Our story - from 1819 to today
The first savings bank in Austria was founded more than 200 years ago. Its purpose was to enable people from all walks of life to create savings for their future. Today, it is one of the largest banks in Central Europe and can look back at a wealth of tradition. Over the years and through all crises, it has remained true to its goal of creating real and lasting prosperity.
1819
A great idea
In the early 19th century, the familiar social structures are becoming brittle. The manorial system is abolished, and a large section of the rural population migrates to the cities to seek work in factories. For many people, this means personal freedom, but at the same time economic uncertainty. As there is no social security, they face destitution if they lose their job or fall ill.
A section in the charter that sounds almost revolutionary reads: “No age, no gender, no social standing, no nation shall be excluded from the benefits that the Spar-Casse offers every depositor.” Banks, in contrast, were open only to the state, major companies and financially strong citizens.
“No age, no gender, no social standing, no nation shall be excluded from the benefits that the Spar-Casse offers every depositor.”
Charter of “Erste oesterreichische Spar-Casse”, 1819 | Erste Group Bank AG / Corporate Archives
From 1820
A model for savings bank success
Savings banks founded in the period 1819 - 1855 | Erste Group Bank AG / Corporate Archives
The idea of savings banks spreads throughout the monarchy, first as branches of “Erste oesterreichische Spar-Casse”, but soon also in the form of independent savings banks, such as in Ljubljana (1822), Innsbruck (1822), Bregenz (1822), Graz (1825) and Klagenfurt (1835), in Prague (1825), Dubrovnik (1835), Brasov (1835), Pest (1839), Bratislava (1842), Lviv (1844) and many other urban centres.
1822, the first mortgage loans are awarded. In 1824, the seeds of social security are sown with the “Allgemeine Versorgungsanstalt”.
The first loan goes to Anna Nagl, who uses it to save “Gasthof Zum Schwarzen Adler” from bankruptcy.
In 1844, the savings bank system is given a solid legal basis, which acts as an incentive to establish even more savings banks. This wave of start-ups reaches its peak in the 1870s. The savings banks make a major contribution to the economic development and financing of small and mid-sized businesses.
A bee as trademark
In 1823, the bee appears as a trademark on savings books and as a stamp motif, always in association with the message “Work, collect, increase”. The bee stands for life and growth and for the virtues of hard work and prudent spending.
From 1873
Stability despite the Vienna stock market crash
The plans for a world exhibition in Vienna lead to a speculation bubble, which bursts even before the event opens. Many small investors who participated in the stock market fever now lose their assets, and many banks fall into liquidation. The savings banks survive the crisis undamaged and experience a lively inflow, because people know their investments are kept secure and attract a fixed interest rate.
1914 - 1945
From one war to the next
The euphoria that marks the outset of the First World War ends in a rude awakening. The war not only costs millions of people’s lives, it also destroys the social order and weakens trust in the state and the economy. Austria collapses as a major political and economic power.
The 1920s and 1930s are characterised by hyperinflation, a world economic crisis and mass unemployment, and many private fortunes are destroyed. The political fronts harden, and authoritarian movements experience an influx.
After the “Anschluss”, the annexation of Austria into National Socialist Germany, the Austrian savings banks are incorporated into the German savings bank organisation. Saving is placed at the service of politics, and a large proportion of the money is used to finance armaments and the war. The savings banks act as henchmen in blocking the credit balances of Jewish customers and collaborate on the “aryanisations” of properties and tangible assets.
A historical commission that was in operation between 1999 and 2007 made recompense for the role of Erste Bank and its predecessor banks during the National Socialist period. In cooperation with the Jewish community, two thirds of the descendants of the people impacted by the “aryanisations” and looting could be located, and compensation totalling around 700,000 euros was paid out. Erste Bank provided around
6.07 million euros to support the National Fund of the Republic of Austria for Victims of National Socialism.
1955
An upward trend – savings and loans for the country’s reconstruction
In the year of the Austrian State Treaty, “Erste oesterreichische Spar-Casse” is the first bank to present a normal balance sheet. This reflects the flourishing economy and savers’ growing trust in financial institutions.
In the year of the Austrian State Treaty, “Erste oesterreichische Spar-Casse” is the first bank to present a normal balance sheet. This reflects the flourishing economy and savers’ growing trust in financial institutions.
In the year of the Austrian State Treaty, “Erste oesterreichische Spar-Casse” is the first bank to present a normal balance sheet. This reflects the flourishing economy and savers’ growing trust in financial institutions.
In the year of the Austrian State Treaty, “Erste oesterreichische Spar-Casse” is the first bank to present a normal balance sheet. This reflects the flourishing economy and savers’ growing trust in financial institutions.
In the year of the Austrian State Treaty, “Erste oesterreichische Spar-Casse” is the first bank to present a normal balance sheet. This reflects the flourishing economy and savers’ growing trust in financial institutions.
