Madalina Teodorescu, First Bank: “Entrepreneurial leadership must be the basis of any business model”

“The banking system performed well in 2021. Government programs supported the companies. At First Bank, about 60 percent of funding is connected to government programs or to projects with European funds. It was an engine of growth, it encouraged the economy.

Banks had already begun the process of digitization, and that supported performance. Digitization has been a concern of the banking system since before the pandemic. The engine behind these goals was to streamline and improve customer relationships, automating simple processes. The pandemic environment has helped a lot, with customers adopting digitization at a much faster rate.

We have managed to break down many barriers, but we still have a lot to overcome in order to digitize. We found a solution to bring the client once to the bank to sign the mortgage contract and the credit agreement,” Madalina Teodorescu, Vice President First Bank said during Financial Forum 2022 organized by The Diplomat-Bucharest.

“Digital processes are maturing. Before the pandemics, we started at First Bank to digitize our back office processes with the help of robots. We have learned from our own mistakes and today we are talking about protecting ourselves from cyber attacks. In 2020, we managed to integrate Leumi Bank 100% digitally with people working from home.

2022 will accelerate digitization and mature end-to-end digital processes. These processes require a lot of effort. We believe in fully digital processes. 2022 will also mean a maturation in the area of ​​cyber security. We have a complex 24/7 functionality monitoring system, proactively identify issues and try to prevent any security breaches so that customers accessing digital systems are protected. With FintechOS we managed to build the cyber security part as well.

2022 is a very complex year. ROBOR has exceeded the psychological threshold of 5%. The price of energy is four times higher than in 2019. We are in an environment with a lot of unpredictability. 2022 means a lot of attention and connection to the evolution of the market. In this context, we believe that entrepreneurial leadership must define us. We must be anchored in the economic environment to help our customers.

We are firmly convinced that the economic environment must be maintained. We have a clear focus on creating an energy-independent SME ecosystem.

We want to help clients and refinance those installments on mortgages that have even increased by 40-50% due to interest rates. In 2022, bankers need to be very close to the business environment. We need to come up with solutions that will help customers overcome these unpredictable times.

We have two years since the context changed. I am very proud to say that we have managed to have a consolidated and strong banking industry, with good results. Romania is an attractive country, it had one of the highest economic growths in 2021. Investors want to come to Romania despite the current context, being a market with extraordinary potential. Government programs over the past two years have made a significant contribution to this economic growth. We have seen reinventions of business models, we have seen courageous investments even in small companies with a turnover below one million euros.

We need to start with the confidence we have gained in these two years, to continue to be close to our clients, to have a leadership. We must always see the opportunities and exploit them. Entrepreneurial leadership must be the basis of any business model, both in the financial industry and among companies.”

Full recording of the conference: https://www.youtube.com/watch?v=8mKuoh09GM4