SBM magazine / 11-2018

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business / banking / SME Banking Club

MAGAZINE

small business banking magazine

mBank’s Ecosystem

for SME customers

ING Business —

an omnichannel platform

for business clients

John Mark Williams:

Business

agility is a

mindset

Digital strategy and

cooperation with fintechs

Key takeaways from

SME Banking Club events 2018

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PROLOGUE

Olena Gryniuk with John Mark Williams

(Agile Business Consortium) during the

CEE SME Banking Conference 2018 in Warsaw

Dear Reader,

In this issue of SBB Magazine, we share key insights and

takeaways (pp. 26-45) from all of SME Banking Club’s main

events in 2018, involving almost 500 SME bankers and experts

from the regions where we have a presence and generating

many fascinating ideas and insights.

For the second year, we devoted a separate panel during our

conferences to discussing cooperation models between

banks and fintechs. We see that cooperation is evolving in the

CEE region. Alior Bank in Poland opened a special space this

September in which, together with startups from the fintech

industry, the bank will implement new solutions under its

RBL_START acceleration program (pp. 8-9). This year BGŻ BNP

Paribas in Poland implemented a “Code for Cooperation with

Startups” – changes that facilitate the Bank’s cooperation with

new companies (p.6). Jelena Đurović (Societe Generale Srbija)

contributed to this issue with the bank’s first collaboration experience with a startup when creating an offer for

freelancers (pp. 10-12).

The topic of digital transformation in SME Banking is a trendy topic all over the world and a guiding theme

through all the articles in this issue. We drew up a Digital Transformation Study with the purpose of analyzing the

digital transformation going on in SME Banking as well as digital strategies that banks have launched in the CEE

region, thereby providing examples of how banks can digitalize services for their SME customers. (p. 5)

Transactional Banking is the main starting point from which banks start their digital transformation. This issue

of the magazine contains key notes from the presentation made by Adam Walendziewski (ING Bank Śląski) during

the CEE SME Banking Club Conference 2018 in Warsaw (October 29-30) about the omnichannel digital platform

– ING Business – launched for SME, Mid Corp and Wholesale customers in Poland, which covers all banking

services and enables the electronic signing of documents (pp. 34-36). ING Business is an impressive example of

the success of the Agile way of working in the bank. It was also implemented in and adapted for the Romanian

market. (pp. 14-15)

In creating an ecosystem of services which go beyond core banking, banks see an opportunity to obtain new

sources of untapped profit and – just as essential – to deepen customer relationships and become an important

partner for small businesses. We talked with Piotr Teodorczyk, Director of the Business Customer Department,

about how this is done at mBank (Poland). (pp. 18-20)

I am eager to see more examples of digital strategies from the CEE region in 2019 as well as more openness to

digitalization and cooperation with startups. Looking forward to it!

I wish you pleasant reading!

Sincerely,

Olena Gryniuk

CEE Regional Director at SME Banking Club

SMALL BUSINESS BANKING MAGAZINE

3


CONTENT

3

5

6

8

10

13

14

16

5 reasons to read this issue…

Digital Strategies in SME Banking

How BGŻ BNP Paribas Bank in Poland

cooperates with startups

RBL_: a new space and

accelerator by Alior Bank

What have we learned

by developing the product

in cooperation with users?

Santander Bank Polska in Poland

will service SMEs through virtual RMS

An offer for Micro and SME segment

at ING Bank Romania

SMEs tend to opt for leased fleets

22

Achieving Competitive

Advantage through Fact-based

management in SME Banking

MAGAZINE

SBB Magazine

Magazine of SME Banking Club

SME Banking Club Team:

Andrey Gidulyan

ceo@smebanking.club

@AGidulyan

18

mBank’s

Ecosystem

for SME

customers

24

26

28

30

32

34

37

38

39

40

42

50

51

Automation of factoring

services for SMEs

Caucasus SME Banking Club

Conference 2018

Access to knowledge

and networking are the primary

needs of small businesses

SME Banking Ecosystem

at TBC Bank in Georgia

SME Study tour to Poland:

Inspired by innovations

ING Business – an omnichannel

platform for business clients

CRM & Digital Transformation

Why and How You Should Digitize

Customer Relationships

Deposit Marketplace for SMEs –

Access to Savings Products

Across Europe

LeaseLink – Leasing as a method

of payment

John Mark Williams:

Business agility is a mindset

CEE SME Banking Club

Conference 2018

SME Banking Club

Conferences 2019

About the SME Banking Club

Olena Gryniuk

cee@smebanking.club

@olenagrinyuk

Alexey Sayapin

cis@smebanking.club

sayapin.alexey

Guest Authors:

Jelena Đurović

Design, layout:

Alexander Kryachko

Sources:

www.smebanking.club

SME Banking Club operated by:

Gidulyan Company Ltd,

61/31, Avtozavodskaya str.,

Kiev, 04114, Ukraine

and

GG Company Sp. z o.o.

ul. Królewska 65a/1

30-081, Krakow, Poland

www.smebanking.club

www.smebanking.events

For details of advertising please contact

us at cee@smebanking.club

4

NOVEMBER 2018


STUDY

Digital Strategies in SME Banking

The importance of becoming a digital

bank is a trendy topic all over the

world and has been discussed and

covered recently by banking and software

experts worldwide in numerous articles,

research papers and other documents

describing digital banking and why it is

becoming increasingly important.

There is no longer any option for banks but to

change the way they are doing business and

launch their digital transformation. This process

goes far beyond launching a mobile app and

includes digitalization of the front-office and

back-office, costs, revenues, the customer

experience, and most importantly, changing the

mindset of the whole organization. It creates a

fully digital ecosystem that cares for and allows

both customers and employees to evolve.

We drew up a Digital Banking Transformation.

SME Banking Strategies Study with the purpose

of analyzing the digital transformation going on

in SME Banking as well as digital strategies that

banks have launched in the CEE region, thereby

providing examples of how banks can digitalize

services for their SME customers.

It is undoubtedly necessary for each bank to

determine what its digital future will look like

as well as to set clear business goals: increasing

revenues, reducing costs and mitigating risks.

Unfortunately, or fortunately, there is no single

ready-made digital banking solution that can

be implemented in every bank, and there is no

single pass on digital transformation. Also, while

making these decisions, it’s always useful to

learn lessons from and see the examples of those

who have already made some progress towards

digital transformation.

The Study is available at

www.smebanking.club

Scan QR code

to download

the full study

SMALL BUSINESS BANKING MAGAZINE

5


COOPERATION WITH STARTUPS

HOW BGŻ BNP PARIBAS BANK IN POLAND

COOPERATES WITH STARTUPS

BGZ BNP Paribas was the first bank in Poland to present

a “Code for Cooperation with Startups” — changes that

facilitate the Bank’s cooperation with new companies

BGŻ BNP Paribas was the first bank

in Poland to present a “Code

for Cooperation with Startups”

— changes that facilitate the Bank’s

cooperation with new companies. From

now on, startups that want to implement

their solutions in the Bank, in accordance

with the introduced “Code,” will do it much

faster and more efficiently in cooperation

with Bank experts and under the care of

a dedicated mentor. As part of the “Code,”

a simplified purchasing process for new

technological solutions and templates

for documents for the so-called Proof of

Concept were implemented.

“The business culture in corporations does not

always create optimal conditions for effective

cooperation with startups and the development

of innovations. Tedious procedures and a

long purchasing process are just some of the

difficulties that startups interested in working

with a corporation face. Having this in mind

and knowing the specifics of new technology

companies, we have simplified the purchasing

process, created templates for the necessary

documents, built a dedicated test environment

and outlined the principles of future cooperation,”

says Piotr Widacki, Managing Director at BGŻ

BNP Paribas Bank. “Startups have a much better

sense of customer needs. We are heading in

this direction. I believe that the Code we have

introduced will bring us even closer,” Widacki

adds.

The “Code for Cooperation with Startups” is

a consequence of the Bank’s consultations

with new companies that already cooperate

with BGŻ BNP Paribas. However, bearing in

mind the best application of good practices

included in the Code, the Digital Transformation

Team, managed by Piotr Widacki, will continue

to consult with the startup environment on

a regular basis, streamlining cooperation

between the corporation and startups as much

as possible.

What does that mean in practice?

We verify the technological

needs of the Bank

We review the Bank’s needs, identify priorities

and define a business owner. Then we form a

team and budget to implement the PoC (Proof

of Concept). It consists of representatives of

business and IT. Finally, we start communicating

about the current need of the Bank.

We connect business owners

with startups

For about two weeks we look for technology

on the market (scouting), and interested

startups are welcome to contact us at startupy@

bgzbnpparibas.pl. Then we help in preparing for

future talks, and selected startups are invited to

meet, including within the framework of Office

Hours. We sign a non-disclosure agreement

(NDA). During the session, each startup has 45

minutes to address our needs.

We work together

on a solution (workshops)

We continue to work with selected startups and

organize workshops (6-8 hours) during which we

work on finding solutions. Then we define the

scope of work, the schedule, planned outcomes

(description of the PoC), as well as the content

and conditions of the order for the startup.

Together, we complete the documents and help

to complete them. We sign one of the simplified

contract templates for Proof of Concept.

We test the solution (PoC)

In the fourth step, we test the chosen technology

in the test environment (sandbox). We define

the time that is needed to test the solution

individually. We draw conclusions from the PoC

and — if they are successful — we continue to

work. We set business goals (KPIs) and specify

the scope of further work.

We implement the best solutions

We verify security and compliance aspects with

obligatory regulations and together create a socalled

business case. We make a joint decision

on the best payment model. We present the

contract model to the startup and get to work.

We care about relationships

The Digital Transformation Team recruits startups.

Each company we decide to cooperate with

receives a dedicated mentor. We help startups

navigate all steps of the process; we give clear

and specific feedback. We assume that the

process from Proof of Concept to implementation

will be closed within a quarter (depending on the

level of complexity of the technology and scope

of its implementation in the Bank).

Detailed information on the principles of

cooperation between BGŻ BNP Paribas and

startups can be found on the Bank’s website on the

startup page (www.bgzbnpparibas.pl/startupy).

Office Hours are part of a simplified purchasing

process, during which Bank experts select

the best startups from the market that have

technological solutions we are interested in.

To date, the Digital Transformation Team has

organized seven events in the Office Hours

series, during which experts looked at nearly

one hundred solutions in the following areas:

PSD2, antifraud, e-commerce for the moto

industry, technologies for the agro sector and

HR solutions. Startups that would like to take

part in such events are invited to apply at

startupy@bgzbnpparibas.pl

Source: BGŻ BNP Paribas Bank

press release of May 22, 2018

6

NOVEMBER 2018


CIS & Caucasus

SME Banking Report 2018

SME Banking Outlook for CIS & Caucasus

region and detailed analysis per countries:

Armenia, Belarus, Georgia. Kazakhstan,

Ukraine. Banking Groups Overview for CIS &

Caucasus region in SME Banking segment

Language — Russian

CEE SME Banking Report 2018

SME Banking Outlook for Central and Eastern

Europe region and detailed analysis per countries:

Bulgaria, Poland, Romania, Serbia, Hungary. Banking

Groups Overview for CEE region in SME Banking

segment

Language — English

Ask for your copy at cee@smebanking.club

SMALL BUSINESS BANKING MAGAZINE

7


COOPERATION WITH STARTUPS

RBL_: A NEW SPACE AND ACCELERATOR

BY ALIOR BANK

On September 12 this year, Alior

Bank — in response to market

trends and customer needs —

opened a special space in which, together

with startups from the fintech industry, the

bank will implement new solutions under

its RBL_START acceleration program. This

space will also be used to carry out surveys

on customer feedback and test new bank

products and services.

Alior Bank’s RBL_START program will last

for three months. The program’s goal is to

develop products and services appreciated

by customers and supporting automation of

the bank’s processes. The best solutions will

be implemented at Alior Bank. During the

acceleration program, startups will develop

solutions in cooperation with bank mentors and

external partners. In a specially designed space

developed by the Robert Majkut Design studio

in the Warsaw Spire building, startups, together

with the bank’s clients, will be able to carry

out tests of their solutions. There will also be

workshops and mentoring on offer. Participants

will also have access to a test environment

with API services related to PSD 2 (Alior Bank’s

Developer Portal). The partners of the program

are PZU, the Warsaw Stock Exchange, Huge

Thing, Mastercard, IBM, Google Cloud, Amazon

and Microsoft.

— One of the determinants of an innovative

company is its ability to cooperate with startups.

By implementing the bank’s RBL_START program,

we will once again prove that “Digital Rebel” is not

a cliché but a real commitment. After testing with

blockchain technology and the Open API model,

we are entering the next level of advancement: we

want to develop solutions that will revolutionize

the market — says Katarzyna Sułkowska, CEO at

Alior Bank.

Alior Bank successfully combines business and

an unusual approach to technology. Together

with the startup VoicePin, the bank successfully

implemented the DRONN artificial intelligence

solution, which supports certain processes

within the bank, including monitoring of key

During an official

opening event in RBL_ ,

September 12, Warsaw (Poland)

customers and higher-risk customers, ROR

closing processes and dispatch of reminder

letters as part of execution processes. Currently,

“Digital Rebel” is in the process of creating a

pan-European platform based on the Open

API model in cooperation with Mastercard

and foreign fintech companies: Raisin and

solarisBank.

With the start of the RBL_START program,

Alior Bank introduced its new brand: RBL_. The

purpose of the brand is to combine everything

that is innovative, digital and fresh. Two entities

operate under the RBL_ brand (short for REBEL):

RBL_START — an acceleration program for

startups, and RBL_LAB — a laboratory for work

on technological solutions.

