About report

ING Bank Śląski S.A. Group has compiled the annual report in line with the best global practices of integrated reporting. To help readers use the interactive tools, we prepared a user guide with key features. We encourage you to watch a short animated video before reading the report.

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Integrated Annual Report
of ING Bank Śląski S.A. 2019

Corporate banking segment

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Banking and Non-Banking solutions for our clients

Our offer

ING has supported corporate clients on payment service, financing and cash management for years. We provide support by relationship managers who specialise in servicing of clients from the key economy sectors. As a result, we are able to understand the expectations better and to propose products and advanced structures that suit them.

We offer, among other things:

  • Services for Businesses
  • Cash management
  • Financing
  • Trade services
  • Corporate Finance
  • Knowledge on financial markets
  • Custody services
ING Business online banking

ING Business is the core online banking platform addressed to clients from the mid and big companies segment. The users’ satisfaction rate measured through NPS survey throughout 2019 rose by more than 35% from 2018. We also recorded an increase in customer satisfaction level from 8.0 in 2018 to 8.3 in 2019. The ING Business platform is developed in terms of four aspects:

In 2019, we implemented solutions that protect the safety of the system users and that prevent fraud. As part of our efforts to comply with PSD2 requirements, we implemented strong customer authentication (SCA). When accessing and implementing instructions via remote channels, SCA requires the application of elements from at least two out of three categories – knowledge, possession, and biometrics. For security reasons, we also resigned from using TLS 1.0 and TLS 1.1 protocols.

The application availability throughout the year was 99.8%. We continue efforts to improve mechanisms and algorithms within the application to make the availability even higher.

That parameter is important to our users and to us. In 2019, we implemented a number of improvements, including changes on the login page, the card module and in Kantor. We steadily introduce improvements to individual modules so that clients can take advantage of an application that is even faster. The upgrade of the Oracle data version from 11 to 12.2 was a key initiative taken in 2019 that had a significant impact on the application capacity; as a result of that upgrade, the user login time was reduced by 20%.

We keep working on the system usability. Last year, we implemented the ability use Apple Pay for our users. We improved the module of conditions to be fulfilled to get a loan. In the Kantor/ Financial Markets module, we launched modified functions of Offers, FX Alerts and FX Forward that allow for a simpler, faster and more intuitive foreign exchange. We also implemented improvements to the List of FX transactions and offers; as a result, transactions may be performed in an even better and faster way. We launched the FX Offers monitoring available 24 hours a day, 7 days a week. In the Leasing module, we launched a new list called Deposits, where clients can view the details of the company’s leasing payments, check whether a payment was settlement and the invoice in relation to which it was posted. Previously, that function was available only outside ING Business. We keep working on application forms and other forms to make them as user-friendly as possible.

2019 witnessed a number of regulatory changes to which our application needed to be adjusted. As part of works on PSD2 in ING Business, we introduced new services that allow third party providers, or TPP, to get access to accounts. We implemented payment initiation service (PIS) that grants online access to a payment account to check funds availability and make a payment. We also implemented the account information service (AIS) that allows users to get access to integrated online information on payment accounts with various providers. We also focused on adapting the application to the Split Payment Act. In 2019, we also worked on the individual tax accounts.

ING Business Mobile Application

More than 38% of companies already use ING Business mobile application, and the number of users has increased by more than 30% year on year. That method of clients’ access to banking information is growing in popularity. More and more frequently, users use their mobile devices to make transfers or get information on their funds.

We keep developing and enhancing our mobile banking channel. In Q1 2020, we plan to provide the corporate clients with a new version of the mobile application with the possibility of logging into the web application via the mobile app.

Solutions for corporate banking clients

It takes just 5 minutes to open a company account with us online – to complete a form with data that we provide ourselves downloading it from official databases. The client may login to ING Business to sign the agreement electronically and get the account number. Within a short time up to one hour, the customer may use all functionalities of the account – perform transactions, order more products, etc. The solution proved useful for our sales people who servicing customers in a remote manner (e.g. over ING Business Centre) also may resort to the fastest method. As many as 47% of relations with new customers are opened with the tool. NPS for the remote account opening is 60.3.

In 2019, we substantially extended the cut-off times for more currencies (EUR, RUB, NOK, TRY, DKK, AUD, JPY). As a result, our customers can execute FX transfers until a later time.

