Buenos Aires, March 8, 2021
LETTER FROM THE CHAIRMAN
To the Shareholders:
As Chairman of the Board of Directors, I hereby submit the Annual Report of Grupo Supervielle S.A.
corresponding to the year ended December 31, 2020.
By way of introduction I would like to make an overview of the macroeconomic context in the period
under analysis.
During 2020, the world was impacted by the crisis caused by the Covid-19 pandemic. The first cases
of this disease started in China by late 2019 and increased in the first two months of 2020. However,
as from February it began to spread to all countries in the world. The first case in Argentina was
reported on March 3, 2020. As a result, and according to recent estimates from the International
Monetary Fund, the world economy fell 3.5%, resulting in a negative growth for the first time since
2009.
Commodities were highly affected by the health crisis in 2020, accumulating in April 2020 a 24.7%
fall against December 2019, as a result of the uncertainty prevailing world-wide caused by the
spread of the virus. Later, with the gradual reopening of economies and world trade, prices
recovered.
In turn, the US Federal Reserve reduced the interest rate target to 0.25% (with a minimum of 0%)
to buffer the impact of the health crisis on the economy.
At local level, the macroeconomic scenario in 2020 was mainly marked by the health crisis that had
a strong impact on the activity level, especially in April when the Mandatory Preventive Social
Confinement (ASPO) was established to reduce mobility and control the spread of the virus. Thus,
in an attempt to moderate the impact of confinement on the economy, Argentina, like most of the
countries in the world, was forced to engage in a fiscal expansion, which highly increased the fiscal
deficit. According to data published by INDEC [the National Statistics and Census Bureau] based on
the Monthly Economic Activity Estimator, in 2020 the economy showed a third consecutive year of
recession, averaging a 10% fall.
The nominal exchange rate ended December at $84.15, i.e. a peso devaluation of approximately
29% during the year. The exchange rate throughout the year was stable under a controlled
depreciation scheme implemented by the BCRA which, on average, was in line with recorded
monthly inflation rates. Please note that during 2020, exchange restrictions imposed by late 2019
were tightened, which increased the gap between the official exchange rate and financial exchange
rates.
As regards the monetary policy, the BCRA announced different changes in the monetary program
which were intended to implement a more relaxed monetary policy, especially as from March, with
the outbreak of the pandemic and its impact on the economy. As access to the debt market was
restricted, the monetary entity was forced to provide financial aid to the Treasury throughout the
year.
In connection with the fiscal accounts, most expenses resulted from the aid provided to moderate
the impact of confinement. In fact, the Ministry of Economy estimated that the extraordinary
measures adopted on account of the pandemic amounted to 3.5% of the GDP while the income on
revenues worsened the fiscal result by 0.7% of the GDP.
In turn, the evolution of the banking industry was not alien to the context and the Covid-19
pandemic affected the financial market throughout 2020, as in most of the countries worldwide. In
2
Argentina, banks remained closed from March 20 to April 3, and as from that date they opened
gradually, first for senior citizens and beneficiaries of ANSES financed assistance programs, and as
of April 13 for all customers, by appointment and for limited transactions. At the same time, to
mitigate the economic impact of the Covid-19 pandemic, the Central Bank imposed various
measures to help individuals and companies go through the pandemic.
Grupo Supervielle ended 2020 with an inflation adjusted net income attributable to owners of
$3,412 million, a comprehensive income attributable to owners of $3,937 million, assets for
$249,919 million, loans and other financing for $105,975 million, deposits for $178,642 million and
an attributable shareholders’ equity of $36,339 million. Return on equity was of 9.9% in real terms.
Since the beginning of the Covid-19 pandemic, an unprecedented health and economic crisis, we
took early and firm action to achieve the three strategic goals we had set. First, we acted promptly
to protect the health of our employees and customers while we supported initiatives in
communities where we operate to help mitigate the impact of the health crisis. Second, we
established protocols to ensure operations continuity and, third, we
intensified digital
transformation initiatives, the adoption of which accelerated in this new normal.
Focused on assisting our customers, we promptly adjusted our transactions and implemented a
series of measures to promote safe banking transactions and provide tools to our customers. For
instance, for senior citizens, which are a large portion of our customer base, we adapted the
infrastructure of our ATM network, added functionalities to our online apps as well as to
transactional channels and we upgraded procedures to facilitate their banking needs. This gave rise
to a significant increase in the use of digital and automatic transactional channels. We also suported
SMEs in payroll payments and working capital needs through government-promoted credit facilities.
In this low-touch economy, we are quickly transforming our company into an innovative, efficient
and agile player with the capacity to continuously deal with the evolving needs and expectations of
our customers. Use of digital channels grew consistently in our customer segments as we added
new functionalities throughout the year. The agile mehodology enables us to be more prepared for
the speed of change prevailing nowadays, generating flexible and safe processes. Behaviors and
competencies such as the capacity to learn new things, be curious, be open-minded and contribute
to change become critical. We also implemented a new operational model in several of our
subsidiaries, starting with Banco Supervielle and the consumer finance company, placing customers
at the center of our actions. All of us who choose to be part of Grupo Supervielle want to
passionately activate our #ModoCliente [#Customer Mode].
In line with this new operational model, we launched the Human Banking campaign, intended to
show a balance between human and technological aspects. “Human” because of Supervielle’s
mission to be close to its customers, understand their needs and offer solutions to satisfy said needs.
“Banking” is humanized technology, that applies to all digital developments and facilitates the
customer experience.
The SMEs segment was particularly impacted by the pandemic, and with a view to assisting them
under these circumstances we managed to adapt processes, products and manage all commercial
teams to maintain service quality and comply with all regulatory provisions. In addition, we
witnessed the prompt adoption of digital means such as e-checks and e-factoring and we continued
supporting SMEs by financing their working capital needs and payroll payments through prime rate
loans, which reached 11% of the credit portfolio at the close of 2020.
In the Personal segment, the customer acquisition strategy added a new digital onboarding
platform, becoming the second most important channel following Plan Sueldo. Implementation
accelerated of digitalization actions that were already part of our strategy to provide our customers
a prompt response to their banking needs while they were not allowed to go to the bank. We rapidly
adapted to solve efficiently the payment of IFE [Ingreso Familiar de Emergencia] to 350 thousand
customers.
The Corporate Banking businesses were also affected by the pandemic. However, we adapted our
products and processes so as to maintain the quality of the service provided to our customers.
As regards the consumer financing segment, we launched IUDÚ with a view to developing digital
solutions to meet the needs of individuals and at the same time promote financial education with
tools that help in decision-making. IUDÚ is a digital banking services platform that is added to Grupo
Supervielle’s ecosystem to participate in the transformation of the financial services industry.
3
The insurance segment continued operating through Supervielle Seguros and Supervielle
Productores Asesores de Seguros. In 2020, Supervielle Seguros began a digital transformation
process, and some pilot tests were carried through the digital channel for the sale of life insurance
and home insurance. As regards broker, new products were developed, particularly designed for the
needs of Entrepreneurs and SMEs, SMEs and Medium and Large Companies Segment.
SAM, our mutual funds manager, launched a new fund, FCI Cerrado Adblick Ganadería, as a
differentiated investment alternative focused on a specific market of the real economy. During the
year managed assets grew by 131%, with a behavior similar to that of the mutual funds industry.
Our online broker, InvertirOnline, hit a record of approximately 5 million transactions processed
during the year, close to 5 times the number processed during the prior year. The transacted amount
grew by 274% against 2019, and more than 134 thousand accounts were opened as compared to
the 59 thousand accounts opened in the prior year. The educational platform InvertirOnline
Academy also recorded a significant growth due to the demand of financial training, with a 300%
year-on-year increase in the number of students.
In addition, in June 2020, our subsidiary Bolsillo Digital successfully launched a “business
aggregator” app – under the trademark “IUDÚ PAGO” - that enables commercially active companies
and individuals to get payments through debit and credit cards using an Mpos and a payment link.
In 2020, Grupo Supervielle, through the entrepreneur capital fund, consolidated and accelerated
the integration of digital products with companies pertaining to the fund’s portfolio. With a view to
creating incremental business opportunities for the fund’s company portfolio and for Grupo
Supervielle we remain committed to collaborating and co-creating with fintech companies, by
launching better value propositions for our customers.
In addition, Grupo Supervielle became a shareholder of Play Digital S.A., the payment solution of
the financial system (Modo).
At Grupo Supervielle we are committed to our employees, customers and communities, so as to
achieve a sustainable growth while protecting the environment and acting with social responsibility.
