COMMUNITY ACTIONS OF
YOU SHOULD KNOW ABOUT MAGNET BANK
OF THE PRESIDENT ON THE YEAR 2016
On a personal level and as the President of the Bank, from the numerous events of 2016, there is one important tendency that particularly struck me: it seems to me that in our ever-changing world affected regularly by crises, human solidarity and the capability to take joint actions in positive social matters are emerging. Changes in values give greater scope to such ambitions which aim at making our world more liveable and combat inequalities, social exclusion, as well as environmental disasters effectively. It has become perfectly natural that all of us collect waste selectively, try to use fewer plastic bottles or stand up for important environmental issues (e.g. Standing Rock).
MagNet Bank is in the front line of this world transforming process in Hungary. By its financial products, banking instruments, general operating principles, the Hungarian Community Bank endeavours to offer a responsible alternative to those who – just like us – believe that the world can be transformed for the better by our conscious decisions.
MagNet does not sell bank cards, deposits or loans, but changes people’s relation to money. It links the participants. It makes the money flow and individual decision alternatives more transparent, thus making personal impacts visible and noticeable. It provides the opportunity to take responsibility, thus creating healthier connection to money. How? We contribute by way of our Mentor/Sector deposit and loan products, Pay as much as you like account management, bank cards supporting social issues and helping programs, a donation program involving the clients, a balanced profit approach of the owners and conscious and transparent dividend policy.
MagNet Magyar Közösségi Bank Zrt. (predecessor in title: HBW EXPRESS Bank Zrt.), since its change in its name and strategy in 2010, has been committed to offering, for the seventh consecutive year, a value-based community banking alternative in Hungary and endeavours to show a good example how the world and Hungary can be changed through conscious management of finances. Exponential growth in size of the clientele and a wide professional recognition in the period since its reorganization, all demonstrate that clients call for innovative thinking and responsible and conscious banking.
Not only domestic awards, but an international recognition also show MagNet Bank’s success: in 2016, our Bank was accepted as a member in GABV, the international association of value-based banks (Global Alliance for Banking on Values, www.gabv.org).
As part of its financial education mission, each year MagNet Bank calculates the specific amount by which a given client has contributed to the Bank’s annual profit and provides information to the client to raise financial awareness. In 2010 the Community Donation Program (CDP) was introduced, within the framework of which, year after year, clients are annually given the opportunity to dispose over 10% of their contribution to the bank’s profit and to decide for which foundation purposes it may be used. Over the last 7 years, our clients disposed of the allocation of EUR 552 000 in total, and granted support to app. 220 different foundations and nonprofit organizations working inter alia in the fields of healthcare, environmental protection, education, equal opportunities, medicine and culture.
Nowadays in Hungary, it is trendy to worry about democracy. At MagNet Bank, we are confident that one of the most important factors of democracy anywhere in the world, is a – both on a human and financial level – independent and strong civil sector. We strongly believe that if, following the example of MagNet Bank, all other large enterprises (banks and insurance undertakings) allocated 10% of their annual profit to the civil sector not on the basis of the decision made by their management but on the votes of their clients, people would not have to worry about democracy.
In 2016, the independent professional jury of MasterCard awarded us with its “Socially Responsible Bank of the Year” prize to acknowledge our commitment for the sixth consecutive year.
We thank and are grateful to our clients for recognizing the power of joined efforts and for supporting the conscious and responsible management of finances. Thus, Hungary and in a broader sense the world itself can be transformed for the better. This is what we believe in!
The world around us is built on loans, therefore financial institutions have great responsibility over which sectors are prospering and which are stagnating. Besides the classic indicators, the level of social utility is considered very important among the credit scoring factors of MagNet Bank.
In 2016, MagNet Bank raised the overall amount of its corporate credits
from the EUR 116 million of 2015 to EUR 149 million.
COMMUNITY DEPOSITS AND LOANS
We not only inform our clients on the objectives financed from their savings, but actively involve them into the decision-making process by the help of our MENTOR and SECTOR community products. By this, our borrower clients can reduce their loan burden, while our deposit owners can be sure that their savings serve a good cause of their choice.
Product of the Year award at the MasterCard – Best Bank of the Year Competition.
Clients financed by the Mentor and Sector community loans can be supported by the deposit owners of the bank with the help of their savings, while obtaining an interest at the market rate of interest in respect of their deposits. In case of Mentor loans, deposit owners support a specific borrower client with their savings, while in case of Sector loans, a specific group of clients (Sector) as a whole is aided based on the nature of activity.
Deposit owners can determine the rate of the interest paid on their deposit within a specified range: they may even choose an interest lower than the market interest if they wish the specific recipient’s loan to have even more favourable conditions. Thus, by choosing the Mentor and Sector deposits, our clients are influencing the interest level of the credits the Bank places with respect to the specific fields.
In 2016, the savings amounting to EUR 38 million of 2 539 deposit owners helped 30 Mentor and Sector loan borrowers to reduce the annual cost of their Mentor/Sector community loans by EUR 19 812.
In the meantime, the total amount of deposits of MagNet Bank increased by EUR 35 million, from EUR 246 million in 2015 to EUR 282 million.
Join the new Mentor-Sector Plus Program with your MagNet loan and take advantage
of the discounts offered by the community deposit owners!