We want our clients to make informed decisions, especially when they concern cash loans. This is why we created and implemented the “Responsible Lending” (“Odpowiedzialne kredytowanie”) project that involved the following three key changes:

The change relates to how we inform our clients about our refusal to grant a loan. Before the change, such notifications were laconic. We replaced them with open and precise information stating the reasons behind our credit decisions in 2015. We tell clients what they can do to pass the next creditworthiness assessment (e.g. cancel a credit card they do not use or clarify their credit history with the Credit Information Bureau) and who they should contact. We promote clear and friendly communication throughout the credit process, e.g. regarding individual process stages.

We have launched a website dedicated to responsible lending. It features a credit capacity calculator that is highly popular with our potential and existing clients. The website navigates clients through the decision-making process and educates them on loan types, personal credit history in the Credit Information Bureau, different scenarios depending on whether the bank’s decision is positive or negative, things to pay attention to before taking out a loan, loan insurance etc.

Adoption of the “Good Practices” resulted in the implementation of the rules and procedure for the introduction of new products in 2017. The procedure provides guidance on how to initiate the introduction of new products, conduct risk analyses, carry out internal consultations, prepare internal regulations and roll out new products at mBank.

The advertising materials displayed in branches are analysed on an ongoing basis by the Internal Audit Department to ensure that they are up-to-date.

We have been a signatory to the Ten Principles of UN Global Compact since 2015. We intentionally limited our relationships with companies that break those principles. We also adopted the “Policy on providing services and financing to entities operating in areas that are particularly sensitive in terms of mBank’s reputation risk.” This policy imposes restrictions on providing services to companies that conduct business activity:

• using child labour or forced labour or otherwise resort to gross violation of human rights;
• involving economic exploitation of areas of great natural interest;
• that threatens world heritage sites.

The restrictions apply to the credit process and bank account opening. They entered into force in 2016 and refer to new clients and new financing provided to existing clients.

We try to eliminate legal risk when financing investments – we check whether investment projects have all required permissions and decisions of relevant authorities. We limit the risk of investing clients’ funds in projects carried out in violation of the law (e.g. projects where the necessary public consultations were not conducted or those which do not compensate for the expected environmental losses). In the case of big investment projects financed with syndicated loans, we employ a technical advisor or demand that one is employed, to supervise the investment process and monitor it on an ongoing basis. As a result we are able to identify potential irregularities, including those concerning social and environmental aspects, on time.