Interview with Mr. Cezary Stypułkowski, Chief Government Officer and President of the Administration Board, mBank

The Polish financial institution that’s at the moment often called mBank started operations in 1986 because the Export Improvement Financial institution or BRE (Financial institution Rozwoju Eksportu) Financial institution. It was listed on the Warsaw Inventory Change six years later. In 2013, the financial institution’s three manufacturers (BRE, MultiBank and mBank) have been unified beneath the mBank umbrella, stressing its dedication to digital innovation, with a specific give attention to cell.

All through its 34-year historical past, the financial institution has made a reputation for itself as being the nation’s most progressive supplier of digital banking options. It was the primary totally on-line financial institution in Poland and has set the tempo of cell and on-line banking within the nation. At this time, this forward-looking common financial institution companies clients in all banking classes and is Poland’s fourth-largest financial institution by complete property and fifth by internet loans and deposits. With greater than two million cell customers, practically 5.6 million retail-banking clients and private-banking purchasers numbering within the hundreds, mBank gives services from retail and funding to business and company in addition to leasing, insurance coverage and brokerage. mBank has unfold out past its nationwide borders and has been current within the Czech Republic and Slovakia since 2007. What’s extra, its spectacular development has been natural—not by way of acquisitions—pushed by shopper demand.

Particularly since its rebranding beneath the mBank title, this inimitable, cost-efficient financial institution appears extra decided than ever to supply its clients probably the most dynamic banking options accessible by way of its digital and cell banking platforms. The financial institution’s department community has been reorganised: “gentle” branches for fast entry to primary companies located in public locations and advisory centres positioned in workplace buildings along with mKiosks in buying malls. The years forward look set to convey additional development. mBank’s group technique for 2020-23 might be summed up within the assertion: “We develop with purchasers and due to them.”

Worldwide Banker was happy to be joined by mBank’s chief govt officer and president of the administration board, Mr. Cezary Stypulkowski. 

Thanks very a lot in your time at the moment, Mr. Stypulkowski…. 

mBank’s acknowledged mission is: “To assist. To not annoy. To thrill… Wherever”. What precisely impressed the financial institution to supply such a singular mission assertion?

Effectively, I’ll say it fairly straight-forwardly—our clients impressed us. We monitor all an important shopper developments every day. Thus, we executed an in-depth evaluation of what truly had been and what can be necessary to our clients and different stakeholders within the upcoming years. We all know (and knew again then) that our surroundings is altering quicker than ever and that its complexity grows every day. We agreed on the three most significant developments: consumer period, mobility period and effectivity period.

As to the primary strategy, we determined that the time of focusing solely on creating and enhancing merchandise has come to an finish. Purchasers are on the centre of our consideration; that’s the reason we must always develop completely merchandise and functionalities which can be straightforward to make use of and appreciated by them. Each interplay between the consumer and us ought to fulfil three important standards: (1) it ought to meet a GENUINE want; (2) it must be EASY AND WITHOUT ANY HASSLE—by way of the channels through which the consumer contacts us in addition to the language we communicate; (3) it must be POSITIVE—it ought to create optimistic experiences and associations with our model.

The second most necessary is the mobility period. We reply to it with “wherever” in our mission assertion. As a result of we need to be near the purchasers. And we need to be handy, accessible 24/7, with a superb self-service cell channel. That is coherent with our technique because the m in mBank’s title stands for cell. This technique has turned out to be very environment friendly as a result of these days, two out of three of our clients select cell apps over on-line banking. Since we added cell funds, we’ve noticed that greater than 40 p.c of all transactions are made that approach. And our clients are probably the most transactional group in Poland. On high of that, our mobile-first and digital-first technique makes us a really environment friendly organisation, with out the burden of bodily branches and the prices related to their upkeep. This confirms {that a} well-prepared data-driven technique might be extraordinarily helpful. 

mBank describes itself as Poland’s first totally web-based financial institution and its pioneer in on-line banking. What does this imply in observe?

To start with, it signifies that we embrace the legacy of the primary on-line retail financial institution in Poland. mBank’s launch within the yr 2000 modified the principles of the sport for the entire banking trade in Poland. Later, in 2013, we made mBank the main model above all of our companies in Poland (we had three completely different manufacturers earlier than). And by then, mBank was already a well-established model that symbolised trendy on-line banking on our home market. Since then, we’ve labored onerous to verify our model’s qualities, and apparently, we’ve succeeded in doing so. We’re perceived as probably the most progressive financial institution, not solely by our clients but in addition by unbiased opinion leaders.

Furthermore, being a web-based banking pioneer additionally has had an affect on our enterprise. mBank is among the most cost-efficient banks in Poland. With a cost-to-income ratio that equals circa 38 p.c (as of third-quarter 2019), we’re an instance to observe. This was attributable to our distinctive enterprise mannequin—from the very starting based mostly on web processes and restricted bodily enlargement. Because of distinctive know-how in on-line and cell banking, we have been prepared to supply digital-first options to our clients. They’ll handle their cash through cell apps. Our mobile-first strategy turned mBank’s DNA. 

One of many 5 values upon which mBank’s Code of Conduct relies is “Seeking to the Future”, whereby the financial institution commits to being open for change and innovation and appears for “new, attention-grabbing options which keep boldly forward of the curve”. What has been one of many financial institution’s current services or products that satisfies such standards?

Again in 2017, we established mAccelerator, the primary fund in Central and Japanese Europe that specialises in creating and commercialising new, fintech-like applied sciences. The purpose of the venture is to create state-of-the-art technological options that assist monetary establishments across the globe to satisfy the challenges of the fintech period. And our aim was to develop into one of many leaders shaping the monetary sector’s digital transformation.

And we already see that this technique is proving profitable. Final yr, we launched a safety venture based mostly on behavioural biometrics—the primary financial institution in Poland to take action. A extremely superior system based mostly on metadata continually measures a buyer’s particular behaviour (typing type and tempo, scrolling, and so on.) when he/she makes use of our web banking system and matches it to the shopper’s profile. If it doesn’t match, we are able to have a safety alert.

This can be a cutting-edge answer, developed domestically in Poland by a start-up that mAccelerator invested in. To me, this biometrics answer represents precisely the hassle-free, UX (person expertise)-friendly and safe banking of the longer term that we’re striving for. As everyone knows, safety is a high challenge when discussing disruptive applied sciences that may be utilized in banking. And we already know the way we wish to discover a stability between comfort and security. 

The financial institution describes itself as having “Poland’s largest organically developed retail banking franchise”. What single greatest issue do you suppose has made this doable? And what’s the most important approach by which mBank’s retail-banking enterprise differentiates itself from the competitors?

That’s true; mBank is a narrative of success. I can say it and nonetheless don’t need to blame myself for boasting about it. We’ve got managed to develop into Poland’s fourth-largest financial institution with out a single acquisition. I imagine this natural development has been doable due to the particular tradition this organisation has. Very vibrant, full of recent concepts, prepared for collaboration, nonetheless looking for new alternatives. Our staff are youthful than others on this trade. Presumably that’s the reason why our organisation is so open and agile. And please observe that I continually say “we”. That mainly is a manifestation of how we understand ourselves on this firm. We’re immersed on this tradition of openness and a way of group. That enables us to realize probably the most bold targets. 

Effectively, Mr. Stypułkowski, you actually appear to be properly in your approach to attaining these bold targets. Thanks very a lot in your time at the moment.