"We want to become a lifelong companion for our customers when it comes to financial health. We want to be the advisors who take into account the customer’s entire life situation and then - based on the best data and knowledge, of course - offer them the best advice. To do this, we will develop new products and services to support us on this journey. We will offer a unique customer experience that ensures that no matter on which channels our customers interact with us, we always focus on one thing: financial health", Willi Cernko, CEO Erste Group Bank AG.
Our vision
For more than 200 years, we have seen it as our responsibility to bring prosperity to everyone without regard for their status, nationality, faith, gender or age.
As our planet and our society are undergoing a rapid transformation, we, too, will shift our focus and change: from Financial Services to financial health.
What is financial health?
Financial Health is built on confidence. People and companies need certainty that their incomes will secure them a sustainable lifestyle now, in the future as well on good and on rainy days.
When are you financially healthy?
- Are you living within your means? Are your income and costs balanced?
- Have you built up sufficient reserves or a buffer for unexpected expenses?
- Are you sufficiently protected against risks?
- What measures are you taking to grow your money?
- How do you manage your debts?
We base the financial health of our customers on these 5 indicators. Further on, we will develope new products and services and expand our data management in order to offer the best advice on your financial life.
Making financial health a reality
Financial health and sustainability guide our business model and generate wealth for not just our customers, but for our environment, regions, and society as a whole. Climate change, inflation, access to education or affordable housing – we bring together the best minds, experience, and financial resources to contribute to the solution of the most urgent issues in our society.
This is not just us talking. We are doing it:
- We will provide 1 billion EUR of lending via Social Banking by 2030.
- Our loans should create and preserve around 200,000 jobs in the region.
- To fight the poverty and financial exclusion, Erste Group became a founding member of the UN Initiative for financial health & Inclusion.
- In Austria there is a tradition of subsidized housing, with Erste Bank and Savings Banks providing around EUR 1 billion of financing for building approximately 6,000 flats annually. Erste Bank’s affordable housing daughter company Österreichisches Volkswohnungswerk is renting around 11.000 flats in Vienna and Lower Austria.
- In CEE we have launched in multiple countries dedicated companies that will develop and rent affordable flats in close collaboration with the public sector: until 2030 we will build in our markets up to 15.000 flats for affordable rent. The flats will be rented out on longer term providing housing stability and priced around 20 % below the market rent, making decent homes available for young families and people with essential professions.
- Besides that, Erste Group traditionally supports social housing initiatives, e.g. provided access to 200 flats for NGO partners dealing with housing challenges in Vienna, invested EUR 12 million in Slovakia for housing the most vulnerable members of our society and launched an awarded housing program for Roma community.
Through its Social Banking, Erste Group has been contributing to the social and financial inclusion, by investing EUR 425 million in the form of loans in social development of our markets. This funding fosters starting and microentrepreneurs in creating jobs, empowers social organizations in scaling their impact and supports vulnerable people in improving their financial stability and housing. Social Banking has so far served 38,000 customers in the region, creating and preserving around 80,000 jobs, hence still facing 14 million people at risk of poverty we are committed to increase our efforts:
Sharply increasing real estate prices and growing inflation made decent and affordable housing an unreachable dream for too many people. Buying own real estate is harder than even before, as it requires long-term saving for securing sufficient own funds for property financing. Renting a decent home is also often not affordable - in CEE substantial portion of tenants are spending more than 40 % of their income on rent and still have only short-term rent contracts.
Access to financial advice and knowledge is key to a healthy financial life. That’s why Erste Group’s digital banking platform George will provide Financial Health tips first to our clients in Austria, and soon across CEE, making best financial advice accessible to everyone.
The financial health application provides information that helps our clients to better understand their financial situation and to identify areas for improvement.
Erste Group starts strengthening financial health within the company and gives its employees an opportunity to become investors and co-own Erste Group.