8

NOVEMBER 2018


Innovations

RBL_START

It took over 80 days, more than 100 meetings

and dozens of teleconferences to choose eight

startups out of nearly 100 from around the world

that applied for the RBL_START acceleration

program within just one month. This difficult

selection process was carried out by the

managers and directors of the IT department

and business units. This year’s edition bears the

slogan ‘Open Banking’ because the profile of

many startups that applied refers to this model.

Among the startups that were accepted to the

RBL_START program, various innovative solutions

were found in the areas of, among others, account

aggregation and expenditure categorization,

robo-advisory, deferred payments, artificial

intelligence and remote verification based on

PSD2 and blockchain technology.

“The Alior Bank Accelerator is a huge opportunity

for startups. Their employees will acquire new

competencies, the solutions presented by them

will be developed in cooperation with mentors,

and subsequently selected projects will be selected

for implementation within the bank or within PZU,

which is the main partner for this edition. However,

that’s not all. Startups participating in the program

can apply for business development financing from

Alior Bank. We also plan a trip to London, during

which our participants will have the opportunity to

get acquainted with the local fintech market,” says

Kamila Wincenciak, FinTech Partnership Manager

at Alior Bank.

RBL_ Space

Modern space in the Warsaw Spire building

is a place where, apart from the acceleration

program, various workshops, meetings, events

and research on the bank’s products and services

will also be organized. These activities are made

possible by a networking space and a special

laboratory.

In the separated space, Alior Bank has created

one of the most modern laboratories in Poland

intended for work on digital solutions, including

research with users. RBL_LAB is a versatile,

flexible place that is fully suited to the process

of building innovation, with smart boards, video

conferencing sets and cameras all provided for

this purpose. The space’s creators were guided

by the idea of an agile approach to projects,

characterized by quick incorporation of the

recommendations of users in the process of

creating solutions.

RBL_LAB is intended to host design workshops,

during which specialists will develop practical

solutions for the bank. Over the next few days,

designers will visualize these ideas or prepare

working prototypes. Final concepts will be

presented during research with users. Thus kind

of activity cycle will significantly reduce the time

required for implementing solutions. It will also

make it easier to identify ideas that are highly

unlikely to meet the needs of customers.

The laboratory will also be used to improve

standard internal solutions, test new technologies

and develop ideas proposed by employees.

Thanks to modern technology, employees from

the headquarters in Krakow and Gdansk will be

able to participate in current activities remotely.

“We want to continually improve our services

and achieve an ever higher level of innovation —

the RBL_ concept should help us do this. When

preparing the space, we also thought about the

market, which — just like us — wants to develop

toward new technologies. This is why in the

new office, apart from the accelerator and the

laboratory, there will also be a networking space.

Educational events and meetings for our customers

will be organized there as well as internal events

that will familiarize employees with the subject of

innovation,” says Marcin Jaszczuk, Vice President

of the Board at Alior Bank.

Source: bank’s Press release

from September 12, 2018

SMALL BUSINESS BANKING MAGAZINE

9


OPINION

What have we learned by developing

the product in cooperation with users?

Jelena Durovic

Segment manager in the Marketing Division

at Societe Generale Srbija

By vocation, I am a specialist in the field of banking

and finance. By experience, I am an expert for small

business lending, marketing, and CRM with over

15 years of engagement in the Serbian banking

sector. By carrier goal, I am a digital transformation

enthusiast eager to show that banking is not only

about cash, queuing and figures but also about

innovation, team spirit and partnership with

clients, startups and other stakeholders that are

on the same mission of changing the world. In

essence, I am a true supporter of entrepreneurship.

I’ll admit something ... the Special offer

for freelancers-contractors, registered

as lump-sum tax entrepreneurs, was

not created on purpose. At least not at the

beginning…

The story about the development of SINHRO

package is a fascinating one and a good

example of how we should always be open to

hear about new ideas and meet new people

from different backgrounds and industries even

when we have no clear expectations from those

activities. Everything started with the SGS and

ICT hub partnership contract. The initial idea

was that we should foster a connection with the

ICT community and interaction with startups to

adopt some new advanced business principles

and push for innovations in all fields, to work

efficiently and purposefully. Of course, the

idea was also to prepare a banking offer for the

community that we were working with at that

time. At that moment, all we saw were startups,

so we began by focusing on them. We had many

conversations and one-on-one meetings with

representatives of this segment, which helped

us learn about their challenges in Serbia, and

not only concerning banking. The turning point

was when we met Sofija Popara and her team

from Clever DOO. They were already developing

web application PAUSAL for easy administration

of lump-sum tax entrepreneurs at the time, but

still without MVP.

Getting to know the community allowed us

to understand what kind of problems they

were facing.

At the start of our cooperation, the initial idea

was to enrich the general offer for the segment

of lump-sum tax entrepreneurs, which was

already a significant part of our client base.

Nevertheless, in the meantime, we understood

that there was also a specific sub-segment of

clients whose needs were completely unserved

on our banking market. They are freelancerscontractors

that are registered as lump-sum

tax entrepreneurs, and work mostly as experts

in the fields of ICT and digital technologies, but

also as lawyers and consultants in various areas

of business.

Their main problem is that, even though they

have regular and significant revenues, banks

don’t have an understanding of their flexible

engagement in the companies they work for. In

other words, they couldn’t think about applying

for a mortgage or car loan because most of

the banks require a permanent employment

contract or reduce the amounts of potential

loans by complying with the tax base. Anyway,

not all the contractors are interested in loans

right now, so besides Aspirin (loans) we also

prepared Vitamins, which is just a way of saying

we made some upgrades in our existing e/mbank

applications to satisfy the daily banking

needs of these clients.

Now we have the opportunity to monitor and

perform transactions on all of a client’s accounts

in one location, no matter if they are personal

or business accounts linked to their lump-sum

tax entrepreneur entity. This is something we

recognized as functionality that would mean

a lot to this segment of clients, and it turned

out to be the right thing to do as it was very

well accepted in the community. After Aspirin

and Vitamins, we added beneficiary usage of

PAUSAL application and advantages of the

digital bank that we launched a year before to

the basket, and we had something that should

be offered to the market as soon as possible.

We consciously launched MVP and followed

client reactions.

We decided to launch SINHRO on February 7th,

knowing that the package would continue to

develop. Two months later, we introduced a

new native m-banking application which also

featured new SINHRO functionality so that

at that moment all those advantages were

available to clients even on the go.

As time passed, we were more and more aware

of the specific needs of clients in this segment

and various models of their professional

engagement, so with that knowledge we were

also adapting to them and being more flexible.

That is the essence of agile development. We

are investigating the market, offering MVP that

covers the basic needs to see whether clients

will use the product, then follow the reactions

with great interest and finally adapt in line

with the feedback and upgrade our basic offer

accordingly.

The traditional way of creating products was

gradually abandoned in the Serbian banking

industry over the last ten years and so, in a

10

NOVEMBER 2018


Innovations

way, it led banks to be oriented towards clients

and segments instead of products. Everyone

understood that the client was the center of

attention and that we needed to adjust the offer

to their needs.

From that perspective, we concluded that

clients did not need some new generic banking

products, but packages and conditions that

were tailor-made to their lifestyle.

And that is precisely what differentiates banks

on the market today: the way they bundled

the same generic products and how they

communicate with different client segments.

Internally in SGS, we spent more than five years

developing our segmented approach, but

naturally, the focus at the beginning was on

those that were making the most of our client

base – businesses.

With time that picture changed, so we now have

a much more complex scheme of segments that

we identified and for which we have developed

a dedicated offer. After a strategic decision

to digitalize and innovate our business in

subsequent years, we were heavily researching

the market and, through interaction with the

community that is most active in that field, we

had the opportunity to meet more of those

interesting segments which are now equal to

those that have been in our catalogs for more

than 40 years.

We had startup partners.

I have to admit that one project like this was

not easy to manage. Teams and tasks were not

clearly defined at the start, nor was the goal,

which, as I explained, changed along the way.

Co-creation with clients was the primary model

of doing things, and on that front, we couldn’t

have made it without the team from PAUSAL

because they already had significant experience

with that segment, apart from the fact that all

of them were working for Clever as contractors

and lump-sum tax entrepreneurs. That fact itself

was jumping out of the box and the standard

way of doing things since the package was

developing together with our partnership with

PAUSAL and Sofija Popara.

We knew at that moment that we were on to

something, but before finalizing the offer and

taking on too many costs, we needed proof

that our concept was accurate. We prepared the

survey and distributed it through our startup

partner network so that we could be sure

that our focus group consisted of the specific

clients that we were targeting. The survey

The SINHRO package is a unique banking offer for independent experts/contractors and

freelancers in Societe Generale Srbija.

Targeted to entrepreneurs registered as lump-sum tax sole proprietors. The value proposition was

developed through co-creation with clients, and our startup partner PAUSAL and its main features are:

• Individual & Business banking account aggregation on one banking platform/app

• Financing owners’ private needs

• Benefits in using the PAUSAL partnership application

• Other digital services developed the for retail segment

Innovative elements of the SINHRO Package:

• The first bank in Serbia to discover and address contractors as a new and growing segment of

freelancers. Scan the QR code to watch the info-graphic about the segment, their needs and the

main features of the package we offered

• Successful co-creation with the startup ecosystem resulting both in the relevant offer and

powerful market positioning

• Establishing and proving that there is a win-win business model of bank/startup partnership -

NEW – in May 2018 we launched SoGe PAY in PAUSAL, in-app payments integrated via API for all

SGS clients of the SINHRO package

was completed by 100 clients, and it gave us

confirmation that we were on the right track.

Teams in the bank were divided according to the

elements of the offer so that one was working

on loan conditions, another on developing

dual packages, the third on developing e/mbanking

application, the fourth on training

issues and internal communication, external

communication and so on.

Managing those teams was even more

challenging because the first task was taking

the time for all the team members to get familiar

with the new segment, and after that to explain

the mission to make our banking offer easily

recognizable.

From unsatisfied client to beta tester.

Not only was this product innovative in our bank,

but it was also and continues to be a significant

innovation on the entire market. Many outside

of the community can’t understand fully the

way this segment works. Bankers usually are

not part of this community. Knowing that we

couldn’t change that fact overnight, we decided

to go slow, and start only with several branches

in the two biggest cities where the population

of this segment was the largest.

We started as a pilot, with a group of 30 people

with whom we worked intensively to ensure

that the start of the SINHRO offer was also

supported by a ready support team.

SMALL BUSINESS BANKING MAGAZINE

11


PAUSAL

Pausal is a fintech app for business

management of a contractor on a daily

basis, reducing administration and

paperwork and all of the hurdles that come

along with it.

You can think of it as a virtual, automatic

accountant for entrepreneurs, available

24/7.

Main features:

1. E-invoice

Issuing invoices, in domestic and foreign

currencies, with an overview of all charged

and unpaid invoices. This also includes saving,

canceling, copying, printing and sending

invoices to customers via email.

At all times, users have access to their customer

database, both domestic and foreign, which

is used to generate customer information on

every document automatically.

2. Income

Every invoice created is automatically

generated in the Book of income, which is

available for downloading and printing.

The app tracks all of the relevant limits for

turnover, making sure the contractor is

maintaining this status and there are no

changes in the business.

3. Taxes

The user is given an option to onboard the tax

system, which is further analyzed by a team

of professional accountants, and provided a

solution for the relevant obligations.

They also have an option of adding, managing,

seeing an overview of and printing payment

orders.

These payment orders are used for transactions

and are connected with a feature SoGe Pay that

enables payment of these payment orders.

4. Analytics

It provides business analytics, which includes

statistics (per payment, per customer), an

overview of receivables, a comparative overview

in the selected period, customer evaluation, the

risk of exceeding limits based on past business

turnover and export to an Excel file.

SoGe Pay also provided corresponding statistics

for all transactions and reports per expense type,

the transaction period and customers that have

been paid.

Approximately 78% of our SGS users have

executed a transaction by using the app and

SoGe Pay at least once.

The numbers are proof of success. SGS users

invoiced around EUR 3,607,866 in 2017; in 2018,

this figure increased to EUR 18,163,279, which

is a perfect indicator of how this feature has

affected the entrepreneur community.

5. Health Insurance

PAUSAL fills out the necessary forms for

registering and canceling health insurance and

informs when and how health insurance should

be extended.

6. My Company

All data about the company and the owner are

collected here. Once saved, data are used to

generate all of the invoices, forms, documents

and transfer orders.

Additionally, it stores documentation, thus

keeping everything that is relevant to the

business in one place.

7. Support

The app provides email notifications to inform

about the expiration of health insurance,

changes in relevant laws, exceeded limits and

tax payments and contributions.

We also provide 24/7 support for the application,

as well business consultancy.

Moreover, as we expected, some beginner

mistakes appeared very quickly and I mitigated

even more rapidly to maintain credibility with

our early adopters. The target group for our

product were mostly young professionals,

experts on programming of web and mobile

applications and process designers... so they

were very critical of our product. But every

feedback we received was essential for us

because it was highly constructive and in line

our intention to enable all of those benefits and

applicative functionalities that they were lacking

in other banks.

One interesting example was when we

experienced a very unpleasant situation due to a

bank process mistake, which was soon described

in a Facebook post by an unsatisfied client. With

active engagement in communication with our

clients on social networks and an agile approach

in problem-solving, we managed to solve this

issue and invited this client to be a beta tester

for future projects on the SINHRO package,

which he gladly accepted.

