Sustainability Pages

CIB in the wider community

A business credit system that is simple but that meets every need

The review of our corporate credit product range focused on simplicity, transparency and catering to special needs. We have recently introduced the following new products specifically geared towards SMEs:

Fixed-interest loans

After the close of the third phase of the NBH's Funding for Growth Scheme, CIB Bank has launched new, self-funded, fixed-interest forint and euro loans and leasing products on the market. The purpose is to support the corporate sector through funding with predictable interest rates in the long term as well.
Since January 4, 2019, the CIB Group has been among the first to join FGS fix, the new FGS facility launched by the MNB, which is available for investments and leasing transactions, further increasing the share of predictable, fixed-rate products in the portfolio.

Loans refinanced by Exim

In the context of the Export Promoting Credit Program (EHP) and the Exporters of the Future Credit Subprogram, under the terms of the refinancing framework agreements and ad-hoc agreements concluded between CIB Bank Zrt. and the Hungarian Export-Import Bank Zrt. (Eximbank), CIB Bank offers fixed-interest loans at favourable terms in EUR and HUF to exporters, suppliers who indirectly support domestic exports through the provision of goods and services (first-tier suppliers to exporters), as well as non-exporting domestic businesses that strive to boost their competitiveness. 

A feature common of all of Eximbank's refinanced solutions at CIB Bank is that they can be requested with a minimum of extra administration, carry favourable fixed rates.

After winning the "EXIM's Fastest Growing Credit Institution Partner 2014" award, in 2015 CIB Bank joined the frontrunners both in terms of the number of disbursed transactions and in terms of the volumes. In recognition of our 2016 performance, our Bank received the "Credit Institution Partner Dealing with the Highest Number of EXIM-Refinanced New Transactions" and "Credit Institution Financing the most SME Customers" awards. In 2017, CIB disbursed the most new refinanced transactions. 

Documentary Transactions

The factor that makes business life more difficult both internationally and domestically is lack of trust between the parties, which typically arises from the default risk. The question arises as to which party should perform first and assume the risk of taking the first step. Risks stemming from non-performance can be mitigated with solutions within the family of documentary transactions, which provide the parties with security based on the uniform interpretation of international regulations. Services related to documentary transactions constitute an indispensable part of CIB Bank's offering of trade finance products. We offer a wide range of documentary products to our customers, including documentary collection orders, letters of credit and guarantees, as well as the discounting of export letters of credit.

Business Terminal service

For its corporate partners, our bank has developed a proprietary electronic banking system, known as Business Terminal (BT), so as to enable our customers to administer their banking affairs electronically, as conveniently as possible.

Key features:

• allows direct access, 24 hours a day, to key information reflecting the actual state of affairs at any given moment, and also enables an exceptionally wide range of orders to be initiated
• a flexible system that can be adjusted to individual needs
• the program can be installed both on individual PCs and on a network
• multiple users can access it simultaneously, and the access rights of the individual users can also be set (permissions for data entry, batch assembly, signature, and multiple transfers)
• independent and joint signatures can be used for the signing of orders
• we provide a security token in the form of a USB dongle
• It allows initiating customs payment orders 24 hours a day. The order is executed via the GIRO system and in parallel with this, our bank also initiates an instant notification through the special system created for this payment (EBÜK). In this, it notifies the NAV about the details of the order initiated by the customer. The bank sends a message to the customer's Business Terminal about successful transmission to NAV. 

Our electronic system can be linked up to the company's financial systems (e.g. SAP, payroll software), thus making it possible to import and export order data. And if our customers want to send their orders electronically directly from their accounting system, they have the option of installing an automatic BT software. The automatic BT software sends the transfer orders and account statements between the customer's accounting system and CIB Bank's processing systems without the need for manual intervention.

CIB Business Online service

CIB Business Online, our new Internet banking service tailored specifically to the needs of corporate customers, was introduced in August 2019 in order to facilitate the electronic processing of financial transactions. 

The aim of our development efforts is that the quality of that service should match and soon even become even superior to the service quality of the popular Business Terminal.  In addition to traditional e-banking services, digital services and paperless processes are deployed in order to increase the convenience of day-to-day financial management for corporate customers.

Basic features:

• enables the client to access essential information on the actual state of affairs and to initiate a remarkably broad range of orders for 24 hours a day
• due to its flexibility, it can be adjusted to individual needs; has a clear-cut, logical and modern layout
• a device-independent system that works well with Internet browsers, without the need to install other software or plug-ins
• works with remote signing
• can be simultaneously used by several users, enabling the setting of individual authorisation level privileges (view only, create records, import, sign)
• orders can be authorised by single or joint signatories
• clients can choose between two different tools, both compliant with the PSD2 Directive, for authorising orders: CIB Hard Token (physical device) or the ViCA personal authentication app to be installed on smartphones
• capable of querying authenticated statements of account
• enables the importing and exporting of order details

In addition to this widely available service, new functions are continuously added to the channel.