For several years we have been offering our customers an innovative model of cash services – installation of cash devices, light depositories, mini ADMs and cash machines, at companies’ offices. ADMs accept cash in PLN and EUR, and depositories also in other currencies. With the cash machines, our customers may collect cash and cashless payments directly from their clients or from local inhabitants if installed in public offices. The solutions support cash handling – transactions are booked online and company accounts are credited immediately. All those devices can be leased by customers.

Corporate customers may use a modern service of ordering cash disbursement services to any persons, e.g. employees or counterparties. Cash disbursement instructions are input to online banking ING Business and the specified person draws cash in an ATM of ING Bank Śląski or Planet Cash without any card – all information required to make the disbursement is provided in a text message.

We were the first Bank in the market to offer the Apple Pay service for business cards. The service provides for secure and comfortable payments with Apple phones and other devices. In order to use Apple Pay, it is necessary to provide consent to transfer transactional data to Apple. In case of companies, the consent is to be provided in line with the representation rules as specified in KRS. For the purpose, we have developed a comfortable process to grant consents in ING Business. Once the consent is granted, company employees may add their business cards to Apple Pay.

In 2019, we offered to all users of ING CardsOnLine cards an application to handle business cards with remote registration.

imoje is Poland’s first and only online payment system for internet stores provided by a Bank. The service has been available since June 2018 and it has been growing very fast in the market. By the end of 2019 we handled over 1 million transactions and the payment volume has been growing by over ten percent monthly.

Imoje processes the most popular payment methods – BLIK, outright transfers, cards with the most important and unique function being an option of deferred payment. Internet store customers may pay for their shopping within as many up to 21 days of placing the order. The option does not require any additional data or documents to be signed – the purchase may be finalised with one click, also on a smartphone – without any authorisation codes or switching between windows of various applications. If a store client uses the Twisto Free service, they may pay for the purchase after as many as 45 days. The function is supported by Twisto – a Czech fintech for which ING is a strategic partner in Poland.

imoje payments once again have been appreciated by the sector – we won an award of Portfele Wprost 2019 for the best payment platform.

In its new version, ALEO.com focuses on business transparency and easy access to information on companies – now one click away.

Information on each company is contained in their individual profiles. The information includes:

  • Registration, financial and contact details – all data is updated in real time and originates from official sources like KRS, CEiDG, REGON. Access to the information is possible without registration in the service and is free of charge.
  • Reviews and opinions – issued by other companies as well as by individual users of each company services. Such shared opinions additionally improves business transparency.

Company profile on ALEO.com is a place where each company can take care of its image – companies may add their own information, photos or present their offers to effectively reach potential clients and counterparties. Companies may also respond to the opinions published on them. For smaller companies that do not have their own web sites, this is an opportunity for free and professional presence in the web.

Since 2018, along with ING Commercial Finance, we have been offering online factoring services to our business clients (also from outside of ING). This fully online solution supports companies in financing their sales invoices and they may receive cash even on the day the issue the invoice (we issue our decision within minutes after receipt of invoices). The offer is addressed primarily to smaller companies the often cooperate with larger buyers of their products or services that most often require that sales invoices are issued with longer payment date up to 90 days.

2019 was a year of a dynamic growth and development of the service – evidenced with over 2,700 clients as at the end of the year (increase by 115% y/y). Responding to our clients’ needs and the dynamic market situation, we keep developing Invoice Financing. We have integrated the service with ING Accounting thus enabling ING clients to issue sales invoices and have them financed in one system without registering and logging to two different systems. We have also implemented a possibility of a free increase of the factoring limit for our clients up to PLN 100,000 on the basis of JPK VAT files.

Cooperating with ING Services for Business, in July 2019 we launched a new product called Raboplatform. This is Robotics Process Automation (RPA) software that we offer to clients. With the software, companies can enhance their internal processes, e.g. financial or related to procurement. The robotic platform was fully developed by ING and provides a full range of robotic services, starting from a review of processes to training and implementation. The final product is a robot that automatically executes clients’ processes. We have also developed a universal robot supporting the process of account verification in the white list register.

Roboplatform is already active among clients and supports multiple non-Banking services. The history of the solution covers over 10 years of experience with ING to apply robots to internal processes.