User comments mean more to us than any

other research.

Development is, on one hand, internally driven,

because the bank is wholly devoted to the idea

of digital transformation of its processes to be

more efficient. On the other hand, it is essential

to delegate people and other resources precisely

to those projects that the market needs the most.

SGS is increasingly involved in activities of the

ICT community and we won’t change that trend

for two reasons: first – that’s how we maintain

contact with the source of entrepreneurial

enthusiasm and innovations, and second –

we maintain a source of information that is

invaluable when it comes to development of

our offer for this market segment. Open and

informal conversation with some freelancer is

valuable for us and a much better barometer

of satisfaction than any other formal survey or

research by a renowned company, which we

will definitely use as well, but for other purposes.

To sum up: without intensive cooperation with

clients, this product wouldn’t exist at all, nor it

would have any future. Most possibly, it wouldn’t

even be called SINHRO, because that name was

also chosen by our clients, even though it wasn’t

a favorite among bankers.

Jelena Đurović

Segment manager in the Marketing Division at

Societe Generale Srbija.

12

NOVEMBER 2018


Innovations

SANTANDER BANK POLSKA IN POLAND

WILL SERVICE SMEs THROUGH VIRTUAL RMs

Santander Bank Polska has launched a

pilot project that will provide services to

SME customers through virtual relationship

managers (virtual RMs).

T

he project will enable entrepreneurs to quickly and conveniently

contact a virtual RM by telephone or through a computer,

laptop or tablet from anywhere in Poland and around the

world. Virtual RMs can also offer access to more products that were

previously unavailable through remote channels.

— “The owners of small and medium-sized enterprises appreciate having quick

access to banking services, as well as our individual approach to their needs. Our

goal is to provide them with the best experience in both these areas, which is why

we have been systematically developing and improving how they can contact

us, as well as offering multichannel support. We are focused on making full use

of the potential of remote channels and building long-lasting relationships with

customers. We aim to ensure that entrepreneurs can always contact the same

relationship manager, who will be informed about matters related to their

business. As a result, we will not only shorten the time needed for customer

service, we will also make corporate banking go even further,” says Michał

Hackiewicz, Head of SME Digital at Santander Bank Polska.

Through Bank’s virtual RM service, every SME customer will be assigned to a

specific RM, who will be responsible for providing comprehensive customer

service through remote channels.

Thanks to virtual RMs, SME customers will also be able to benefit from

expanded product offer available through remote channels. Among other

things, RMs can help customers get a loan, open a new account, change their

transaction limits in the online banking system, apply for a POS terminal or

leasing, obtain any necessary certificates, and answer questions about the use

of the transaction system, mobile app or payment cards. For customers who

value direct contact with bank employees, virtual RMs can arrange a meeting

at a Santander Bank Polska branch at a time that is convenient for the customer.

Customers can contact a virtual RM quickly and easily using tools offering

direct video or chat functions. In addition, Bank’s systems will automatically

connect the customer with their dedicated RM once their identity is verified.

Customers can also contact their virtual RM by e-mail.

Source: Bank’s press release of May 11, 2018

Extra Questions from SME Banking Club

What is the primary target of the pilot?

The primary goal of the pilot is to match the new

customer service model to their expectations.

We know from research and initial observations

that over 75% of the selected group of

customers would be happy to use remote

services.

The second important indicator is NPS. We

expect that within six months, the percentage

of customers who will recommend the bank

and open business accounts with us will grow

significantly. The predicted change in customer

behavior is also essential, and will translate into

increased activity in remote channels.

How long will the pilot last? Is there any

concrete end date?

The pilot is divided into two parts — the first

will last till the end of July, and the second until

the end of November 2018.

The press release states that each SME

customer will be assigned to a specific RM.

So we have two questions here:

• How many customers are assigned to

each Virtual RM? And how exactly is the

assignment done? At the moment a customer

contacts a Virtual RM or beforehand?

Each Virtual Manager will have 3-times more

customers in their portfolio than RM on the

branch. RMs support selected regions in

Poland corresponding to the current branch

division, which means that we are based on

regionalization. It’s crucial for RMs to know

their customers, their needs. Regionalization

will facilitate this task because the SME market

is diversified and we see different behaviors

in different regions. We are also considering

differentiation by sector in the future.

• How is it possible that one specific Virtual

RM can serve a customer through remote

channels that are available almost 24 hours

each day? Or are Virtual RMs only available

during working hours?

Virtual RMs work similar hours as RMs at the

branch. In the pilot, we test the service solution

during working hours from 9:00 am to 6:00

pm. However, we have already seen that

some customers prefer to contact the Bank

at different times. So, we will be flexible in

meeting customer needs.

Do you expect the profitability per SME

customer to increase as the result of the

virtual RM launch? What will the main

drivers be in that respect?

An increase in service satisfaction always

translates into an increase in profitability from

the services and products offered. First and

foremost, the most important thing is to build

relationships with customers and gain their

Michał Hackiewicz,

Head of SME Digital at Santander Bank Polska

trust in the new RMs. Profitability will come

after some time. For me, the primary indicator

will be the number of incoming calls to Virtual

RMs in available channels. This will mean that

the customer, having the need, expects the RM

to solve the problem from start to finish without

unnecessary delay or sending the customer

elsewhere. Many of these customers have

pre-approved credit limits which, as everyone

knows, are among the most profitable banking

products.

SMALL BUSINESS BANKING MAGAZINE

13


INNOVATIONS

AN OFFER FOR MICRO AND SME SEGMENT

AT ING BANK ROMANIA

ING Bank, the sixth largest bank in the Romanian banking

system in terms of assets, has recently launched several new

products for its SME customers.

The latest is an instant credit line,

called ING SRL, which provides financing

of up to lei 350,000 (EUR 76,000) to

companies with a turnover from EUR 20,000 to

EUR 2 million.

The product is targeted to micro and small

companies registered as limited liability

companies (LLCs), for both existing customers

as well as for new clients to the Bank.

The credit line will be granted until further

notice, with annual revision of financial standing

of the companies, based on signed agreement

to interrogate fiscal authority database.

Pricing is similar to existing facilities granted to

this segment and all-in margin may vary from 5

to 10%, depending on financial standing of the

company.

The product is available instantly due to

automated checks via ANAF (tax authority)

databases, the Credit Risk Center, the Payment

Incident Center (for companies), and the Credit

Bureau (for Associates, Administrators and the

Sole Entrepreneurs), as well as other instant

checks in any ING Bank branch.

“This new verification algorithm will become the

standard process for assessing credit applications

of all kinds for micro and small companies.

Practically, the external verification algorithm

underlying each evaluation process will be

applied to any credit file from now on, thus

reducing the response time and money transfer

to the customer account,” said Maria Cenusa, Tribe

Lead for Micro-Companies at ING Bank Romania.

Today, credits are granted within at least 1 ½ -2

weeks. With the new analysis model, the loan is

granted within a few minutes.

“The value of the product is not that they receive

an instant loan, but the convenience we offer to

our customers, which avoid the hassle of bringing

lots of documents, coming several times to the

bank for follow-up, etc.,” Cenusa said.

Bogdan Boteanu, Deputy General Manager

of ING Bank Romania and Head of Mid-Corporate Banking

A customer can receive the credit line ING SRL

in two ways:

1. One single visit: customers can go with all the

process at any ING Bank branch

2. To apply online via the bank website, fill in

the required information and submit it. An

ING consultant will contact the applicant

quickly to confirm the application. Then, the

customer should visit the ING branch of their

choice to complete the credit application and

sign the loan documentation.

14

NOVEMBER 2018


Innovations

Every month, the customer should repay 10% of

the credit line limit, as well as the accumulated

interest and administration fee. The limit is

replenished the next day.

The collateral for the loan is a pledge on the

customer’s current account at ING Bank, plus

the personal guarantee of all shareholders with

at least 25% of the shares.

“ING Bank’s strategy is to provide a better,

distinctive experience to its customers. And

this means listening to them better, seeing

what they need today and anticipating what

they will need tomorrow. And what we have

noted for the SME segment is that people need

time to balance their personal and professional

life. They need to remain in control of their

business wherever they are, at any time,” said

Bogdan Boteanu, Deputy General Manager of

ING Bank Romania and Head of Mid-Corporate

Banking.

In addition to the credit line, ING Bank Romania

offers instantly to small companies the current

account, debit card and credit card (ING Business

Credit Card).

At the end of 2017, ING Romania entered

the credit card market with a micro-business

product, the ING Business Credit Card,

which can be issued in any ING Bank’s branch

to clients regardless if they already have or not

a history with ING. The credit card limit is lei

35,000 without the need to provide additional

documents and is guaranteed with pledge on

current accounts. The credit card can be granted

on the spot, without financial documents,

and the card can be picked up any time at the

branch, or within a few days if the customer

applies for an embossed card.

In 2018, ING Bank Romania launched ING

Business, an omni-channel online banking

platform, dedicated to Mid-Corporate Banking

customers, companies with a turnover of

between EUR 0.5 Mio to EUR 100 Mio. Through

ING Business, business customers have 24-hour

access to all banking products and services,

accessible from any desktop, laptop, tablet,

smartphone or smartwatch.

The ING Business system for the Romanian

market is implemented based and adapted on

the ING Business platform launched earlier at

ING Bank Śląski in Poland.

SMALL BUSINESS BANKING MAGAZINE

15


INTERVIEW

SMEs tend to opt for leased fleets

Marcin Balicki,

CEO at Millennium Leasing

(Poland)

Olena Gryniuk talked to Marcin Balicki, CEO at Millennium

Leasing (Poland), about the development of the leasing

market in Poland and how Millennium Leasing approaches

SME customers.

volume and 18.9% in terms of value), heavy

road transport (39.4% in terms of volume and

46.5% in terms of value) as well as machinery

and equipment (21.8% in terms of volume and

30.8% in terms of value).

How many of your leasing deals

are you concluding with SME

customers?

This year more than 35% of our business

(understood as new leasing agreements) comes

from customers in the SME sector. However, it is

worth pointing out that we’re experiencing an

increasing trend within this scope, due to the

fact that for a number of years we have been

developing our operations in the SME and Micro

sectors by transferring transaction execution

and transparency of terms standards to those

sectors from the corporate segment, where

we’ve always had a strong presence.

What equipment do SMEs buy and what is

the main leasing product they choose?

When it comes to Millennium Leasing,

the structure of agreements concluded by

companies from the SME sector is quite

balanced. The largest share is attributable to

vehicles up to 3.5 tonnes (37.5% in terms of

This August, Millennium Leasing announced

the signing of a loan agreement with EBRD

under the PolGEFF project (Polish Green

Economy Financing Facility), the main part

of which should be granted to SMEs for

investments related to energy efficiency or

renewable energy. What are the projects

that you will consider and how many SMEs

you plan to finance under that project?

Our commitment to financing energy saving

investments goes back years. We have been

taking part in various programmes (such

16

NOVEMBER 2018


Interview

as PolSeff ) and we’ve also established our

own product lines. Leasing EkoEnergia is one

such product, where, using our own funds,

we provided co-financing for investments in

energy-saving machines to our customers.

And we do not only perceive these actions as

favourable from a CSR perspective — they are

also thoroughly justified from a business point

of view. Essentially, such investments do more

THIS YEAR MORE THAN 35% OF OUR

BUSINESS (UNDERSTOOD AS NEW

LEASING AGREEMENTS) COMES FROM

CUSTOMERS IN THE SME SECTOR

than just contribute to a reduction in energy

costs: frequently, nowadays when we are

experiencing increasing problems associated

with availability of qualified staff, they allow

our customers to sidestep this barrier. The

agreement with EBRD concluded this year is

yet another step in that direction. The PolGeff

programme assumes financing of a wide

range of investments associated with energy

efficiency or renewable energy, encompassing

investments associated with improving the

energy efficiency of buildings, investments in

equipment, systems and processes which lead to

significantly improved efficiency in terms of the

consumption of energy, water and raw materials,

as well as investments which promote the use

of renewable energy sources. Within the above

scope, we provide an opportunity to employ

leasing financing wherever it is feasible, taking

into account the purchased assets. We are not

guided by quantitative targets (understood as

the number of companies who take advantage

of the programme), but rather we are looking to

make use of the entire available amount of PLN

300 million as quickly as possible. I think it will be

possible to achieve that by the end of the year.

What is the process for SME customers to

get a lease deal with Millennium Leasing?

How long does it take from the very

beginning to signing the agreement?

Processes, their transparency, usability for a given

organisation and duration are some of the major

competitive factors today. The leasing agreement

conclusion process is diverse not only on account

of the customer segment, but also due the type

of asset to be financed, the

cooperation history we have and

the overall amount committed to

financing.

For most leasing transactions

in the SME segment, we are

able to provide a financing

decision within seconds. For

a number of reasons, such

a radical reduction of the

time required to complete

the subsequent stages is not

as simple. Firstly, pursuant

to Polish legal regulations, a

leasing agreement is invalid

unless drawn up in writing.

Secondly, executing a leasing

transaction, as opposed to

a loan, entails more than a

simple financial operation

— it requires an interaction with the asset

supplier (conclusion of an agreement and its

verification, insurance of the subject of the

lease, and for vehicles — registration with

vehicle licensing authorities). However, these

processes can also be accelerated. Results we

can be proud of include doubling efficiency

(the volume of transactions per back office

staff member) and reducing the time required

to complete certain types of transactions by

between 20 and 50%.