We integrate the sustainability strategy to our business model and promote a responsible culture
among our employees. We report on our non-financial performance in a clear and transparent way,
in connection with environmental, social and corporate governance factors.
In 2020, Grupo Supervielle defined its 2021-2023 Sustainability Agenda which consolidates a
responsible management model oriented to sustainability and establishes a strategy which places
individuals, the environment and ethics and transparency (ESG) at the center and integrates its
relations with all focus groups (customers, employees, suppliers, community and governments). The
initiatives developed during 2020 in line with our pillars include:
Environment: we continue working to reduce the environmental impact of our operations through
the implementation of a responsible environmental management system. We were the first
Argentine bank to be certified as Sustainable Generator User due to the installation of solar panels
at the Caballito branch, which feeds back any surplus to the grid. The electricity used in our
headquarters and the building located at Reconquista St. is 100% generated by wind power, and
greenhouse gases (GHG) originating from our activities continue to be measured for the calculation
of the 2020 Carbon Footprint and Energy Intensity.
Social: we seek to become an agent of change, creating sustainable social value, and to generate a
positive impact on our customers, employees and communities. In 2020, a multidisciplinary team
was formed to define our Diversity and Equity strategy in the understanding that a diverse and
inclusive environment inspires creativity and innovation and contributes to attract and retain
human talent. We continued promoting social investment with impact on innovative and
transforming projects related to education, childhood, senior citizens and
institutional
strengthening and in actions boosting culture and the arts.
Corporate Governance: we continued doing business in line with the highest corporate governance
standards, promoting transparency, ethical behavior, respect of the principle of legality and
sustainability of our activities and those of our value chain. In 2020, according to Institutional
Investor, Grupo Supervielle ranked second among the Best ESG in Latin America in the category
Financial/Banks. In turn, BYMA (Bolsas y Mercados Argentinos), together with the IDB (Inter-
4
American Development Bank) and with the academic endorsement of the Earth Institute of
Columbia University, submitted in February 2021 the rebalanced Sustainability Stock Index
according to which Grupo Supervielle remains part of BYMA’s Sustainability Stock Index for the third
year in a row since its launching in December 2018. Such index identifies leading companies in
Environmental, Social, Sustainable Development and Corporate Governance areas (ESG-D, by its
acronym in English).
In addition, and knowing that we had to work closely together to support those in need during the
health emergency, we supported different initiatives in the fight against Covid-19, including projects
of partner organizations in the communities in which we operate, through donations of food,
ventilators and other medical supplies, the delivery of tablets for underprivileged students so that
they could take online classes, and contributions, together with other companies, to finance the
construction of out-of-hospital primary care modules for Covid patients.
Two international positive aspects could help improve the activity level in Argentina during this year,
such as an improvement in world trade and in prices of agricultural commodities. However, this is
subject to the risks associated with a second or third Covid-19, which could result in the imposition
of a new lockdown impacting once again on the activity level.
The economic consulting firms that participated in the Market Expectations Survey of the BCRA
published in February 2021 expect for 2021 an economic growth rate of 6.2% for our country. In
addition, they expect that inflation rate will accelerate to 48.1% year-on-year and that the nominal
exchange rate will end at $118.6.
A good performance is expected for the financial system in a context of economic activity recovery,
as the high liquidity level will enable, following the recovery of the loan demand, an acceleration of
the savings channeling process to sustain and accelerate the economic recovery.
I am proud to share with you that we received a very important award during the year. Banco
Supervielle received the Eikon award to Innternal Communication for is Digital Transformation
Campaign #TransformarseEsSupervielle. The campaign also came first in the FUNDACOM Awards
for the way in which Banco Supervielle notified its four thousand employees of the changes arising
from shifting from a traditional bank to a customer-centric agile company, providing value solutions
in an increasingly demanding, highly competitive and changing market.
Finally, I would like to especially thank our teams, suppliers, shareholders and customers, key
players of our past, present and future. To all, on behalf of the board, thank you for your support
and confidence.
Julio Patricio Supervielle
Chairman
5
LIST OF OFFICERS
Board of Directors
Chairman
Julio Patricio Supervielle
First Vice Chairman
Jorge Oscar Ramírez
Second Vice Chairman
Emérico Alejandro Stengel
Directors
Atilio María Dell ‘Oro Maini
Eduardo Pablo Braun
Laurence Nicole Mengin de Loyer (1)
José María Orlando (2)
Hugo Enrique Santiago Basso
(1) Appointed by the Annual Special Shareholders’ Meeting held on April 28, 2020 to replace
Ricardo De Lellis, who resigned to the Board of Directors on such date.
(2) Appointed by the Annual Meeting held on August 12, 2020, to replace Victoria Premrou, who
resigned to the Board of Directors on such date.
Eduardo Pablo Braun, Laurence Nicole Mengin de Loyer and José María Orlando are “independent”
directors pursuant to the provisions established by the Rules of the Argentine Securities and
Exchange Commission.
Members of the Statutory Audit Committee
Statutory Auditors
Enrique José Barreiro
Carlos Alfredo Ojeda
María Valeria del Bono Lonardi
Alternate Statutory Auditors
Carlos Enrique Lose
Roberto Aníbal Boggiano
Jorge Antonio Bermúdez
Certifying Accountant of the Financial Statements for the fiscal year ended 12/31/2020
Santiago José Mignone (regular member)
Carlo Martín Barafina (alternate member)
Price Waterhouse & Co. S.R.L.
CEO
Julio Patricio Supervielle
Corporate Areas reporting to the CEO:
CFO
Mariano Biglia
Chief of Legal Affairs and AML
Sergio Gabriel Gabai
CCO - Chief Credit Officer
Pablo Di Salvo
6
CHRO - Chief of Human Resources
Martín Gallo (appointed in January 2021 to replace Santiago Batlle who resigned for
personal reasons)
Chief Officer of Technology
Sergio Mazzitello
Corporate Areas reporting to the Board of Directors:
CRO
Javier Conigliaro
Head of Internal Audit
Sergio Gustavo Vázquez
Compliance Officer
Moira Almar
Chief Executive Officers of Grupo Supervielle Subsidiaries:
Banco Supervielle
Emérico Alejandro Stengel
Cordial Compañía Financiera / Tarjeta Automática / Micro Lending S.A. / Espacio
Cordial de Servicios (Consumer finance segment)
Juan Martín Monteverdi
Supervielle Seguros
Diego Squartini
Supervielle Asset Management
Guillermo Guichandut
InvertirOnline
José Vignoli
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TABLE OF CONTENTS
I. ABOUT GRUPO SUPERVIELLE ..................................................................................................................9
II. MAIN INDICATORS.................................................................................................................................. 10
III. ANNUAL RE PORT ................................................................................................................................... 11
A. EVOLUTION OF THE ECONOMY AND OF THE FINANCIAL SYSTEM .............................. 11
A.1. Macroeconomic Context in 2020 .................................................................................... 11
A.2. The Financial System in 2020 .......................................................................................... 14
A.3. Insurance Market.............................................................................................................. 15
A.4. The Mutual Funds Industry in 2020 ................................................................................ 17
A.5. 2021 Outlook .................................................................................................................... 17
B. EVOLUTION OF GRUPO SUPERVIELLE ............................................................................... 19
B.1. Evolution of Supervielle Ecosystem ................................................................................. 19
B.2. Corporate Image, Positioning and Communications ...................................................... 19
B.3. Evolution of Operations ................................................................................................... 20
B.4. Human Resources Management and Organizational Development .................. 44
B.5. Sustainability ................................................................................................................. 50
C. BOARD OF DIRECTORS, STRUCTURE AND INTERNAL CONTROL ................................................ 55
Board of Directors ..................................................................................................................... 55
C.1. Board Committees .............................................................................................................. 56
C.2. Compensation Policy for the Board of Directors and Senior Management ........................ 58
Departments Reporting to the Board of Directors .................................................................... 59
D. RISK GOVERNANCE .................................................................................................................... 60
Risk Governance ........................................................................................................................ 61
Risks Management in Banco Supervielle ................................................................................... 62
E. SHARE STRUCTURE – SHAREHOLDERS – SHARE BEHAVIOR ......................................... 68
F. DIVIDENDS PAID AND RECEIVED ................................................................................................ 70
G. ANALYSIS OF THE BALANCE SHEET AND RESULTS ..................................................................... 70
IV. COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE .................................................................. 77
A) DUTIES OF THE BOARD .......................................................................................................... 77
B) CHAIRMAN OF THE BOARD OF DIRECTORS AND CORPORATE SECRETARY ............................ 79
C) BOARD COMPOSITION, APPOINTMENT AND SUCCESSION ................................................... 81
D) COMPENSATION .................................................................................................................... 81
E) CONTROL ENVIRONMENT ..................................................................................................... 82
F)
ETHICS, INTEGRITY AND COMPLIANCE .................................................................................. 84
G) SHAREHOLDERS AND INTERESTED PARTIES ........................................................................... 87
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I. ABOUT GRUPO SUPERVIELLE
Grupo Supervielle S.A.
is a corporation
[sociedad anónima] organized in Argentina in
1979 that operates as a financial services
holding company and whose shares are listed
on and traded
in Bolsas y Mercados
Argentinos (BYMA) and in the New York Stock
Exchange (NYSE) since May 19, 2016. As of
December 31, 2020, Grupo Supervielle had
456,722,322
issued shares, and shares
floating in the capital markets represented
65% of its capital stock.
