Development strategy 2021 - 2023

Purpose, aim, values and strategic objectives

The strategy of Santander Bank Polska Group for 2021–2023 is a continuation of the previous course of action and is based on the same values and assumptions as applied before. The Group’s purpose, aim and values have not changed for years:

Purpose
To help people and businesses prosper
Aim
To be the best open financial services platform by acting responsibly and earning the lasting loyalty of employees, customers, shareholders and communities.
Values
- Simple
- Personal
- Fair

The strategy of Santander Bank Polska Group reflects a customer-centric approach to business management through continuous improvement of service quality and product range. A special focus is placed on digitalisation and simplification of processes from the perspective of customers, which helps to enhance their experience, increase operational efficiency and provide more simple and transparent products and services. The delivery of the Group’s strategy is underpinned by innovative solutions and the corporate culture which is focused on increasing engagement and motivation of employees as well as social responsibility of the organisation.

As part of the strategy for 2021–2023, the following six strategic directions have been defined: customer obsession, employee focus, simplification, smart omnichannel, innovate to open platform, safety and trust. They are the key focus areas of the Group’s transformation. The strategic directions set by the Group:

consolidate specific objectives set to increase loyalty of individual stakeholder groups: employees (employee focus), customers (customer obsession), communities and shareholders (safety and trust);
assign the highest transformational value to the objectives related to development of the Group’s operating model: simplification and smart omnichannel;
comply with the aim of Santander Group’s regional strategic plan One Europe, emphasising the foundations for the development of the organisation (safety and trust), with a particular focus on responsible banking (CSR/Corporate Social Responsibility);
indicate the Group’s ambition to build competitive advantages through innovation to open platform.

The activities undertaken as part of six strategic directions are based on strategic initiatives, such as strategic programmes, hot spots (initiatives focused on customers and employees), bets (initiatives in the Agile model) and group programmes. They are regularly monitored and their results are reviewed on the basis of qualitative and quantitative metrics. The following are measures defining the Group’s financial ambitions.

In view of dynamic and complex changes in the macroeconomic environment, the strategy of Santander Bank Polska S.A. is regularly verified, which helps take prompt action in response to market trends and other changes in the dynamic environment.

Ambitions for 2021–2023 and Delivery of the Strategy

Strategic directions

When setting strategic directions, the Group also defines strategic objectives and key success measures that let it track the progress in delivery of the strategy.

Our achievements	Key success measure	Our ambition
Gradual implementation of the hybrid work model and provision of supporting tools Implementation of new tools for eNPS engagement survey Promotion of diversity, equal treatment and inclusion Support for talent development Continuous improvement of internal processes and implementation of one-click solutions for employees	Maintenance of high score in the eNPS employee engagement survey Leading employer of choice in the banking sector (Top Employer Poland 2021 certificate) Implementation of a remote work culture and design of a hybrid work model Development of wellbeing programmes and promotion of healthy and sustainable lifestyle (BeHealthy, SantanderGO) High level of Agile maturity (ceremonies and tools)	Foster the corporate culture based on the Simple, Personal and Fair values Increase employee engagement and retain the employer of choice title Attract and retain best talents Continue to develop key competencies (including leadership skills)

Our achievements	Key success measure	Our ambition
Further measures taken to become a paperless bank Introduction of further changes to simplify processes (notably in the distribution network)	Reduction of paper consumption (16.3m sheets less by the end of May 2022) Increase in the number of customers using e-communication channels (currently approx. 70% of customers) Increase in the number of payments and cash transactions at branches authorised with a text message and gradual expansion of the scope of authorisation Reduction in the number of products Digitalisation of communication of changes in interest rates Centralisation of the mortgage release process (no need for the customer to visit the branch)	Further reduce paper documents and promote electronic communication Implement a wide-scale process of signing documents in advisor-based channels in electronic form Streamline further branch processes involving advisors Continue to simplify processes and products and optimise the organisational structure

