mBank – how it attracted 1 milion customers

www.mBank.pl
HOW WE DID IT
mBank – how it attracted 1 milion
customers
Warsaw 2nd Feb. 2006
www.mBank.pl
WHAT DID WE DO?
20 thsd. of new customers monthly
1 015.3 thsd. customers
1.32 m accounts
1200
Customers
Thsd.
255
1 015
1000
215
800
214
600
209
400
200
10,5
112
State
0
2000
2001
2002
2003
2004
2005
12.05
Increase
www.mBank.pl
WHAT DID WE DO?
4,61 b PLN assets under management
4,04 b PLN deposits
Deposits
0,57 b PLN assets in Mutual Funds
4500
4000
990
thsd. PLN
4 043
500
3500
3000
723
2500
791
2000
1500
1019
1000
500
19,4
State
0
2000
2001
2002
2003
2004
2005
12.05
Increase
www.mBank.pl
WHAT DID WE DO?
1,14 b PLN Loans
1,6 b PLN Loans given
Loans
1200
637
thsd. PLN
1 140
1000
800
600
341
400
200
4
158
State
0
2000
2001
2002
2003
2004
2005
12.05
Increase
www.mBank.pl
WHAT DID WE DO?
Two years of gross profitability
40
30
RORC
20
28,4
21,99%
gross profit (loss)
10
0
3
-7,1
2000
2001
2002
2003
-10
-20
-29,7
-30
-40
-50
-60
-41,8
-48,7
2004
2005 prog
www.mBank.pl
WHAT DID WE DO?
Shift to full service, multichannel banking
mBank’s initial position
mBank’s targeted position
SECOND CHOICE BANK
FIRST CHOICE BANK
DEPOSIT BANK
FINANCIAL INSTITUTION OFFERING
THE BEST BANKING AND NONBANKING PRODUCTS
HIGH INTEREST, NO FEE BANK
BANK OFFERING COMPETITIVE
INTERESRT RATES and LOW FEES
VIRTUAL BANK
MULTICHANNEL BANK
www.mBank.pl
WHAT DID WE DO?
Overwhelming customers‟ satisfaction and loyalty
2,1%
30,3%
3
6,5%
2
Do you recommend mBank to your friends?
(1 - never; 5 - definitively yes)
1,5%
1
58,7%
4
5
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
www.mBank.pl
HOW WE DID IT
Clear and inspiring vision and mission
Vision
Personal finance requires simple solutions, which are at hand’s reach. Products and services
have to be based on simple, easily understandable principles.
We don’t promise you will find everything ever invented in the world of finance at our bank,
what you will find however, what is most important, the highest quality and at the best
available market price.
The Mission Statement
Maximum benefits and convenience in personal finance.
www.mBank.pl
HOW WE DID IT
Innovative and effective business model
Target Group:
Mass market, quality and price sensitive,
capable of using new technologies,
seeking convenience and freedom
Products:
Innovative financial products and
services
Strategic positioning:
mBank, the leader of Internet banking,
offers those who rationally manage their
personal finances, the most essential
products and services at the best possible
prices and the highest quality on the market.
Technology:
Innovative technology based on Internet
and other electronic channels
Distribution:
Multichannel distribution based on
electronic channels
www.mBank.pl
HOW WE DID IT
The very special strategic positioning
Universal bank
mBank customers are people with a varied psychographic
profile, united by a sensitivity to price
and quality and an openness to new technologies
A transparent and straightforward range of the best topquality products for all customers, right from the very
first zloty
Leader of innovation
in personal finances
A continuous cycle of innovation keeps us in the lead
regarding the level of costs and prices and the quality
of banking products and services
Innovative model for distributing the non-banking
products and services of various providers: OPEN
FINANCE PLATFORM
Leader of internet
and “low cost” banking
mBank’s distribution is based on cheap, electronic access
channels, partly backed by
a physical network only where particularly justified by
business interests
www.mBank.pl
HOW WE DID IT
Products based on the innovation and customers‟ needs
eMAKLER
Brokerage Service*
Leo
Life
Insurance*
mShop
eCommerce
Leader – continuous cycle of
innovation
SFI
Consumer loans
Credit cards
Investment Funds*
mPLAN
Mortgage Products*
Basic banking products for micro-enterprises
eKONTO
Basic banking products for individual customers*
11/2000
2001
2002
2003
2004
2005
www.mBank.pl
HOW WE DID IT
All services in one place – the open platform
Banking products
Non-banking products
mINVESTMENTS
(investment
products)
mACCOUNTS
(current accounts)
mDEPOSITS
mLOANS
(consumer loans
and mortgages)
mCARDS
(credit cards)
mBank
and no other…
mINSURANCES
(insurance
products)
mSzop
(eCommerce)
www.mBank.pl
HOW WE DID IT
We communicate TO our customers
We focus on very few ideas
•
•
•
•
•
•
Price
Outstanding service quality
Convenience
Simplicity
Community
Open Finance Platform
www.mBank.pl
HOW WE DID IT
We communicate WITH our customers
We listen to them (and they listen to us)
www.mBank.pl
HOW WE DID IT
Process: on-line, integrated, automated, dedicated
Card activation and
PIN definition by
customer
Web application
UniWniosek
„Welcome e-mail‟
Sending the
card
(web application)
„final e-mail‟
First verification of data
UniFlow
Final decision
(back-office integration)
Scoring and analysis
„OK e-mail‟
You can check
the status
by Internet
24/7/365
!!!!
Final check of the documents
Final scoring (optional)
Posting documents
to the movable regional agent
„contact call‟
Meeting with customer
Collection of documents
Signing the agreement
Posting documents to the bank
www.mBank.pl
HOW WE DID IT
We expand to „real” world
Basic channels - electronic
Internet [2000]
www mbank| mail | mCzat | Forum
www financial agents|
Telephone [2000]
Contact Center | IVR | WAP | SMS |
| SIM Toolkit | [2004]
Auxiliary channels
Post [2000]
Physical distribution of documents
ATM‟s [2000]
|Cash withdrawal| [2000]
|Cash depositi| [2004]
Subsidiary physical channels
Financial Service Centers
[2002]
|Network of agents – mortgage products|
|Network of agents – credit cards
mKIOSKs [2003]
Agents [2000]
|Physical agent service points|
|Network of agents|
www.mBank.pl
HOW WE DID IT
We are unique
We built history ...
... but we have fun ;-)