Interview: Agata Strzelecka, VeloBank – a modern bank with fintech DNA

Agata Strzelecka, managing director of the transformation area at VeloBank, is one of the few senior executive women in the Polish banking sector, jointly responsible for strategy and transformation. Numerous awards for VeloBank, including Best New Banking Brand and Technology Team of the Year at the 2023 Banking Tech Awards, confirm her exceptional role among financial strategists. She has extensive experience in creating and implementing organisational strategies, business process transformation, and back office operations.

Agata Strzelecka, VeloBank

Over the years, Strzelecka has developed professional practice in IT and security operations, as well as in the departments of settlements, logistics, digital channel solutions, and procurement, mainly in the banking sector.

She graduated from AGH University of Science and Technology and IESE Business School. She holds an MBA from the WSB-National Louis University.

Is operating in the “eXtreme Agile” methodology the key to success in acquiring a new investor for VeloBank?

Since the new bank had to be established in an ultra-short timeframe, we operated in the so-called “eXtreme Agile” mode from the beginning, which means quick decisions, short iterations, and sprints.

Typically, such a process takes months or sometimes even years. The VeloBank team created a coherent vision of business transformation in just a few months, ready for immediate implementation, with the aim of quickly building a competitive advantage.

Optimisation and automation of internal processes were crucial, as well as the introduction of dozens of products and implementations that changed the bank’s position “from stagnation to rebel”, transforming it from an institution on the brink of collapse into a thriving bank dynamically attracting new customers. This approach allowed all teams to reorganise quickly. The pace of work in the bank is shown by the numbers – we implemented 130 strategic initiatives in the first six months.

The last year and a half has, indeed, been a time of “eXtreme Agile”. We achieved a lot, and this was recognised by Cerberus Capital Management, based in New York.

Importantly, our new investor plans to continue working with the team that put incredible effort into building the bank. The combined strengths of the American fund, with its vast know-how in the financial sector, and the energy and current growth dynamics of VeloBank, will generate even greater value for customers and the financial market.

We plan further stable development of a modern and attractive product offering. The transaction, which will be finalised in a few weeks after obtaining the necessary approvals from the European Commission and the Financial Supervision Authority, also confirms the attractiveness of the Polish banking sector and is a key stage in the resolution process.

You built a new brand in five weeks, gaining the trust of current and potential customers. How did you achieve this?

The VeloTeam understands that innovation in today’s world means more than just offering the most advanced products. Therefore, we went beyond traditional banking, focusing on values that matter to customers. To achieve this goal, we had to bet on the best people. This required recruiting carefully selected specialists from various fields at lightning speed, with a particular emphasis on their technological and digital competencies.

A motivated, energetic team built VeloBank – today the most fintech bank in Poland, which not only implements the strategy, exceeds assumed results, sets trends in the industry, but also implements unique solutions. These include VeloMarket, a green e-commerce platform (after a year, customers can already buy a million products on it, making it one of the fastest-growing online stores in Poland), QR code login to banking, a modern mobile application built in the “mobile first” spirit, or the use of GenAI, which supports bank employees in selling credit products.

Let’s talk more about GenAI, as it’s an inevitable direction not only in banking.

GenAI is crucial for increasing efficiency and improving customer service quality. We already use it to improve customer experiences, strengthen the customer-bank relationship, and thus provide them with more personalised service.

GenAI also classifies products on the VeloMarket e-commerce platform, assigning appropriate descriptions and tagging them with “Velo” when they meet selected health and ecology criteria. Of course, we still care about the “human touch” and building relationships with customers in direct contact, but at the same time, we want our employees to focus on this rather than on repetitive tasks that technology can handle.

We launched a CRM system that allows us to hyper-personalise, precisely reaching out with offers that match their expectations and needs. We implemented an application in the form of a chatbot that provided substantive support for bank advisors handling customers interested in our “Safe Credit 2%” programme via call centre. The chatbot answered questions about the conditions and application process for a mortgage under this programme in real-time.

Which solutions at VeloBank are you most proud of?

