“Companies will focus on simplifying the back-office activities, making processes faster and more effective”
Since 2019, OTP Bank Romania implemented multiple transformational programs, invested in increasing the digital and physical footprint, its growth vision being based on digitalisation and innovation.
“This year’s financial results indicate a strong OTP business. In the third quarter, the operating profit increased by 29 percent y-o-y, after a 7 percent increase in total income, while the performing loan volumes hiked by 20 percent, at nine months, being supported by developments in all the business areas. Also, the deposit volumes grew by 28 percent compared to the first nine months of last year, thus the loan-to-deposit ratio improved by 9 bps y-o-y, to 117 percent. By end of 2022, we eye a 20 percent increase in the loan portfolio,” Gyula Fater, CEO OTP Bank Romania told The Diplomat-Bucharest.
“Above all, one of our main achievements is growing our team with 300 new colleagues since the beginning of the year. We are currently 1,790 employees ready to continue our organisational transformation journey.”
COMMITMENT TO PERFORMANCE | Business Evolution, Projects, PERFORMANCE, Figures
“Our company had a very good evolution in the first three quarters of 2021, and the business activity grew successfully. We are deeply involved and committed to our development strategy Apollo and following this we have reached a 4 percent market share in loans and we are aiming for the 5 percent target. Since 2019, we have implemented multiple transformational programs, we invested in increasing the digital and physical footprint, our growth vision being based on digitalisation and innovation.
Further this year we have reported constant growth in lending and saving over OTP’s focus business lines.
OTP Bank Group as “Best bank in CEE“ distinction, received at the Awards for Excellence 2021 event, was another reason for us to be proud of our achievements. A large contribution to the Group’s success was the double-digit increases registered in Hungary, Serbia, Romania, and Ukraine.
This year’s financial results indicate a strong OTP business. In the third quarter, the operating profit increased by 29 percent y-o-y, after a 7 percent increase in total income, while the performing loan volumes hiked by 20 percent, at nine months, being supported by developments in all the business areas. Also, the deposit volumes grew by 28 percent compared to the first nine months of last year, thus the loan-to-deposit ratio improved by 9 bps y-o-y, to 117 percent. By end of 2022, we eye a 20 percent increase in the loan portfolio.
Above all, one of our main achievements is growing our team with 300 new colleagues since the beginning of the year. We are currently 1,790 employees ready to continue our organisational transformation journey.
Another successful OTP story is the development of two key divisions – the Business and Digital Divisions.
Regarding OTP Bank’s investment plans, we will continue with annual investments of 50 million RON in IT and digitalization, supported by the Digital Division.”
STRATEGY & VISION | RETHINK STRATEGY & PRIORITIES
“We had to understand that Covid-19 is not a temporarily, few-months long phenomenon, but probably a long-term, new context we must adapt to and manage our activity in line with the fast-changing circumstances. We tried to adjust to the remote work, but ensure many personal meetings as possible, when the situation allowed. It is possible the old way of living might never revert, so the human part of the management is critical.
We have the 5-year Apollo growth strategy, with another 3 years remaining. Our key target is reaching a 5 percent market share, over constant investments in the human and team expansion, digital transformation, and national network development with physical component as target.”
PEOPLE & COMMUNITY | FOCUS ON SAFETY, SOCIAL APPROACH, LEVERAGE THE POWER OF COMMUNITY
“Social responsibility is a priority of OTP Bank Romania. We are dedicated and involved in social causes that cover four big areas: education, culture, sports, and health. In this regard, OTP Romania is strongly positioned and dedicated in supporting the development and strengthening of the communities.
OTP Bank’s efforts are high in the area of financial education through the Right to Education Foundation launched in 2014.
In the matter of strategic partnerships, the OTP Bank Romania Foundation and the Federation of Free Trade Unions in Education (FSLI) have developed the national digital educational program “Online Lesson”, which is dedicated for the teachers. The Foundation designed, developed, and implemented the digital skills module and the emotional intelligence module, both being an integral part of the program accredited by the Ministry of National Education.
In its 7 years of activity, the Foundation has implemented an important portfolio of educational projects built on four main lines of activity: financial education, children’s education, career guidance and strategic partnerships with local associations and NGOs.
This year, as part of our social responsibility strategy, we developed and implemented GirlPower by OTP Bank, a complex 6-month mentorship programme dedicated to young women.
The idea came to us naturally, as part of our gender equality internal focus. At the end of the programme, the two finalists will benefit from a 3000 euros worth scholarship, each.”
DIGITAL DNA | Grasping tech, digital innovation, customer -driven, building new bridges
“The digitalization and tech innovation are among main drivers for economic recovery, progress, and post-pandemic era adaptation. We target 50 million RON yearly investments in digitalization, like this year’s budget.
In 2021 we accelerated the process of digitalization of services, as part of the Apollo growth strategy.
We focused much more on online services, even though we opened new physical branches. Today, new customers of OTP Romania can also take a personal loan online, we have a fully digitalized service for opening accounts, and we have introduced the OTP POSibil service, which facilitates card payment and the use of mobile phones instead of POS.
Throughout this year we have pursued a balance between the various channels, and we have come to respond quite well to the needs of customers, and this can be seen in the results obtained. But the condition was flexibility, the way we responded to each client’s preferences.”
What trends do you anticipate for 2022?
“We do not expect a major change, so one of the most important directions remains the digitalization, which is getting part of our daily life more and more. However, on short term, if the Covid-19 cases will decrease and the restrictions will loosen, I believe that people will seek for more personal contact and will enjoy doing things together.
I also think that companies will focus on simplifying the back-office activities, making processes faster and more effective.”
2021 IN 3 KEY WORDS
“Growth, continuous change, flexibility”
2022 IN 3 KEY WORDS
“No more Covid-19, more personal interactions, and flexibility”