The reconstruction of the country is in full swing, and the prosperity of broad sections of society starts to increase. Saving is an important factor in the upturn, as people’s deposits are turned into loans for rebuilding destroyed buildings, creating home ownership and establishing companies.
1963 to 1968
The electronic age dawns
Savings banks modernise their business. In 1963, a mainframe computer from the French manufacturer Bull is installed at the Graben location in Vienna. It puts account management on an entirely new footing. A computer with punched and magnetic tape takes over the tasks that used to be done by conscientious clerical work and machines operated by hand.
The first computer at the Graben location is not only a game-changer, it also fills an entire room.
The first automatic cash dispenser, a forerunner of today’s ATMs, has its premiere in 1968. It has a solid safe door that is opened with a card. Customers first enter the number of banknotes they want, followed by a code number. The machine can only be used in the main hall of the bank, and only during business hours. There is still no direct connection to customers’ bank accounts
1997
Stock market launch – the starting shot for expansion into Central and Eastern Europe
After all restrictions on savings banks were dropped in 1979 and they acquired equal status with banks, the operational business of Erste Bank was outsourced to a public limited company in 1993. Starting in the 1980s, and then increasingly from 1991 onwards, Erste Bank extended its influence beyond Vienna and merged with several regional savings banks.
The takeover of GiroCredit in March 1997 seals the formation of the second-largest banking group in Austria. In November, “Erste Bank der oesterreichischen Sparkassen AG” is launched on the stock market, with a volume of more than 7 billion schillings (508 million euros) – the largest share issue in Austrian history at that time. This is followed by the first listing on the Vienna Stock Exchange on 4 December and by inclusion in the ATX, the leading share index of the Vienna Stock Exchange, on 22 December. Erste Bank is still a heavyweight in the ATX today.
Source: FactSet Financial Data and Analyses
The stock market launch is also the starting shot for expansion into Central and Eastern Europe. “Erste Bank der oesterreichischen Sparkassen AG” acquires financial institutions in Hungary (1997 and 2003), the Czech Republic (2000), Croatia (2000-2002), Slovakia (2000), Serbia (2005) and Romania (2005). Further subsidiaries of savings banks and other Erste Group companies are created in Moldavia (1998), Slovenia (1999 and 2006), Bosnia and Herzegovina (2006), North Macedonia (2008) and Montenegro (2009). These financial institutions are a part of Erste Group with strong local connections.
2003
ERSTE Stiftung – initiatives for a changing Europe
In December 2003, ERSTE Stiftung, a foundation operating on a non-profit basis, is established. As the key shareholder in today’s Erste Group Bank AG, the holding company of Erste Group, it secures the bank’s independent future. ERSTE Stiftung invests parts of the dividends in non-profit projects in the region in which Erste operates, with the aim of funding ideas, projects and strategies that contribute to the development of civil society and regional progress. The four most important objectives are: financial health for all, strong cohesion, a democratic Europe and open spaces for contemporary culture.
2006
Social Banking – our contribution to economic and social inclusion
Not far from the place where “Erste oesterreichische Spar-Casse” was founded, “Zweite Sparkasse“ – a bank that offers basic financial services to those without access to a bank account, is opened in 2006. To date, the “second chance bank” has provided help and advice to around 22,000 people in financial difficulties. Today, more than 350 volunteers who are employed by Erste Bank and Sparkasse are engaged in this initiative at seven locations in Austria.
Image Video Zweite Sparkasse, 2021
Erste Group’s social banking programme provides support to people in Central and Eastern Europe who are affected by poverty and exclusion. The programme is aimed at customers with low incomes, new start-up companies and social organisations.
Social banking, company founder Jelena Bikic, Croatia, 2021
2012
George, the personal financial companion
The first line of code is written for the internet banking platform George. Clearly structured screens, intuitive functions and intelligent technology set new standards for online banking. George is simple, user-friendly, personalised – and a huge success since its launch in 2015. Almost 9 million people in six countries are now using George. In November 2022, George Business – George for corporate customers – was added.
2016
FLiP - financial education for a whole life
Knowing your way around with money and finances is an important prerequisite for financial health. The Financial Life Park (FLiP) on Erste Campus in Vienna offers an independent facility for learning about financial literacy free of charge: fundamental financial matters and money management are presented in a hands-on and fun way. The “FLiP2Go” training bus takes financial knowledge to the Austrian federal states, and there are also digital offerings and international cooperation arrangements.
Image Video FLiP, 2019
Today and in the future:
We create financial health
For more than 200 years, we have seen it as our task to create prosperity for everyone, whatever their nationality, creed, gender or age. Times change, but our founding idea is just as relevant now as it has always been – we are here to accompany people in matters of financial health throughout their lives. Because financial health is the key to a fulfilled and sustainable life – today and in the future.
Image-Video Erste Group, 2024