Client-centered business model

Improving and simplifying cooperation with the bank

​The client is the key value of FUIB. Each employee does everything possible to make the cooperation between the client and the bank easy and simple. For the convenience of customers, all branches of FUIB's network, which numbered 248 at the end of 2021, have self-service areas with payment terminals where clients can conduct banking transactions themselves. Bank cash desks have the possibility to withdraw cash using contactless PayPass and PayWave technologies. Free Wi-Fi is provided in all branches. Additionally, for the comfort of clients who are entrepreneurs, the bank equips territorially remote cash desks and B@W points on their premises. In addition, in the branches, the bank creates 24/7 zones with round-the-clock access to banking services: at the end of the year, these zones were organized in 120 branches. Also, in 104 branches, clients are met by a meeter and greeter, who advises, helps to navigate in the branch, teaches how to use self-service terminals (SST) and Internet banking.  In 2021, the bank expanded its presence, including in small towns, in different regions of Ukraine, opening 18 new branches. 

From the first days of the war, part of the banking infrastructure was destroyed – it was in the war zone or under occupation. We were forced to close branches. We faced problems with transportation of cash to hot spots and replenishment of ATMs. As of December 31, 2022, the bank suspended operations or closed 48 branches, including 1 regional center. Also, the bank's fixed assets, including its own buildings with a carrying value of UAH 69.97 million and lost cash in the amount of UAH 88.90 million, were written off.

However, as soon as the region became safe for the bank's customers and employees, FUIB immediately resumed the operation of its branches. Thus, the bank opened the doors of branches in Chernihiv, Irpin, Kherson, Sloviansk, and Nikopol. In total, after the situation in the region stabilized, 8 branches resumed operations. At the end of 2022, there were 206 branches in operation.

We have set up new branches –  our resilience points – where one can get the full range of services, as well as recharge your phones, connect to WiFi and keep warm. At the end of 2022, 87 emergency branches were operating. In total, 184 FUIB branches were connected to uninterruptible power supplies and stable communication channels.

Our cash collectors, security experts and branch employees are real heroes. They developed new logistics routes to deliver cash and valuables. They have repeatedly helped evacuate people from the war zone because they know the safe routes. Our armored vehicles were on duty with our employees at the Territorial Defense. Cashiers collected cassettes with money under bombardment in Kharkiv, Mykolaiv, Mariupol and other cities. Colleagues were charging ATMs and collecting money from clients. Branch employees walk 2-3 hours to get to work in cities and towns where there is no public transportation because they have clients waiting for them. Collectors spend 2-3 days on business trips because routes that used to take about 6 hours now take several days. Security and IT experts repel cyberattacks and maintain the stability of all banking systems, protecting data and funds. We have incredible people!

The bank provides consumer lending opportunities in small towns, helping to improve the welfare of the population. In 2021, 750 express sale points of the bank offered financial advice, as well as a loan for goods, cash loans and credit cards. In 19 mini-branches - in addition to obtaining a loan - a client can get a debit card issue, formalize a deposit, withdraw funds from an ATM or replenish their card at the SSTC, perform any operation in PUMB Online. About 168,000 clients have used the bank's services in small towns.

Since February 24, 2022, all points of sale have been closed. The reopening of the first 100 points of sale in stores began in July 2022, and by September, the entire network resumed full-fledged lending operations in safe areas. At the end of the year, we operated 550 points of sale and 18 mini-branches in district centers and small towns. We supported our clients with loan repayment vacations, loan debt restructuring, and new loans for goods, cash, or credit cards.

In 2021, in more than 2,700 partner stores, including online stores, in 292 settlements of Ukraine, FUIB provided an opportunity to obtain a consumer loan for the purchase of goods and services. The bank's employees not only offered to apply for the bank's products, but also taught remote financial management. FUIB, together with its retailer partners, made customers' purchases more affordable through interesting joint promotions, as well as provided opportunities to receive installments when paying for goods by credit card. The use of smartphones for servicing allowed us to significantly reduce the time for processing loans and make the process more convenient for clients. In 2021, FUIB began to implement the process of obtaining consumer loans for regular clients of the bank using a paperless process through the PUMB Online application.