Grupo Supervielle S.A. is a financial and non-
financial services platform with a history of
133 years in the Argentine financial system
and a leader in certain market segments
which are strategic for the company. Grupo
Supervielle’s philosophy is focused on agility
as a key part of its work culture, placing the
customer at the center of all the actions
through profitable value propositions and
promotion of digital adoption.
into account public banks;
Grupo Supervielle
is formed by: Banco
Supervielle, the 8th. largest private bank in
Argentina in terms of loans and the 11th.
taking
the
Cordial
consumer division, formed by:
comprehensive
Compañía Financiera, a
financial services company, in process of
change of name
IUDÚ Compañía
to
Financiera; Tarjeta Automática, a distribution
financing, which
network
operates mainly in the southern region of
Argentina; Micro Lending Argntina (or MILA),
a company specialized in car loan financing;
and Espacio Cordial de Servicios, a retail non-
financial products, assistance, services and
tourism
Supervielle
Seguros, an insurance company; Supervielle
Productores Asesores de Seguros, insurance
for consumer
products;
related
brokers; Supervielle Asset Management,
mutual funds manager; InvertirOnline.com,
an online trading broker; Bolsillo Digital S.A.,
a company that provides payment solutions
to retail merchants with POS Móvil and e-
wallet products under the IUDÚ Pago brand;
Futuros del Sur, a negotiation agent for
institutional and corporate customers,
in
process of change of name to Supervielle
Agente de Negociación; and Easy Cambio S.A,
a foreign exchange broker. Finally, the
portfolio is completed with Sofital S.A.F. e I.I.,
a company mainly involved in the holding of
interests in Grupo Supervielle companies.
located
and Hypermarkets;
As of December 31, 2020, Grupo Supervielle
has a nation-wide strategic presence through
include 185
302 access points, which
branches, 13 collection and sales centers and
79 points of sale of Cordial Compañía
Financiera
within Walmart
20
Supermarkets
branches of Tarjeta Automática, 5 branches of
Mila (in addition to its network of 579 related
car dealers), 457 ATMs, 221 self-service
terminals and 256 cash dispensers with
integrated biometric identification for which
no keyword or card is required. Furthermore,
Grupo Supervielle offers solutions through its
digital channels, applications and solutions
developed for different business segments
and also offers products and services through
the digital attacker platform to customers
located in the country.
As of December 31, 2020, Grupo Supervielle
had assets for AR$249,919 million under the
Generally Accepted Accounting Principales of
the Central Bank of Argentina, 1.9 million
active customers and 5,021 employees.
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II. MAIN INDICATORS
Grupo Supervielle S.A., Consolidated
Main Indicators
Net income for the period attributable to the owners of the
controlling Company
Comprehensive income for the period attributable to the
owners of the controlling company
Assets (in thousands of Pesos)
Liabilities (in thousands of Pesos)
Shareholders’ Equity (in thousands of Pesos)
Shareholders’ Equity attributable to the owners of the
controlling company
Shareholders’ Equity attributable to non-controlling interests
ROAE(1)
ROAE – Comprehensive Income
ROAA(2)
ROAA – Comprehensive Income
Net Income from services/ (Net Income from services + Gross
Financial Margin)(3)
Net Income from services/ Administrative Expenses(3)
Non-performing loans / total loans
Provisions / Non-performing loans
Dec.
2020
Dec.
2019
Change
%
3.412.111
3.937.409
-3.993.474
-
185,40%
-
201,60%
249.918.936 203.428.034 22,90%
213.551.364 170.470.621 25,30%
36.367.572 32.957.413 10,30%
-3.875.827
36.338.534 32.931.190 10,30%
29.038
9,90%
11,40%
1,30%
1,50%
26.223 10,70%
-12,60%
-12,20%
-1,50%
-1,40%
19,10%
19,60%
31,10%
3,70%
191,50%
31,40%
7,40%
83,00%
(1) Net income for the year attributable to the owners of the controlling Company divided by the
average shareholders’ equity, calculated on a daily basis
(2) Net income for the year attributable to the owners of the controlling Company divided by the
average assets, calculated on a daily basis
Including Income from insurance
(3)
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III. ANNUAL REPORT
A. EVOLUTION OF THE ECONOMY AND OF THE FINANCIAL SYSTEM
A.1. Macroeconomic Context in 2020
i) International Scenario 1
to
2020,
according
During
recent
International Monetary Fund (IMF) estimates,
the world economy fell by 3.5% as a result of
the crisis caused by the Covid-19 pandemic.
The first cases were reported in China by late
2019 and the number escalated in the first
two months of 2020. As from February the
virus disseminated to all countries in the
in Argentina was
world (the first case
reported on March 3). By late 2020, some 83
million cases had been confirmed, with a
death toll of 1,818,009. The countries
recording more cases
included the USA
(approximately 20 million cases and 345,000
dead),
(approximately 10 million
confirmed cases and 150,000 dead) and Brazil
(approximately 7 million positive cases and
195,000 dead). In turn, in Argentina, as of
December 2020 over 1,600,000 positive
Covid-19 cases had been confirmed with a
death toll of 43,245.
India
Thus, the world gross product recorded a
negative growth for the first time since 2009,
when it has fallen by 0.08%. This performance
is mainly explained by the GDP decrease by
4.9% and 2.4% in developed countries and
emerging countries, respectively. Throughout
2020 world economies were
seriously
implement
the need
affected by
restrictions on mobility as a way to stop the
virus. Specifically, during March and April, the
in the
greatest collapses were recorded
activity level, concurrently with the greatest
phase of COVID-19 expansion worldwide.
to
As regards emerging economies, the GDP in
Latin America and the Caribbean fell 7.4%
during 2020 (which had increased by 0.2% in
2019), three times the decrease expected for
all emerging countries. On the other hand,
Brazil recorded a fall of 4.5% of its GDP, lower
than forecast for the region. China grew in
2020 by 2.3%, becoming the only country in
the world with a positive growth rate in such
year. Finally, India’s GDP suffered fell by 8%
approximately.
As regards developed countries, the 4.9% fall
of its total GDP is the result of a 3.4% drop in
the USA, 7.2% in Europe and 10% in the
United Kingdom. In summary, the European
countries mostly hit in 2020 were Spain and
Italy, with GDP drops of 11.1% and 9.2%,
respectively and, to a lower extent, France
and Germany, which went down by 9% and
5.4%, respectively. On the other hand, Japan
recorded a drop of 5.1% while in Canada such
drop was of 5.5%.
trade
partners
During 2020, the behavior of the currencies of
Argentina’s
was
heterogeneous, half of them suffered a
nominal currency depreciation, with the
Brazilian real depreciating by 20%. In contrast,
the euro recorded a 9% appreciation and the
yuan 7%. In real terms, the peso appreciated
in the year and
by 2.6% on average
depreciated by 0.2% year-on-year according
to the Multilateral Real Exchange Rate Index
prepared by the BCRA (Central Bank of
Argentina).
Commodities2 were highly affected by the
in 2020. As of April 2020,
health crisis
commodities accumulated a drop of 24.7%
against December 2019 as a result of the
global uncertainty caused by the spread of the
virus. Then, with the gradual reopening of the
economies and world trade, prices of
commodities recovered and, as of December,
they were 28.2% above April’s minimum. As a
result, prices accumulated 3.5% year on year
fall against the close of 2019 and 12.4% as
compared to the average of each year. In
contrast, the prices of commodities exported
by Argentina, measured by the commodities
price index prepared by the BCRA grew by
17.7% year on year while they only increased
by 0.4% as compared to the annual average.
