5.1 Case studies of the Slovak retail banks
5.1.4 Československá obchodná banka
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400 EUR to those up to 35 years of age (Tatra banka, 2019e). Loans for anything are available but without any advantages for millennials.
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savings, investments and insurance. With regards to the loyalty programs, the bank does not offer any. However, clients can get discounts on the fees from accounts and other service if they fulfil certain conditions. Portfolio of products and services for companies consists of accounts and payments, loans, savings, financing, investments, insurance and financial market products.
For other banks and financial institutions ČSOB offers basic and custody services and depository. Lastly, private banking clients can choose from exclusive account packages, asset management products, financial market products, gold trading and saving and loan programs (ČSOB, 2018a).
When it comes to innovation and digital enhancements, Československá obchodná banka does not stay behind. To make finance management and banking easier, more comfortable and less time consuming, ČSOB offers contactless payment cards, biometric digital signature, Internet banking and Mobile banking. Instead of Google Pay, the bank introduced its own Android Smart Pay, which enables contactless payments with Mastercard (Kosno, 2018). For the iOS users, the bank plans to introduce Apple Pay soon after the service will be introduced in Slovakia. Master Pass, or a digital wallet, is another offering provided by ČSOB that clients can use for contactless and QR payments. This one is available for both Android and iOS.
ČSOB follows the newest digital trends in banking and together with other mentioned banks embraced open banking (ČSOB, 2018a).
Similarly to other banks, ČSOB uses social media, such as Facebook, YouTube, Instagram, Twitter and LinkedIn to communicate and engage with its clients. The shared content does not differ much from the other banks and is made up of posts concerning news about products and services, activities, events, partnerships, sponsorships and competitions. On YouTube, the bank shares how to videos and video series covering various topics. For instance, “Work on yourself”
series are about interviews with employees, giving career advice while “I want it all” series are concerned with online security. The bank interacts with customers in the comment section on its social media, in private messages and via online chat on the website. In addition, clients can contact ČSOB by an online chat, calling its nonstop call centres or leaving their phone number and wait for the bank to call them back. To express satisfaction or dissatisfaction with the bank and delivered services, customers can leave feedback via a mobile application or call the ČSOB Infoline.
When doing business, Československá obchodná banka adopts corporate social responsibility principles and cares about the society, community and environment, which has been supporting for decades. ČSOB encourages protection of children´s health and provides financial resources
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for the Children´s Cardiac Centre Foundation and Children´s hospital. Besides that, the bank also promotes education in the Slovak Republic as well as new businesses and start-ups. ČSOB does not forget about its employees either and set up a Solidarity fund for them, aiming to help those struggling with severe life problems. Employees can also participate in “Employee Grant Program”, which supports active lifestyle and safety of people across Slovakia. To support sport, ČSOB became the main sponsor of the biggest Slovak Marathon (ČSOB, 2018a). The bank conducts its business operations in an environmentally friendly manner to reduce ecological footprint by minimizing the waste and saving energy. Furthermore, ČSOB also implemented a plan to reduce the production of its greenhouse gasses by 20% until 2020. With regards to improving people´s knowledge related to financial literacy, the bank organizes several workshops and runs numerous educational programs. ČSOB informs the society about its sustainable business activities by publishing a sustainability report every year. (ČSOB, 2018a, 2018b).
Československá obchodná banka and millennials
Československá obchodná banka´s portfolio contains a number of service, which are tailored to young people´s wants and needs. The bank offers a Fun account for millennials until they are 28 years old. The account is free of charge for the students who deliver a school attendance certificate and a monthly charge of 3 EUR applies for non-students (compared to 6 EUR/month for a standard account). With Fun account, clients are able to do basic banking operations for free, access Internet and Mobile banking as well as electronic account statements, set up their own account overdraft with a preferential interest and withdraw money from ČSOB ATMs in Slovakia free of charge and for a lower fee from the ATMs of banks belonging to KBC group.
Holders of the account also get a contactless VISA debit payment card and can request a credit card with better conditions and rates (an interest free period up of 55 days). The bank encourages young people to open this account in a campaign where two lucky winners can win a trip to San Francisco. (ČSOB, 2019b). Free travel insurance for those between 15 and 25 is another service in ČSOB´s youth package. The insurance ensures a worry-free travelling with a non-stop assistance in Slovakia (including a free interpreter) and is active throughout the year for an unlimited number of journeys abroad (ČSOB, 2019c). The bank does not offer loans for any purpose with benefits for millennials, however in its portfolio ČSOB provides a government supported housing mortgage with lower rates and a contribution of 400 EUR for young people aged between 18 and 35 (Pozicky, 2018).
