash payments and pro-ecological activities. By paying with the card one could win the AUDI Q4 e-tron electric car and 36 electric bikes. The number of EKO Lottery participants was twice as high as in 2020. Part of the profit from transactions made with cards registered in the lottery was allocated to the support and protection of the Rezerwat Wąwozu Homole.

In July, we enabled our clients to fully remotely and quickly increase the credit card limit as part of a ready-made loan offer. Customers can receive an additional card limit after logging in to the Pekao24 online banking or the PeoPay application.

We have extended our offer with Revolutionary Visa Debit FX card and now Revolutionary debit cards are available both in the Mastercard and VISA systems

The Revolutionary Card is a modern multi-currency debit card with a guarantee of the lowest rates. The card is issued to a PLN account and foreign currency accounts can be linked to it. When making a transaction in a foreign currency, the system automatically recognizes the currency and takes funds from the currency account, without currency conversion. If the required amount is not available on the account or the transaction is in a currency that the client does not have, the entire amount will be converted from the PLN account. In such a situation, the holder of a multi-currency card does not incur any additional costs on the part of the Bank – and the currency conversion will be performed directly at the Visa or Mastercard rate.

In 2021, our activities focused on increasing sales in the area of key retail loans, while maintaining a prudent credit risk policy in the field of credit risk assessment and adjusting the lending policy to the dynamically changing market situation.

In the fourth quarter of 2021, thanks to the attractive express loan offer and increased sales, including remote channels, the value of granted cash loans, measured by the net volume, amounted to PLN 4.4 billion in 2021 and increased by +40% compared to 2020. The growth rate in the fourth quarter reached an increase of +9% compared to the previous quarter and +62% compared to the fourth quarter of 2020, with net sales of cash loans at the level of PLN 1.2 billion.

Sales of a cash loan in electronic channels in 2021 achieved a record result of PLN 1.8 billion, an increase of +79% compared to 2020. In the fourth quarter of 2021, we already granted 67% of cash loans in electronic channels. It was possible thanks to the introduction of new solutions and increasing the availability of offers per click for customers. As part of the development of remote processes, we have launched a new, innovative on the market, consolidation loan process per click, which allows you to easily transfer loans from other banks completely online. We also introduced the option of granting a loan per click by a consultant and advisor during a telephone conversation with the client.

From June 2021, we use the open banking functionality in the processes of granting a cash loan, overdraft limits and credit cards, using the account history from another bank to assess the customer’s creditworthiness. As a result, we accelerated the credit process and our clients gained the opportunity to receive a faster credit decision.

We are a leading Bank in the sale of housing loans, in 2021, sales of housing loans amounted to over PLN 10.4 billion (+29% y/y).

We were constantly adjusting the offer of housing loans and consistently improving the processes of granting them and aftersales service. We have implemented the application assessment process in the entire branch network and launched the Partner Platform, which we have made available to selected intermediaries cooperating with us as a pilot. The new Platform supports users in the field of pre-contractual assistance and the preparation of an appropriate Information Form for the client.

We have introduced a mortgage loan with a periodically fixed interest rate, also indexed to a foreign currency, and we have enabled clients to change the interest rate formula from a variable rate to a periodically fixed interest rate (for a period of 60 months). Out of concern for the environment, the Bank also expanded its housing loan offer by promoting ecological solutions.

In the third quarter of 2021, the mortgage loan receivables were transferred to Pekao Bank Hipoteczny for the fourth time. The total number of loans transferred so far is over 7.8 thousand worth PLN 1.4 billion.

In the business client segment, in 2021 the number of loans granted increased by 46% compared to 2020. It was possible thanks to the implementation of the functionality of the new credit workflow, which is a decision-making machine, which allows the entire transaction, including the release of funds, to be completed in less than an hour. The credit decision is made fully automatically and the risk assessment is performed by a system of multi-threaded decision rules. The application can be submitted remotely or by phone without visiting a branch.

Thanks to the guarantee instruments used, over 90% of new financing granted to business clients is covered by a portfolio guarantee, which significantly reduces the risk. Automation of renewals and centralization of service allowed to increase the concentration of the sales network on acquiring new transactions.