1 Provisional data. Source: IMF World Economic Outlook, published in January 2021.
2 According to Bloomberg’s CBOM index.
11
As regards the interest rate, in March the US
Federal Reserve decided to reduce its target
from 1.75% by late 2019 to 0.25% (with a
minimum of 0%) to buffer the impact of the
health crisis on the economy. That was the
first time following the 2008 crisis that the
FED changed its interest rate target range
from the scheduled one. In contrast, the
liquidity of North American economy
recorded a strong hike. In fact, both the
monetary base and the M2 monetary
aggregate reached their historic maximum as
and 93%,
a GDP percentage
respectively).
(25%
(while the stock
Global financial markets also recorded a great
volatility as a result of the pandemic
worldwide and a context of expansive
monetary policies of the main central Banks in
the world3. In the first quarter of 2020,
according to the MSCI Index, stock fell by
21.7% worldwide
in
emerging markets fell to 24%) in line with the
peak of uncertainty for the spread of the
virus. However, as
from March, prices
recovered due to a gradual improvement in
in world trade,
the activity
accumulating a 46%
rise and a 52%
improvement
in the stock of emerging
markets. As a consequence, the world stock
market ended with a hike of 14.3% hike, lead
mostly by emerging markets that grew by
15.8% against the 14.1% of developed
markets.
level and
ii) Argentine Economy
The macroeconomic scenario in 2020 was
mainly marked by the health crisis that had a
strong impact on the activity level, especially
in April when the Mandatory Preventive
Social Confinement (ASPO) was established to
reduce mobility and control the spread of the
virus. Thus, in an attempt to moderate the
impact of confinement on the economy,
Argentina, like most of the countries in the
world, was forced to engage in a fiscal
expansion, which highly increased the fiscal
deficit. In turn, considering the impossibility
to access international financial markets, and
reached an
although Argentina
agreement
in
September 2020, such deficit was mostly
funded through currency issuance, which
restructuring
for debt
finally
3 Taking as a reference MSCI indexes prepared
by MSCI Inc.
generated an additional pressure on the
different economic variables.
Economic Activity
According to data published by INDEC [the
National Statistics and Census Bureau] based
on the Monthly Economic Activity Estimator,
a third
in 2020 the economy showed
consecutive year of recession, averaging a
10% fall. As regards the annual dynamics, the
economic activity recorded a year-on-year
negative growth of 5.2% in the first quarter,
19% in the second quarter, 10.2% in the third
quarter and 4.4% in the last quarter. Finally,
while monthly data (deseasonalized) reflect a
recovery has
persistent
in
decelerated
in
September 1.2%
November and 0.9% in December).
in recent months (2.2%
in October 1.4%
recovery, such
Foreign Trade and Foreign Exchange Market
During 2020, the trade balance accumulated
a surplus of USD12,530 million, which implied
a worsening over the positive result of
USD15,953 million reached in 2019, although
trade surpluses were recorded
in two
consecutive years after six years of negative
results. The trade balance dynamics is the
result of a low activity level, with 13.8% in
imports, below 2019 percentage. In summary,
the worst performing imports in 2020 were
fuels and lubricants (-40.6%) and vehicles and
automobiles (-31.7%). On the other hand,
exports also showed a poor performance with
USD54,885 million, down to 15.7% against
2019, with a drop of 30.9% in industrial
manufacturing and of 16.5% in fuels and
energy.
in
In 2020, as well as in 2019, a decrease was
recorded
reserves of
international
USD5,438 million, ending the year with a
stock of USD39,410 million. During the year,
financial reserves recorded a fall of USD4,190
million from September to November, amidst
a context of uncertainty in which financial
exchange rates substantially accelerated and
higher restrictions were established on the
purchase of foreign currency. Finally, in the
last month of 2020, uncertainty decreased,
which allowed the BCRA to purchase US
dollars and restore the international reserve
In terms of
stock by USD758 million.
components, the fall in reserves throughout
2020 was mainly due to the sale of foreign
12
International Agencies
currency for USD4,169 million and payment
for USD2,547
to
million. The international reserve dynamics
benefited from the debt restructuring carried
out in September, which enabled Argentina to
stop payments of foreign debt services during
2020.
The nominal exchange rate ended 2020 at
$84.15, which meant a rise of the USD value
during the year of $24.25 or a peso
devaluation of approximately 29%. The
exchange rate dynamics throughout the year
was stable under a controlled depreciation
scheme implemented by the BCRA which, on
average, was in line with monthly inflation
rates recorded during the year. Please note
that during 2020, exchange restrictions
imposed by late 2019 were tightened which
increased the gap between the official
exchange rate and financial exchange rates. In
fact, the blue-chip swap (arising from the
difference in the quotation of Argentine
stocks measured in pesos and in US dollars)
reached 108% above the official exchange
rate in October as a result of the tightening of
the exchange controls established by mid-
September.
Labor Market
In 2020, salaries showed a year-on-year
growth of 33%. Private sector registered
employees’ salaries increased by 34.3% and in
the non-registered private sector the increase
was of 39%. In turn, the increase in the public
sector was much lower, by 26,8%.
to maintain
include
adopted by
seeking
level, which
The employment level was affected by the
health crisis, recording a decrease despite the
the Argentine
measures
the
Government
occupation
the
prohibition of dismissals without cause and
the payment of two severance payments in
case of non-prohibited dismissals. In this
context, according to data until November, a
fall was recorded of 219,000 registered work
positions, due to a drop of 212,000 in the
number of registered workers. In contrast,
the number of workers under the Small
Taxpayers’ Simplified Scheme grew by 25,000,
evidencing a deterioration in the employment
quality.
On the other hand, unemployment rates of
the first, second and third quarters were
respectively,
10.4%, 13.1% and 11.7%,
averaging 11.7% in the first 3 quarters of the
rate
year. The average unemployment
showed an increase of 161 basis points as
compared to the first three quarters of 2019
(10.1% in 2019 against 11.7% in 2020). In
addition, the activity rate went from 47.2% in
the third quarter of 2019 to 42.3% in the third
quarter of 2020.
Fiscal Accounts
of
$1,749,957.3
The Argentine Public Sector recorded in 2020
a primary deficit without extraordinary
revenues
million
(approximately 6.4% of the GDP) while the
financial deficit was $2,292,830.5 million
(8.3% of the GDP). These figures were due to
a 23% year- on- year growth of total revenues
(9.6 % below the inflation rate) as a result of
the low activity level and a 63.5% increase in
expenses (20 % above the inflation rate).
Most expenses resulted from the aid provided
to moderate the impact of ASPO. In fact, the
Ministry of Economy estimated that the
expense for the extraordinary measures
adopted on account of the pandemic was of
3.5% of the GDP while the
income on
revenues worsened the fiscal result by 0.7%
of the GDP.
In effect, social benefits grew by 68% against
2019, approximately 11% of which were used
for the Emergency Family Income (IFE) and
the Labor and Production Assistance Program
(ATP). On the other hand, during 2020,
utilities rates were temporarily frozen, which
accelerated such expense. In fact, expenses
for subsidies grew by 105.9%, with energy
subsidies recording the highest rise (129.9%).
In 2020, $542,873 million were paid as
interest, a 25% drop against 2019,
representing 11.2% of the total revenues of
the Argentine Public Sector (18.4% in 2019).
The decrease in interest payments resulted
mostly from the discontinuation of foreign
debt service payments as from May and the
subsequent debt restructuring which led to
non-payment of such expenses during 2020.
As in 2019, one the critical aspects was access
to financing by the Argentine Treasury. As
aforesaid, a large portion of the primary
deficit had to be financed through monetary
issue. In fact, the BCRA financial aid in 2020
amounted to $2,014,702 million, which
represented 88% of the year’s financial
deficit- More precisely, Temporary Advances
totaled $407,720 million (16% higher than in
2019) while the transfers of profits amounted
to $1,606,982 million (a 687% increase). On
the other hand, in 2020 the Government
13
secured financing in the domestic market for
approximately $424,000 million in October,
when the Treasury issued two Dollar Linked
securities for $250,000 million.
Monetary Policy
intended
financial aid
During 2020, the BCRA announced changes in
to
program
the monetary
implement a more relaxed monetary policy,
especially as from March, with the outbreak
of the pandemic and its impact on the
economy. As access to the debt market was
restricted, the monetary entity was forced to
provide
the Treasury
throughout the year as described above.
