Bank Millennium : Further Digitalisation, Client-centred Approach and Behavioural Personalisation in Bank Millennium’s New Strategy

- In accordance with the new strategy by 2020 Bank Millennium intends to be among the biggest and, most importantly, most effective banks in Poland, which will consequently double the pace of customer acquisition (600 thousand in three years) and shareholder profit leading in the sector. The core of the new strategy is using the organisation's strong points based on five development pillars - said Joao Bras Jorge, Chairman of Bank Millennium. - Thanks to an inspiring workplace based on the agile culture we also wish to win the war for talent and dedicated employees.

5 development pillars until 2020

1. Client-centric approach, i.e. mass-scale quality and personalisation
Customer expectations and their real needs are nowadays largely determined by positive non-banking experience, therefore we want to become the most personalised bank in Poland. Thanks to using Big Data analytics (internal and external data) we have created an advanced behavioural segmentation, practical in business terms. Our offer of financial solutions tailored 1:1 to client needs at the right time and place will be implemented in 2018 (on the basis of an innovative real-time CRM engine, developed in-house).

2. #Digitalisation 2020
We are the leader in digital banking and actively compete for winning a direct relationship with the client in the open banking environment. Our products and services increasingly satisfy and will continue to satisfy finance-related customer needs (assistance in shopping, insurance, public transport ticketing or access to e-government). To remain the first-choice bank we will continue to lead in innovations, explore new platforms and facilitate our clients' daily life.

3. Growing efficiency
Growing cost efficiency is supported by a unique combination of automation, scalability and flexibility. We are already a cost-efficient company ready to scale business with marginal costs and expand our presence in the digital ecosystem. In the next years we plan further automation (potential growth of back office efficiency thanks to using Artificial Intelligence, pilot projects in natural language processing (NLP) and chat-bots).

4. Leveraging of upcoming regulatory changes
PSD2 and MIFID2 put pressure on incumbents, but also create brand new opportunities. Our proven digital and technological skills will be augmented in the near future through cooperation with fintechs. We seek partnerships focusing on expanding our core business, not on investment venture building. We only cooperate in value-added services, especially in the retail and microenterprise segment and innovative and specialised technologies (biometrics, AI, robo-advisory).

5. Accelerated growth
We wish to be a growth leader on an increasingly concentrating market. We are already number one in client acquisition, and in the coming 3 years we want to double this pace and achieve double-digit volume growth in core selected areas. We are also open to new inorganic growth options.

New growth engines:

• Investment products based on the existing affluent service model and potential of digital channels we will direct our offer to individual customers. We will implement breakthrough cyborg- and robo-advisory models to fully leverage the potential of digital channels.
• Consumer loans - we expect the consumer finance market to grow at 6% p.a. Using the possibilities provided by the PSD2 Directive we want to increase our cash loan sales, especially to new clients, by 40% till 2020.
• Business based on the retail banking offer we want to prepare a new proposal for microenterprises employing primarily digital solutions and leasing products. By 2020 we want to increase our client base by 42%.
• • SME & corporate offer will be based on an optimised sectoral approach, sales planning and even better digital offer. By 2020 we want to increase our corporate customer base by 19%.

The Bank wants to achieve its objectives ethically, based on relationships with stakeholders upon the principles of corporate social responsibility.