SME Banker of the Year 2024 nominee: Magdalena Zmitrowicz
We are introducing the nominees for the SME Banker of the Year 2024 Award – dynamic and inventive leaders who have dedicated themselves to serving SMEs. Their unwavering commitment to the SME sector has left a considerable impact on this crucial segment of the economy, positioning them as outstanding leaders in the realm of SME banking. Take the opportunity to learn more about these exceptional nominees and be inspired by their steadfast dedication to serving SMEs!
With over twenty years in the banking industry, I have experience in sales, risk, and FX market, as well as in various customer segments, such as retail, SME, institutional clients, public sector, and international corporations. I have been leading SME team in Pekao S.A. since 2018. From the beginning of my professional career in 1999 in Citi Group, I held various sales leadership roles, both in Poland and abroad. I graduated from Stanford Graduate School of Business and Wharton Executive Education – Global CEO Program in Finance, social science and postgraduate studies at the Faculty of Management at the University of Gdansk and postgraduate Executive MBA studies (EMBA) at the University of Warsaw. I am also Bloomberg EU Women in Finance ambassador. I treasure spending time with my husband and 3 children. I also make sure to find time for my hobbies: amber fishing, snowboarding, cycling and reading up on history.
In the course of your career, what have you seen change in terms of demands/needs of SME clients? And what role should a bank play in meeting these demands?
SMEs are at the core of economic activities and the growth generators all around the world. Their condition is a fundamental requirement for investment activities. That in my opinion remains unchanged. In over 20 years of my career, I have observed an increased number of challenges that SMEs are facing – 2008-2009 crisis, COVID, high-interest rates environment and political unrest on European borders – to name a few. In those difficult periods, SMEs require above all access to reliable financing, guarantees and security mechanisms that will enable them to continue and develop their operations. This is where I see the dominant role of a bank – as a stabilizing factor and a reliable partner. This is exactly the model that we pursue in Pekao S.A. and why we consistently achieve double-digit growth in the SME segment.
Technology is developing rapidly and provides amazing opportunities to simplify processes, speed up decision-making, and provide better access to information. In Pekao S.A. we utilize and grow this channel, developing new tools to better service our customers. However, what in my opinion guarantees economic development for SMEs is investment. Here bank plays a major role as a provider of a wide scope of solutions – from tailor-made credit products to guarantees, factoring, trade finance, cash management and treasury offer. This, of course, requires expert support from highly experienced relationship managers and product specialists, diligent middle- and back-office teams, as well as prudent credit decision-makers. SMEs have their unique requirements where one size doesn’t always fit all. Therefore bank also needs to develop strong business relationships, based on mutual trust, open communication, and reliability. Customer intimacy with SMEs allows us to better suit their needs.
What have you found to be effective in leading your SME banking team/in your leadership position?
Great team is a requirement for great results. To have a great team, you have to respect each other and remember that only by working together as one team we can achieve our short and long-term goals. Each of us brings something else to the table and together we can utilize those different skills and approaches, create unique energy to push boundaries and lead the industry. I am a strong believer in the sense of ownership, where each person on my team understands that their individual achievements, aligned with the company’s strategy, are building our success every day. This is how we are building the strongest SME team in Poland in our bank.
In Pekao S.A. we guide our everyday business activities by four core values: Simply, Together, Courageously and Responsibly. We also strongly believe in supporting diversity through numerous initiatives addressed to all employees. Because women make up nearly 70% of the bank’s workforce, in 2020 we launched internal initiative “No Sugar”, with my strong involvement and support. It includes regular meetings and webinars on the development of personal and professional competencies. In 2022 “No Sugar” program joined Microsoft’s “emPower Women” project, which main goal was to strengthen the technological competence of women. In 2023 I had the privilege of joining the group of ambassadors of Bloomberg “EU Women in Finance” initiative. I am delighted to present an example of how to build a long-term strategy and engage more women to take responsibility for their careers in the financial industry. In my opinion, the companies that have more diversified decision-making positions achieve better results.
Briefly describe, what would be your top 3 achievements/ projects delivered by your bank for SME customers?
There are many initiatives that we have undertaken in Pekao S.A. in the last couple of years to make sure that we are the leader of SME banking in Poland. Those that stand out for me are:
- First of all, our service model where we offer SME customers products usually only available to large corporates. This provides the comfort of a wide range of solutions that can be modified if needed, supported by our experts in treasury, cash management, trade finance, ESG or EU guarantees. When SMEs business needs become more complex, they can be sure that in Pekao S.A. they have a partner ready for anything.
- We also have great achievements in credit product offering. Pekao S.A. was already the first in Poland to use Big Data analytics to create „ON CLICK” processes in which we do not require any documents from the client. In 2023 we expanded our offer with an online loan application, addressed to current and prospective customers. Available 24/7, easy to use online platform, allows them to request a current account loan or express loan in 5 simple steps. A few minutes after completing the form, the SME company receives a simulation of the maximum available loan and its tenor.
- Last not but least I’d like to mention our rapid response to the outbreak of COVID in terms of customer support. After the decision to lockdown in Poland, Pekao S.A. in 2 weeks prepared processes and technology to start distributing government subvention to companies. We set up special support teams, toll-free phone service as well as a website with dedicated information. We have granted ca. 34 thousand subventions in the amount of over 8 bn PLN and it is worth mentioning that 91% of companies that applied through Pekao S.A. received them. Secondly, our whole team shifted almost overnight to remote work, while keeping in touch with clients, processing all requests and delivering their best performance. Their work ethic was admirable since this was a very difficult period for all of us. Our clients commended us on our approach and customer-centric perspective. Thirdly, as the only commercial bank in Poland, Pekao S.A. acquired a credit guarantee from Pan-European Guarantee Fund worth 4,7 bn PLN, aimed at supporting loans to SME customers.
What would be the most significant business case that you've applied and learned the most out of it? Both positively or negatively?
One of the most important and groundbreaking moments in SME business management was, of course, the COVID pandemic. We faced not only the disease but also human fear, isolation, and global changes in trends. Today I am very proud of the fact that even though I also felt fear, it did not paralyze me. I did not look at COVID only as a threat, but also as a unique opportunity.
It was during the pandemic that me and my team quickly implemented solutions that seemed risky, but allowed us to quickly overtake the competition and grow in the long term with SME companies. We implemented, among others: process of remotely opening a bank account, remote customer service and support, online loans without credit documents and, above all, the financial ‘shield’ developed in cooperation with the government. We acted very quickly and supported SME companies when other banks had difficulties. Our clients still remember this and are grateful to us for helping them in a difficult moment by providing quick financing.
This experience taught me to look for an opportunity in every change, and if we see it, use it through good cooperation.
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