Which steps of that process are digitalised?

The process for credit decisions for a

significant share of transactions in the Micro

and SME segment is fully digital (with the

exception of entering basic customer data

and information on the leased asset). Other

areas where we are introducing digitalisation

primarily lie within the sphere of internal

processes aimed at improving efficiency.

For customers, this means waiting times for

completing transactions are reduced. We

believe that digitalisation is a process that

has to be sustainable and well thought out.

In this case, sustainability means that we have

to ensure a smooth process for transactions

initiated within mass distribution channels.

Ease of access to leasing and credit decisions

has to go hand in hand with satisfactory

operational efficiency.

We talked about digitalisation in the

leasing industry last year (read the

interview in SBB Magazine, September

2017). What has changed on the Polish

market during this year? Have new

initiatives appeared since then?

There is always a feeling that more could

have been done; however, looking back on

the last year — we have plenty to be proud

of. Independent of projects completed by

various firms, the Polish Leasing Association’s

digitalisation group meets on a regular basis.

I do believe that we will shortly commence

a joint project on structured invoices. In

April this year we also organised the first

E-Leasing Day conference, with Minister

Anna Streżyńska in attendance, during which

the possible development directions were

discussed among individuals responsible for

IT, processes and products from all the major

leasing companies in Poland. We also had an

opportunity for an in-depth discussion with IT

systems and solutions providers.

What do you think the near future holds

for the development of the leasing market

in Poland?

Changes in regulations pertaining to leasing

announced by the Ministry of Finance have

caused a lot of uncertainty. It is difficult to

predict how these will affect the leasing

market. Certainly passenger vehicles are such

a significant part of it that these changes will

have a major impact on next year’s statistics.

From the point of view of Millennium Leasing,

we are not overestimating hypothetical risks

associated with the new regulations. Our

observations suggest that for years leasing

has ceased to be used as a tax reduction

instrument by customers and has become a

method for financing investments on par with

loans. And within that scope, the attractiveness

of leasing, the ease of obtaining it and the

support which customers can expect to receive

in negotiating with suppliers remain stable.

All these advantages mean that apart from

temporary turbulence in the vehicle financing

segment, leasing should continue to grow at

double-figure rates.

SMALL BUSINESS BANKING MAGAZINE

17


INTERVIEW

mBank’s Ecosystem for SME customers

Olena Gryniuk talked to

Piotr Teodorczyk, director

of the Business Customer

Department at mBank

(Poland), about creating

SME Banking Ecosystem

and the way mBank

approaches SMEs.

Piotr Teodorczyk, director of the Business

Customer Department at mBank (Poland)

started his work at mBank in 2005 as a

relationship manager for business customers at

the MultiBank branch.

He is a graduate of MBA studies for financiers

at Kozminski University and completed doctoral

studies at the Collegium of Management and

Finance at the Warsaw School of Economics.

Proving himself a successful leader, he created

and implemented SME initiatives within the

framework of the One Bank Strategy. He is an

ambassador of empathy and client-centricity.

Knowledge, experience, and attention to

customer needs are the foundations on which he

builds his strategy.

Who are your SME customers (in

terms of revenue, sector, age,

etc.)?

Our client base is mainly made up of micro and

small enterprises, run as sole proprietorship

businesses. mBank’s SME accounts are

particularly popular in the professional,

e-commerce and retail industries. 67% of our

new clients from 2018 are people aged 31.

However, we also noticed a gradual increase

in entrepreneurship among people under the

age of 30. mBank’s clients are independent

and value convenience — almost half of

them applied for a company account via

remote channels (internet, contact center).

What’s more, over 1/4 of all company account

agreements were concluded remotely in 2018.

Piotr Teodorczyk,

Director of the Business

Customer Department at mBank

(Poland)

18

NOVEMBER 2018


Interview

You have a whole

ecosystem for SME

customers within the

bank, starting from the

very first step: customers

can start a business with

you, taking advantage of

mPower Business Starter,

which allows businesses

to be registered via

the bank’s website,

then to automatically

open current account

and deliver all banking

products online to

providing accounting

services to the customers.

Could you please tell us

in more details about the

SME Banking Ecosystem

within mBank?

The main idea behind the

ecosystem is to help new

entrepreneurs with the

challenges they face in their

daily lives. We want to allow

them to concentrate on their core business

and take from their shoulders the most difficult

aspects of managing a company. Naturally,

the accounting system comes to mind

first of all, since the accountant is the most

important person cooperating with a new

businessperson. It’s crucial for a company to be

able to entrust its accounting to a trustworthy

and competent person. But how do you find a

suitable accountant? How can an entrepreneur

know that a given accounting service is

reliable? Young businesspeople have to find

answers to these questions, because the whole

company is at stake. Thanks to mAccounting,

entrepreneurs don’t have to worry about

that, as mBank provides them with complex

accounting assistance without them having to

leave the house.

What’s more, entrepreneurs don’t have to

deliver any invoices or any other documents

to the accounting office, since the accountant

has access to all the necessary information

through the mBank’s system, which means

fewer mistakes and misunderstandings.

Another advantage of mAccounting is the fact

that the accountant communicates with the

client through Task Center — mBank’s calendar

for entrepreneurs. The accountant creates a

task within Task Center, and the client receives

a push notification on their smartphone. It

takes only three clicks to pay tax or social

insurance, since the accountant fills out all

the necessary information, and the client only

has to accept the transaction. As a result, they

save precious time and enjoy guaranteed and

consistent service quality.

For the vast majority of our clients with

sales-based business, points of sale are an

essential part of their work. In Poland, noncash

payments are an every-day reality, and

for that reason stores that don’t accept credit

cards or another form of mobile payment are

at a disadvantage. To support them, mBank,

in cooperation with the Cashless Poland

Foundation, offers POS devices for up to 24

months free of charge in order to provide new

entrepreneurs with a smooth start.

Last, but not least, I have to underline that

mBank’s clients have the opportunity to

exchange currencies via online banking 24

hours a day, seven days a week. Moreover,

they can deal with official matters also through

mBank’s online system. As you can see, mBank

is building an ecosystem that will allow

entrepreneurs to take care of the vast majority

of their tasks through their smartphone

or computer, because we care about our

customers and, what’s more, their time. This

will not be the last of our ecosystem products

since we aim to expand the assistance we

provide into other areas of business in order to

help our customers devote themselves to their

passion and vision rather than spend time on

red tape.

Do you track how many (or what

percentage) of your new customers you

acquired due to mPower Business Starter?

As expected, the mPower Business Starter

initiative turned out to be crucial for the

increase in sales of business accounts in 2018

and started a revolution in the process of

opening business operations. mPower Business

Starter enables a company to be launched by

the mBank system via the internet, CC or inbranch

within just a few minutes. This idea

came from our customers, who showed us the

difficulties they face and indicated that there

are hundreds of questions and thousands of

answers about how to start up a company. At

mBank, we wanted them to feel happy upon

starting a new chapter of their lives by opening

their own company. As our statistics show

— 22% of our monthly acquisition of SME

accounts was generated thanks to mPower

Business Starter. We believe that our market

shares will increase in new SME account

SMALL BUSINESS BANKING MAGAZINE

19


acquisition thanks the fact we have such a

powerful engine that does everything in the

background on our customers` behalf.

How many of your customers come to

you via digital channels and how many

through local branches?

We have noticed a systematic increase in the

importance of remote channels in terms of

the acquisition of new clients. In the last three

years, the number of applications submitted

online and via the CC increased by 6%.

Currently, only 55% of all applications for SME

accounts are submitted via local branches. The

Internet plays a key role: 34% of all applications

for company accounts at mBank are submitted

online.

You have a lending product available for

SMEs via your mobile app. Please tell us

more about that: who are your target

customers, what is the average amount,

and how quick are decisions made?

What is the percentage of applications

for that loan compared to all incoming

applications for SME loans?

Yes, we offer online lending for our existing

SME customers. Our focus is to deliver the best

possible experience for our customers also in

terms of lending. Our target customers for fast

online lending are, as I said before, our existing

customers with transactions in our bank. We

provide those customers with credit products

via modern digital channels (mobile and

internet banking); our average loan amount

is around EUR 3,500, and our decision process

takes on average less than five minutes. Our

online channels account for 10% of all of our

sales in terms of NML lending for SMEs. And

that number is growing! Our customers like and

prefer to use mobile channels because they

offer a fast lending process that enables them

to react quickly to investment opportunities

that arise in their everyday business dealings,

and they also help them build a competitive

advantage with mBank’s support.

mBank has already been providing

accounting services for SME customers

for three years now (the service is called

mAccounting), which includes both

automated accounting for entrepreneurs

and support from human accountants

for bigger companies. Which part of your

customer base uses mAccounting? What

role does this service play in acquiring new

customers or retaining existing ones?

Currently, approximately 60,000 mBank

customers have access to the mAccounting

system. From among our newly acquired

customers, more than 30 % opt for this product,

and in the mPower Business Starter scenario,

that percentage reaches nearly 60%. The

numbers speak for themselves. mAccounting

is intuitive to use and, most importantly for

entrepreneurs, is a time-saving solution. In a

today’s quickly developing world, people need

solutions that will reduce the amount of work

they have to do, and mAccounting fits this

concept perfectly. Due to this fact, it is not

surprising that this product attracts a large

number of new customers.

What innovations for SME customers

should we expect from mBank in the near

future?

A few weeks ago we started cooperation with

the Allegro Group, which means that seller

who use Allegro as a platform to sell their

products will also see and use mBank products

via the seller’s panel. Basically, it means that we

are setting out to find new SMEs on the market,

and we will do that by being closer to them

and their everyday business. We are not trying

to sell them a product; our approach is based

on relations. We want to be there for them

when they need us. Also, for us, this is a new

opportunity in the SME sector. We are building

innovations (like credit API for Allegro) in order

to be closer in terms of relations with customers

and their needs under the B2B model. mBank is

not only accessible via mBank.pl — we are also

available via the mobile phone app, and we

now also have a presence within the Allegro

seller’s panel. From our customers’ perspective

— when business grows mBank is always here

for you to help realize your dreams and be fast,

flexible and always mobile as business owners

in those times are.

20

NOVEMBER 2018


Professional

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INTERVIEW

Achieving Competitive Advantage

through Fact-based management

in SME Banking

Olena Gryniuk talked to

Adam Jano, Head of

Business Support & Sales

Development at Budapest

Bank (Hungary)

Adam Jano,

Head of Business Support & Sales

Development at Budapest Bank

What is the business model of

Budapest Bank Business? How

many RMs do you have around

the country?

Budapest Bank was established in 1987. Today,

it is one of the top 8 major commercial banks

and a well-established brand on the Hungarian

market. We provide financial services to both

consumer and commercial clients. Budapest

Bank Business is the bank division that

deals mainly with small and medium sized

enterprises (SME). Together with our leasing

subsidiary — one of the country’s leading

asset leasing companies — we provide a full

range of SME products for our clients. The

bank’s nationwide network consists of some

100 branches for consumer clients and 21

SME hubs with more than 130 Relationship

Managers (RMs) across the country. Our

strengths are personalized services and deep

knowledge of the Hungarian SME market.

Thanks to a stable relationship with our

partners, and our predictable and consistent

business policy toward clients, Budapest Bank

Business has been continuously increasing

its stock of SME loans — even during the

shrinking commercial lending market some

years ago.

The digitization of the Customer

Relationship is one of the pillars of digital

transformation. What do you think about

that? And what is your model for working

with SME customers?

While products and services for consumer clients

and micro enterprises are mostly standardized

and processes can be easily digitalized, with

respect to commercial lending, we believe that

personal interactions will not be devalued in

the near future, as SME products and services

must remain customized in order to meet client

needs. There are some simple services that can

also be digitalized, but the main processes are

based on strong relationship management and

a deep understanding of the client’s business

model with the aim of providing the best and

most suitable banking solutions. A company,

for example, that is planning to expand its sales

to a foreign market or build a new factory unit

requires huge and complex transactions with

a great deal of negotiation and analysis that

needs to be done highly competently, as well as

close partnership between the client and bank.

So digitalization and artificial intelligence

will not replace SME bankers in the near

future. Where can it help then?

22

NOVEMBER 2018


Interview

WITHOUT DATA, YOU ARE

SIMPLY ANOTHER PERSON

WITH AN OPINION BUT

AT MOST COMPANIES

DECISIONS ARE STILL BASED

ON INTUITION OR SENIOR

EXPERIENCE

Digital channels play a very important role in

client relationship management. Alternative

channels are acting as the lengthened arm

of the RM in order to help target and contact

new clients, and maintain contacts with

existing clients. Transformation not only has

an effect on banking product and services

but also on internal processes. When it comes

to digitalization, we believe that large sales

oriented organizations can only be managed

effectively with a successfully applied

‘fact based’ and data driven management

approach.

What are the key steps to becoming factbased

in sales management?

Without data, you are simply another person

with an opinion 1 but at most companies

decisions are still based on intuition or senior

experience. Transformation and data driven

decision-making is not only a question of

technology. It also requires cultural and

organizational change on all levels. There is

no point in gathering and visualizing data on

fancy dashboards and tons of reports until the

company applies them to transform processes

and business strategies.

What is your fact-based approach at

Budapest Bank Business?

Our approach is very similar to modern sport

analytics as most of the concepts they use can

be applied to modern sales management too.

We invested heavily into modern data processing

and analytics tools to capture and visualize all the

available data across our business. This enables

us to monitor customer journeys and sales force

productivity through the whole business process

so we can step in if necessary.