Stable operation, active lending, balanced corporate portfolio

The other focus of CIB's medium-term strategy is financing the real economy, and accordingly, the Bank is developing further its range of products and services aimed at the SME segment. In addition to financing from own funds, it is our goal to actively participate in offering subsidised financing facilities (among others, in the refinancing programs of EXIM Bank and MFB). In addition to SME and large corporate loans and leasing services, CIB Group also offers factoring services to bridge the short-term liquidity deficits.

At CIB we have always placed a major emphasis on servicing the needs of businesses, our main objective is to ensure the highest possible degree of focus and bespoke financial solutions for the SME segment. Our objective is still to provide banking and financing solutions focusing on the players of the real economy and to contribute to the sound operation of Hungarian firms by maintaining active lending.

VOLUNTEERING- A PART OF OUR CORPORATE CULTURE

We are proud of the central and local volunteering initiatives that we have been implementing for many years. Over the past two years, the development of financial literacy has been a priority and we continued our work with the Food Bank Association's end-of-year food collection drive.

OUR MAIN PROGRAMS

Developing financial literacy

It is of outstanding importance for our Bank to provide its customers with a real opportunity so that they take responsible and conscious financial decisions in full knowledge of their possibilities and the risks involved. By recognising our responsibility in shaping the financial awareness of our environment, we are not only actively involved in programs that focus on strengthening financial culture, but also launched our own initiative two years ago.

Financial education and familiarisation with financial culture cannot be started early enough and schools play a decisive role in this respect. We help them with this process by taking part in two educational programs that focus on developing the financial awareness of primary and secondary school students.
From the very beginning, our bank has participated - at the initiative of the Hungarian Banking Association - in the Pénz7 (Money7) program series launched with the professional support of the Pénziránytű Foundation, thereby joining the European Money Week. This was the case in 2019 as well, when our colleagues held classes for students aged 10-17 on topics entitled "Samert about investing" and "Business Ideas and Cooperation".

Two years ago, at the initiative of our parent bank Intesa Sanpaolo, we launched our financial education program related to the World Savings Day organised on 31 October. As part of this program, our bank's volunteers organise educational sessions on the importance of savings across the country for a month. In 2019, our educational program reached 850 children aged 10-18, enrolled in primary and secondary education.

Community food drive weekend for a happier Christmas

Last year was the eighth in which we gave special priority to the national food collection weekend in collaboration with the Hungarian Food Bank Association.

While cash donations remain a necessary means of assisting Hungarian families in need, donations of household items and food are also important. The latter take on a special importance in the run-up to holiday seasons, as they provide families in need with the experience of cooking together and sharing a family meal.
The Hungarian Food Bank Association and the national food collection weekend initiative enable a form of charitable cooperation that provides an opportunity for our employees and customers to contribute in a way that is free from the influence of business interests, and complies fully with the CIB Group's corporate social responsibility principles. In 2019, our 102 volunteering colleagues collected 68 tons of food in 35 stores.

SOCIAL SOLIDARITY

No payments were made from the CIB Foundation in 2019, because the Foundation is currently not active due to the full use of its resources. According to other resources, during the year of 2019, donations in the amount of HUF 14 million were made to vulnerable and underprivileged groups

PROFESSIONAL ORGANISATIONS

Our partnerships with professional organisations also represent an important aspect of our community relations. The interests of the various sectors of the economy, and society, are represented by the associations formed by stakeholders, each focusing on a clearly defined set of objectives. Our participation in these organisations is important for two fundamental reasons. Firstly, it creates an opportunity to engage in professional dialogue, and secondly, it provides Bank Group, and the bank sector as a whole, with a means of upholding and protecting its interests as part of a structured advocacy group.

Membership of organisations
Hungarian Banking Association	Hungarian Association of Internal Auditors
Budapest Chamber of Commerce and Industry	ISACA, Hungarian Chapter
Italian Chamber of Commerce in Hungary	Chamber of Hungarian Auditors
Hungarian Forex Society	Hungarian Advertising Association
Hungarian Canadian Chamber of Commerce	Hungarian Self-Regulating Advertising Body
ACCA	Hungarian Leasing Association
Joint Venture Association	Hungarian Factoring Association
Hungarian Association of Independent Insurance Brokers