We develop online services

In February 2019, we launched a solution providing for electronic conclusion of the first agreement and fast product implementation. Now we are the only Bank in the market that offers such service to the largest customers. In 2019, the implementation team, in cooperation with operational units, successfully implemented 19 transactional Banking agreements. The agreements obliged the Bank to implement several products (5 to 9) and accounted for 10% of all the new agreements.

For a long time, our clients have been able to sign agreements and applications with electronic signature in ING Business. In 2019, we additionally offered the possibility to sign documents with qualified signatures. As a result, in order to file applications or sign agreements, our clients may use qualified signatures that they use for other processes in their companies.

For years we have been offering our clients and potential clients to apply for loans online.

The companies that do not have an account with us may use a special ING Direct Business Credit application available on the Bank website to file loan applications. Our clients who already use ING Business may file such an application in the system. In 2019, the share of applications filed online reached 95%.

Last year we also observed a systematic growth of digitisation in credit approval decisions, conclusion of agreements and post-sale services of credit products:

  • for clients with exposures to the Bank up to PLN 400 thousand we continued the development of the Easy Lending track which comprises automatic credit approval and renewal decisions. As a result of such automation of renewal decisions and other process enhancements, we reached a dynamic growth of the share of the Easy Lending track from 13% to 28% in all products in the year. This means that during the year we handled over 3,400 loans totalling over PLN 375 million in that track.
  • the number of loan agreements signed electronically grew from 31% to 38%,
  • loan disbursement instructions – now 73% of such instructions are placed and executed electronically, most of them automatically. This is growth 13 pp versus the previous year (from 60%),
  • disbursement instructions placed electronically and executed automatically recorded a growth from 26% to 40%.

We have been noting that the proportion of e-guarantees has been growing among our clients. Two years ago, we were the first in the market to offer e-guarantees and a platform to verify qualified signatures. In 2019, there was a dynamic growth of e-guarantees among the guaranteed issued with the share reaching almost 23% at the end of the year (in 2018 the share was 5%).

In 2019, we continued to automate and digitise and optimise lending processes.

At the end of 2019, we launched an antifraud service Gandalf which keeps scanning activity of clients completing loan applications and detects suspicious events and marks a risk of fraud with the client. This is a flexible solution that may be applied in any Banking process and is to mitigate fraud risk. Next year we plan to develop new modules for the service.

In response to legislative changes requiring enterprises to make electronic financial statements, we have offered the possibility to import e-statements from KRS to the Banking system.

We have launched a new restructuring and collection module covering exposures under PLN 1.2 million in a new dedicated head office unit. The new approach supports fast response and assistance to clients before they face major problems. We provide for assistance from the first day of delay, support of a dedicated Bank staff member and clear and flexible restructuring strategies.

In September 2019, we launched a simplified track with automatic decisions for L/Cs and guarantees secured with deposits or funds in advance; as a result, we materially accelerated decisions in those cases.

In November 2019, we completed a pilot project for documentary letters of credit based on the Blockchain technology. With an electronic L/C a client of ours has secured an order from a counterparty from Taiwan. The solution is not yet available in the market but it shows the direction of L/C development to shorten transaction execution, improve communication between the parties and more effectively use credit lines.

For many years, the EU offer of Bank ING has been popular among clients. On 6 June 2019, at the BGK Partner Gala, ING Bank Śląski – as the only Bank – was awarded a prize from Bank Gospodarstwa Krajowego for its commitment in the distribution of EU funds. Our Bank, a leader in financing of innovations among SMEs – in the last EU perspective issued over 250 promises for technological loans and helped finance technological projects for over PLN 1 billion.

We keep working in improving user experience from the perspective in external and internal clients in systems. We have a number of UX enhancements in ING Business, inter alia a new template to account for contractual terms and conditions and the possibility to sign agreements and loan applications on the basis of data updated in real time with the e-KRS service.

We offer corporate clients attractive forms of asset financing: leasing and factoring.

In the area of leasing, we cooperate with a subsidiary, ING Lease (Poland), which offers operational and financial leasing, including repayable and leasing, which allow to finance the purchase of both movables (passenger cars and vans up to 3.5 tonnes, motorcycles and scooters, trucks, machinery and equipment, technological lines, commercial vehicles, medical, office and IT equipment) as well as real estate (office buildings, commercial buildings, logistics centers).

The company addresses its offer to micro, small and medium-sized enterprises as well as the largest companies operating on the Polish market.

