Access to credit and financial inclusion
It is particularly important for the Bank to support vulnerable people and social groups both through dedicated projects and with specifically designed products for them, thus helping to ensure a fair distribution of resources.
As part of its Parent Company’s initiative, CIB bank introduced the CIB ECO Parent Bank Account product on 25 November 2022, which is accompanied by a discounted overdraft facility. The launch of the product is aimed at helping parents with children under three years of age who have a certified employment record. At the time of its announcement, the following discounts were announced: the overdraft facility available in the product package was available at an interest rate of 15.99%, with a credit line assessment and renewal fee of HUF 0. On the electronic channels, HUF 0 was also charged for interbank and intra-bank HUF transfers, standing transfer orders and group direct debits.
The Russian-Ukrainian war and the consequent energy crisis after the outbreak of the coronavirus have left many businesses in a difficult situation, so the purpose of the schemes available under the renewed state-subsidised “Széchenyi Card Programme MAX” continues to be to support these businesses in restarting and accessing funds.
For customers with existing loans, the CIB Green Wave Extra Exit Credit, the Exit CIB Active Loan and the CIB Partner Exit Mortgage Loan are solutions for, among others, the redemption of debts accumulated during the moratorium period.
In the first quarter of 2022, the online Welcome Vario (pre-approved) lending process was launched, which is available for both sole traders and businesses in the small businesses segment and allows for fully online administration from application to contract signing, which is done electronically.
The electronic channel migration has enabled a considerable number of small businesses (and even sole traders) to migrate to the CIB Business Online platform, which is an electronic channel with a wide range of functionalities – e.g., multiple transfers, direct debit orders, extensive forms and self administration functions – thereby replacing many previously paper-based processes.
In addition, for recently established small businesses and other customers with a low number of transactions, we offer the Partner Start Account Package, which provides them with a cost-effective means of conducting their banking. As part of this package, we waive the following fees during an initial discount period:
- CIB Bank Mobile Application and CIB Internet Bank / CIB Bank Online registration fee (which is usually payable at the time the bank account agreement is concluded)
- CIB Bank Mobile Application monthly fee
- Bank card fee in the first year (Visa Compact business card)
Discounts on transactions on the electronic and CIB Business Online channels (HUF and FCY payments, HUF payments via GIRO Ltd. to the tax authority (National Tax and Customs Administration) account (on all the electronic channels).
The discounted rates mentioned above apply to accounts with a minimum turnover of HUF 40,000 / month. The account package can be offered to both individuals and companies, but the main target group is newly established businesses.
Education and spread of financial culture
It is very important for the Bank to provide its customers with what CIB terms as “real opportunities”, i.e., genuine opportunities rooted in the real economy, that will have a profound impact on their businesses over the long term, as this will encourage them to take responsible, carefully considered financial decisions in full knowledge of the possible outcomes and the risks involved. By recognising the responsibility in shaping the financial awareness of our environment, the Bank is actively involved in programmes that focus on improving financial literacy. Financial education and familiarisation with matters financial cannot be started early enough and schools have a decisive role to play in this. The Bank helps them in this objective by participating in two programmes that focus on developing the financial awareness of primary and secondary school students.
- From the very beginning, the Bank has participated – at the initiative of the Hungarian Banking Association – in the “Pénz7” (Money7) series of programmes launched with the professional support of the Pénziránytű (Money Compass) Foundation, thereby joining the European Money Week initiative. 13 colleagues participated in the programme as volunteers and held online financial education classes.
- Since the inception in 2017 the financial education programme launched at “The Art of Saving” initiative of our Parent Company, has organised a number of events and workshops, including face-to-face sessions in schools as well as online formats also promoted through the bank’s communication channels. In October 2022, CIB’s volunteers delivered financial education lessons to a total of 212 students aged between 10 and 18. In addition to all the above, the Bank also joined the latest initiative, the “S.A.V.E Ambassador programme”, a special initiative in the framework of which higher-grade secondary school students are actively engaged in learning about sustainability and social inclusion.
- In 2022, the Bank joined for the first time as a sponsor of the national financial awareness competition “Become a Junior Financial Achiever!”, open to teams from technical and vocational schools. The organisers have set up the programme specifically for educational purposes and want students to gain practical knowledge in a playful way. They are specifically targeting an increasing number of students from less privileged backgrounds. Educational materials for students from technical and vocational schools have been compiled and supervised by experts for the competition, which help them learn about everyday finance based on real-life situations.