Innovations

Paynow is a new service that mBank has made available to its business clients. The gate was created in cooperation with our subsidiary mElements. It is an online payment system for e-commerce. To use it, all you need is a company account and, of course, a website with an e-shop. The payment management panel is integrated with the bank’s transactional service. This is a unique solution on the Polish market. The client logs in to it in the same way as to the bank. The service is visible in the „Payments” tab. Its activation is free of charge. Paynow is the first payment integrator using cloud solutions. And the fastest – the money is visible on the account immediately after the customer makes the payment. The service has been designed so that it can be easily used also on mobile devices.

The main advantages of paynow are speed of operation and low price. In March 2020, due to the difficult economic situation caused by the COVID-19 pandemic, we supported entrepreneurs by excluding commissions for the time of the Spring lockdown. During this time, we focused on the needs of our customers and worked on improving the gate. We have integrated new platforms thanks to which paynow is open to a wider group of recipients. We have implemented automatic returns and support for many stores without additional formalities. We have made a paynow panel available for proxies. We provide automatic invoicing for the clients in the transaction service. In August 2020, we also expanded the scope of payments made. Customers can conveniently pay with BLIK, online transfer, as well as with a payment card.

The development of our offer in the field of digital transformation is a response to the changes in customer needs resulting from the current market situation. It is also our reaction to the dynamic increase in sales in remote channels, which we see as an extremely promising source of income in the coming years.

Aside from the e-commerce package dedicated to its clients, mBank helps companies build momentum with the social campaign “Cyfrowe rewolucje” (“Digital Revolution”). The core of the campaign are educational activities which help entrepreneurs create a successful online shop. We are the first online bank in Poland to support the transformation of our clients. The materials available at www.mbank.pl/cyfrowerewolucje include not only expert articles or industry reports, but also profiles of companies which have started a successful e-commerce business and wish to share their experience. The website offers unlimited access to expert articles, webinars, and industry reports. mBank has also prepared online educational meetings in the form of webinars and the brand new “speed dates” with experts, which were launched in August 2020.

The campaign was promoted with a contest addressed to companies with a turnover of up to PLN 50 million. The participants had a chance to win two packages of specialist services worth PLN 100,000 each, and ten prizes worth PLN 10,000 each. The prizes, comprising services tailored to the size of a given company, helped companies to start or develop their e-commerce business. The partner of the campaign is the Chamber of Electronic Economy, while the contest is sponsored by MasterCard.

More information on how mBank supports digital transformation of the business clients can be found in chapter Retail banking.

For many years, at mBank we have been implementing ESG activities (E – environment, S – social responsibility, G – corporate governance), including climate policy. We support the green transition of the energy sector, among others by financing projects that help reduce greenhouse gas emissions. In December 2018, we approved the Credit Policy of mBank S.A. concerning the financing of renewable energy installations and we decided to allocate PLN 500 million for this purpose. In 2020, we doubled the credit limit for financing renewable energy sources twice: in March to PLN 2 billion, and in December – to PLN 4 billion. The current limit puts mBank among the leaders in financing the energy transition in Poland.

At mBank, we finance investments in renewable energy sources both under the auction support system and outside the auction system. In 2020, mBank financed investments in the field of photovoltaics (photovoltaics, PV), allocating approximately PLN 440 million for this purpose. In the discussed period, mBank also granted financing for wind farms in the amount of PLN 790 million. At the end of 2020, the level of use of the RES limit from the beginning of the policy implementation was 49%. The value of all financing by mBank was PLN 1,970 million. This includes PLN 720 million for PV projects, PLN 1,180 million for wind farms and PLN 70 million for biogas plants, both within and outside the policy. This translates into approx. 1,440 MWp of clean energy per year.

One of the largest transactions carried out by mBank in 2020 is another agreement for financing R.POWER solar projects. mBank granted a loan for this purpose worth PLN 102 million. This is the third agreement between the parties to finance solar farm projects. The total value of all loans granted to the R.POWER Group by mBank reached PLN 355 million. The latest round of financing R.POWER group projects will be allocated to the construction of 32 power plants with a total capacity of 29.4 MWp, located across Poland.