ING Lease (Poland) is constantly developing its offer, products and tools for communication with clients, so as to best respond to their needs and expectations. Consistently implements the strategy of developing external channels, including online presence (in ING internet and mobile banking systems) and in dealerships. The company effectively increases the number of cooperating suppliers and importers.

ING Lease sees its competitive advantage in using the potential of ING Group clients in Poland and in close cooperation with ING Bank Śląski. In 2019, ING Bank Śląski, offering its clients ING Lease products, was awarded the Institution of the Year 2018 title in the ‘Best Bank in Leasing Financing’ category. What’s more, in 2019, online leasing at Moje ING received the Financial Order of the Home & Market monthly for the most interesting financial product for the small and medium-sized enterprises sector, and the ING Machines Program, thanks to which entrepreneurs can benefit from financing of machines and devices on simplified terms, was awarded in the Best Products for Business plebiscite.

In our work related to search for new products, we applied the PACE methodology and developed a concept of applying electronic money. Digital PLN may support loyalty programmes or be an alternative to pre-paid cards. The above required an amendment to the by-laws of ING Bank Śląski S.A., approved in December 2019 by the Polish Financial Supervision Authority. ING Bank Śląski S.A., was among the first Banks in the market, to have added a provision on “issuing electronic money” to its by-laws. As a result, we can continue working on the solution.

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Customer education and access to knowledge

Meetings with our clients

In 2019, we held numerous meetings with existing and prospective corporate customers. They were organised as conferences either by the Bank on its own or jointly with partners – media or regional business organisations.

The meetings with corporate segment customers covered the following subjects:

  • optimisation of company finances (cash and settlement management, issues related to Split Payments),
  • changes to the pension system,
  • cyber security,
  • robotics,
  • succession in family businesses,
  • selected factors of the economy (e.g. agriculture, transport and logistics),
  • selected economic issues (recent analyses of FX exchange rates, interest rates, Brexit, issues related to sustainable development, power generation and electromobility).

#INFLU zone

At last year’s edition of the European Economic Congress and the European Start-up Days, we invited participants to the influencer zone. At #INFLU, opinion leaders held discussions with ING experts. Our goal was to hold detailed discussions on the subjects presented at ECC and ESD, inter alia climate change, new technologies and their impact on the society, electromobility as a key to success as well as Fintechs. We invited our management, Bank experts and influencers whom we appreciate. The meetings were held in an informal atmosphere and could be attended by anybody.

Conference "Day with e-commerce - sell more"

In 2019, in Katowice, we organized a conference “A day with e-commerce – sell more”. During the event, the invited speakers were industry experts who gave practical tips on how to increase sales in e-commerce stores. Customers could broaden their knowledge of solutions focused on increasing online store conversions and payment innovations.

Volumes of receivables in the corporate Banking segment

As at 2019 yearend, total gross receivables from institutional clients went up by 7.4% y/y to PLN 63.5 billion. The dynamic growth in lending translated into a higher market share as at the 2019 yearend i.e. 11.5% from 11.2% a year ago.

As at 2019 yearend, portfolio of gross receivables of strategic clients was PLN 24.6 billion (+1.4% y/y), while portfolio of gross receivables from SME and mid-corporates was PLN 38.9 billion (+5.0% y/y).

 

 

 Change currency: PLNEURUSD
Portfolio of receivables from corporate customers per product (PLN billion)
Portfolio of receivables from corporate customers per product (PLN billion)
Portfolio of receivables from corporate customers per product (PLN billion)

Volumes of deposits of the corporate banking segment

The funds deposited by our corporate clients as at the end of 2019 amounted to PLN 40.9 billion and were by 8.8% higher than at the end of the previous year. Funds in current accounts (69%) accounted for a major part of our liabilities to that group of clients.

As at the end of 2019, the deposit portfolio of strategic clients was PLN 13.4 billion (+5.3% y/y), and the portfolio of deposits from medium-sized and large companies – PLN 27.5 billion (+10.6% y/y). Our market share in corporate segment deposits was 8.8% and was by 0.2 pp higher versus the end of 2018.

 Change currency: PLNEURUSD
The portfolio of liabilities to the corporate segment split by products (PLN billion)
The portfolio of liabilities to the corporate segment split by products (PLN billion)
The portfolio of liabilities to the corporate segment split by products (PLN billion)

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