Resources and responsibilities continued Retail Banking Youth support Bank of Georgia continues to innovate and generate a We developed a wide range of financial products to wide range of socially-oriented financial products and support young people in Georgia. For example, via special services that provide additional value to individuals and conditions of the Child Deposit we provide parents with micro, small and medium-sized enterprises (SMEs) and the opportunity to secure their children’s future. Starting meet their respective needs. from a minimal amount of GEL 10, a deposit can be opened for at least two years at any time from a child’s Express Banking birth until the age of 18. The annual interest rate (10.2% The Georgian banking sector still experiences difficulties for Georgian Lari and 1.0%-3.5% for foreign currency) in overcoming economic and geographical barriers in is added to the initial deposit. In 2018, we opened expanding its financial services in remote regions and approximately 10,000 Child Deposit accounts. among low-income segments of the population. The Bank also offers special products that allow young Our Express Banking service plays an important role in people to get a higher education. Examples of such addressing this issue. products are student loans with favourable terms that As at 31 December 2018, a network of 165 Exressp do not require any financial guarantees and collateral. • branches and 3,115 Express Pay terminals are located all Total portfolio of student loans amounted to c.GEL 672 over the country, including in remote mountain regions. thousand by the end of 2018, while loans with a total Express financial products, such as Express Card, value of c.GEL 253 thousand were issued in 2018. • Express Deposit and Express Loan are uncomplicated, easily accessible and affordable to a segment of the In 2016, the Bank partnered with the International population that would not have access to banking Educational Centre (IEC) and created a new opportunity products and services otherwise. By 31 December 2018, for students to study abroad. Students can apply for loans the Bank had attracted 538,729 clients, of which 48,701 to finance tuition, living and insurance expenses abroad. became clients of the Bank in 2018. The loans have a grace period of maximum 27 months. With a recommendation letter from IEC, the Bank As a part of the Express Banking service, we prioritise finances the students without requesting a confirmation the development of self-service skills. We plan to expand of income. In 2018, the Bank extended the contract with the services offered by Express Pay terminals. All of these IEC and will continue to support students’ education. changes will provide a more accessible banking service to our clients. In 2017, the Bank developed web-based Another example of the Bank’s products aimed at application processing tools that enable the completion supporting young people is a social-educational project of a full lending cycle remotely. “sCool Card” – a multifunctional card for school children. The main objective of the project is to teach children Express Student Card offers special discounts on public about financial culture and build their knowledge around transport and free distance banking services, among financial services at an early stage. sCool Card is available other benefits. Moreover, students can get special at no cost and all of the transactions and services are #StudentBreak discounts in various stores, cafés and also free of charge. sCool Card provides special benefits entertainment centres. Students are automatically for children in Georgian public and private schools. The involved in the Plus+ loyalty scheme – the Bank’s initiative benefits include free public transport in Tbilisi (metro, that offers different status levels to customers and buses) and Batumi (buses), discounts for entertaining reward points that accumulate based on the client’s centres popular among children, bookstores, toyshops, business with the Bank and can be redeemed into partner children cafés, as well as the accumulation of points companies’ products and/or services, at the client’s (sCoola) with each transaction. request. Plus+ points can also be converted into mobile phone top-ups and used to pay public transport, utility In a further effort to help children better understand bills and other products. The programme encourages the banking products, the Bank opened a sCool Card Business student population to use financial services and supports School, where experienced staff provide free training them financially during their studies. about topics such as: “The importance of money”, “Bank and me”, “Family budget”, “I am a manager”, etc. Bank of Georgia and the sCool Card are the finalists of the Child Friendly Banking Award 2017, The Global Inclusion Awards 2017 (Berlin, Germany). 76 Annual Report 2018Bank of Georgia Group PLC