From December 2021, business customers who issue deferred invoices for their goods or services can use a factoring product for micro-entrepreneurs („Płynnościomat”). This product allows you to receive cash faster, after the invoice has been issued to the contractor, and not according to the payment date.

In 2021, we expanded our bancassurance offer with new products – travel insurance and assistance insurance as part of the package of services for Konto Przekorzystne. In the area of related insurance, insurance for cash loans can be purchased on the same terms, regardless of the sales channel, and we have also launched the sale of insurance for cash loans via the Call Center. In addition, we made it possible for clients to purchase motor insurance with a special discount in electronic channels. 2021 was a record year in terms of sales – the share of cash loans sold with insurance amounted to 36.4% (+1.2 p.p. compared to 2020), while the share of mortgage loans sold with insurance increased to 95.9% (+7, 5 pp compared to 2020). The premium collected in protective insurance was 58.5% higher in 2021 than in the corresponding period of the previous year, and with investment products – 90% higher.

We are consistently expanding our cooperation with PZU S.A. in the field of assurbanking activities. Already in over 170 PZU branches (an increase by over 50% compared to 2020) customers can open the Konto Przekorzystne, and the number of the Bank’s customers acquired through PZU branches increased by 47% compared to the corresponding period of 2020. Additionally, we launched a pilot new distribution channel – PZU Exclusive Agents and implemented a new product combining the insurance and banking offer, the so-called „karta apteczna z kontem”.

At the end of December 2021, the sum of deposits and investment products held by individual and business customers amounted to PLN 128 billion and was higher than at the end of 2020 by 10%. The largest increase in deposit balances was recorded in personal accounts and savings accounts (+ 18%).

We actively encouraged clients purchasing investment products to use remote channels, offering preferential pricing conditions. In the Pekao 24 system, we have provided clients with a new product – Lokata z Funduszem with an attractive deposit interest rate of up to 1.5% for 6 months and the option to purchase participation units in one of the 5 Pekao TFI funds tailored to investment preferences.

In the fourth quarter of 2021, in the Pekao 24 and PeoPay systems, we provided individual clients with the option to purchase a new product called Lokata z Funduszem with an attractive interest rate on the deposit and the simultaneous purchase of participation units in one of the 5 Pekao TFI funds adjusted to investment preferences.

In December 2021, we launched a promotion for new customers on the Savings Account (2.5% for 6 months up to PLN 20 thousand). The promotion is aimed at customers who actively use remote channels to service banking products. Each new customer may set up a promotional Savings Account together with Konto Przekorzystne or Konto Świat Premium only remotely via Pekao 24 or PeoPay.

We actively encourage clients to use remote channels, in the third quarter of 2021 we made it possible to remotely sign an agreement for receiving orders (the so-called PPZ agreement) regarding investment fund participation units, updating the questionnaire and indicating consent for a durable medium, as well as the possibility of remote opening investment account for the PeoPay mobile application.

From July 2021, former CDM clients have the opportunity to handle mutual funds in the modern Omnichannel Platform application, which offers clients the possibility of placing orders for funds in a branch as well as in remote channels. From September 2021, customers can invest in the new Pekao Ekologiczny subfund from the Pekao TFI offer. The subfund invests in companies from developed markets carefully selected by Pekao TFI – a novelty is the selection of companies, which is made not only on the basis of an analysis of financial factors but also on the basis of environmental, social and corporate governance (ESG) aspects. From September 2021, clients of the Pekao Brokerage House have at their disposal 9 index sub-funds included in the umbrella fund inPZU SFIO. InPZU index funds are funds that follow a given benchmark, the so-called benchmark portfolio, the purpose of which is to provide a rate of return that is closest to a given benchmark. The sub-funds are based on the most popular asset classes, differentiated in terms of investment risk.

The Bank applies preferential pricing conditions to clients purchasing investment products via remote channels. The My PZU shares loyalty program was implemented for clients who have a brokerage account with BM PEKAO and PZU shares.