Responsible service provider

As a service provider, our goal is to create added value for our customers, be it the availability, compatibility or the simple and safe usability of our tools, products or sales channels. We consider it to be of utmost importance that our customers receive fair and easy-to-understand information, and that they receive services tailored to their needs. Our responsible service delivery and operations are realised in the following key areas: service quality development, transparency, accessibility.

Focus on customers

We work to understand, serve and respond to our customers’ needs as accurately and quickly as possible. This approach and our expertise are the guarantee for the complexity that characterises our service and product range, for the convenience our customers expect and receive from us, and for the speed at which we respond to their needs despite a continuously changing market environment.

Responsible marketing communication, objective and clear information provision

We aim for honest and credible communication, informing our stakeholders about our performance, results and the impacts thereof. This allows for comparison within OTP Group and, where possible, with competitors.

  • We consider the provision of fair and correct information and product recommendation a priority. We place emphasis on meeting client needs in the post-sales period as well. We only wish to offer our customers products and services that are genuinely useful for them and represent a risk appropriate to their situation, and which are also aligned with their life situation, financing needs and income. Our administrators are well trained and expected to follow the above procedure.
  • When designing our advertisements, as a key aspect we make the information relevant to our customers as visible as possible, and we aim to make our communication materials for our customers easy to understand, clear and informative.
  • We use a range of tools to help our customers receive objective information, making use of calculators, planners or short films presenting the basic features of products to help decisions.

Customer satisfaction, complaints handling

OTP Group strives to serve and satisfy its customers without error.

To reinforce customer-oriented thinking and approach, requesting feedback has become common practice for the Group. At Group level, we use the TRI*M methodology to assess customer satisfaction.

Our complaints handling system is operated carefully and with ongoing development. We draw up regular (typically bi-annual) reports on complaints and the handling thereof, which are shared with the chief executives of OTP Group member companies. At Group level, we aim to investigate complaints in less time than legally required.

Accessible and innovative banking services

With a view to customer focus, we consider it to be of utmost importance to provide our customers with a higher quality, easily accessible and convenient service, both in the online domain and at branches. We are enhancing the forms of communication and administration on an ongoing basis, in line with customer expectations. We believe that for cases that require greater care, we need to involve our staff personally to recommend the best solution.

Expert financial services committed to sustainability

OTP Group aims to service all customer segments. All our products and services are designed to comply with the principles of ethical business conduct and legal requirements.

Responsible crediting

Crediting helps economic and individual development and the achievement of goals, but at the same time, imprudent credit can cause serious long-term problems for debtors through over-indebtedness and can also put the providers of the funds at risk.

We ensure that retail customers are not over-indebted by means of a solvency test. We also inform customers of the results of the Central Credit Information System (CCIS) query and also if their application is rejected at credit assessment on account of over-indebtedness. The training of administrators, internal Administrative Directives and the automation of the credit approval system ensure compliance with the relevant procedures. We also examine over-indebtedness in the context of corporate lending.

We make sure that our employees have up-to-date knowledge of risk management principles and practices on an ongoing basis.

Financial well-being and social impact products

OTP Group aims to ensure financial well-being for its customers and to have a positive impact on society through its many products.

  • Our discounted products are primarily aimed at young people, customers looking to purchase or modernise their homes or to improve their energy efficiency, and pensioners.
  • We place particular emphasis on serving the financial needs of residential communities and municipalities (where local regulations allow).
  • Many of our services are aimed at meeting the needs of small and medium-sized enterprises.
  • We are committed to the development of the agricultural sector, constantly expanding our range of products adapted to the specificities of the sector and cooperating with many industry organisations for the development of agriculture and agribusiness.
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Green finance

Environmental considerations are becoming an increasingly important factor in economic and investment decisions, helping to achieve sustainable growth. OTP Group intensively supports the financing of renewable energy projects, including solar park, windfarm, hydropower and energy efficiency investment projects.

We strive to ensure the availability of state and international preferential funding for both our retail and corporate customers. These funds typically support important social and environmental objectives. Schemes promoting energy efficiency and the use of renewable energy sources have recently become emphatic in this area.

