Poland’s second largest bank shall focus on digital transformation, process efficiency and growth in the most profitable segments. The bank intends to concentrate on young clients and to develop its presence in e-commerce. The bank's development will not stand in the way of generous dividends at 50-75% of net profit.
Customer-friendly approach – crucial for the strategy – will be implemented i.a. via the dynamic development of mobile banking and advanced data analytics. Pekao will enable retail customers to fulfil practically all their needs online – digitalization rate of almost 100% is one of the key strategic aspirations.
"Digitalization is one of our priorities, as there are more and more clients choosing remote channels, and the pandemics has only accelerated this process. We must anticipate their expectations and offer them up-to-date solutions. The transformation will result in a further efficiency improvement.
"Our goal is to restore profitability measured by ROE to the level above the cost of capital. The presentation of the new strategy opens the next stage of growth for us. We have all the tools as well as an excellent team to fulfil our ambitions," says Leszek Skiba, CEO of Bank Pekao.
The new strategy of Bank Pekao is based on four pillars.
“Customer” is the focus of the first pillar of the strategy. PeoPay mobile app will be the main contact point for customers. Pekao’s aspiration is considerable increase in client satisfaction - to be achieved by providing wider availability of services in digital channels as well as fast and convenient processes.
The second pillar of the strategy is defined by “Growth”. Pekao wants to be the bank of first choice for the young and have over 600k customers under 26, by 2024. In general in the next 4 years Pekao expects to attract over 400k retail clients each year and increase its market share in cash loans from 7% to 10%.
The bank targets growth in SMEs segment thanks to the greater use of remote channels, data analytics, simpler processes. These measures should increase its SME market share to 12%. In micro-enterprises sector the bank plans to acquire over 40k customers per year and to increase the market share by 3 pp to 8%.
“Efficiency” is the third pillar of the strategy. Pekao intends to accelerate its technological transformation and take advantage of customers’ migration to remote channels. It plans to speed up credit procedures - to shorten the decision time to 8 days in the case of mortgages and to 1 day for micro-enterprises and SMEs loans.
The fourth pillar addresses "Responsibility". The bank wants to support economic development via governmental and EU programs for economic recovery and climate transformation.
The bank's activity will focus even more on sustainable development factors.
Pekao expects to maintain a safe risk profile and wishes to have one of the lowest risk costs among the largest banks. ■
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