In 2020, we have been dynamically introducing changes to online banking. They covered not only the planned implementations, but also adjustments to the situation related to the COVID-19 pandemic. We continued the introduction of new pages of the internet transactional system based on React technology. It allows to turn on functionalities for small groups of customers and service the website in the beta version. Thanks to the library of components used, the service is intuitive and repeatable. The customer’s assessment of the intuitiveness of the website has increased by several dozen percent since the beginning of 2020. The changes included key scenarios of mBank’s clients in Poland, such as navigation, domestic and foreign transfers, communication and sales via the website, as well as an overview of accounts and savings. The technology used allows for easy creation of language versions and collection of clear statistics on the use of the website by customers. It also enhances the inclusion of mobile views (RWD) and support for blind customers. We have also gained the ability to create hybrid applications by embedding common views in online banking and our mobile applications.

The selected most important changes implemented in 2020 in the internet banking service include, among others:

• #bankfromhome (#bankujezdomu) – we launched a website where we kept our clients informed on how to safely bank during a pandemic. We advised which products and services will help our retail and corporate clients to conveniently use mBank without leaving home. As we encouraged more online activity, we also warned of the threat from cybercriminals. We have also not forgotten about the up-to-date information on the operation of the branches, so that this group of clients also feels that we are looking after them. The website for retail clients is available at https://www.mbank.pl/lp/zobacz-jak-wiele/, and for corporate clients – at https://www.mbank.pl/lp/zobacz-jak- many-corpo/;
• Electronic signing of agreements for corporate clients – mBank continues to digitalise processes to enable clients to bank remotely. Starting from March, corporate clients can sign and send any application, statement, document or agreement with mBank without stepping into the bank. mBank was the first bank in Poland to offer this opportunity to corporate clients. Once the terms and conditions of an agreement are agreed on between a client and their advisor over the phone, the advisor sends digitally signed documents to the client. Next, the client signs the agreement and a statement using a qualified electronic signature and sends them back to the bank. If the client does not have a qualified electronic signature, they send the documents via mBank CompanyNet and fill in an application as instructed by the advisor. The application must be authorised in the electronic banking system in line with the general rules of company representation (CEiDG/KRS). Other formalities are dealt with by mBank employees. The process covers agreements which can be signed electronically under the applicable law. Moreover, it does not cover processes which could previously been initiated using electronic applications in mBank CompanyNet available in the virtual branch;
• Remote account opening for corporate clients – a fully electronic process enables corporate clients to open bank accounts and access mBank CompanyNet, the state-of-the-art banking system. All documents required in the process are signed using a qualified electronic signature by both parties. At every stage of the process clients are assisted by advisors, whether by email or phone. This solution is dedicated to entities established under Polish law as well as to legal persons and organisational units without legal personality which are granted legal capacity by law entered in the National Court Register (KRS). It is also available to sole proprietors (including civil-law partnerships) entered in the Central Register and Information on Business (CEiDG) and represented by holders of a personal identification number PESEL and a Polish ID card. Up-to-date information about remote banking for corporate clients is available at https://www.mbank.pl/lp/zobacz-jak-wiele-korpo/;
• Mortgage loan available online – starting from May 2020, clients may apply for a mortgage loan without leaving home – either by phone or via an app for sending documents. At each stage of the process, they have support of our mortgage expert with whom they confirm the application for a mortgage loan. Clients receive the application via email, print it and send its scan or a photograph to the bank via a dedicated app. Other documents required in the process are delivered in the same manner. This solution is safe, since all the files are transferred via the app, and emails sent to a client are additionally protected with a password sent to the client’s phone number registered at the bank. The bank informs the client of its decision by email or via the mortgage expert, and they visit the bank only once to sign the agreement. All the documents required by the bank to release the loan, e.g. a notary deed, are sent via the app;