Definitely the new version of the mobile application, with even simpler and more intuitive solutions. We built our application according to the “mobile first” principle, focusing on the needs of customers who prefer mobile solutions. Therefore, the main advantages of the application include a clear information architecture, as well as useful functions like the ability to pay for parking or purchase public transport tickets. You can also conveniently and securely log into the application using a QR code.

As the first bank in Poland, we integrated the mObywatel application (mobile ID) with the bank’s business processes, allowing convenient identity confirmation and opening a modern personal account – VeloKonto – in just 60 seconds.

We also prepared a “mortgage from the couch”, where the mortgage process takes place without leaving home – through a video call with a bank consultant. A visit to a branch is only necessary at the stage of signing the agreement.

ESG is also a very important area of interest for VeloBank. Why?

We had limited time and resources, and we faced numerous challenges, such as rebuilding our reputation and deposit base, attracting new customers – creating an appealing offer, proposing “beyond banking” solutions like the VeloMarket platform, an innovative platform with products supporting the green transformation. A place where buyers, from their mobile phone or computer screen, save time and money while finding selected products good for their health and the planet – from eco-food to a modern heat pump. This is a unique and the first such solution offered by the financial sector in Poland. Thanks to VeloMarket, we are filling a gap in the e-commerce sector and proving that we are an institution that introduces innovative, bold projects to the market that are environmentally friendly.

VeloMarket is just the part of the bigger picture of our ESG strategy. VeloBank faced a huge challenge, and as a result, we had to undertake many restructuring actions. Finding a good investor for VeloBank was important for the entire banking sector in Poland because it allowed us to avoid a negative scenario and, consequently, a loss of reputation. We had our hands full, but we never lost sight of our ESG strategy.

In the environmental pillar, we have the “Let’s Plant Together #VeloForest” campaign, thanks to which we have already planted over 18,000 trees, exceeding our goal of 10,000 trees by the end of 2024. We also focus on green financing. We have an offer aimed at both retail and institutional customers.

We have the second edition of the VeloTalent programme, a project aimed at young people under 35 with exceptional skills but lacking the resources and support to develop them.

We also take care of our employees by providing them with professional tools to support their personal development and health.

In the corporate governance pillar, we plan to train all managers on ESG topics so that we can later assign them measurable sustainable development goals. Additionally, in all key areas, we maintain transparency in sustainable reporting.

To answer the question of whether the ESG strategy was important to investors, I will reveal a little secret. Of course, the ESG topic was part of the due diligence process, but it had different weights for different entities. For our new owner, issues related to the lack of financing for high-emission sectors of the economy were crucial. They also paid attention to corporate governance issues, but also our “green financing” offer.

For two entities, the EBRD and IFC, ESG issues were extremely important. They were particularly interested in the functioning and goals of the ESG office in the bank, which we have and are developing, our environmental and social risk management system, the offer of green and sustainable financing, and the ESG risk in credit activities.

I can already confirm that the EBRD has obtained formal approvals to participate as a co-investor in the sales process. So we already have the certainty that an institution that sets standards in ESG will also strive to intensify ESG activities in our bank.

What is crucial, we see that ESG activities are becoming our desired business daily routine.

Returning to hyper-personalisation. Are there ready and complete tools on the market to implement it?

Implementing such a system not only requires appropriate infrastructure preparation but also entails the need to transform many business and operational processes within the company.

There are no ready-made tools for hyper-personalisation of services. This means that each company must create such a tool on its own. It requires a team of experts to develop it, including data science specialists.

Additionally, another team of people is needed to effectively utilise the created tool – both from the analytical side and in translating it into the customer relationship. It is an entire ecosystem that is not currently available off-the-shelf. Implementing hyper-personalisation in VeloBank, we operated by accelerating the implementation process to the maximum, while maintaining the ability to quickly respond to various challenges during its implementation.

Without a doubt, today VeloBank, along with its new investor, is an institution that creates jobs, contributes to financing the economy, participates in healthy competition in the sector, and undertakes additional ESG initiatives.

We are constantly seeking strategic business partnerships with market leaders to offer customers new, innovative solutions that go far beyond the strict confines of banking in Poland. We are on the right track.

Sponsored by VeloBank