Our services are constantly monitored in

line with rigorous Critical to Quality (CTQ)

requirements in order to deliver high-quality

products and services. Player (RM) profiling

helps us to identify what our top 10 percent is

doing differently so that we can increase sales

force effectiveness among the other 90 percent.

In depth analysis of client transactional habits

and predictive analytics help us ‘feed’ our RMs

with valuable client insights, e.g. potential next

best offers, disloyalty alerts or suitable entry

points for prospects.

Our ‘one-screen’ method allows us to follow

all important data through one platform with

a pyramid design. The most important data

can be viewed on informative dashboards for

each specific business role, and one can always

dig down to the next layer, all the way down

to detailed analytics. This way we can reduce

the time spent reading data to a minimum.

Automating by designing a self-service

reporting tool enabling every function to reach

the required data allows our data scientists to

deal only with complex questions.

Last but not least, we are working hard at all

levels of the organization to define how we

interpret and use information, so that our coworkers

speak the same language. This is a

critical element in our corporate culture.

1

W. Edwards Deming

SMALL BUSINESS BANKING MAGAZINE

23


INTERVIEW

Automation of factoring services for SMEs

Olena Gryniuk met Daniel Huszar in Warsaw this May. This talk is about technology and the

automation of factoring services for SMEs.

Before we start talking about technology, please tell us about

yourself: what is your pass to efcom and what exactly do you

do?

I’ve been connected to efcom and working for efcom for over ten years

now. I started out translating the system into English, so I know the depth

of the system very well. It’s a good place to start out. My job as Head of

Sales doesn’t really encapsulate what I do completely, because my job is,

of course, to sell and to provide consultation for clients on which solutions

might work for them. But also, I look into future technologies as well as the

ones which we have right now and which drive product development. I

also think about future applications, which I think is why you invited me.

Let’s start with the question of automation of factoring, especially

for SMEs, and probably mainly micro companies. As we see in the

CEE region, although not only here, banks are mainly specialised in

factoring for corporate customers. This is mainly due to the fact that

these big organisations have manual processes for that product, and

of course because servicing SMEs in such a way is very costly and

insufficient for their needs. So, to serve SMEs and micros, the process

needs to be automated as much as possible. This is what we see on

the Polish market, where some Fintechs have appeared recently that

are focused on the micro factoring segment; they offer factoring

purely online in just a few minutes. So, it’s evident that automation

makes sense for that segment of customers; the question isn’t why

we need to automate, but rather how. So, my question is — how can

or should banks automate? What might the exact process be?

First of all, if we go into the micro sector and SME sector with a manual

process, we don’t get so much more money from each individual client

as for example in the corporate world. So, yes, there is really a need to

automate. With manual processes versus automation – automation makes

things scalable, which is very important with the SME and micro-segment.

24

NOVEMBER 2018


Interview

Because we have a lot of customers and because

it’s hard if we have manual processes connected

to all of them, when we onboard them and

manage them, we need to automate, because

then it’s not scalable. And perhaps when we are

dealing with corporates, in the case of invoice

discounting or factoring products, we don’t

have a large number of clients but we do have a

large number of invoices, and we kind of need to

automate in order to get them into the system,

to manage the limits and to manage the risks.

So, we need automation, and to do this we have

two technologies: we have the front-end, which

is an online portal or an app, something like that,

and this is the face of the technology that the

customer sees, and then we have the back-end,

which is where you crunch all those numbers,

make all those postings, track the invoices and

track your risks, for example. I’ll start with the

front-end and what we can do there. I think,

with front-end, the design is the most important

thing, and it’s not really about automation here

but getting the customer onboard so that they

want to interact with your solution and so that

they really want to use it, because without

that, there is no product to use. To do this, we

definitely need to shape it from the mobile, and

by this I mean make it really simple to use, make

it easy to upload invoices or documents and to

make requests and all those kinds of things, and

give users multiple opportunities to interact

with your technology and your product. And

when the automation comes into play, it’s more

about customer convenience. When I talk about

a multichannel approach and multiple ways

to interact with your software, it’s more about

‘do I type in this invoice manually or do I take a

picture and then get some OCR software to read

out what is written on that picture and translate

it into the fields?’ Customer convenience

definitely plays a more important role here

than even automation. It just needs to be easy

and simple. With respect to the back-end, the

most important thing is flexibility. It has to be

possible for all of your business processes to be

translated into the software’s parameters, which

are really the rules by which things should be

automated — for example, which invoices

do you buy, which clients do you onboard

according to severe ratings? So those are the

most important parts.

What are the most important or crucial

steps for banks or factoring companies

when it comes to automation?

DH: Firstly, I’d really urge every product manager

that conceptualises their product to completely

step away from the tools that they’re currently

using, because they kind of limit the way we

think, and the product shapes itself after the

tools we use and it’s hard to get different ideas

or see things from a different perspective. So, if

you are making a new product for SMEs, let your

imagination run wild. Not too wild of course.

Think of everything, and then we can confine it

to the product. First, of course, we need to see

business cases, if feasible. This would be step 1

for me, to get this concept. And step 2 would

be to translate this into the technology, i.e. to

make the front-end tool easy to use, to have this

multichannel approach that allows the customer

to interact with you on many different levels. For

example, as I mentioned, this could be entering

invoices using various methods: by taking a

picture, typing them in. And the customer’s

convenience is key. For the back-end, the most

important thing is the way you automate things,

the way you translate your business processes

into the software parameters – that’s basically

it. You take whatever rules you have in mind,

like which invoices to buy, which customers to

take, which customers to reject, how to set your

limits, and you kind of think about what your

risk appetite is here, because without risk we

can’t do this. We have to take some spread, we

have to take some risks, and we are not getting

everything covered by credit insurance.

Do you understand automation to mean

that all processes are done by machines

or robots without any human touch or

involvement?

This is an interesting question. I don’t think so.

It’s not that it’s dangerous, but it doesn’t need

to be that way. Of course, automation means

that things are run automatically, but when

we look at certain risks, if you have hundreds

of thousands of customers or invoices, then

nobody can look over all of these, and you need

pre-defined decisions, but you need to look at

some of them and you need to look at where

risks are most likely to occur. This is what big

data risk management is for, so you put it all in

Scan QR code to listen to this interview

on the SME Banking Club Podcast Series

and you let the technology run its assessments

according to some predefined rules, checking

your invoices, checking your customers against

patterns. For example, if you can look at the

invoices and invoice numbers, and you can

check if there’s a pattern that can be flagged. So

in the end, when we apply all these parameters

to our data and we think there might be a risk,

like the Bedford model, and patterns and all

these kinds of things, then the risk manager will

get a proposal list and, rather than look at every

invoice or every client, they will get the best

clients according to the business rules set within

the software, and then they can see which

clients or invoices need to be checked up on the

most. Basically, automation can also mean that

humans use their time in the most efficient way

possible. Automation should serve humans and

users, not vice versa, of course. It’s just a tool. To

make sure that it’s not a black box, I believe there

are two factors that really help. I mentioned that

we translate business processes into parameters

so that the software, when you automate it

according to the business rules that the bank

and we as a software company implemented

in the first place, does exactly what you want

it to do. So it’s just a process enhancer: it takes

business rules and applies them over and over,

and quicker. But it is what we tell the software

to do. And the second thing which is very

important is that we need to be able to analyse

all the data that goes in, and what we at efcom

do to ensure that is save everything at invoice

level, so every invoice and every credit note,

every item that goes in there, stays within the

database and can be analysed upon reporting

even years later. That is really important when

it comes to shaping your portfolio, monitoring

it over time and even having the possibility of

creating reports or dashboards later on, which

are things that you might not think of right now,

because they represent future products. And

that’s a very important factor, in my opinion —

that you are able to do that.

Well, that’s good news that humans will still

be somehow involved in the process.

I think so too!

SMALL BUSINESS BANKING MAGAZINE

25


EVENT

For the fourth time, SME

Banking Club gathered SME

Bankers in Tbilisi (Georgia)

at the Caucasus SME

Banking Club Conference

devoted to financial services

for SMEs in that region.

More than 70 attendees from

12 countries and 39 financial

organizations took part in this

year’s conference.

Pre-conference day on May 17 was devoted

to onsite visits to 3 Georgian bank branches

where SME customers are serviced. In 2016,

Terabank was the first bank in Georgia to open

a co-working branch for SME customers called

Business Hub. The new concept for the bank’s

branches is to provide something of a domestic

environment for clients, where the interior is

arranged like a home: with a fireplace, comfy

furniture, and beautiful photos.

Bank of Georgia is the only bank in Georgia

which promotes SMEs in its new branches.

On pre-arranged corners, the Bank presents

Maya Margie Younes, Head of the Marketing Group at BLC

Bank (Lebanon), shared the way her bank implemented

non-financial services for SMEs and about women

entrepreneurship in Lebanon.

customer products, helping them to network

and gain greater recognition.

TBC Bank services all customers at their branches

with a separate zone for business and TBC Status

customers.

During the main conference day on May 18,

speakers shared their experiences ad best

practices in servicing SMEs.

26

NOVEMBER 2018


Event

For TBC Bank (Georgia),

SME Banking is a whole

ecosystem that does not

only involve lending to SMEs

or opening current accounts.

Tamuna Zhizhilashvili,

Deputy Director of

Marketing Communications

& Business Banking at TBC

Bank (Georgia), talked about

this during the SME Banking

Strategy Panel.

Sergey Shevkunov

(Belgasprombank, Belarus)

talked about his experience

in implementing internet

banking for SMEs.

Andrey Gidulyan

(SME Banking Club)

presented Online

and Mobile Banking

Studies.

Laila Nurkassymova,

Head of the SME

Department at ATF

Bank (Kazakhstan)

presented her Bank’s

business model on

working with SME

customers.

During the Digital SME

Banking Panel, Zviad

Tsotskolauri (TBC Bank,

Georgia) presented his

Bank’s digital vision and

strategy.

Dmitriy Cherepakhin

from bNesis (Ukraine)

talked about nontraditional

sources of

data to acquire SME

customers.

Michal Pawlik (CEO and Co-founder at SMEO) shared

his experience at SMEO with financing Polish SMEs

purely online and how a partnership between

traditional financial organizations and fintechs can

lead to future growth.

Scan QR code

to view more

photos from the

Caucasus18

SMALL BUSINESS BANKING MAGAZINE

27


CAUCASUS18 INSIGHTS & TAKEAWAYS

Access to knowledge and networking are

the primary needs of small businesses

During the Caucasus18 SME Banking Club Conference

in Tbilisi on May 17-18, Olena Gryniuk talked to Maya

Margie Younes, Head of the Marketing Group at BLC

Bank (Lebanon) about the non-financial services for

SMEs that the Bank has implemented, and about women

entrepreneurship in Lebanon.

also receive mentorship and coaching from the

Jury members who are all professionals and key

players in the SME ecosystem, and most of all

are independent from the Bank, giving further

credibility to the Awards.

What proportion of your SME customers

used at least one component of the

program? What is the coverage?

Our non-financial services are offered to all SMEs,

irrespective of whether they are BLC Bank clients

or not. These services are part of our promise and

our social responsibility towards SMEs to develop

and grow that segment, knowing that the more

this segment improves, the better the country’s

GDP will perform.

Maya Margie Younes,

Head of the Marketing Group

at BLC Bank (Lebanon)

BLC Bank was incorporated in 1950. It is

part of Fransabank Group, which is the 4th

largest banking group. While BLC Bank has

a market share of 3%, it has an SME market share

of ~15%.

You provide a full and comprehensive range

of Non-Financial Services (NFS) for SMEs.

What was your primary objective when

implementing NFS?

The Bank’s primary objective in providing nonfinancial

services was to be able to differentiate

itself from the competition. The market in

Lebanon very small and saturated with more than

65 financial institutions serving less than 3 million

bankable Lebanese. We wanted to differentiate

ourselves through our commitment to SMEs

and wanted to become their Bank of choice. We

ran a market research to understand the needs

of SMEs that revealed that SMEs needed nonfinancial

support such as access to knowledge

and access to the market, which led us to develop

our non-financial offering. This gave way to our

learning and development, and networking

and consultancy services. We also launched The

Brilliant Lebanese Awards, which is currently in

its 7th edition. The Awards were and still are the

first banking awards in the MENA region geared

towards Lebanese entrepreneurs and SMEs. They

provide SMEs with exposure, acknowledge and

recognize their success and inspire other SMEs to

follow in the winners’ footsteps. I can honestly say

we have done a great job. Even finalists that were

not winners got a good exposure and were able

to find investors or opportunities to access other

markets and improve their growth. The finalists

What are the critical steps in implementing

NFS services successfully within the bank?

This is an important question. First things first,

the top management’s support is crucial for the

success of such a program. We had to develop

a business case and show the management

potential growth forecasts for the Bank and its

customer-base as a result of providing such a

service, knowing that the management itself

wanted to differentiate BLC Bank from the

competition and increase profits, of course. The

business case proved positive, projecting that

if we implemented this approach of servicing

the SME sector with a 360-degree approach,

the numbers would be better and customer

acquisition would increase, which is exactly what

happened, with the results turning out to be very

good.

Is it easy to open a business in Lebanon?

No, it’s not easy to open a business in Lebanon.

It takes a lot of time and paperwork, and you

have to meet a long list of requirements. In fact,

Lebanon holds 133rd place in the Ease of Doing

Business Ranking by the World Bank.