Our investment and banking services both have environmental components

  • OTP Bank provides interest-free loans to condominiums and housing cooperatives for investments in energy efficiency and renewable energy
  • Our available responsible investment product is the OTP Climate Change 130/30 Fund
  • OTP Bank was the first in the Hungarian market to issue green mortgage bonds
  • CKB and OTP Bank Albania signed an agreement with the EBRD (European Bank for Reconstruction and Development) on the Green Economic Finance Facility (GEFF) at the end of 2020
  • Mobiasbanca is one of the reference banks for the EU and the International Financial Institutions (IFIs) in Moldova. The EU4business EBRD loan, a joint initiative of the EU and the EBRD (European Bank for Reconstruction and Development) under the Deep and Comprehensive Free Trade Area (DCFTA) programme, continued to be available at our subsidiary bank
  • OTP Group customers can choose to receive a green (electronic) bank statement instead of a hardcopy statement sent by post

Ethical business conduct

OTP Group has always been at the forefront in terms of fair operation and compliance with legal and regulatory requirements and standards. It is our belief that, in addition to complying with legal provisions, the practice of ethical operation contributes significantly to the bank’s competitiveness and its domestic and international reputation. We place emphasis on protecting customer interests and on transparent operation. We give priority to maintaining the stability of the Group and to providing services that are secure for our customers in all aspects.

The principles of ethical business conduct and the requirements to be enforced are set out in our Code of Ethics.

  • We operate a whistleblowing hotline for reporting ethical and legal violations. The hotlines are available in the official language of the country in all our countries of operation.
  • The Code of Ethics expects, among other things, fair business conduct, freedom from corruption, avoidance of conflicts of interest, non-discrimination, maximum respect for human rights and a safe and healthy working environment. We apply the Code’s requirements throughout the entire process of product development and service provision. At Group level, all employees, officers and a group of trustees are required to declare their acceptance of the Code of Ethics.
  • Our commitment to lawful operation is set out in our Compliance Strategy and Policy, which is binding for all members of the Group.
  • The Legal and Compliance organisation is involved in reviewing internal policies, product development, marketing communication tools; and has an important role in raising compliance awareness among staff.

Risk management

The identification and management of risk types is a key element in the operation of banks. The Risk Management Strategy provides the uniform basis for the risk management of OTP Group. Using the risk appetite framework, we compare the level of risks with expected losses and the cost of risk management to help decide how much risk the Group should take.

Our risk management principles and practices are established in line with the criteria of responsible lending. We lend the money deposited with us, ensuring that it is repaid and that it will not serve illegal purposes, or those contrary to the values of society.

Our risk management balances are upheld through the following:

  • our prudent Risk Management Strategy
  • our annually revised Lending Policy
  • our continuously developed credit risk assessment system

The Group applies an ESG exclusion list in corporate financing that lists activities and behaviours whose controversial nature and impact make them incompatible with OTP Group’s values for safeguarding human rights and promoting sustainable development.

We pay special attention to identifying and managing ESG risks. The goal of our ESG risk management framework in loan origination and monitoring is to ensure well-grounded decision making by identifying and managing the environmental and social risk of financing. ESG risks are also included into the operational risk assessment processes. By performing a climate stress test we have evaluated the possible consequences of different scenarios.

In line with the requirements of the risk management strategy, member companies constantly renew and revise their risk management practices and clearly define in their lending policies the sectors, business lines and activities in which they are active and the areas in which they do not wish to take risks.

Procurement and purchasing

Given its size, OTP Group is a major purchaser, and its decisions on purchasing and suppliers affect the local economy, as well as the business culture and development thereof.

Our risk management principles and practices are established in line with the criteria of responsible lending. We lend the money deposited with us, ensuring that it is repaid and that it will not serve illegal purposes, or those contrary to the values of society.

  • Our Group-level strategic objective is to standardise and centralise purchasing for the benefit of interchangeability and cost-efficiency.
  • When selecting our suppliers, we guarantee fair market behaviour and equal opportunities. We seek to establish long-term relations and strategic partnerships in order to guarantee service quality.
  • In our procurement operations, we consider the quality and life-cycle costs of products and services, with special focus on long-term usability and reparability.
  • We expect and monitor legal compliance; the Code of Ethics also applies to our suppliers.
  • The principles of green purchasing constitute part of OTP Bank’s Environmental Policy.

We use a variety of marketing tools to inform our customers and partners about our commitment to the environment and society:

  • in addition to continuously reducing the number of printed marketing publications, for years we have been using recycled paper for prospectuses sent to customers,
  • in addition to consciously reducing the number of promotional gifts, we also aim to provide our partners with a wider range of responsible products, such as gifts made by people with disabilities from useful recycled materials, organic farming and handicraft products.

In terms of value, the most important purchasing items of OTP Group are the following:

  • Services related to the operation of central buildings and bank branches: e.g. energy procurement, vehicle procurement, branch network operation.
  • Purchases for IT purposes, including the purchase of IT equipment, software and IT development.

Marketing purchases: planning, implementation and support of marketing communication campaigns, logistics of marketing and sales support materials.

Security and data protection

The Bank’s management is committed to maintaining the security of OTP Group, striking a balance between safe and user-friendly operation, both internally and for our customers. We need to guarantee security while ensuring that our customers have easy access to our services anywhere, anytime.

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