Customer Relationships

Taking care of the high quality of customer relations, their satisfaction and loyalty are key to building lasting value for all the Bank’s Stakeholders. In 2021, the Bank re-launched customer satisfaction and loyalty surveys covering the most important processes and touchpoints. More than 10,000 customers using services in the branch and in remote and digital channels participated in the research on customer satisfaction with the services provided by the bank. Findings were used on an ongoing basis to manage negative events at the operational and strategic levels. As part of the study of the level of service quality in the facilities, a study of the quality of service of corporate customers and a study of the quality of service of individual customers were conducted. The results of this research were used to improve the services provided by the bank. The research conducted in 2021 targeted customer feedback on satisfaction ratings with the service provided by the advisor, in the branch, on the hotline, and in digital channels and in the complaints process. In 2021, the bank also launched relationship research with Premium, Biznes and SME clients.

In addition to research commissioned by business units, the Bank systematically uses benchmark reports on customer satisfaction, loyalty and service quality in Pekao Bank and competitive banks.

Pekao Group companies systematically improve the procedures and take the necessary measures to respond quickly to customer complaints and to consider them in a way that takes into account the legitimate interests of customers to the maximum extent. This is ensured by internal regulations on the complaint management process, as well as strict compliance with generally applicable laws. The detailed operating procedures for complaint management contained in the bank’s regulations clearly and precisely define the responsibilities and competencies necessary to meet the requirements for handling complaints. Complaints are handled in a fair and objective manner, taking into account all information and documents related to the problem reported by the customer and in accordance with the provisions of the law and agreements concluded.

The process of considering complaints at the Bank is primarily aimed at:

• transparently informing current and potential customers about the possibility of submitting complaints as well as the terms and dates of considering complaints,
• independent, reliable, objective and timely handling of complaints,
• taking improvement or corrective action in the event of any irregularities resulting in a customer complaint.

Complaint Process Indicators:

During the resolution of disputes that may arise in connection with the services offered, customers may use the assistance of the Customer Ombudsperson. The Ombudsperson deals with the most difficult and non-standard cases that require an individual approach and additional legal opinions. Any customer may contact the Ombudsperson if he or she does not agree with the decision regarding the complaint submitted, if he or she believes that the matter is complicated and requires an individual approach or if he or she wishes to make comments on the functioning of the Bank. The customer who is a consumer of the Bank may also apply for out-of-court proceedings before the Banking Arbitrator operating at the Polish Bank Association or before the Financial Ombudsperson.

The companies of the Pekao Group manage complaints on their own, based on the implemented and implemented procedures for accepting and considering customer complaints. These procedures have been defined in the form of internal regulations, included in regulations and contracts concluded with customers or result from generally applicable legal regulations.

In 2021, in connection with the acquisition by Bank Pekao of part of the Idea Bank S.A. enterprise, the process of handling complaints from former Idea Bank SA customers was adjusted to the standards in force at Bank Pekao. Acquired customers were informed about the rules of filing and processing of complaints applicable in Pekao Bank.

Pekao Group provides services in a competent and professional manner. According to the Code of Conduct of Pekao S.A. Group, it is unacceptable to use practices that infringe collective consumer interests, such as:

• failure to provide consumers with accurate, truthful and complete product information,
• application of prohibited contractual terms;
• unfair market practices or acts of unfair competition;
• offering consumers to purchase financial services that do not meet the needs of those consumers or offering to purchase those services in a manner that is inappropriate to their nature (misselling).

Ethical consideration is given to the implementation of new products and services. When offering products and services, employees provide full information about the current offer in a reliable and understandable manner. They explain the terms of the contract and inform about the risks associated with the products and services offered. This area is covered by the provisions of two regulations: Rules for the sale of credit and payment products to consumers at Bank Polska Kasa Opieki Spółka Akcyjna and Policy of sale of investment products. The first relates to the Bank’s activities in the product sales process, as well as general guidelines for advertising products to customers. It also includes an exemplary list of inappropriate practices in the sale of credit and deposit products. Policy, on the other hand, lays down uniform rules for the sale of investment products for all organizational levels of the Bank and introduces consistent assumptions regarding the standards for implementing investment products. Its purpose is to ensure that the Bank acts in the best interest of the client, as well as to mitigate compliance risk and protect the Bank’s reputation.

In addition, as part of the „In Polish, simply” programme, the Bank continues to work on simplifying the content of its messages. In 2021, the Simple Communication Commission was established, which recommends organizational units to simplify specific texts addressed to customers and prepared for the needs of internal communication. As part of the practical activities, over 40 employees took part in the course of plain language consultants led by linguists. Those who complete the course will help other employees create simple messages. They will also participate – as trainers – in an in-house training programme on plain language. The bank also actively participates in the work of the interbank group under the patronage of the Polish Bank Association, whose task is to create standards for straightforward bank documents.

Pursuant to the generally applicable laws and regulations, both the Bank and Pekao Group companies, engaged in offering financial products and services, have in place a number of regulations defining the standard of their operations and setting out the principles to be followed to protect clients’ interests, minimize compliance and reputation risks in selling products and services to consumers. At Bank Pekao, this area is comprehensively regulated by the New Product Introduction Process Policy at Bank Pekao S.A. (hereinafter: New Product Introduction Policy) and the Rules for Developing Marketing Communications of Bank Polska Kasa Opieki Spółka Akcyjna (hereinafter: Principles of creating marketing communication). The standards of offering and selling also define: Rules for the sale of credit and payment products to consumers at Bank Polska Kasa Opieki Spółka Akcyjna and Policy of sale of investment products. The risk of misleading the customer about the product designation is managed through ongoing verification, i.e. through the process of opinion on marketing materials by, among others, the Compliance Department.