How are the needs of female entrepreneurs

different compared to those of male

entrepreneurs? And how does the Bank

meet them?

28

NOVEMBER 2018


Event

Maya Margie Younes, speaking during the discussion panel at Caucasus SME

Banking Club Conference 2018 in Tbilisi, May 17-18

There’s no real difference, even our market

research showed that. They all need access to

finance along with the support brought forward

through the non-financial services: networking,

business advice, access to knowledge.

However, on a more social level, with women

coming later into the economy, they need a

boost in self-confidence to venture-off and start

their own businesses. In addition, there is the

constant work-life balance issue. Due to cultural

stereotypes, women are expected by their

husbands to be fully devoted to their families. So,

women have an extra challenge in comparison

with men, as being a successful businesswoman

leaves less personal time. This is a critical

difference between men and women in business.

One of the major challenges that they face is

access to finance. Banks don’t have high-risk

appetites and ask for a lot of collateral before

they lend money to SMEs. This in particular is

a bigger challenge for women, because they

have less tangible assets such as property or

guarantors to secure their loans and end up

with fewer opportunities than men. Why is

that? In some religions, a woman will receive a

smaller inheritance than her brother will as she

is expected to marry a man who will eventually

inherit from his father. So, they end up with less

to offer as collateral than men and are faced

with a much greater challenge when it comes

to accessing finance. This is why we decided to

collaborate with IFC on a risk-sharing facility,

whereby we agreed on a $ 10 million dollars

credit line to lend to SMEs, with a special focus

on female entrepreneurs, who can then take out

loans from BLC Bank with minimal or almost no

collateral. We have already distributed the credit

line and are now looking to secure a second

credit line of $10 million.

In Lebanon, the design, fashion and jewelry

design industries are mostly dominated by

women, as is the food industry, e.g. bakeries

and restaurants. There are very few women in

male-dominated sectors. We had one female

finalist in the Brilliant Lebanese Awards, who

independently runs a company that equips

cars with military grade armors, so that was

very interesting: a woman in a male-dominated

sector, and she is doing a great job.

Scan QR code to watch Maya’s

presentation during Caucasus18 Conference

To what extend are your branches or RMs

involved in the promotion of NFS among

customers? What is their role?

Since non-financial services are not part of the

core banking business, it was challenging to get

RMs involved; it’s not easy for them to accept

that they needed to provide these additional

services free of charge. Sometimes when we

announce that we are organizing training, it’s

difficult for RMs to sell that program to their

clients. What we did was to assign ambassadors

to our various branches, who are responsible

for nurturing SMEs and female entrepreneurs.

They had targets and were trained specifically

on what our offering includes. For the Brilliant

Lebanese Awards, because we go after SMEs

and solicit applications to the awards, we

considered a monetary incentive. So, all

employees, irrespective of whether they work in

HO or other departments, were given financial

incentives.

SMALL BUSINESS BANKING MAGAZINE

29


CAUCASUS18 INSIGHTS & TAKEAWAYS

SME BANKING ECOSYSTEM

AT TBC BANK IN GEORGIA

For TBC Bank (Georgia), SME Banking is a whole ecosystem

that not only involves lending to SMEs or opening current

accounts. Tamuna Zhizhilashvili, Deputy Director of

Marketing Communications & Business Banking at TBC Bank

(Georgia), talked about this during the Caucasus18 SME

Banking Club Conference in Tbilisi (May 17-18, 2018).

Here, we publish key messages from Tamuna’s presentation.

About TBC Bank

To shorten this time, TBC Bank offers a remote process for customer

onboarding and opening a current account within 5 minutes. The customer

fills in a questionnaire containing 14 questions and the current account is

opened in 5 minutes without visiting the Bank branch.

If the customer wants to visit the bank during the process of opening an

account and sign, and store paper documents in his office, the customer

can call the Bank instead of visiting in person and after the account is

opened, TBC Bank, equipped with a fleet of ecofriendly cars, will visit the

customer and deliver all the documents for signing.

Non-financial services

TBC Bank has been providing non-financial services for SMEs for 5 years.

The main Bank’s activities are focused on:

• Education. Since 2013, the Bank has provided around 15,000 trainings

for small businesses. The Bank launched the educational portal

(tbcbusiness.ge) and is also providing individual consultations and

organizing regional events for customers.

Relationship model

At TBC Bank, concept of the Relationship model is developing during last 3

years, so that today each affluent SME customer has only one relationship

manager but is internally supported by the Product manager and Loan

officer inside the Bank.

• Business Award. This is the largest Business Award in Georgia. TBC

Bank has granted the award for 2 years. Last year, it gathered 700

participants. The event campaign runs for 6 months in Social Media

and via direct campaigns (with no TV ads) which enables the Bank to

reach almost one third of the Georgian population with a relatively low

marketing budget.

Digital onboarding

Though it only takes 5 minutes to register a business in Georgia (Georgia

is ranked 9th of 190 countries in the latest Ease of Doing Business Ranking

and 4th for Starting a Business – SME Banking Club), the standard process

for opening current account takes up to 40 minutes.

• Support for start-ups and new businesses (the website of the

Startuper program — www.startuperi.ge) empowers customers to

start new businesses and get financial and non-financial support from

the Bank on preferential terms. Startaperi in Georgian means Startup

Nation. The program consists of financial and non-financial support

from the Bank. Non-financial support covers training, consultations,

the web catalogue and media support. Financial support involves

financing new businesses using loans. One of the core segments that

30

NOVEMBER 2018


Event

the ecosystem surrounding the customer that helps the business to

operate smoothly.

• B2B Platform for Business. This is the next step in creating an

ecosystem around the customer. The Bank introduced the platform to

promote cooperation and communication between app developers

and small businesses. The platform www.businesstool.ge will

connect app developers and small businesses to help SMEs run their

business more effectively and promote the creation of new apps

for businesses. The Bank wants to organize an Apps Challenge to

promote and popularize the creation and usage of apps in customer

businesses.

Tamuna Zhizhilashvili,

Deputy Director of Marketing Communications &

Business Banking at TBC Bank (Georgia)

the Bank is financing right now are new hotels. The demand for this

kind of financing has increased due to the rapid increase of tourists

coming to Georgia. Tourist flow increased significantly compared to

the previous year and the hospitality infrastructure is not sufficiently

developed for tourists in such large numbers. TBC Bank offers a loan for

building new hotels that finances 60% of the cost. And the customer

starts repaying the loan when the hotel receives its first guests thanks

to a 2.5-year grace period on repayment granted by the Bank. Almost

One hundred new hotels have already received financing through

this program. The Bank is also financing Agri startups, for example,

those that plant trees. The grace period in this case can be extended

to up to 5 years – when the first harvest is carried out. The third type

of lending product offered by the Bank involves loans of up to 200

thousand Georgian lari (EUR 70,000) for small startups that have been

generating revenue for at least 3 months.

TBC Bank has been operating this program for a year and a half. All

financed projects and customers receive business support from the

Bank. This is not only about disbursement of the loan but also the

development of the project and customer in later stages by providing

consultancy, structuring the deal properly and involving the right

people. The idea is to build an entire ecosystem around the customer

that makes running the business more effective. Now, there are no

overdue payments on these loans at all.

• Chatbot for Business. Firstly, TBC Bank implemented the Bank’s

chatbot into Facebook messenger for servicing customers. This

was the first chatbot speaking Georgian in the country. The chatbot

was created with the cooperation of a Georgian startup working in

the area of AI. Then, TBC Bank decided to provide the chatbot to its

business customers as well. This is a ready-made chatbot integrated

into Facebook messenger that the Bank will provide its SME customers,

allowing them to communicate with their customers without any

development work on the part of the customer. Right now, the

Bank has pilot projects underway that even offer online payment

functionality integrated into the messenger. This is also an element in

• Introduced TBC Business as a brand. As SME Banking at TBC Bank

means providing to the customer the whole ecosystem, the Bank has

introduced the brand TBC Business, proving that the Bank really support

businesses and that opening accounts and lending are only a small part

of the services the Bank offers them.

The main aim of the Bank is to make doing business in Georgia easier and

empower entrepreneurship development in the country. This is how the

Bank plans to increase the number of its SME customers. This is TBC Bank’s

strategy — to promote and facilitate entrepreneurship in Georgia.

Notes recorded by Olena Gryniuk

Scan QR code

to watch Tamuna’s presentation

from Caucasus18 Conference

SMALL BUSINESS BANKING MAGAZINE

31


EVENT

During the visit to Raiffeisen Polbank

SME Study tour to Poland:

Inspired by innovations

I

n May 2018 a group of SME Bankers from Egypt – representatives of

commercial banks and Egyptian Banking Institute – came to Poland to

learn best practices of banking solutions for small business companies.

SME Banking Club hosted the Tour and visits to Polish banks working with

SMEs, and some fintechs.

We visited one of the Idea Hubs in Warsaw. Tomasz Górski, Idea Bank,

among other topics, told about the concept of the first 100 days of customer’s

life in the Bank. When everything is fresh and new to the customer what they

do at Idea Bank to instill a habit in them of using the Bank.

Krzysztof Pulkiewicz showed how BanqUP works with SME customers

directly and also how they can cooperate with the banks within the B-2-B

model.

Tomasz Górski (Idea Bank)

Krzysztof Pulkiewicz (BanqUP)

Michal Pawlik shared their experience at SMEO of financing Polish SMEs

purely online.

Łukasz Vászon during the presentation of Mobile ATM at Idea Bank

Michal Pawlik (SMEO)

Bank’s experience in the launching of Idea Cloud, Mobile ATM, and

packages for entrepreneurs are also topics of great interest.

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NOVEMBER 2018


Event

At ING Bank Śląski we talked about agile way of working, launched in

SME/MC Division in 2017 and also about digital processes for business

customers, starting from the purely online customer’s onboarding and

opening current account till signing the loan agreement and selling

insurances digitally via the online banking system – ING Business.

The presentation focused on Relationship model for SMEs in Raiffeisen

Polbank and sharing the experience in building knowledge and sales

competency framework was very valuable and interactive.

Marcin Kryszeń (ING Bank Śląski)

Adam Walendziewski (ING Bank Śląski)

From left to right: Wojciech Rudzinski, Jan Czeremcha,

Grzegorz Chrzanowski (Raiffeisen Polbank)

Citi Handlowy shared with the group main processes and products they have

for business customers: lending products, cash management products, FX.

mBank, among other topics, showed their process of business registration

of through Bank’s online banking system, online banking system itself,

mobile banking, credit process and mAccounting.

Michał Kozubowski

(Citi Handlowy)

During the presentaion at mBank

During the visit to mBank

Joanna Ratajczyk

(Citi Handlowy)

We talked about working with agricultural customers during a visit to

Agri Hub at BGŻ BNP Paribas Bank. Read about the Hub and how BGŻ

BNP Paribas approaches farmers in the interview with Bartosz Urbaniak.

Maciej Zurawek

(Citi Handlowy)

BOŚ Bank shared their experience in financing pro-ecological projects of

business customers and how they approach business customers.

During the visit at BGŻ BNP Paribas Bank

Scan QR code to view

mor photos on the Tour

SMALL BUSINESS BANKING MAGAZINE

33


CEE18 INSIGHTS & TAKEAWAYS

ING Business – an omnichannel

platform for business clients

During the CEE SME Banking Club Conference 2018 in Warsaw (October 29-30),

Adam Walendziewski (Digital Platforms Tribe Lead at ING Bank Slaski) presented

ING Business, an omnichannel digital platform for SME, Mid Corp and Wholesale

customers at ING Bank Slaski (Poland), as well as an impressive example of the success

of the Agile way of working at the Bank.

Adam Walendziewski (ING Bank Śląski) during his

presentation at the CEE SME Banking Club Conference

2018 in Warsaw (October 29-30)

Here, we publish key messages of Adam’s

presentation:

ING Business is an omnichannel digital platform

for SME, Mid Corp and Wholesale customers

which ING Bank Śląski treats as a single access

point for all the products customers have with

the Bank.

ING Business consists of three layers: 1 – the

most important ones, at the heart of the

application, are product layers. “We started

with Cash Management products (accounts

& transactions), then we added trade finance

products, loans, financial markets, leasing

and more. Service layers cover product layers:

requests (over 60 types of requests) related to

ING Business products, e.g. requests for new

loans, requests for new guarantees, etc. We

have a communication module and a proxy

management module to perform their changes

in the proxies and ensure the rights of the

people in the system”. Almost all documents

and agreements can be signed electronically

without visiting a branch. These Service layers

are covered with Touchpoint layers. The most

important for now include the web browser,

tablet version, native mobile apps for IOS and

Android platforms and Webservice Host-2-

Host with the possibility to directly connect the

customer’s API to the ING Business Ecosystem.

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NOVEMBER 2018


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“Now we constantly see that users, especially

CFOs who are in a hurry, increasingly use native

mobile apps, specifically to check account

balances and account history. Some of our

users use the tablet version. And a few years

ago, as one of few banks in the world I guess,

we developed an app for wearables,” Adam said

during his presentation.

The main features of ING Business:

• Human-oriented.

• Process-oriented

• Multiprocess

• Scalable

• Easily supportable

• Consistent with ING principles

ING Business is an omnichannel platform,

meaning that a user can start a process in one

channel and finish it in another one.

“We decided to make the system supportable

and adaptable for every customer, so that each

user can adapt the system to their own needs,

using dashboards. When we started to analyze

how users use our system, it turned out that only

two main roles/personas were needed: entering

transactions into the system and checking

balances and sometimes accepting payments.