At the beginning of the war, consumer lending was suspended, but it was resumed in August 2022. We understood that supporting our partners and resuming the lending process in their networks was an important step to improve their financial stability and support their operations, and for customers it was an opportunity to cover their needs to buy goods in credit without having full amount cash. This was especially important to support internally displaced persons who were forced to start a new life and had no other way to buy the necessary goods to equip their homes. By the end of 2022, we were already operating in more than 3,000 partner stores, including online stores. In August 2022, we launched the partner cashback loyalty program to encourage bank clients to spend money in our partners' networks and receive an additional bonus in the form of cashback. From August to December, 4,800 clients took advantage of the beneficial loyalty program and made more than 7,000 purchases, which allowed our partners to generate additional turnover.

At the end of 2021, FUIB served more than 1.7 million active private clients. Over the year, the client base increased by 260,000 clients, or by 13.9%. The transaction activity of clients also increased by 25% over the year, rising from 13 to 20 transactions per month.

The bank's most popular product is the vseMOZHU credit card. As of the end of 2021, 911,000 clients had applied for it. According to the Best Banking Products of 2021 Prostobank Awards rating by Prostobank Consulting, the vseMOZHU credit card received gold in the Credit Cards nomination. The jury recognized vseMOZHU for its convenient and favorable terms. Our clients have also started to use cashback more often since it appeared in the mobile application. In addition, due to attractive interest rates and the bank's reliability, demand for savings products, such as fixed-term deposits and demand deposits, has increased.

The PUMB Online mobile application has the basic functions that allow clients to manage their finances 24/7 from anywhere in the world, without contacting a call center or a branch. Most clients chose the mobile application to solve their financial issues. In 2021, more than 300,00 clients evaluated the application. At the end of the year, PUMB Online had 1.2 million active users.

In 2022, it was important for FUIB to support its clients. One of our first decisions in February 2022 was to maintain credit limits on cards - we allowed customers to use credit funds and withdraw cash without any obstacles at ATMs and cash desks of branches. FUIB introduced loan repayment vacations and reduced fees for using its services. For the sake of security, we tried to switch to remote channels as much as possible in terms of work, service and communication. Our remote channels worked non-stop. Despite the war, the terms of use of FUIB debit cards, including vseKARTA, remained unchanged: free issuing and servicing of the card and transfers to cards of any Ukrainian bank in hryvnia using PUMB Online and payment for utilities and replenishment of mobile operator numbers in the application – without commission. The bank's clients do not need to endanger themselves, stand in lines or look for the nearest bank branch - FUIB has taken care of everything and automatically extended the validity of all FUIB cards.

FUIB continued to fulfill all its obligations. Including as an agent bank of the Deposit Guarantee Fund. As a result of a balanced policy, the bank is trusted by its clients. Thus, 83% of the bank's individual clients extended their deposits in 2022.

At the end of 2022, the total number of users of the PUMB Online mobile application remained at over 1.2 million active users. Clients were able to solve their urgent issues without visiting branches. During the year of war, new features were implemented in PUMB Online: international transfers, loan repayment vacations and refinancing, ePidtrymka card for receiving state aid, foreign currency deposits, a map of bank branches, getting receipts for payments, chat with online support in messengers.

During the war, clients appreciated our support with loan repayment vacations and loan restructuring programs, which were used by 80% of clients. The issuing of a virtual debit card was also in demand in 2022. More than 800,000 cards were opened with ePidtrymka.

At the end of 2022, FUIB served more than 1.7 million active private clients, and despite the war, it retained its client base.

In 2021, more than 24,000 pensioners chose FUIB to service their pension accounts, and in 2022, almost 113,000 took out the "Sotsialnyi" and vseKARTA packages for social payments. Issuing and servicing a social card is free of charge. Pensioners can withdraw money from the card free of charge at any ATM throughout Ukraine. The bank has created special loan programs for pensioners. In addition, the bank added 5% per annum on the balance over 1,000 hryvnias.