• Open banking solutions at mBank (income confirmation using AIS) – clients with an account at mBank, who hold their basic account in a different bank, can be granted with a cash loan in a simplified process, without documenting the monthly salary on paper. mBank introduced a possibility to confirm the salary with the use of AIS service under the revised Payment Services Directive (PSD2). AIS (Account Information Services) offers an access to the bank account and allows to collect information on transactions, including salary inflows, directly from the customer’s bank account. Clients can apply for a cash loan on the internet platform or mobile application or do it at the branch with the assistance of an advisor. Clients do not have to prepare any special documentation or statements. All they need to do is to log in to their account and choose their salary account. After the client’s approval, mBank will download the data necessary to make a credit decision;
• We have extended the service of encrypted documents. The previous „Encrypted statements” service changed its name to „Encrypted documents„. The password from the service secures not only the statements, but also other documents sent by e-mail to customers. To increase security, we have extended the required minimum password length for the service;
• We have shortened and simplified the complaint path – the customer can register them on their own, without contacting a bank employee. Last year, we enabled customers to submit complaints for card transactions in the transactional system. They apply to i.e. ATM withdrawals, online transactions and card payments in stores;
• As part of the „Live globally” package, we have introduced a set of facilitations for holders of payment cards, who are going abroad. They include, among others, increased security when paying by card – especially useful when paying abroad. It allows to block services such as surcharge, i.e. an additional fee charged by a foreign operator when withdrawing from an ATM or DCC, an offer to pay in your own currency instead of the local one. The service is also available in the mobile application;
• Our corporate clients gained the option of invoicing. We made the service available at the end of 2019, and we developed it a lot in 2020. We enable the issuing of sales invoices, also in foreign currencies. Clients can control their finances with interactive reports on invoice status, such as paid or overdue. In 2020, thanks to customer feedback, we updated the service with the option to select split payment, revoke deactivation of a recurring invoice and issue a reset invoice. The service was launched by over 6,000 customers, and the value of issued invoices reached over PLN 100,000;
• Corporate clients can also benefit from an extensive accounting service. We have separated INBOX in the mOrganizer system for online document exchange between entrepreneurs and accountants. We have created a separate tab to make it easier for entrepreneurs to access these „boxes” for electronic documents. Clients may also make parts of the system available to the accountant not related to mBank;
• myID (mojeID) – this is a service managed by KIR S.A. It allows bank’s clients to confirm their identity and enables the banks to transfer their data to other entities providing services on the market. The mBank’s customers can easily and securely access online services, for instance confirm their identity when concluding a contract. mBank and other banks appear in the mojeID service as their clients' Identity Providers (DT). Service providers on the market appear in this service as Service Providers (DU). Service Providers can be public and commercial entities. Data between DT and DU are transferred via the KIR system – eID Node. The service is becoming more and more popular among our clients. So far, nearly 14 thousand people have used it;
• Junior account at mBank – mBank launched eKonto Junior, a free account with a card for children aged below 13, which can be opened online. The young clients can also freely withdraw cash from ATMs. The account is owned by the guardian, who can view transactions made by the child and set daily spending limits. Children can customise the design of their card or choose an account-linked wristband to make payments. The offer is complemented by a dedicated educational website whose host, Virtual Sam, teaches children how to pay by card and withdraw money. Sam explains the basic banking terms, such as a payment terminal, and teaches children about the security of banking products;
• eMakler – Since May 2020, individual investors have been able to become clients of mBank Brokerage Bureau online, without leaving home or even using courier services. The offer also applies to persons who do not hold personal accounts with mBank. Before, mBank clients were able to activate the eMakler service via online banking.