Bigger clients also need functionality that allows

them to “build” a role as needed, for example for

employees working only in, e.g. trade finance”.

Many features are available via ING Business.

The Bank’s main approach is that every group

of products (accounts, cards, trade finance

products, etc.) has its own dashboard.

95% of users only use the cash management

features of the system. This is the heart of

the system. That’s why it is crucial that these

features work smoothly. Every product in the

Cash Management area is covered within

ING Business. And with respect to the digital

acquisition of customers – a prospect can open

an account purely online at our website without

visiting a branch, within 5 min, by signing the

agreement online.

Each user can adapt the main screen by

choosing a set of widgets. Additionally,

customers can switch easily to other bank

platforms such as the Aleo platform, factoring

& leasing applications, etc.

Scan the QR code to watch the presentation about

Digital account opening process for business customers

in ING Bank Śląski during the CEE SME Banking Club

Conference 2017 in Krakow (Nov 23-24)

SMALL BUSINESS BANKING MAGAZINE

35


CEE18 INSIGHTS & TAKEAWAYS

Financing

This is a dashboard for finance products,

where customers can see their credit limit,

repayment schedule, loan application, etc.

and of course, each widget can be added to

the home page as well. Almost all the lending

products at the bank are also offered via ING

Business, from standard loans to prescoring

offers.

Financial markets

A recently developed module allows

customers to exchange foreign currencies

online.

Mobile application –

available for IOS and Android

In mobile apps, the main focus is on

cash management functionality. So it’s

possible to check balances, enter, sign and

send a transaction to previously entered

beneficiaries. The FX module is available so

that customers can exchange currencies

via a mobile app. There are some additional

functionalities available in the app like

geolocalization, touch ID, etc.

How ING Business evolved

“We started from the payment channel, a product approach aimed at

offering almost all banking products on this platform. Year by year we

added more self-service functions like the possibility to order cash

at the branch, order a convoy, order new cards, etc. Now we have 60

applications. This year we added new features to support digital sales

processes for SMEs because we treat ING Business not only as a service

platform but also as a sales platform,” said Adam.

Notes made by Olena Gryniuk

36

NOVEMBER 2018


Event

CRM & Digital Transformation

Why and How You Should Digitize Customer Relationships

During the CEE SME Banking Club

Conference 2018 in Warsaw (October 29-30),

Anna Glazunova (Livespace) and Maryia

Dylets (Alfa-Bank Belarus) presented a case

study involving the common implementation

of a CRM system within Alfa-Bank Belarus.

Here are the key points of their presentation.

2 years ago, Alfa-Bank Belarus’ adoption of a new strategy meant that the

bank was faced with the challenge of optimizing customer service costs,

and it was this goal that lead to their implementation of a CRM. The bank

launched a remote contact center for its mass business customers segment,

and together with Livespace (Poland), it implemented a CRM system.

The initial results were impressive:

All of this was achieved without hiring extra employees within the bank.

Upon implementing the CRM solution, the following challenges occurred:

• Tool that would allow for the proper measurement of customer service

quality introduced

• Information about all types of clients from different channels received

• Problems in business processes identified and brought under control

The step-by step-process of CRM integration was as follows:

Anna Glazunova (Livespace) and Maryia Dylets (Alfa-Bank Belarus)

during their presentation at the CEE SME Banking Club Conference 2018

in Warsaw (October 29-30)

Elements of success:

• Easy to set up the system – little time and few resources required

• Implementation and adaptation plan (trial period) produced impressive

results

• Improved communication between companies – language and cultural

barriers less of an obstacle

• Efficient preparation of the legal terms of cooperation in the context of

various legislative systems (EU and non-EU)

• Readiness of the supplier to meet high standards for the banking sector.

Livespace

Polish company, based in Warsaw, provider of a next-gen B2B processfocused

CRM, with task & sales automation.

Alfa-Bank Belarus

Established in 1999, offers services to all customer segments through its

head office in Minsk and 17 branches in all regions of the country.

Scan the QR code to watch the

presentation from the CEE SME

Banking Club Conference 2018

in Warsaw (Oct 29-30)

SMALL BUSINESS BANKING MAGAZINE

37


CEE18 INSIGHTS & TAKEAWAYS

DEPOSIT MARKETPLACE FOR SMES —

ACCESS TO SAVINGS PRODUCTS ACROSS EUROPE

Raisin is a leading fintech

company in Europe,

established 5 years ago, based

in Berlin.

During the CEE SME Banking Club

Conference 2018 in Warsaw

(October 29-30), Lisa Schmid (Head

of Business Clients at Raisin) presented

the Raisin platform and how banks can

digitalize the customer experience when

placing a deposit.

Here we publish key messages of Lisa’s

presentation.

Through Raisin, more than 60 banks across

Europe access funding in a diversified and

cost-efficient manner. The business concept is

to connect private customers and SMEs with

partner banks for term and overnight deposits.

Business model

“We have a Partner bank and it has only one

interface, which is Raisin. They decide where

they want to place their deposit offers: country

platforms and pan European platform (Raisin.

Lisa Schmid (Raisin) during her presentation at the CEE

SME Banking Club Conference 2018 in Warsaw (October 29-30)

com). The partner bank can also place its offer

with distribution partners (so that their term

deposit offer is available for, e.g. BBVA clients or

N26 clients, etc.)” Lisa said.

Raisin products

• Partner banks can decide whether they want

to offer their products to retail customers or

SMEs, or both

• The main products are term deposits, notice

accounts and overnight deposits

• Available currencies: EUR, GBP, USD. Some local

currencies are also available: NOK, CHF, BGN.

Steps to open a deposit for an SME customer

via Raisin:

1. Registration on the Raisin platform.

The customer should sign up using data of

the company, managing director and main

beneficial owners.

2. Deposit selection. The customer has

access to all partner bank term deposits and

chooses the banks, term, interest rate and

the amount they want to deposit. It’s only

takes a few clicks.

3. Identification. Servicing bank performs the

identification of the director, company and

main beneficial owners.

4. Transfer of funds to the Raisin account,

which is opened for free.

5. Deposit opening at Partner bank. During

this last step, Raisin forwards the account

opening documents and funds to the

partner banks. After maturity, the partner

bank pays the deposit back. Then the

customer can access the funds, including

earned interest on the Raisin platform, and

invest it somewhere else or withdraw it to

the personal account.

Notes made by Olena Gryniuk

How Raisin supports banks:

• Acquiring the needed stable funding.

This is a typical product partnership

when a bank wants to place a certain

number of products on the platform.

Raisin handles customer acquisition,

customer onboarding, KYC processes

and customer service for the bank.

• Managing banks’ excess liquidity. If

banks want to get rid of their liquidity,

they can integrate Raisin partners’ term

deposit offer in to their online banking,

making it possible for clients to deposit

their funds with Raisin partner banks

Among others, N26 and BBVA have

become distributor partners.

• Optimizing costs, regulatory compliance

and diversification.

38

NOVEMBER 2018


CEE18

LEASELINK – LEASING AS A METHOD OF PAYMENT

On October 29, during a Study Tour

as part of the CEE SME Banking Club

Conference 2018 in Warsaw, Marcin

Grodowski — co-founder of LeaseLink

— shared details with us of how they are

offering fully online leasing for micro and

small businesses within the space of 15

minutes, with the service available 24 hours

a day. Moreover, LeaseLink has also turned

leasing into a method of payment.

LeaseLink is the only company on the

European market providing an entirely

online leasing procedure. There is no need

for customers to leave the office to buy

equipment, and the process takes only 15

minutes!

LeaseLink specializes in transactions with

a value of PLN 1 to 50,000, carried out via

e-commerce or directly fro m equipment

providers when a customer wants to pay for

purchases as easily as by wire-transfer.

This is what the process looks like:

Marcin Grodowski,

co-founder at LeaseLink

LeaseLink Business Philosophy:

Our primary goal is to deliver leasing services to small businesses in a simple, transparent and

exceptionally quick way.

LeaseLink’s way of doing business is typical for most technology companies (FinTechs) and it’s

based on combining know-how and technology in order to:

• simplify processes and lower the costs of doing business;

• offer a cheaper solution than the alternative on the market;

• earn profits through the effect of scale instead of individual/per-customer trans actions.

SMALL BUSINESS BANKING MAGAZINE

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CEE18 INSIGHTS & TAKEAWAYS

John Mark Williams:

Business agility is a mindset

During the CEE SME Banking Club Conference 2018 in

Warsaw (October 29-30) John Mark Williams moderated

several panels, including the one on digital transformation

and agile approach in SME Banking. Olena Gryniuk talked

to John right after the Conference about business agility and

Breakthrough program John was running in Santander UK.

You are heading Agile Business

Consortium in the UK. What is the

purpose of that organization and

how your everyday job looks like?

The Agile Business Consortium is a global leader

in promoting business agility. Founded in 1994

as a not-for-profit organization, it pioneered

Agile Principles and continues to inspire new

developments and thinking, such as the role

of innovation at the heart of the Framework for

Business Agility.

Our mission is to lead, enable and promote

business agility worldwide. Agile businesses

work faster, better and deliver greater value for

money — delighting customers, motivating

staff and driving additional profit. Agile practices

improve all aspects of an organization, from HR

and finance, to project management, product

development, and organizational change.

What does agility mean for you?

Business agility is a mindset. It gives

organizations the flexibility and adaptability to

respond rapidly to business change. More than

that, it helps organizations achieve the ability

to predict amidst uncertainty and to position

themselves to meet the complexity that

characterizes today’s business and social world.

During the CEE SME Banking Club Conference

2018 in Warsaw this October you moderated

a Panel on digital transformation and agile

approach in SME Banking. Except for ING

Bank, representative of which we had during

the Discussion Panel, which implemented

an agile way of working in the SME business

line, do you know many banks that did this

as well? Do you believe that banks, being

probably the last stronghold of waterfall

methods and being very much traditional

and hierarchical organizations, can become

agile?

There are a few other large banks who are

deliberately engaged in developing business

agility — Barclays would be a prime example.

Yet, many more are becoming more agile in

their thinking, as they embark on the journey

toward true business agility. This is driven by

two things. The first, on the supply side, is the

need to transform themselves in a market

where traditional banking models are being

rapidly dismantled and disaggregated by

challengers from outside the banking field —

a classic case of disruption. The second is the

demand side need to satisfy customers who are

increasingly expecting similar levels of service

from their bank, as they receive from the slickest

and swiftest of service providers in every field.

Customers transfer their expectations — if

Amazon or Google can use AI to predict what

I want to buy or what information I need to

gather, why can’t my bank predict how my

finances need to be managed, and do that

for me? Certainly, banks can become agile —

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NOVEMBER 2018


Event

whether or not they will, depends on how soon

their senior management wakes up to the fact

that business agility is not a fad or a fashion —

it is a necessary competency for still being in

business in the future.

John Mark Williams at the CEE SME Banking Club

Conference 2018 in Warsaw (October 29-30)

For almost five years, you were the Head of

the Breakthrough Program in Santander

UK, which was the program scale-ups —

fast-growing SMEs. Could you tell us more

about the program? Why have you decided

to create a special program for scale-ups?

How are the needs of scale-up different?

Santander UK’s Breakthrough program was

the first real attempt by a bank to become

customer-driven in the SME space. We

approached it by adopting a very simple mantra

— ‘This is not Banking. This is Business Growth’.

Most importantly, it wasn’t the bank’s business

growth that we focused on — it was the growth

of the SMEs. A year of deep research showed a

range of needs that characterized SMEs, only one

of which involved finance. I built the program

around the five core functions of a business

— Strategy, Marketing, Operations, People

and Finance. Whilst the bank could provide

all manner of financial support for the SMEs,

the other elements were delivered through a

network of partners, with the bank acting as

a platform through which SMEs could access

support to meet all their major challenges. We

ran events large and small, bringing together

SMEs with a wide range of experience, to learn

from and mentor each other. We ran trade

missions to countries across the globe, either

where Santander was strong, or where we had

close connections with SME-orientated banks,

opening markets for businesses by putting them

directly in touch with international customers,

suppliers and partners. We held Master Classes

with iconic businesses, such as Google, McLaren,

Saatchi & Saatchi and many more, who opened

their doors to the SMEs and showed them how

to become a large business, the challenges they

might face, and how some of them might be

overcome. We worked with the SMEs on their

talent acquisition dilemmas, supplying them

with talent management development, and

mentors, either directly or again through our

partner network. And of course, as a bank, we

had a finance proposition, including a £200m

Growth Capital Fund and myriad other facilities

for operational or international finance for

growth.

The thing which defined the programme

was the emphasis on scale-ups. The original

research had identified that small percentage

of SME businesses who were responsible for the

majority of economic activity and job growth,

and we moved very quickly to focus the benefits

of the Breakthrough programme on that

cohort. Scale-ups are different in three ways.

The first is that they are growth-focused. That

may sound strange, yet not all SME businesses

are orientated toward growth — many are

lifestyle businesses, and scale-ups represent a

small percentage — maybe 6% or so — of the

marketplace. Secondly, they operate at pace.

They know the value of time in the life-cycle of

a product or service, and they also understand

almost instinctively that their competitors who

are also scale-ups, never stand still. And thirdly,

they understand risk. Not the popular image

of the entrepreneur — taking huge risks and

hoping for the best. True, entrepreneurial scaleups

operate by assessing risk, and then deciding

on the basis of experience and appetite, what

risk they will accept.

This means that the needs of the scale-ups are

very specific.