Concurrently, a drop in interest rates was
recorded which, according to the BCRA,
sought to provide liquidity to households and
companies during the health emergency. In
this regard, the monetary policy interest rate
(interest rate of Liquidity Bills) was at 38% by
early March, evidencing a fall of 17% against
December 2019.
to
rates
interest
intended
Then, after overcoming the most critical stage
of the crisis, the BCRA began a process to
harmonize
to
encourage and protect savings in legal tender
inflation and exchange rates
both from
through
the construction of a peso-
denominated interest rate curve. Thus, the
performance of borrowing rates increased,
and the monetary policy interest rate went
down to 36%, although much later it went up
to 38% again and remained there until the
end of the year. In turn, as part of its
monetary policy, the BCRA began to assign
more
reverse
repurchase transactions, which ended the
year with a 36.5% rate.
seven-day
relevance
to
Inflation
The general inflation rate (measured by the
Consumer Price Index) reflected a 36.1%
increase while the core inflation (excluding
the effect of regulated and seasonal goods
prices) was at 39.4%. This accounts for a drop
of 17.7% and 17.3%,
respectively, as
compared to the 2019 inflation rate. The
inflation dynamics during 2020 showed a
certain volatility. After an average monthly
inflation rate of 2.5% in the first quarter, price
increase decelerated in the second quarter as
a result, to a large extent, of the low activity
level caused by the confinement. In fact, the
inflation rate during such quarter was of 1.7%
per month on average. Later, with the gradual
lifting of the lockdown, inflation accelerated
again ending with a 4% monthly hike in
December, the highest in the year. On the
other hand, seasonal prices grew by 64.4%
while regulated prices grew only by 14.8%,
context
rate
evidencing
throughout the year.
freeze
the
At geographic level, the greatest year-on-year
increases were recorded in the northeast area
(42.2%), northwest
(38.1%), the Pampa
region (37.9%) and the Cuyo region (37.8%).
In contrast, in the City of Buenos Aires, in
Greater Buenos Aires and
in Patagonia
inflation was below average (34.1% and
32.3%, respectively).
As regards inflation components during
2020, goods recorded an increase in prices of
43% while services rose by 22.2%. These data
show an increase in the relative price
imbalance during the year.
A.2. The Financial System in 2020
The Financial System within the framework of the Covid-19 pandemic
The Covid-19 pandemic affected the financial
market throughout 2020, as in most of the
countries worldwide. In Argentina, banks
remained closed from March 20 to April 3,
and as from that date they opened only
gradually,
for senior citizens and
beneficiaries of ANSES financed assistance
programs, and as of April 13 for all customers,
by appointment and for limited transactions.
first
At the same time, to mitigate the economic
impact of the Covid-19 pandemic, the Central
Bank adopted various measures applicable to
banks, such as: i) deferral of loan repayment
during the first days of the lockdown, ii) no
charges for ATM transactions, iii) automatic
12-month refinancing of unpaid balances of
credit cards due in April and September 2020
at a 43% and 40% interest rate, respectively,
iv) automatic rescheduling of unpaid loan
installments due as of April 2020 and
throughout 2020, v) no closing of accounts by
banks, vi) minimum interest rate payable by
financial entities for time deposits, vii)
flexibilization
debtor
classification and allowance for bade debts,
criteria
for
of
14
and viii) no dividend distribution by financial
entities.
Liquidity and Solvency
As in 2019 the financial system liquidity
management remained high. In fact, the
broad liquidity ratio (including not only cash
but also BCRA instruments and the 2022
recorded as
Argentine Treasury Bonds
in
reserve requirements) of the banks
aggregate reached 62.1% of deposits
in
November, recording an increase of 3.3% as
compared to the prior year. Besides, the
financial system
liquidity remained high,
ending at 78.2% in 2020, which shows a 20.3%
increase as compared to 2019, in spite of the
market
a
considerable outflow of deposits between
September and October.
uncertainty which
caused
In addition, solvency ratios in the financial
system continued to be historically high. The
regulatory capital adequacy ratio of the sector
totaled 23% of the risk weighted assets
(RWA), according to the October data, which
represents an excess adequacy of almost two
times (169%) that stipulated by applicable
regulations, and 206% higher if we consider
only private financial entities.
Deposits and Loans
In 2020 private sector total deposits in the
financial system increased by 64.1% (20.6%
above inflation rate), closing the year at
$6,125,392 million. By currency, deposits in
Pesos ended the year at $4,876,109 million,
increasing by 85,2% (36% in real terms), while
deposits in US dollars measured in Pesos
slightly increased by 15,3% (16.5% below
price increase) totaling $1,249,283 million,
while the same deposits measured in US
dollars dropped by 18% as a result of the
outflow recorded following the uncertainty
during September and October following the
rise of financial exchange rates. By type of
deposit in the private sector in Pesos, the
increase was
led by savings accounts
(+105.3% in nominal terms and 50.8% in real
terms%) and, to a lesser extent, by checking
accounts (+82.7% in nominal terms and 34.2%
in real terms) and time deposits (79.3% in
A.3. Insurance Market
There were 189 financial entities as of June
30, 2019 – latest information available – 16 of
which offered Retirement Insurance, 34 only
Life Insurance (includes Collective, Individual,
Retirement, Health, Personal Accidents and
nominal terms and 32% above the inflation
rate). The good performance of savings
accounts was due to the direct transfers to
the private sector made by the Government
due to the health emergency.
Besides, total private sector loans recorded a
year-on-year increase of 28.5% on average (-
5.6% in real terms) and totaled $3,226,630
million. Private sector loans in Pesos grew by
49.4%, 9.7% above the inflation rate after the
poor performance in 2019. At product level, a
great dispersal was observed: documents
increased by 120.4% (61.9% in real terms)
while cards grew by 58.6% (16.5% above the
inflation rate). Mortgage loans recorded a
slight decrease of 0.1% (26.6% below the
inflation rate), and personal loans grew by
10.3% (19% in real terms). It should be
highlighted that the significant increase of
documents was due to the financing to SMEs
and MiPyMe credit lines, at subsidized rates
for payroll payments during the health
emergency, within the framework of a
countercyclical behavior of credit policy
promoted by the BCRA.
Interest Rates
At the end of the year the BADLAR interest
rate of Private Banks was 5.2% below the
December 2019 level (39.4% in 2019 vs.
34.3% in 2020) in line with the downward
movement of the LELIQ rate. That decrease
was due to the guaranteed minimum rates
fixed by the monetary authority both for retail
time deposits of 37% for amounts lower than
$1,000,000 and of 34% for amounts higher
than $1,000,000 at the end of December
2020. TM20 (for deposits above $20,000,000)
recorded a similar behavior, with a 6.2%
decrease (34.3% in 2020 as compared to
40.5% in 2019). The call rate for private banks
was 26.6% by the end of 2020, decreasing by
20.3%, as compared to 2019. Interest rates
during 2020 reached their lowest level in April
(BADLAR rates for Private Banks reached
15.9% at the end of that month), and later
started to rise until June approximately, when
they remained stable to mid-October, when
financial
they rose again due
uncertainty.
the
to
Funeral), 11 only Occupational Risk and 5 only
Passenger Transport Services. The other 122
entities were engaged in other Property
Insurance or mixed operations (both Personal
and Property insurance).
15
Since the gradual opening of the reinsurance
market the number of operators fell from 28
in 2015 to 20 in 2019. There are 14 domestic
entities and 6 affiliates of foreign entities in
the local market. Besides, only 1 company is
authorized to offer Active Reinsurance. There
are another 113 authorized reinsurance
companies, 67% of which are domestic
companies.
Brokers
between
Insurance
Market intermediation is in the hands of
insurance brokers (natural and legal persons)
and reinsurance brokers, which total 40,480
as
agents.
act
“Intermediaries”
insurance
companies and users and must meet a series
of requirements to act and manage the
contracts entered into. As of June 30, 2019,
there were 39,694 individual brokers and 760
companies authorized
to operate. The
number of brokers in the reinsurance market
remains stable in 26.
The sector’s activity is measured by the
number of net premiums issued. During fiscal
year 2019 the total amount for premiums
issued in the market was of $473.5 billion, a
33% growth in nominal terms as compared to
the prior year.
is
measured by the ratio of net premiums issued
to Gross Domestic Product. Another
Insurance penetration
(GDP)
insurance
(including
significant indicator is the average insurance
spending per capita. Those ratios are used to
measure the size of the domestic Insurance
sector as compared to international markets.
issued to Gross
The ratio of premiums
Domestic Product:
the
shows
importance of the insurance sector in the
national economy. That ratio was of 2.67% in
2019
and
local
reinsurance). The ratio for the insurance
market was of 2.53%. Premiums issued per
capita: it indicates the average insurance
spending per capita (includes only premiums
In 2019, the
issued for
insurance spending per capita was of $10,075
(does not include reinsurance). More than
$448 billion were spent in premiums, more
than 83.8% of which correspond to Property
Insurance and the rest to Personal Insurance.
