Social Banking

In the seven countries where Erste Group operates, there are around 15.9 million people at risk of poverty or social exclusion. Offering basic banking services to each of them, was one of the main reasons for the founding of Erste oesterreichische Spar-Casse in 1819. It also remains our sole purpose and responsibility, as one of the leading banks in Central and Eastern Europe.

“At Erste, we’re focused on being a healthy and profitable business, but also believe in empowering people in their financial lives and helping to spread prosperity in our region”, quotes Andreas Treichl, CEO of Erste Group Bank AG.

An example of this can be seen in the story of Maria Căşmăşan from Romania. She lives in Leurda with her husband Ioan and her children Raul and Raluca. They have a flock of around 500 sheep, from which they produce meat, milk and cheese. She explains “Originally, we started the business in order to raise money so that we could move to the city. However, we decided to finish our house, arrange a nice place to live and have a decent, quiet life.“

Watch her story to find out why...

´Step-by-step´ is Erste Group’s new approach to the development of Social Banking, which focuses on
making an impact in our societies by:

• Improving financial stability and inclusion for people on low incomes

• Enabling job creation and self-employment by financially supporting beginning entrepreneurs

• Fostering development and enlarging the impact of social organization

Through our network of local banks and partnership with other organisations and NGOs, we provide our customers not only with tailored products, but also with financial literacy and advice, business education and mentoring. We can therefore support them in their maturement, and in making wise financial decisions.

This creates a sustainable base for improving clients’ economic situations and helping them achieve financial stability in the long term.

Step-by-step is a program meant to support social organisations, starting entrepreneurs and people on low income, by creating a service and offer that are fitting their needs.

People on low incomes

Access to basic financial products for people on low incomes is widely recognized as a critical element in reducing poverty.

Financial inclusion empowers people to cope with unexpected financial encounters and in managing future risks more efficiently.

Therefore we provide customers on low incomes not only with current accounts, savings accounts and accessible loans, but also with basic financial literacy and mentoring on how to manage budgets appropriately (e.g. how to save money, what are ‘good’ or ‘bad’ loans, how to manage a household budget effectively).

Starting entrepreneurs

One of the most difficult tasks for starting entrepreneurs, is raising the necessary finances to get their business ideas up and running, keeping them afloat and developing them. This is especially vital for those without sound business skills.

We believe that small entrepreneurs not only provide financial stability for their families, but often create new jobs and expand the businesses into their communities, influencing others and resulting in the economic growth of entire areas.

We provide access to financial assistance for starting entrepreneurs in order to support new job establishments by giving them access to micro-loans, business training courses and mentoring.

Social organisations

Many NGOs and social entrepreneurs, who deal with some of the most challenging issues in our society, have poor access to financial products. This is due to risky business models that are unattractive to mainstream banks, scant support from the state and difficulty in accessing EU subsidies.

We are here to financially support them and thus enabling them to expand their services and outreach. This is then followed by capacity building programs and ongoing mentoring. We also provide aid in testing the sustainability of business models and in obtaining the required skills for independent growth.

To meet their needs, we provide working capital loans, bridging loans and investment facility loans.

We are excited about the stories of our clients. Watch them here:

Eco-hostel "Republik”, Serbia

Marko Ristovski is an owner of the Eco-hostel "Republik” in Uzice, Serbia. He is developing his sustainable business idea with a lot of energy and enthusiasm. “At first, not many people believed in my idea. Yet, in the end, I succeeded - we are now, opening our second hostel!” Watch the video and see how he is contributing to the community and the development of the tourism in his own town.

Sheep-products, Romania

Maria Căşmăşan lives in Leurda with her husband Ioan and her children Raul and Raluca. They have a flock of sheep counting 500 heads from which they produce lamb meat, milk and cheese. “Originally we’ve started the business to raise money to move to the city. Meanwhile we decided to finish our house, arrange a nice place here and have a decent, quiet living. Watch her story and find out why.

Rehabilitation centre, Hungary

Erzsi Szekeres is mother of a disabled boy and founder of Rehabilitation centre in Csömör. Thirty years ago it was the first non-profit organisation in Hungary. Back then, even the experts did not believe that disabled people can work. Learn more about her personal story and how she established not only a working place, but also a home and family environment for these people.

Organic baby clothes, Croatia

“I have always wanted to start my own company”, says Silvija Celjak, a young innovative woman producing baby clothes and accessories out of organic cotton and bamboo fabric that is a novelty on the Croatian market. “Believe in yourself! Never give up on your dreams, you have to be persistent and fight for what you want!" Watch her entrepreneurial story and find out more about her motivation.

Social Banking - How do we make it grow?

Neratov association, Czech Republic

Neratov association supports people with mental disabilities using the profits from its hotel, laundry, a pub and a garden centre to foster their social reintegration.