What were the expectations of scaleups

towards the Bank? Did they expect

to get from a Bank a piece of advice on

their business, a matching with potential

partners or other nonbanking services?

Scale-ups want a bank that will work with them

to achieve growth — and which understands

that growth is not a straight-line on the graph.

It fluctuates over time, yet the faith in growth

remains in the scale-up — and they want that

faith to be shown by their bank. They want

a bank that matches their pace, whether in

payments for overseas initiatives or decisions

on working capital support. And finally, they

want a bank that is prepared to share the future

with them — not one that is traditionally, and

cripplingly, risk-averse.

They certainly want advice. They also want a

bank that recognizes that growth is a function

of innovation; innovation is a function of ideas;

ideas are a function of connections. The most

valuable benefit provided to SME scale-ups by

the Breakthrough was the connections we were

able to facilitate. We connected them with one

another, with customers, with suppliers, with

partners, with talent and ideas and finance.

The biggest difference between SMEs and

large corporates is that large corporates are

connected everywhere — SMEs are poorly

connected. Whether it is through technology

or contacts or services, a bank that connects

its scale-up customers is a bank that is adding

value for them.

What is the effect of the Program?

Santander’s Breakthrough program is still

running, reaching more businesses than ever

now. It transformed thinking within the bank

and was rolled out across the Santander global

group as Santander Advance. I am proud that

Santander Breakthrough is still motivating and

supporting SME businesses in the UK, and its

children, as Santander Advance, are benefiting

SMEs across the world.

SMALL BUSINESS BANKING MAGAZINE

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EVENT

CEE SME Banking Club Conference 2018

For the fourth time, SME Banking Club

gathered SME Bankers in Warsaw (Poland)

at the CEE SME Banking Conference 2018,

which was held on October 29-30 and devoted

to financial services for SMEs in that region

(#CEE18).

More than 100 attendees from 20 countries took

part in this year’s conference.

Day one of the conference on October 29 was

devoted to the topic of cooperation between

banks and FinTechs, and started with on-site

visits to Innovation ING Lab — a space that

supports creative thinking and innovations

within ING Bank Śląski; and LeaseLink — a

FinTech leasing company that provides online

leasing to entrepreneurs (for more details, see

p. 39).

The program continued with a panel discussion

on Models for Cooperation Between Banks

& FinTechs.

Maciej Marszalek from The Heart Warsaw talked

about Why and How Banks Should cooperate

with FinTechs.

Why

Balazs Topor (Raiffeisen Bank International)

summed up the results of RBI’s first

Accelerator program – Elevator Lab 1.0.

One of the main key factors for the successful

implementation of solutions with start-ups is

serious, dedicated resources and agility on the

bank’s part. Kamila Wincenciak presented RBL_

- Accelerator program in Alior Bank (Poland),

During the on-site visits to Innovation ING Lab

(Warsaw, October 29, 2018)

which was launched in September this year (for

more details, see pp. 8-9). Paulina Skrzypińska

and Michał Miszulowicz presented a Start-up

Code that was implemented within BGŻ BNP

Paribas in Poland to accelerate the purchasing

process for new technological solutions and

templates for documents for the so-called Proof

of Concept (for more details, see p. 6).

We are in an era in which production

and distribution are being replaced

by experience, ease, simplicity and

transparency

Entry barriers are much easier to overcome

— technology, regulations, access to

capital

Customer experience and expectations

spread across industries

...they even spread within industries but

across borders!

Millennials are turning...40

How

Innovate on the Core

Challenge your Core

Venture out and experiment

Open Up

During the panel discussion on Models for Cooperation Between Banks & FinTechs. Left to right:

Balazs Topor (Raiffeisen Bank International), Kamila Wincenciak (Alior Bank), Michał Miszulowicz

(BGŻ BNP Paribas), Paulina Skrzypińska (BGŻ BNP Paribas), Maciej Marszalek (The Heart Warsaw)

42

NOVEMBER 2018


Event

Afterwards, 8 startups offering innovative solutions pitched their ideas

on how they can help acquire more customers for banks and create

new features for SME customers.

Blockey — a website plugin that helps companies verify a customer’s

identity and complete the KYC process through the bank login.

bNesis — a marketing automation system based on continuous

monitoring of customer events within non-traditional data sources in order

to allow SMEs to apply for a loan with just a few clicks.

Eucaps — easy access to the entire European market for publicly traded

SME instruments.

Finea — a fintech focused on delivery of online factoring solutions to

micro and SME companies.

Kekemeke — digitalization of loyalty programs.

Partner HUB — an e-invoicing platform that can be integrated into

internet banking systems.

QuickCash — a platform that evaluates SME Business Performance &

Credit Risk and defines the threshold for SME credit with full automation,

within 15 minutes and online.

Zweryfikujfirme.pl — automatic analysis of financial data from SAF-T.

steps taken by the bank, what still needs to be done, and what it takes

for a bank to become an agile organization. John Mark Williams (Agile

Business Consortium) moderated the discussion panel and raised the topic

of, among other, the main driving factor behind digital transformation

within banks, given that many banks continue to bring in profit despite

still using old legacy systems and not undergoing digital transformation.

He also raised the question of whether digital transformation and adopting

the Agile way of working happen simultaneously.

Anna Glazunova (Livespace) and with Marya Dylets (Alfa Bank Belarus)

presented a business case study on the implementation of a CRM

within Alfa Bank Belarus (for more details, see p. 37).

During the Pitching Session in RBL_

(Warsaw, October 29, 2018)

Left to right: Anna Glazunova (Livespace),

Marya Dylets (Alfa Bank Belarus)

Day two of the conference on October 30 started with a panel discussion

of Digital Strategies in SME Banking and the Agile way of working.

Charles-Alexandre Gamba (ITDC BC) raised the question in his presentation

on what was stopping banks from proceeding with digital transformation,

and the answers came during the discussion panel. Adam Walendziewski

presented the Agile way of working within ING Bank Śląski along with the

During the next panel — Innovations in Daily Banking — Adam

Walendziewski presented ING Business — an omnichannel platform

for SME & Corporate customers that provides a single access point for

all banking and non-banking products (for more details, see pp. 34-36).

Agnieszka Piróg and Patrycja Leszek-Królikowska (Ailleron) talked about

Customer digital experience in business banking and showed how

a digital platform can fit different segments and cater to the needs of

SME customers. Lisa Schmid (Raisin) showed how banks can digitalize

deposit products for SMEs and how Raisin is doing just that (for more

details, see p. 38).

Tomasz Jakubczyk (BOŚ Bank) moderated the discussion panel.

During the discussion panel. Left to right: Adam Walendziewski

(ING Bank Śląski), Charles-Alexandre Gamba (ITDC BC),

John Mark Williams (Agile Business Consortium)

During the discussion panel. Left to right:

Lisa Schmid (Raisin), Adam Walendziewski

(ING Bank Śląski), Patrycja Leszek-Królikowska

(Ailleron), Agnieszka Piróg (Ailleron),

Tomasz Jakubczyk (BOŚ Bank).

SMALL BUSINESS BANKING MAGAZINE

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EVENT

Marta Mroz-Sipiora and Marcin Kwilosz from Asseco Poland presented Digi

Trade — new solution that helps digitize Trade Finance products for SME

customers.

Marta Mroz-Sipiora and Marcin Kwilosz (Asseco Poland) during their presentation

and become important partners for small businesses. Łukasz Bystrzyński

(CashDirector) gave a presentation on Automated Accounting solutions

as an element of SME Banking Ecosystems. In cooperation with

mBank, CashDirector launched the first automated accounting solution

on the Polish market for SMEs — mAccounting. Krzysztof Pulkiewicz from

banqUP showed how a bank can provide more tailored solutions to

SMEs and help them run their businesses more efficiently by using

BFM tools.

This year a separate panel was devoted to Agri Banking in order to discuss

how banks can approach and finance farmers in the new digital reality, what

the relationship model and the main challenges are when working with

this customer segment. During this panel, entitled “Agricultural Finance:

Trends, Digital Technologies and Challenges”, Bartosz Urbaniak (Head of

Food & Agri Banking at BNP Paribas Group for CEE and Africa) talked about

the main trends and challenges for farmers in the region.

During the Digitalization of SME Finance Panel, representatives of online

lender (iwoca), traditional bank (Raiffeisenbank CZ) and management

consulting company (PwC Polska) discussed the automation of SME

lending. John Mark Williams (Agile Business Consortium) moderated the

discussion panel and discussed, among other topics, the usage of data and

data analytics in banks’ business decisions and when assessing risks related

to lending to SMEs.

During the discussion panel. Left to right:

Adam Spławski (PwC Polska), Tomas Nemcik

(Raiffeisenbank CZ), Mariusz Zabrocki (iwoca Poland),

John Mark Williams (Agile Business Consortium)

Bartosz Urbaniak (BNP Paribas Group)

during his presentation

Discussion during the panel on Creating an SME Banking Ecosystem,

which was kicked off by a presentation by Bartosz Witorzeńć from Idea

Bank (Poland), focused on the creation of ecosystems of services that

go beyond core banking, thanks to which banks hope to acquire new

sources of profit and (equally important) deep customer relationships,

Leasing is particularly advantageous for small and medium-sized

businesses that do not have a lengthy credit history or a significant asset

base for collateral. The topic on leasing as a primary source of investment

financing for agricultural customers was presented by Tomasz Sudaj

(Santander Leasing Polska).

Tomasz Sudaj (Santander Leasing Polska) during his presentation

During the discussion panel. Left to right: Bartosz Witorzeńć (Idea Bank),

Łukasz Bystrzyński (CashDirector), Krzysztof Pulkiewicz (banqUP).

44

NOVEMBER 2018


Event

Matija Zulj (Agrivi) presented the benefits of the FMS solution and how

it can be useful for banks. Andrey Gidulyan (SME Banking Club) hosted

the discussion panel.

Daniel Huszár (efcom)

Left to right: Matija Zulj (Agrivi), Andrey Gidulyan (SME Banking Club)

Exhibitors:

Asseco Poland is the largest Polish IT company listed on the Warsaw Stock

Exchange. It has been developing technologically advanced software

solutions for all key sectors of the economy for more than 25 years. More

details at https://pl.asseco.com/.

The panel on SME Risk Management was preceded by a presentation on

CEE Economic outlook by Grzegorz Sielewicz (coface).

Ailleron creates digital technologies that change the relations of companies

with millions of their customers. More details at http://ailleron.com/.

Grzegorz Sielewicz (coface)

Alexander Beresford (Finiata) and Daniel Huszár (efcom) talked about

automation of factoring services for SMEs in terms of risk, how to use data

in automation of decision making, how to define which customers to

onboard and which to reject, and how to do it quickly.

Alexander Beresford (Finiata)

SETTCE. Executing any financial transaction has never been easier thanks to

the SETCCE e-signature solution. More details at https://www.setcce.com/.

Join us during the next edition in 2019!

SMALL BUSINESS BANKING MAGAZINE

45


EVENT

CEE SME Banking Club

29-30 October,

Warsaw, Poland

46

NOVEMBER 2018


Event

Katalin Kauzli (Partner HUB)

Kamila Wincenciak (Alior Bank)

During the onsite visits

to Innovation ING Lab

Left to right: Balazs Topor (Raiffeisen Bank International), Kamila Wincenciak (Alior Bank),

Michał Miszulowicz (BGŻ BNP Paribas), Paulina Skrzypińska (BGŻ BNP Paribas),

Maciej Marszalek (The Heart Warsaw)

Paulina Skrzypińska (BGŻ BNP Paribas)

Balazs Topor (Raiffeisen Bank International)

Scan QR code

to view more

photos from Day 1

SMALL BUSINESS BANKING MAGAZINE

47


EVENT

Daniel Huszár (efcom)

Adam Spławski (PwC Polska)

Olena Gryniuk (SME Banking Club)

Tomasz Sudaj (Santander Leasing Polska)

Lisa Schmid (Raisin)

John Mark Williams (Agile Business Consortium)

48

NOVEMBER 2018


Event

Left to right: Tomas Nemcik (Raiffeisenbank CZ),

Mariusz Zabrocki (iwoca Poland), John Mark

Williams (Agile Business Consortium)

Left to right: Adam Walendziewski (ING Bank

Śląski), Charles-Alexandre Gamba (ITDC BC),

John Mark Williams (Agile Business Consortium)

Daniel Mrozek

(Santander Leasing Polska)

Tomasz Jakubczyk (BOŚ Bank)

Anna Glazunova (Livespace)

Bartosz Urbaniak (BNP Paribas Group)

Scan QR code

to view more

photos from Day 2

SMALL BUSINESS BANKING MAGAZINE

49


ABOUT

the SME Banking Club

The SME Banking Club was established by a team of former SME bankers in 2010.

The SME Banking Club organizes regional SME banking conferences on an annual basis (one regional

conference in each region where it has a presence) that bring together financial institutions, technology

companies and development finance institutions to share knowledge, spur innovation and promote the

growth of SMEs in the region.

For details about our regular events, featuring expert professional guidance and exclusive panel

discussions, visit www.smebanking.events.

SME Banking Club members benefit from access to detailed analytical market reports and annual studies.

This information is not available anywhere else in the market.

Regions of operations: Central and Eastern Europe, CIS countries, the Caucasus region and Central Asia.

Representative offices in Ukraine and Poland.

We invite you to stay in touch and join our online platforms: our website, www.smebanking.club;

our LinkedIn page; and our Soundcloud page, which offers unique knowledge resources.

Join the SME Banking Club network for events and ideas that connect and inspire.

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