Our achievements	Key success measure	Our ambition
Acceleration of process digitalisation and optimisation More extensive communication and measures taken in response to key issues concerning Poles Support for refugees from Ukraine – an offer for individuals and businesses Introduction of plain language in communication with customers Adaptation of communication (channels, language, message, offer) to the needs of specific customer groups	Increase in mass NPS vs 2021 (steady increase in customer satisfaction) 2.3m loyal customers of Santander Bank Polska S.A.	Build long-term customer relationships thanks to products created using service design competencies and feedback from customers from individual segments Build loyalty and increase digitalisation of our customers Increase the customer satisfaction level (NPS)

Our achievements	Key success measure	Our ambition
Acceleration of process digitalisation –launch of a new online cash loan process Increase in the availability of processes in remote channels Reduction in the number of processes requiring a visit to a branch Alignment of the customer experience standard across all channels	3.2m digital customers of Santander Bank Polska S.A. Increase in the number of transactions made in remote channels Growth of product sales through self-service channels Increase in the number of paperless transactions and transactions without a traditional hand-written signature	Maximise the use of self-service and remote channels in key sales and post-sales processes Increase the number of digital customers Improve customer experience in remote contact channels

Our achievements	Key success measure	Our ambition
Support for further evolution to an open platform in cooperation with Santander Group and external partners Development of open banking solutions via Santander Open	Extension of cooperation with external partners (e.g. implementation of mojeID – a remote authentication process) Growing number of customers using Santander Open (PSD2 aggregator)	Further develop and improve the open financial services platform

Our achievements	Key success measure	Our ambition
Development of the responsible banking agenda based on ESG metrics Further steps taken to meet the objectives of the Group’s Net Zero strategy Implementation of a new Environmental, Social and Climate Change Risk Management Policy Introduction of a new model for managing the responsible banking agenda Set-up of the ESG Forum and appointment of 11 ESG Leads representing each division of the Bank Continued implementation of the corporate Sustainable Finance Classification System (SFCS) Climate Risk project – creating a map of climate-related risks and opportunities for the Bank Development of the ESG Materiality Matrix Expansion of the range of green products and services and support for customers in their green transformation and transition to a low- and zero-emission operating model Support for creation of a diverse and friendly working environment Completion of the second largest issuance of green bonds for a non-financial company with a total value of EUR 311m Green finance of EUR 186.3m in Q1 2022 (compliant with SFCS) First issuance of sustainability bonds of Santander Bank Polska S.A. with a total value of PLN 750m	First card made of biodegradable plastic ECO Loan on offer Support for green transformation of corporate and investment banking customers 35% of women in managerial positions Minimisation of the EPG (Equal Pay Gap) Green finance in 2022 at EUR 400m	Extend the range of green products and services Continue to support transition to a low- or zero-emission economy Adapt our measures to meet the requirements of the TCFD (Task Force on Climate-related Financial Disclosures) Continue to develop leadership skills, focus on employees and promote diversity, equal treatment and inclusion in the workplace Build the awareness of fraud risk among the Bank’s customers and employees as part of promotion of cybersecurity culture Ensure high stability and security of our systems and take measures to significantly reduce the number of system failures

Delivery of the strategy for 2021–2023.
Financial and non-financial measures
of Santander Bank Polska Group

(as is 30 June 2022 and 31 December 2021)

* Only Santander Bank Polska S.A. (the number of branches also includes off-site locations and Santander Zones).

** Based on partial results of the ongoing NPS survey as at the closing of the report for H1 2022.

Development strategy 2021 - 2023

Purpose

Aim

Values

Key strategic dimensions

Six strategic directions

Strategic objectives

Ambitions for 2021–2023 and Delivery of the Strategy

Strategic directions

Employee focus

Simplification

Customer obsession

Smart omnichannel

Innovate to open platform

Safety and trust

Delivery of the strategy for 2021–2023. Financial and non-financial measures of Santander Bank Polska Group

Delivery of the strategy for 2021–2023.
Financial and non-financial measures
of Santander Bank Polska Group