Leveraging Finance for Social Impact

Perspective by Erste Group & Erste Foundation

ORSOLYA SZALAY

Our Speaker at the CEE4Impact Day (9th October, Budapest)

MISSION STATEMENT

We believe that everyone has the potential to achieve more, whether it is an average person, a new business, a company with a long history, or society as a whole.

I believe that the future is created by those who believe in themselves and their ideas. This is how I started out in a small village in Hungary of 1000 people and became a colleague representing the social responsibility of one of the largest Hungarian financial institutions. It has always been important for me to be able to reach back to my roots and the basic values that define me: integrity, setting an example, faith in people, community existence, creative thoughts. This is what I represent in my work: to help all those who turn to me and through me to Erste on their way with an open heart and creative thoughts.

1. What is social banking, and specifically, and what is currently at the focus of the team's ongoing projects?

For 200 years, we have been driven by the same mission: we work for the well-being of people, regardless of social status, nationality, faith, gender or age. This was the revolutionary goal for which Erste was founded, and this idea, if possible, is even more relevant today. Erste Social Banking is more than a banking service – we have long since gone beyond the classic banking framework, yet we enjoy the full support of the organization. Today, it is no longer enough to provide financing – our differentiator is the passion that constantly connects the Bank and society with new and unique solutions. In Hungary, our main goal is to support and create financial health, and to increase financial awareness even among those who others do not believe in. In addition to resources, NGOs also need tangible, operational knowledge to be able to help their beneficiaries in a sustainable way. We meet many families to whom we can provide meaningful help with debt management advice and personalized financial education programs. In everyday life, it is most natural that we pay attention and do something for each other: we see not only the customer, but also the person and the unique story behind them. We try to explore opportunities for the creation of fair housing, and we mobilize great forces in order to provide organizations and businesses with a social impact with a wide network of contacts and visibility.

2. Coming from a non-financial educational background but having nearly two decades of experience in the banking sector, what do you believe is the most meaningful value a bank can offer to everyday people?

What really sets us apart is our culture. The values we work by are what make Erste special. For us, caring, trust, cooperation, development and passion are not just words, but the guiding principles of our daily operations. These values define how we work together, how we treat our clients, and how we relate to society. We also take advantage of the advantages of the increasingly digital world, but we also try to turn to and respond to the needs of those who turn to us in the most humane way. It's easy to map out what kind of products a customer has – but we also think about helping them create a financially balanced situation or even prepare decisions they haven't even thought about yet.

Is this possible? Erste's intentions and knowledge enable it to open a dialogue with its customers at the same time. The mission of Social Banking is also built around this idea, in fact, it goes beyond it: in many cases, it is necessary and possible to provide really valuable help beyond classic banking services.

3. What are the key drivers behind Erste Group's efforts to create social impact, and on what basis they select cases/organizations where they can apply their resources?

Our overarching goal is to increase the well-being of society. We define our tasks in such a way that we achieve a positive, environmental and social impact through them in all cases. The forms of implementation may differ in each Erste country, but the demand can come from anywhere. Regardless of the organizational form, we focus on initiatives and businesses with a social impact that want to have a sustainable, long-term impact through their operations. This can be an NGO as well as a micro-enterprise, a small business or a private individual. The social dilemma we provide answers to also varies from country to country, and so does the toolkit we recommend. We try to learn from each other's best examples and implement them into our own solutions.

4. What are the most urgent social or environmental issues Erste Group has recently taken on, and what major initiatives or projects are planned for the coming years to further its mission of making the world a better place?

In Erste's member countries, we can encounter a variety of social and environmental challenges. Still, there are similarities that we all look for: such leading challenges include affordable housing, disadvantages due to lack of financial reserves, challenges for nonprofits, or our impact on our own environment. We are aware that we leave a carbon footprint by our very existence, so we are continuously reducing CO2 emissions from our operations, and we are committed to becoming the number one financier of the green transition in Central and Eastern Europe. Here, too, Erste's cultural strength is evident: cooperation for the greater social good and a common goal constantly spur our community to new solutions. Our innovations are also twofold: our employees have already helped experiential banking with countless creative ideas, and of course, both Social Banking and the Erste Group operate under a common set of values and goals. I believe that in a company where social responsibility is so much a part of everyday life and operation, each success spurs colleagues to create social well-being even more. That company is Erste. Here everything that can make the world a better place can be fulfilled.

ORSOLYA SZALAY

Speaker at this year's CEE4Impact Day

Join us on the 9th October!

Details HERE