In 2022, a virtual card called єПідтримка was offered for war victims who receive financial assistance from the state. FUIB clients received financial aid from the government of Ukraine and from international organizations, including the International Committee of the Red Cross in Ukraine and the Ukrainian Red Cross Society, UNICEF, the UN, etc.

In 2021, the bank cooperated with more than 20,000 payroll companies, serving more than 480,000 of their employees. In 2022, FUIB already cooperated with more than 26,000 payroll companies. Payroll clients are offered free issuance and servicing of salary cards, issuance of cards by a bank employee at the enterprise, financial literacy training, high-quality and timely collection of ATMs at enterprises. Payroll clients can replenish FUIB cards free of charge in the network of various terminals throughout Ukraine; connect cashback in the FUIB Online application; remotely open accounts using the Diia application.

Providing cash to the state in time of war

Since the beginning of the war, FUIB has actually switched to point management of each collection team, constantly communicated with the collectors and adjusted routes in accordance with the rapidly changing situation. The main challenges for the team were: evacuation of bank valuables and bank employees from the combat zones under constant shelling, bombing and on mined transport routes; cash reinforcement of ATMs, branches and bank clients under constant shelling; opening new logistics schemes for the supply of foreign cash; providing additional security measures for employees for safe travel and identification at checkpoints; providing the necessary amount of cash to meet all clients' needs; accelerated transition to electronic documents, their formation, signing and storage in order to preserve personal data of clients. Since FUIB is an authorized bank for the storage of NBU valuables, it also evacuated the state's cash to safe regions. Our cash collectors are heroes!

Partnership with Private Deposit Guarantee Fund

In 2021-2022, FUIB continued to actively cooperate with the Individual Deposit Guarantee Fund (DGF). In 2021, FUIB paid compensation to 672 clients of insolvent banks for a total amount of UAH 117.5 million at the expense of funds received from the DGF. Of these 385 people decided to continue cooperation with FUIB and became its clients. For 12 months of 2022, FUIB paid more than UAH 715 million to 7,200 Ukrainians - depositors of insolvent banks. More than 1,000 citizens decided to continue cooperation with FUIB. In 2022, FUIB was one of the first to implement the possibility of receiving DGF reimbursement payments based on a client's application in the FUIB Online mobile application, which is especially relevant during martial law.

In 2021, FUIB paid fees UAH 196.1 million to the DGF, and in 2022 - more than UAH 232.4 million.

Data security

The bank has implemented modern systems for intrusion prevention, anti-virus protection, data encryption, and mobile device management. The bank regularly conducts penetration tests. The bank's information security systems block attempted attacks on a daily basis.

The bank uses a comprehensive approach to information security:

• It uses special technical means to combat information leakage - DLP.
• Regular attendance of information security courses by the bank's employees.
• Creation of a system of differentiation of rights and accesses that allows to provide access to client information to the minimum required number of employees.
• Exchange of confidential information using modern encryption algorithms.
   

In 2021 and 2022, there were no hacker attacks that led to the leakage of confidential data or compromise of the bank's systems. At the beginning of the invasion of Ukraine in 2022, several powerful DDOS attacks were launched against the bank, which FUIB withstood without stopping services.

During the pandemic and the war, FUIB implemented the possibility of remote work for some employees without creating risks to the security of confidential information and system security. Employees have contactless access using mobile identifiers. The bank also has remote access to the video surveillance system.

FUIB has an anti-fraud system for cross-channel monitoring and control of transactions, which allows achieving a significant reduction in monthly losses of FUIB clients from fraudulent transactions. In 2021, we saved clients' funds in the amount of UAH 200 million, and reduced the number of affected clients by 2 times. During the war, FUIB paid special attention to fraudulent schemes related to social engineering, fundraising for defenders, and rental housing for IDPs. During the year of war, we saved UAH 150 million on the accounts of 7,500 clients due to continuous improvement of anti-fraud monitoring.

