Strategy and business model of the bank

Santander Bank Polska’s strategy is focused on delivering customer value. We are constantly improving the quality of services and products offered by putting the needs and requirements of customers at the centre of our activities. On the operational side, we place particular emphasis on automation and simplification of processes to improve the quality of service, increase operational efficiency, simplicity of solutions and transparency.

The implementation of Santander Bank Polska Group’s strategy is supported by innovative solutions, a corporate culture that strengthens employee involvement and motivation, and the bank’s social responsibility.

The strategic directions we have adopted are both interconnected and interdependent.

They are the key areas of focus for the Group’s transformation.

The adopted strategic directions:

• consolidate specific goals oriented toward winning the loyalty of different stakeholder groups: employees (Employee Focus), customers (Customer Obsession), communities and shareholders (Safety and Trust),
• attribute the greatest transformational value to goals related to the development of the Group’s operating model: Simplification and Omnichannel,
• take into account the vision of the Santander Group’s regional One Europe strategic plan , emphasizing the importance of the foundations on which the development of the organization is based (Safety and Trust), with a particular focus on responsible banking (Corporate Social Responsibility),
• highlight the need to build competitive advantages by Innovating to Open Platform.

The scale of our operations, the quality of our offer, our emphasis on operational agility and our focus on lasting partnerships with customers allow us to effectively strengthen our market position. The experience of the COVID-19 pandemic has prompted us to accelerate the transformation of customer service channels with the development of product availability and services in digital channels. We are observing changes in preferences and adjusting our customer contact centres to be always available in the preferred contact channel. We test the implemented solutions to match customer preferences.

The bank’s business model is based on offering cutting-edge financial solutions for individuals, micro, small and medium-sized enterprises, as well as Polish and international corporations. We offer a wide range of banking services in domestic and interbank foreign markets. Above all, we focus on customer loyalty and employee commitment, which translates into increased revenues of receivables and deposits.

• stable sources of funding, a solid capital and liquidity base,
• diversified portfolio of assets,
• clear, coherent and consistently implemented strategic vision based on customer focus and operational efficiency,
• simple processes, digital technologies and implementation of agile ways,
• effective and simple business model,
• diversified activity profile,
• being part of the Santander Group and benefiting from international experience.

At the core of everything we do in the bank is the customer and their needs. Products, processes and channels of communication with customers are developed using service design to continuously improve customer satisfaction and build lasting relationships with customers.

Santander Bank Polska S.A. provides top-quality services and delivers solutions based on modern technology, innovation and open platforms. Security, system stability and sustainable, socially responsible development are extremely important aspects of the business model in place. In its business activities, Santander Bank Polska Group strives to take into account the interests of all stakeholders, including shareholders and communities.

An integral part of our business strategy is the Responsible Banking Strategy, which defines our approach to ESG matters. The basis of the Sustainability Strategy we have adopted is corporate culture and sustainable finance.

Our sustainability efforts are defined by the Banco Santander Group’s global Net Zero strategy, adopted in 2021. It aims to achieve zero CO2 emissions by 2050 for the direct activities of the Santander Group’s entities and those related to the activities we finance for customers using our lending, advisory or investment services. As part of contributing to the environmental goals laid down in the EU Taxonomy, in particular climate change mitigation, in accordance with the Net Zero Strategy, by 2030 we will stop providing financing to customers who generate at least 10 percent of their revenues using thermal coal. At the same time, we want to end cooperation with companies engaged in thermal coal mining.

We are aware that the plan to achieve zero emissions involves uncertainties and risks over which we may have no control (e.g. war in Ukraine, rising energy prices). In order to achieve our goal, we need to define specific steps and milestones for a process that will result in zero emissions in 2050, determined on the basis of the results of climate science and scenarios for the future course of climate change. The strategy of the Santander Group includes specific decarbonization targets for certain sectors, which have been set at a global level. Santander Bank Poland has not yet developed transition plans that include short– and medium-term climate change adaptation and mitigation targets which the bank plans to accomplish in 2023.

The voluntary commitments we have made and the ethical, social and environmental principles that go beyond current regulations are contained in the Sustainability Policy. Our policies on environmental issues, social issues and corporate governance are described in detail in the following sections of this report.