80.2% of the total premiums are issued by
followed by 18.2% by
Corporations,
cooperatives and mutual companies. The
market was led by car insurance, with $172.5
billion spent in car insurance, representing
46% of Property
Insurance followed by
occupational risk insurance, that represents
30% of the segment with $112.5 billion.
insureds.
local
Collective life and Life insurance and Unpaid
Balance represented 51% of the total policies
issued, with $37 billion.
16
The outlook for the insurance market for 2021
is challenging, with an expected market
growth in the insurance market in aggregate,
as long as the macroeconomic context so
permits.
The Family Combined policies are expected to
continue growing as in recent years as a result
of a higher insurance awareness, considering
that said insurance at present has a low
market penetration.
A.4. The Mutual Funds Industry in 2020
During 2020 the Mutual Funds Industry grew
by 134% in terms of average balances as of
December, reaching a volume of $1,851,628
million of managed funds, much higher than
the inflation rate, interest rates and exchange
rates. After the collapse started in August
2019, towards the end of that year Mutual
Funds started to grow, together with the
stabilization of the exchange rate and interest
rates and the increase of the monetary base,
and said growth lasted all throughout 2020.
The growth of managed assets was boosted
by money market funds that have a 47% share
of the total of the industry’s managed funds,
representing a 137% growth year-on-year.
The return on this group of funds was of 25%
approximately during the year, and although
this does not compensate for interest rates or
liquidity and
immediate
its
devaluation,
almost null volatility make
it the most
preferred product of the industry. If we
consider only fund managers of the main
private banks, the share on the total managed
funds was of 74%.
Argentina Mid and Long Term Fixed and
Mixed Income funds in Pesos (T+2) showed a
considerable growth, with funds that follow
the evolution of the official exchange rate,
inflation rate and other fixed and variable
income combinations. Those funds reported a
230%
increase year-on-year, representing
21% of the industry’s total as of December
2020 as compared to 15% as of December
2019. The return rate of these mid or high
volatility products reach or exceed the official
exchange rate or inflation rate fluctuations.
The Argentina Short Term Fixed Income funds
in Pesos (T+1) followed the growth of the
industry, with a 157% growth year-on-year
A.5. 2021 Outlook
According to recent International Monetary
is
Fund estimates, the world economy
expected to grow by 5.5% in 2021 (reflecting
an increase in relation to prior forecasts). Said
recovery would be due to a 4.3% growth of
advanced economies and of 6.3% growth of
the emerging economies. The IMF considers
and maintaining the same 8% share on the
total managed funds as at the close of the
prior year. This segment has not recovered
the 22% market share it had at the end of
2018 because the annual return was 35% but
has shown certain volatility with negative
returns in some periods.
The growth of the Argentina Fixed and Mixed
Income in Dollars and funds that invest in
foreign assets was lower than that of the
industry. Although
its valuation at the
financial exchange rate increases the value of
the managed funds measured in Pesos, it has
not compensated
the outflow of
for
investments in US dollars occurred during the
year. In aggregate they represented 14% of
the funds managed at the close of 2020, as
compared to 19% at the end of 2019.
The SMEs and Infrastructure funds segment
maintained its relative share of 7% of the
industry at year end, while the share of the
funds of Variable Income and Total Return
decreased from 5% in aggregate to 4% at the
end of 2020.
The total 134% variation in terms of types of
customers shows an important growth for
companies, with a 171% increase in their
investments, which represents 47% of the
industry in 2020 as compared to 41% in 2019.
Institutional customers grew by 101% below
the industry’s total, representing 40% in 2020
in 2019. ACDIs
as compared
(Placement and Distribution Agents) reported
a year-on-year growth of 245%, representing
6% of the industry in 2020 as compared to 4%
in 2019. The Personal segment grew below
the average, with a 77% year-on-year,
representing 7% in 2020 as compared to 9%
in 2019.
to 46%
that said growth will vary from country to
country depending on both access to vaccines
and the vaccination rate in each country and
the efficiency of policies adopted to mitigate
the effect of the crisis. The IMF also indicates
that if vaccines are not properly distributed
worldwide, new mobility restrictions could be
17
imposed that would hinder the economic
recovery.
In Argentina, two positive
international
aspects could help improve the level of
activity. First, a forecast 8.1% improvement of
the world’s trade for 2021 after a sharp fall of
approximately 9.6% in 2020. According to IMF
estimates, prices of agricultural commodities
will grow by 1.4% in 2021, while in the case of
the two major trade partners of Argentina,
Brazil and China, the Brazilian economy will
show a 3.6% recovery and the Chinese GDP
will grow by 8.1%
which could boost
Argentine exports. However, the above
estimates are subject to the risks associated
with a second or third Covid-19 wave that
would impose further mobility restrictions
and eventually the closing of borders which
would affect global trade. Besides, there will
be another two relevant events during 2021:
mid-term elections
in October and the
negotiation of a new arrangement with the
IMF.
The dynamics of the US economy and the
policies applied by the Biden administration
within the framework of the health crisis will
have an important role in 2021. In particular,
the existence of greater tax incentives to
promote economic recovery could affect the
liquidity level and the strength of the US
dollar at global
level, that would affect
Argentina because it could have an impact on
the evolution of the nominal exchange rate
necessary to maintain the level of foreign
exchange competitiveness reached in 2020.
In turn, the vaccination rate will have to be
monitored, as well as the presence of any
other coronavirus outbreaks that might
require new lockdowns. Any such restrictions
would demand a greater fiscal effort from the
Government, which might need to resort to
currency issuance as in 2020, and therefore
causing greater uncertainty and distortion of
economic variables.
Argentine economic consulting firms that
participate in the Market Expectations Survey
of the BCRA4 expect an economic growth rate
of 6.2% mainly due to the low 2020 levels.
They estimate that the GDP would increase
during the first and second quarters of
2021by 1.1% and 0.3% (deseasonalized),
respectively.
Likewise, the inflation rate is expected to rise
from 36.1% (at the end of 2020) to 48.1%
(year-on-year
December-
variation
-
in 2021. Analysts estimate a
December)
decrease in inflation rate for 2022, reaching a
37.2% rate at the end of the year. The nominal
peso/dollar exchange rate is expected to be
$118.6 at year end, which implies a year-on-
year depreciation of 40.9% and which would
imply an acceleration in the devaluation rate
against 2020.
As regards the financial system, a good
dynamic is expected in a context of economic
recovery, since, following the recovery of the
loan demand, the current high liquidity level
will accelerate the process of channeling of
savings to support and accelerate the
economic recovery.
4 Released in February 2021
18
B. EVOLUTION OF GRUPO SUPERVIELLE
B.1. Evolution of Supervielle Ecosystem
Grupo Supervielle is a platform that offers
financial and non-financial services to more
than 1.9 million customers.
During 2020, Grupo Supervielle continued
expanding its ecosystem with:
• The launching of IUDÚ Pago in June 2020,
a “business aggregator” app that offers
companies and individuals the possibility
to receive payments with debit and credit
cards through an Mpos and a payment
link for their commercial activities. The
includes e-wallet
value proposition
products, such as recharge of SUBE card
and mobile phone, Prepaid Card (for
subscriptions,
cash
withdrawal, etc.)
purchases,
• The launching of the IUDÚ platform as a
key player in the transformation of the
industry, expanding digital proposals
based on an innovative app, with 100%
digital onboarding to apply for personal
loans, credit cards and carry out all
transactions personally, such as checking
and managing
purchases made
payments. In the near future, customers
will also have access to a comprehensive
and complete offer of digital banking
products and services.
• The acquisition of Easy Cambio S.A, to
expand the supply of financial services to
individual customers throughout the
country, with state-of-the art technology,
and
• The acquisition of shares in Play Digital
S.A. (Modo, the payment solution of the
banking system in Argentina), aimed at
expanding the supply of financial services
to customers throughout the country,
integrating technologies that facilitate
the use of mobile apps, enabling
customers to operate
in the digital
transfers
market of payments and
through a state-of-the-art solution for the
banking system.