The process of giving opinions on marketing materials and official instructions is covered by the Bank’s Internal Control System.

In 2021, there were no cases of non-compliance with the provisions on information and labelling of products and services and no cases of non-compliance with regulations resulting in a warning in the Bank and in the Pekao Group companies to which the disclosure related to the GRI 417-2 index was concerned.

In accordance with the applicable internal regulations, marketing and advertising activities carried out in the Bank and Pekao Group take into account the provisions of the generally applicable law and guidelines of the supervisory authorities, principles of fair trading in the financial market, good manners and customer declarations of intent pertaining to such activities. Moreover, they are carried out in line with the Bank’s communication strategy, while preserving its visual identity and image, adopted internal regulations and the clarity of the communication message. Bank Pekao S.A. observes the principles of the Code of Banking Ethics of the Polish Bank Association and the Canon of Good Financial Market Practices adopted by the Polish Financial Supervision Authority. The Pekao Group’s Code of Conduct emphasizes that each employee is an ambassador of products and services offered both by the Bank and by other entities of the Pekao Group. Professional promotion of products and services strengthens customer confidence and helps build relationships based on mutual respect and trust.

The Bank’s responsible promotion is based on reliable and transparent knowledge about products, including possible risks arising from changing macroeconomic conditions or the activities of regulators. Marketing and advertising activities carried out in Pekao Group take into account the provisions of generally applicable laws and the guidelines of the supervisory authorities, the principles of fair trading in the financial market, good manners, and are conducted with respect for the client’s wishes concerning these activities. The key regulations related to this area in terms of compliance risk assessment are the New Product Introduction Policy and the Principles for Creation of Marketing Communication, which were prepared in connection with the decision of the Bank’s Board of Executives to adopt the Corporate Governance Principles for Supervised Institutions issued by the Financial Supervision Authority. This regulation includes, among others, the basic requirements for the content of marketing and advertising materials, taking into account the nature and specificity of a given product, including: consumer credit, mortgage credit, bank account (in particular savings account, savings and checking account or savings term deposit account), insurance product and investment product.

Bank Pekao shall make every effort to ensure that the advertising message does not undermine public confidence in advertising activities, does not contain content or images that offend commonly applicable moral norms, does not abuse customer confidence by exploiting customers’ lack of experience or knowledge, does not appeal to feelings of fear, does not contain elements that could lead to or encourage acts of violence and, finally, does not condone discrimination, in particular on the grounds of race, religion or gender.

In 2021, Bank Pekao S.A., in order to meet the expectations of its customers in a difficult year marked by a pandemic, decided to launch a number of promotional campaigns aimed at reducing the costs of banking services, such as the campaign for a consolidation loan or the campaign for a free account with an additional Assistance insurance package. In addition, Bank Pekao, as the leader of banking digitization, continued marketing campaigns on the Internet and social media, strengthening virtual social relations with seniors, children and youth.

In 2021, experts and customers appreciated in particular the promotion of the unique product PeoPay KIDS, which is a kind of tool for financial education of the youngest, for which Bank Pekao S.A. received a number of awards, including a distinction in the IAB MIXX Awards – for the product launch of PeoPay KIDS, strategy, creation, execution and use of media, as well as the results and effectiveness of the action and the TOP 5 in the Multiscreen Excellence YT Works Awards for creative use of the YouTube channel as part of a comprehensive campaign, including both traditional and digital media.

In 2021, analogous to the previous years covered by non-financial reporting, the Bank and Pekao Group companies did not report any instances of non-observance or non-compliance in the area of marketing communications.

The Bank and its subsidiaries are bound by the Bank Pekao S.A. Group Policy on counteracting practices that limit competition and infringe collective consumer interests. The Policy defines the basic principles of Bank employees’ actions in compliance with antitrust and unfair market practice regulations and the main tasks of the Bank’s organizational units in this respect. In 2021, the Bank did not pay penalties for violations of collective consumer rights and free competition.

The companies comprising the Pekao S.A. Group in 2021 also had their own regulations in this area, such as: Pekao Direct’s policy on counteracting competition-restricting practices and practices violating collective consumer interests, Policy of Pekao Bank Hipoteczny S.A. in the field of counteracting practices restricting competition and practices violating collective consumer interests, Anti-monopoly Procedure. Counteracting Restrictive Practices and Violating Collective Interests of Consumers (Pekao Leasing), Instruction concerning anti-monopoly behaviours and unfair market practice (DI Xelion).

Legal risk issues related to foreign currency mortgage loans in CHF are included in the Consolidated Financial Statements of the Bank Pekao S.A. Group for the year ended December 31, 2021, note 37. Risk Management, subsection 6.2 Credit risk, paragraph 2) Litigation related to CHF foreign currency mortgage loans.

The Bank is committed to reducing financial exclusion, defined as limitations in access to financial services due to disability. In 2021, a new functionality was introduced, consisting in the possibility of video chat with a Pekao Direct consultant using sign language. This service is available to Pekao Bank customers in the Pekao24 service without logging in.

Additionally, in 2021, 177 direct service branch network employees participated in „Standards of Service for Individuals with Special Needs” training, which addressed the following topics: