Georg Winter discussed with Sergiu Manea, CEO of Banca Comercială Română, how the bank prioritises education to address the challenges.
Like other CEE countries, Romania faces low birth rates, emigration, and an aging population. The Romanian National Institute of Statistics projects the population could shrink to 15 million by 2050, a 35% decrease from 1990. This demographic shift poses unprecedented risks for businesses. Georg Winter, CEO of GrECo Group, discussed these implications with Sergiu Manea, CEO of Banca Comercială Română, focusing on how the bank prioritises education to address the challenges.
Winter: What challenges does BCR face with regards to Romania’s rapidly declining population, and how can the bank address this seismic demographic shift?
Manea: For the banking industry, demographic change means a different customer base, which has a big influence on how we will carry out operations in the next 30 years. This shift doesn’t just affect the bank it also hits the overall market environment: The way we handle our operations, the services, and products we develop, how we build our clients’ customer journey, the number of employees we have, the specialisations we look for, and what the branches look like, for example.
Addressing demographic issues requires comprehensive policies and collaborative strategies, not only at a national level but also at a European one. It’s not just about one-off actions, and on-spot interventions. We need structural reforms, focused on supporting innovation, education, healthcare, and families, to ensure sustainable development and social stability.
Financial Education Builds Confidence, Security, and Resilience
Winter: How is BCR educating its customers, and how do you actively promote financial literacy, especially given the greater responsibility individuals face for savings and retirement planning amid complex financial decisions?
Manea: Our goal is to help individuals understand the impact of saving or investing a portion of their income regularly. We aim to change money and saving behaviours through practical education and planning.
We promote financial literacy as a cornerstone for society’s prosperity, laying the foundations for better financial choices, confidence, security, and resilience. We offer Romanians a long-term perspective on finances through client dialogues, annual financial planning campaigns, and education programmes. Throughout which we emphasise the importance of savings, investment plans, various types of insurance, building a retirement plan, and joining a private pension fund.
Moreover, we’re proud to be Romania’s financial education coach. We’ve reached 1.2 million Romanians through our programmes – Money School and Financial Coaching – and we take pride in the fact that 1,500 of our 5,000 BCR colleagues are Money School financial literacy teachers. Since its launch in 2016, Money School has become the largest financial education initiative in Romania, with more than 675,000 graduates. It has been highly successful, and moving forward, we need to expand and enhance our financial literacy projects.
Winter: Are the younger generations showing an interest in investing for their future?
Manea: At 25, many don’t think about retirement and don’t see the point of contributing to a pension fund or understanding insurance benefits. That’s why active financial learning is crucial. BCR believes in educating Romanians about long-term finances and supporting them throughout significant life moments with tailored products and expert advice.
Education is a bit of a conundrum. I personally think education should start much earlier than when you leave school and start fending for yourself a bit more. Our current education system leaves students unprepared for real-world financial management. So, we’re aiming to make them financially savvy from a young age. Our LifeLab project integrates financial education into the school curriculum, teaching practical financial planning alongside traditional subjects. For instance, during a geography lesson about tourism, students don’t only learn about the distance between two cities and the type of landscape, but also about the financial planning of a day trip between those cities.
Understanding Financial Health is the Key to Success
Winter: In a VUCA (Volatile, Uncertain, Complex and Ambiguous) world, how can banks help customers strengthen their financial resilience?
Manea: It’s all about teaching your customers what they can do to help make themselves financially resilient. No matter how small the steps they can afford to take, every little bit of forward thinking and saving can really help build a secure future. Banks are able to facilitate that learning.
BCR is prioritising the financial health of every client and every company in Romania, which is why we are continuously developing tools and services to increase access and awareness to financial education. We are in contact with the entire economy. We hold daily meetings with the business community and understand the concerns of entrepreneurs, regardless of their business size or industry. Over the last four years, we have learned to navigate a tide of uncertainty by having lots of discussions with entrepreneurs about how we work on alternative scenarios, how we keep our strategic plan relevant and effective, and how we can create a better risk management framework for them. The result of these conversations is a financial health section for companies in George for Business, our digital banking platform for micro-enterprises and independent professionals, which will be available soon.
We relate to businesses in Romania with transparency and our aim is to democratise access to financial and entrepreneurial education because this is the only way for the Romanian business environment to advance towards the economy of the future and business financial health.
How Sustainable Banking Drives Societal Transformation
Winter: Are banks actively promoting sustainability and leading societal transformation in that direction? Is BCR already pursuing sustainable lending and investments, and are customers showing growing interest in these initiatives?
Manea: Banks play a crucial role in driving sustainability, and BCR is no exception. We are actively taking steps towards sustainable lending and investing, recognising our key position in fostering a more sustainable society, but we still have a long way to go to embed sustainability in all our portfolio, including greening client portfolios, consolidating our green product offers, and conducting environmentally sustainable operations.
We believe our role is to drive supply and demand for green financing, and our colleagues lead discussions with our clients about the importance of business transformation. We tell them sustainability is a journey and that we are dedicated to making this journey together with them, helping our clients and communities.
The Transformation of Banking in 2024
Winter: In the past three years, the Euro zone was facing its highest inflation levels since the
introduction of the common currency. This tends to weigh more heavily on lower-income households and small businesses. Can the financial sector counteract this movement?
Manea: I always say we can navigate the challenges posed by inflation and improve financial resilience through financial education. Providing education on budgeting and financial planning can help households and small businesses manage their finances more effectively during periods of high inflation.
Our aim is to design and offer value-added services to our customers, which expand their purely financial needs. Because banking in 2024 is not just about debts, lending and solving immediate needs. Banking today is about savings products, investments, insurances, private pensions, or green mortgages. Your daily banking activities are literally at your fingertips through your phone, so now people go to a branch for specialised and personalised tips.
That’s why I say banking today is about fulfilling your strategic life and business goals. It’s about long-term planning, protection, and financial prevention. For us, this is the way to safeguard financial health and ensure stability in uncertain economic times.
Next Generation Banking: How Gen Z is Driving Transformation
Winter: As Gen Z emerges as one of the most significant client groups, what are their key characteristics and how is the bank responding? Also, considering their influence on industry changes, how does this impact older generations who may feel excluded from digital advancements?
Manea: This is my favourite topic because Gen Z has been pivotal in shaping our approach. They sparked our digital transformation investments eight years ago and influenced the development of George five years ago. They prioritise value, are cautious spenders who seek clear benefits, and are deeply concerned about social and environmental issues. Their transparency and demand for honesty resonate across all relationships. What’s more, from our Money School interactions, we’ve learned they crave seamless digital experiences and financial literacy.
With regards to the older generations, we’re mindful of bridging the digital gap. Despite assumptions, we see elderly customers engaging with digital services in our branches. Our colleagues play a crucial role in guiding them through this journey. We’re committed to empowering seniors with digital literacy, recognising they seek self-sufficiency in an increasingly digital world. They require support in adapting to tools designed primarily for younger demographics, ensuring they remain connected and capable in today’s digital landscape.
About Sergiu Manea
Sergiu Manea became CEO of Banca Comerciala Romana (BCR), Romania’s leading financial institution, in October 2015. He has overseen BCR’s transformation, marked by the launch of Romania’s first intelligent banking platform, George. Under his leadership, BCR has also become a pioneer in financial education through The Money School, Romania’s largest financial literacy programme.
About Banca Comercială Romănă
Established in 1990, BCR took over the commercial banking operations of the National Bank of Romania. Today, the bank is one of the most important financial groups in Romania, encompassing a wide range of operations such as universal banking (covering retail, corporate, and investment banking, as well as treasury and capital markets), alongside specialised companies in the leasing market, private pensions, housing banks, and various banking services.
HORIZON Risk Thought >> Fast Forward
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Sergiu Manea
CEO
Banca Comercială Română
Georg Winter
CEO GrECo Group
T +43 664 962 39 06
