1.3. mBank Group’s business model in a snapshot

mBank Group is the fourth-largest measured by total assets financial institution in Poland, providing retail, corporate and investment banking as well as other financial services, including leasing, factoring, commercial real estate financing, brokerage, wealth management, corporate finance and capital markets advisory as well as distribution of insurance.

Historically, the strength of mBank lied in corporate banking, as since its establishment in 1986 the Bank has served some of Poland’s largest companies involved in foreign trade on export markets. A longstanding experience in corporate banking services set the stage for the Bank’s further expansion into the small and medium-sized corporate client segment.

In 2000, mBank started its retail operations by launching a fully Internet-based bank, which was a pioneering project in the Polish market based on the Internet, direct service through call centres, and later on mobile banking and also other new technology-based solutions. In 2001, the Bank’s second retail arm was launched as a high street brick-and-mortar bank, offering a broad range of products and services targeted at affluent customers and micro-businesses seeking high quality, personalised service.

mBank is the only Polish bank with a successful track record of rolling out its domestic business model into foreign markets. In 2007, mBank launched retail operations in the Czech Republic and Slovakia, focusing initially on transactional and deposit products and now expanding also into mortgage and consumer loans as the bank has been able to establish and develop strong client relationships.

As a result, the Bank’s client base has grown almost entirely organically, reaching 4,689 thousand retail clients and 17,787 corporate customers at the end of 2014.

Over the past few years, mBank has strengthened its client-oriented approach and has been pursuing a stable, focused strategy as a modern and innovative transactional bank providing an integrated range of multiple products and services meeting the needs of its clients. In 2013, mBank launched a reinvented, modern, convenient, easily accessible and user-friendly Internet platform (New mBank) with more than 200 new features, which won global recognition for innovation in banking taking home many international awards.

mBank’s widely recognised operational excellence is based on its state-of-the-art user interface for online banking, next-generation mobile applications, video banking and P2P payments via Facebook and text messaging, and real-time, event-driven customer relationship management (CRM) based on client behaviour patterns. The whole product offer is centred around the current account with a broad spectrum of financial services accessible in just “one click”, as the aim is to be the most convenient transactional bank for all clients.

Following the implementation of the “One Bank Strategy”, mBank reorganised its corporate and investment banking functions in order to offer to its corporate clients fully integrated commercial banking products, services and solutions. A comprehensive product offering, anchored in transactional banking, is complemented by investment banking services, such as ECM, DCM and M&A advisory services.

mBank’s distribution concept combines the most technologically advanced solutions adapted for the Polish banking market and current and future operating environment, including Internet and mobile-based tools (such as its retail banking platform “New mBank” and corporate banking Internet platform “mBank CompanyNet”), premium service quality and a mid-sized physical distribution network located throughout Poland.

With its proven ability in achieving the communicated targets, mBank is well positioned to continue its successful business growth in both retail and corporate segment through exploiting attractive market opportunities. The IT platform architecture allows the Bank to develop and introduce new products, services and sales channels rapidly, inexpensively and with a low operational risk. Thanks to such a flexible infrastructure, mBank is able to manage its business expansion strategy.