In order to counteract fraud with bank cards, FUIB's call center has a special line of direct communication with security specialists. FUIB's Security Department provides prompt support and effective assistance to clients: blocking a card or account, notifying other banks of fraud attempts, etc. FUIB's security service cooperates with the Cyber Police to identify criminal groups.

FUIB's security experts are actively involved in anti-fraud and cybercrime counteraction activities organized by the Ukrainian Interbank Association of Payment System Members EMA. This is a partnership for safe cashless payments in Ukraine.

Client experience

FUIB studies customer satisfaction through various tools: external studies, Secret Buyer program, internal specialized surveys, complaints and suggestions. Thus, the bank has the most complete information on the feedbacks and behavior of clients when interacting with the bank.

The bank pays special attention to handling customer complaints and suggestions. FUIB is building a single call center with maximum automation of processes, quick resolution of client problems, and prompt customer feedback. The technical work is scheduled to be completed in 2023.

Since 2021, we have been regularly monitoring the processing of customer requests on social networks and forums, identifying inconsistencies with service standards and modern approaches to working with clients in public channels. Training is provided, new scripts and approaches to service are developed. In 2022, the total number of complaints decreased by -24% compared to 2021. The main problems of clients were related to malfunctions of the mobile application.

For more than ten years in a row, FUIB has been implementing the Secret Buyer program, which helps to assess the quality of service at customer contact points. In 2021, a number of assessments were conducted to identify misunderstandings or lack of knowledge of the bank's new products by employees, as well as suggestions for clients on alternative service channels. In 2022, the program analyzed service processes and the role of employees in them. Attention was paid to quality client consultations.

In 2021, FUIB strengthened the research and evaluation of customer experience. Due to the pandemic and the war, in-depth interviews and testing were conducted online in Zoom, so we were able to take into account the opinion and experience of clients even from the smallest settlements in the most remote corners of Ukraine. Testing and evaluation, as well as the study of customer pain points, help to significantly facilitate and simplify the customer journey at different stages of interaction with banking products and services, identifying those processes and procedures that need to be changed and improved.

In 2021, we conducted a massive customer re-identification campaign. They raised many questions and objections due to a lack of understanding of the need and inconvenience.  We developed clear answers for clients on the process of updating their personal data and posted them on the bank's website for free access. Thanks to research in 2021, a customer-friendly process for remote issuance and receipt of debit cards was developed, as well as the necessary functionality of the mobile application.

During the war, the number of restrictions imposed by the NBU increased, which led to an increase in the number of account blocking by the Financial Monitoring Department. The research revealed a problem which is the customer's lack of understanding of why the account is restricted and how to act correctly. To improve the customer journey, we implemented a process of automatic PUSH/Viber/SMS notifications to clients about account blocking, reasons and a link to the page with the necessary information. Thus, the clients could familiarize themselves with the list of required documents and provide them to the bank in a convenient way - remotely or in a branch.

In 2021-22, FUIB continued to systematically work on integrating a human-centered approach into projects that significantly affect the overall customer experience. The bank uses design thinking to develop solutions within the framework of the bank's strategically important initiatives. In 2021, a qualitative service design study was conducted to assess the usability of the bank's website (branches/ATMs/SSTs section, information about the bank displayed on Google maps). The bank's webpage with addresses of branches and ATMs was updated, clients’ requests based on complaints, suggestions and the research were taken into account, and an agreement with VISA was initiated to obtain information and display all ATMs in Ukraine on the website for clients` convenience.

Despite the war and the decline in NPS to 55% in 2022 (in 2021, the NPS level was 62%, according to the results of a regular study by InMind), the bank ranks second in the market in terms of NPS.

In 2021, the bank's investments in improving the customer experience amounted to UAH 10.8 million, in 2022 - amounted to UAH 3.6 million.