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ČSOB promotes a „Digital intelligence” campaign, which is aimed especially for young people as it uses jokes and slang and the ambassadors are Slovak influencers. The bank devoted a special website to this project, whose principal objective is to educate young people about online security. Tips and tricks, such as how to prevent data theft or account takeover fraud as well as how to set up a good password or how to stay safe when using a public Wi-Fi can be easily found on the website. However, to target millennials even more effectively, the bank prepared an online series, where young Slovak influencers are the actors, spreading the educational information. After watching the online series about online security, participants can test their knowledge in an online quiz and win valuable prizes (Digitálna inteligencia, 2019).
The above-mentioned case studies discussed four Slovak retail banks, their brands and how they adjusted them for millennials. This information is summarised in Table 4 and Table 5 below to provide an overview of the main findings, which are further discussed in Chapter 6.
Table 4. Summary of the Slovak retail banks´ brands Slovenská
sporiteľňa
Všeobecná
úverová banka Tatra banka
Československá obchodná
banka Area of focus Retail banking; Corporate & institutional banking; Private banking Retail portfolio Accounts, cards, loans, mortgages, savings, investments, insurance
Reward &
loyalty programs
A lower account fee according to the number of products/services used
• Reward of 20 EUR for an account transfer
• Pay for a property valuer
& land register with a mortgage
Mastercard holders (discounts, money back, vouchers, travel
insurance, access to airport
lounges, extended warranty)
VISA card holders (cashback, discounts)
-
Innovations
Contactless payment cards, Internet & Mobile banking, biometric digital signature, open banking, Google Pay or Android alternatives, plan to
launch Apple Pay when available in Slovakia
- -
Innovation leader with an
own research centre for innovations
-
Social media Facebook, Instagram, YouTube, Twitter, LinkedIn
71 Posts on social
media
Announcements about regular and innovative products and services, sponsorships, campaigns, partnerships, awards, events and competitions
How to videos (use products/save money), business advice videos
Feedback &
customer care
Social media: comment section & private messages via chat Website: call centre, fill out a contact form, online chat
Gathering feedback via a Mobile banking application
• Call via Skype
• Separate sub-page for feedback &
suggestions
• Customer care program "We
listen to you 100%"
• Separate sub-page for feedback
- -
Social and environmental
causes
Supporting culture, art, sports, education, public-interest projects, children´s health, charity, start-ups, volunteering
Reduction of CO2 emissions & energy and paper consumption Fin. literacy Various programs and strategies to increase financial literacy Source: Author
Table 5. Summary of the Slovak retail banks´ brands adjusted for millennials Accounts
Slovenská sporiteľňa
Space account Student (age:15-26)-free of charge/ Space account Young (age up to 28)-2 EUR/month (can become free of charge) Daily banking services, an access to Internet and Mobile banking,
payment card (unlimited number of payments), Sphere loyalty program (benefits and discounts), free withdrawals from the bank´s
and Erste´s ATMs, advantageous interest rates for deposits and lower loan instalments
Loans
Age: 18-26 - immediate loans for any purpose with no annual fees Age: 18-35 - a mortgage with lower rates & one-time contribution
of 400 EUR Activities/campaigns
"We guarantee you will not fall asleep in this lecture” - lectures with Slovak entrepreneurs to give business, economic and financial
advice
Všeobecná úverová banka
Accounts
Fame student account (age:18-26) - students (free of charge)/non-students (3 EUR/month but can become free of charge) Daily banking services, Internet and Mobile banking, free VÚB/
Intesa Sanpaolo group ATM usage in Slovakia/abroad, saving account, Flexisaving (automatic savings from every payment),
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personalised VISA contactless debit card (unlimited number of payments), free insurance and deposits through ATMs
Loans
Age: 18-35 - a mortgage with lower rates & one-time contribution of 400 EUR
Activities/campaigns
“Fame campaign” (a campaign targeting millennials) - slang, a competition to win prizes from Slovak musicians and influencers
Tatra banka
Accounts
Package Young (age:18-26) - free of charge
Daily banking services, Internet and Mobile banking, usage of the bank´s/ Raiffeisen´s group ATMs across Slovakia/abroad, a personalised VISA contactless payment card, monthly spending
report and saving system Loans
Age: 18-35 - a mortgage with lower rates & one-time contribution of 400 EUR
Activities/campaigns
30 EUR bonus for getting a Package Young
“Open an account with a selfie” - a campaign attracting millennials to open an account with a selfie
“Tatra academy” (a campaign targeting millennials) - slang, jokes, funny pictures, memes and videos featuring a Slovak comedian
Accounts
Československá obchodná banka
Fun account (age up to 28) - students (free of charge)/non-students (3 EUR/month)
Daily banking services, an access to Internet and Mobile banking, electronic account statements, an account overdraft with a preferential interest, free usage of ČSOB ATMs in Slovakia, a lower fee for usage of KBC group ATMs, a contactless VISA debit
payment card, a credit card with an interest free period up of 55 days
Loans
Age: 18-35 - a mortgage with lower rates & one-time contribution of 400 EUR
Activities/campaigns
Competition to win a trip to San Francisco when getting a Fun account
Free travel insurance (age:15-25) Source: Author
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