During the COVID-19 pandemic, customers used both the mobile application and an internet banking more often. This was also reflected in the sales results. The share of the mobile application in the sale of cash loans increased from 18% in January to 26% in December. In the peak period, coinciding with the greatest restrictions related to counteracting the effects of the pandemic, this share amounted even to 30%. Despite a number of challenges related to the pandemic, following user suggestions, we have introduced a number of new features and improvements to the application.

• Online account opening with a selfie – a new video verification feature for those looking to open an account with mBank through a selfie. All they need to become an mBank client from the safety of their home is a smartphone and an ID card. The process is entirely remote and does not even require a courier because the bank account agreement is approved via a text message. The account is active on the next business day at the latest. Clients can pay by card even before they receive it physically, provided that they add a card featuring the MasterCard logo to Google Pay. The service is available on Android and iOS phones. Currently it is dedicated to people over 18 years old looking to open an individual account. Approximately 10% of mBank accounts opened via digital channels come from the mobile app;
• Investment funds – we have enabled access to the investment portfolio and execution of transactions on funds from the application level;
• Request for a transfer to a mobile phone using BLIK – mBank was the first to enable its clients to send a request for transfer to people from their contact list. All they need to do is log into the app and select a beneficiary using BLIK from their contact list. A request is accepted with a click in the app within 72 hours. The transfer is executed via BLIK, and this is why the funds are immediately transferred to the beneficiary’s bank account once a client accepts the payment on their cell phone. Since the service is executed in the banking ecosystem, its users can be sure that the money will be transferred to the person known by them and verified by the bank;
• New login method for Android – now the clients can log into the application via recognition of the face, iris or other biometric methods of the device;
• “I recommend mBank” (PolecamBank) – mobile version of the mBank’s product recommendation program for current clients;
• mBank’s mobile application integrated with Huawei Mobile Services – mBank has extended the access to the mBank app to the latest Huawei mobile phones. The mobile application, available in AppGallery since May 2020, was integrated with Huawei Mobile Services. This means that the users of the newest Huawei appliances based on HMS can access fully-transactional tool to conveniently manage their finances. The application installed on Huawei devices with HMS services BLIK mobile payments;
• New section Contact, Complaints and Suggestions – rebuilt Contact section with the possibility of submitting complaints and suggestions from the level of the mobile application. The aim was to reduce mLinia’s (mBank’s contact centre by phone) involvement in handling complaints;
• Scanning codes for automated data entry when applying for a car insurance – all the applicant for a car insurance needs to do is to scan the code on the first page of the car registration document, and the app automatically fills out the form;
• New homepage – a refreshed look and new functionalities aimed at increasing the usability of the desktop and ensuring easier access to information. To rearrange the home page, users just tap and hold a product they want to have displayed on the home page without logging into online banking system, unlike it was before;
• Card changes: card tracking option allows clients to monitor the delivery of their card. It reduces the number of contacts with mBank via the call centre, chat or e-mail regarding the shipping status of the ordered card. Card activation is a novelty in the mobile application. It requires only to enter the card’s expiry date in the application;
• Copying the BLIK code – a positively received change in the field of BLIK payments, resulting from the needs and suggestions of customers;
• Multi-currency service activation – the service can be activated in the details of a selected debit card. It is available even for clients not holding bank accounts in foreign currencies;
• Message box – changing the appearance of sections and dividing them into categories to organize and streamline communication in the mobile application;
• Upgraded history transaction filters – a full range of filters available on the home page for an easier review of transfers.

2.2 million clients currently use the mobile application, i.e. almost 85% of active customers. Users log into the application on average 30 times a month. July 2020 was the first month in which the number of customers using the mobile application exceeded the number of users logging in to the traditional transaction website. In the following months, the number of such customers has been growing steadily. For several years we have been observing a trend that mobile application users are more active and log in to the app more often than the customers using traditional internet banking. Consequently, the number of logins to the mobile app exceeded the number of logins from computers already in July 2017.

In March 2020, the mBank application won the second place in the voting of internet users in the prestigious Mobile Trends Awards competition. In all editions of the MTA competition, mBank’s mobile solutions were awarded a total of 12 times (including 8 times on the highest podium).

mAccelerator is a venture capital fund supporting the development and commercialization of new technologies. It was equipped with a budget of EUR 50 million (an equivalent of over PLN 200 million). The fund invest in minority stakes in technology start-ups, and also independantly (as a venture builder) establishes and develops technological companies. In both cases, the objective of investments is supporting companies, which have the potential to become a partner to financial institutions worldwide over time. It focuses on cybersecurity, biometrics, Robotic Process Automation (RPA), artificial intelligence and digital marketing (in particular chatbots and communicators). There are currently 7 companies in the fund’s portfolio:

• Digital Fingerprints (a company offering a cyber-security solution based on passive biometrics);
• CyberRescue (a service supporting customers in terms of their network security);
• Digital Teammates (specializing in Robotic Process Automation);
• ChatForce (communication platform allowing automatic exchange of information with customers from mobile communication platforms);
• Samito (formerly SaveCart, a company offering marketing automation tools for online shops);
• HCM Deck – a technological HR platform, which supports HR departments in managing, automating and analyzing processes related to employee development in larger organizations;
• Drobna Ratka (a digital lender whose goal is to increase affordability in the motor insurance market by ensuring fast and trouble-free installment financing of third party liability insurance).