B.2. Corporate Image, Positioning and Communications
In 2020, Banco Supervielle launched the
“Human Banking” campaign, intended to
show a balance between human and
technological aspects. “Human” because of
Supervielle’s mission to be close to
its
customers, understand their needs and offer
solutions to satisfy said needs. “Banking” is
humanized technology, that applies to all
digital developments and facilitates the
customer experience
(Online Banking,
Supervielle Móvil App, Supervielle Jubilados
App, Supervielle Registración App and
Onboarding Digital for Individuals and SMEs).
It was first implemented in house, generating
both an inward and outward effect.
in 2020
Although Supervielle was already undergoing
a digital transformation process, due to the
pandemic
the communication
strategy was based on conveying a new, more
agile and simple way of being connected with
the bank anywhere, with focus on contact
with service centers and direct marketing to
all customers.
In the Senior Citizens Segment the message
during the year was: “We are the first and
19
this particular year, we provided special
support to SMEs through a 24% interest rate
credit facility.
and
operations
An analysis was made of the tools that
specific
facilitate
functionalities were designed for checks. Now
Online banking enables users to issue several
Echeqs at the same time and also offers
special discount rates for digital checks, so as
to speed up the daily work and maintain a
healthy payment chain. This was in addition
to the Supervielle Cheques app already
existing in the market for online deposit and
discounting of paper checks by just uploading
a photo of the checks.
Considering that these were times of change
and of learning how to use new digital tools, a
tutorial platform was launched to explain
their usual
customers how
transactions.
to make
We were one of the first private banks that
in customer
supported and cooperated
bankarization through IFE accounts.
the
onboarding
Finally,
platform
consolidated, and non-customers were
notified that they could register as customers
on line in an agile and simple way, and they
received at their domiciles a package of
products free of charge for a year.
Grupo Supervielle marketplace, Tienda
Supervielle, was also a main player in 2020,
mainly due to the
increased growth of
purchases online.
Events were carried out online, thus reaching
the various segments using digital technology.
only bank in Argentina with an app that is
100% for you”. Work done for this segment
had
three basic developments: new
functionalities of the Supervielle Jubilados
App, fingerprint operated cash dispensers and
the exclusive benefits and promotions most
valued by users.
The Supervielle Jubilados app included face
recognition that enables users to provide
proof of life through the mobile phone,
without the need of going personally to the
bank. This functionality was already available
before
it became
widespread during the lockdown.
the pandemic, but
The plan to place fingerprint operated cash
dispensers in branch lobbies also accelerated
in 2020.
As we care for the health of our customers,
we extended service hours and days.
The third special development for this
segment consists of exclusive benefits, one of
the most appreciated being Thursdays’ 50%
discount at pharmacies.
Those messages were communicated through
the media all through the pandemic in target
and high-rated shows, through opinion
leaders and key journalists. That was made by
the commercial area and also through a press
agency with key journalists specialized in
economics and finance so as to disseminate
the message organically.
In the SMEs and Business Segment, the
company has been offering for some years
now a specific value proposition through
strategies
focused on transport, health,
education, franchises and wines. So, during
B.3. Evolution of Operations
B.3.1 Banco Supervielle
Consolidation of the Agile methodology and implementation of the new Operating Model
The world is constantly evolving, people
change, customers
increasingly demand
prompt and quality responses, and we want
to meet their expectations. Therefore, the
selected work dynamics becomes a key and
primary need.
We adopted the Agile methodology as a vital
part of our work culture and philosophy, to
minimize the required effort and deliver the
best value in the shortest time. The Agile
methodology promotes conversations and
team
personal
interactions and
fosters
autonomy. The proposal is to prove fast, fail
fast, correct, improve and move on which is
key in our volatile and changing world. Being
agile means to be ready for the speed of
change,
safe
processes. Certain behaviors and skills are
key, such as learning new things, being
curious and open minded and contributing to
changes. We learn to be more flexible and
receptive.
generating
flexible
and
This work framework goes hand in hand with
a new operating model, that is to say the way
20
in which we organize: the customer at the
center of all our actions. All of us who are a
part of Supervielle want to passionately
activate our #ModoCliente.
We organize according
to Experiences:
Individuals, Business and Means of Payment,
that show our interaction with customers,
from the moment when we are chosen by
customers to every single interaction that
may be necessary to meet their needs for
products, services, inquiries and advice.
In each of these worlds of experiences there
are autonomous and self-regulated squads
that work to achieve their shared mission as
part of the same Tribe. We also have the
Omnichannel Service Model tribe, which is
cross sectional to all experiences, the goal of
which is to transform distribution and sales
channels of Banco Supervielle and achieve a
substantially improved customer experience.
Expertise or Excellence Centers
(COEs)
distribute talent, resources and knowledge to
all the squads so that they may achieve their
Business Segments
1. Personal and Business Banking
Banco Supervielle’s Personal and Business
Banking area offers a wide array of financial
products and services designed to meet the
needs of individuals and entrepreneurs and
small businesses: Personal Loans, Mortgage
Loans, Unsecured Loans, Loans with Special
for Project and Work Capital
Facilities
for
Financing, Leasing, Bank Guarantee
Loans,
Tenants, Salary Advances, Car
Domestic
Factoring,
International Guarantees and Letters of
International
and
goal orderly and in a knowledgeable way,
based on the best practices of each field.
We have a Transformation Office the mission
of which is to guarantee alignment of the
Bank’s strategic objectives and escalate the
agile methodology in our organization as a
way to do things. This office works with the
teams so that everyone can focus on that goal
and use their efforts accordingly, to ensure
that the customer is always placed at the
center of all our actions.
Within that structure, the role of Technology
is vital. We focus on the Technology with a
purpose: technology as business facilitator
Technology-based businesses.
the Agile methodology
to
We choose
transform information into ideas, and ideas
into answers to the needs of our customers.
Credit, Payroll Payment Plan (Planes Sueldo),
Credit Cards, Debit Cards, Savings Accounts,
Time Deposits, Checking Accounts, and
financial services and investments such as
Mutual Funds, Insurance and Guarantees, and
Senior Citizens Benefit Payments. In 2020 the
offer of a wide array of financial products and
services continued, in line with the needs of
our customers.
To promote digital transformation, focus was
placed on development and strengthening of
21
management
autonomous
channels.
Precipitated for the Covid-19 context, the
digital customers segment grew by 60%, due
to the need of a greater agility, which
improved the perception of their relationship
the
the Bank. The evolution of
with
continuous service model continues evolving,
working on achieving maximum efficiency
and the best service in each contact.
the
In 2020
self-management model
continued to improve with the deployment
improvement of Caja Rápida (cash
and
dispenser with biometric identification that
requires no card or password, 100%
Supervielle experience).
line with
leading
and
In
the growth of digital
transformation, development continued of
the Agile methodology as a work tool in the
results.
organization,
Interaction
gave
members a comprehensive view of the needs
and restrictions so as to establish clear
targets, design the best actions and favor the
speed of
required
implementation of
changes.
to better
communication
The service model continued changing,
striking a balance between maximum contact
autonomous
efficiency
management channels and personalized
(through
Individual Customers
Personal Segment
To accelerate the growth of the customer
portfolio, the customer acquisition strategy
added a new digital onboarding platform,
becoming the second most important channel
following Plan Sueldo. In that sense a new set
of digital communications was designed as
part of the customer first 90-day journey, with
digital setting and early activation through an
the
aligned value proposition. Besides,
benefits proposition was
strengthened
through Debit Cards and digital platforms.
As regards cross sell, together with the
Emotional Tribe, work was done mainly on
the placement of
loans through online
channels and the cross-sell strategy was
Identité Segment (High Net Worth Customers)
In 2020 lead generation in this segment
continued in new niches: alliances with ABC1
schools, synergy with SMEs and a referral
program focused on digital self-management.
services) and service levels required by each
customer profile and each strategic segment
of Banco Supervielle. The pandemic was a
challenge to implement a new service model.
Looking after our employees and customers’
health, operative and sanitary protocols were
defined and implemented in Service Centers,
which changed according to the different
phases defined by the Government and the
resolutions of local and national regulatory
bodies.
their
Based on the assessment of their distinctive
features,
specific
requirements, the customers of Personal and
four
Business segment are grouped
strategic segments.
needs
and
in
1. The SMEs segment is made up of natural
persons engaged in commercial activities,
small one-person ventures and small and
medium sized companies with revenues
lower than $700 million per year.
2. The Identité segment includes natural
persons belonging to ABC1 segments.
3. The Personal segment, which includes
individual customers with no commercial
activities (not included in the Identité
segment).
4. The Senior Citizens segment, which
includes senior citizens who receive their
pension benefits through the bank.
reinforced
incentive scheme.
in the branches through an
As a result of the lockdown that began in
March, the implementation precipitated of
digitalization actions that were already part of
our strategy to provide our customers a
prompt response to their needs while they
were not allowed to go to the bank. We
rapidly adapted to solve efficiently the
payment of IFE to 350 thousand customers.
We carried out commercials to promote the
use of debit cards in place of cash. The CC’s
IVR tree was redesigned to meet the needs of
new customers and
set priorities
considering all segments.
to
The value proposition was reinforced and
adapted to the new context, with incremental
benefit for Plan Sueldo customers in order to
improve the positioning of that subsegment,
such as alliances with Rappi and Pedidos Ya,
online theater with Teatrix and additional 5%
22
discounts for Plan Sueldo customers on
special dates (Mother’s Day and Christmas).
Identité
segment, particularly
To buffer the impact of the pandemic within
the
the
relationship with customers which is the
cornerstone of the strategy or high income
customers and guarantee the communication
Senior Citizens Segment
Banco Supervielle remains the private bank
with the largest presence in this segment,
with 980 thousand ANSES beneficiaries
including pensions and social assistance
plans. Banco Supervielle monthly pays to over
980 thousand ANSES beneficiaries, including
pensions and social plans, and thus is the
private bank with the largest presence in this
segment.
In 2020, due to the pandemic, actions were
taken in furtherance of the customers’ health
and their transactional needs.
More than 300 thousand debit cards were
delivered by mail to those customers who did
not have an active debit card.
Tutorials were delivered online and in printed
leaflets at the bank’s offices on the use debit
cards, thus increasing in 90 thousand the
number of customers that operate monthly
with their debit cards. We adapted our service
model, with 100 Cajas Rápidas
(cash
dispensers with biometrical identification)
placed at the lobby of our branches that
operate during extended hours from 5 am to
9 p.m. seven days a week and a withdrawal
Products
Loans
with their account officers, actions were
implemented such as the Welcome Call and
Know Your Customer campaigns, where the
bank officers contacted their customers and
enabled email and WhatsApp channels. These
campaigns were aimed at improving the
segment’s NPS.
limit of $80,000 (in March only 4 of these cash
dispensers were placed in lobbies). Thus, our
senior citizen customers or their designees
could make cash withdrawals during non-
bank hours.
In order to get our senior citizen customers
acquainted with digital tools and reduce their
attendance to the bank, we communicated
through mass media the implementation of
the “Supervielle Jubilados” app, through
which customers may provide proof of life by
means of face recognition remotely, check
payment dates and download the payment
slip.
customers
Thus,
downloaded the app.
130,000
over
As regards the value proposition, in 2020 we
developed benefits for the two most valued
items of this segment: we improved discounts
at supermarkets and launched “Los Jueves de
Jubilados”, a benefit that offers senior citizen
50% discounts at pharmacies on Thursdays.
As a result of these actions in 2020, the NPS
of the senior citizens segment increased 8
points against the previous year.
The area of loans for individuals is in charge of
personal loans, car loans, mortgage loans,
overdrafts, salary advances and guarantees
for tenants.
In order to
channel.
improve customer
experience, the loan origination process was
redesigned both for the Supervielle Móvil app
and for online banking.
Credit rating processes were improved, and
alternative sales channels were developed in
line with the context
imposed by the
pandemic, mobility restrictions and social
self-managed
distancing. The offer of
personal
loans through ATMs and Cajas
Rápidas (cash dispensers with biometrical
identification)
loan
increased,
functionality was added to the IVR due to the
increased number of incoming calls to the call
center. Operations in marketing companies in
charge of phone call campaigns addressed to
pre-qualified customers and for the first-time
loan renewals were made using an alternative
and
a
These developments resulted in an annual
661% increase of personal loans originated
through alternative channels as compared to
the previous year. The aggregate annual
including also those
increase of
originated by means of traditional channels,
was of 54%.
loans,
loan portfolio of Banco
The personal
Supervielle in 2020 grew by 20% as compared
to the end of 2019 while the growth in the
financial system was of 12%, which shows an
increase of our market share from 3.47% to
3.74%.
23
The Car Loans area focused on product
management and the relationship with the
participating car dealers. Car loan origination
during the second semester 2020 grew by
92%, and the portfolio reported a 40%
increase against a 33% of the financial system.
Deposits
The Liabilities Area is in charge of time
deposits and safe deposit boxes marketed
through the service and marketing channels.
In 2020 the BCRA fixed a minimum interest
rate for deposits lower than and higher than
$1 million of individuals and legal persons. All
the segments reported a 47% growth at year
end measured in local currency.
Means of Payment
In 2020 the Means of Payment Experience
established the strategic pillars for the
development of the business: i) enhance the
bank’s positioning in the industry, ii) acquire
new debit and credit card customers, iii)
participate in the system’s integration as
shareholders of MODO, iv) act as an acquirer
and enhance the business aggregator (Bolsillo
Digital), and v) create a vision for the B2B
Payments and Collections ecosystem.
In line with these definitions, focus was made
on the ecosystem’s products, with the
following milestones:
1. The main Visa license, that enables a
transformation with new
business
economic opportunities, thus generating
efficiency.
2.
Integration of Grupo Supervielle to
MODO, through Banco Supervielle and
IUDÚ, as a response of the financial
system
the payments business.
Progress was made in the incorporation
of Grupo Supervielle as shareholder and
to
Plan Sueldo
During 2020 the Bank continued with the
restructuring of product operation, aimed at
attaining high efficiency standards both in
onboarding and in cross sell and in customer
profitability.
New agile methodology services were
implemented to support the registration of
the process of new agreements.
Developments generated in 2019 evolved,
such as the web version of the mass
onboarding app for use at Service Centers and
the redesigned process for payroll payments
processing.
In line with the lockdown imposed by the
government and with our customer centric
culture, operations through digital channels
were improved, with 70.3% of operations
made through those channels, and with a 53%
increase in time deposits in the different
segments.
in-house team building for integration.
MODO will be a central pillar of our
strategy of adoption of digital channels by
individual customers.
3. Launching of Bolsillo Digital, as a first step
towards the role of acquirer with focus on
the Cuyo region. Agreements were
entered into with the Municipalities of
Mendoza and Las Heras, with companies
owned by the government of San Luis (Sol
Puntano and Mercado Municipal) and
with Círculo Odontológico de Mendoza.
During March and April, we worked hard on
the issuance and distribution of debit cards
for the senior citizen segment and on
improving the cash withdrawal functionality
without debit card for those who did not have
debit card. This functionality was also used to
make payments to beneficiaries during the
first months of the pandemic.
Keeping the focus on Digital Transformation,
migration from hard copies of credit card
statements to e-statements continued.
by
the
government.
Part of the operation was affected by the
impact of the pandemic and the lockdown
imposed
The
implementation of new customer registration
migrated from an in-person to a remote
scheme. The strategy for 2021 is to move
forward from the remote registration scheme
to a self-managed digital scheme.
In addition to actions based on digital
changes, new and improved proposals for
customer generation and retention aimed at
target companies. All these improvements
resulted in a greater efficiency in customer
the
contact and generation and
in
24
relationship with customers and credit
assistance.
Corporate Clients
SMEs Segment
the
Businesses developed in 2020 were affected
impact of Covid-19 pandemic.
by
However, processes and products were
adapted, and commercial
teams were
managed to maintain service quality.
We continued working on the generation of
target leads through the digital channels,
offering a value proposition to strategic
for
subsegments, developing networks
customer contact and generation with SMEs
and participating in specific events related to
economy, finance, investment.
We also worked on the installation of support
lines for SMEs.
As regards the commercial management
model, work continued together with Product
(Plan Sueldo, Comex, Cash Management and
Leasing) specialists in order to generate more
comprehensive and profitable commercial
relationships, seeking to become the first-
its customers’ daily
choice bank
for
Performance of Specific Subsegments in 2020
In the second quarter of 2020 a value
proposition was introduced for the Education
subsegment, focused on private schools (all
levels), with a specific offer together with the
Partners of the digital ecosystem. The
propositions introduced in 2017 (Franchise
and Transportation) and 2018
(Health)
continued consolidating. The number of
customers increased by 11.5% in Franchises,
3% in Transportation and 1% in Health, as
compared to December 2019.
operations. In 2020 the focus was placed on
collections and payments.
Development of the differentiated service
model continued at service centers. The
Bank relied on specific executive profiles for
assistance of its customers, offering
specialized services to larger SMEs and
streamlined services to smaller SMEs, which
promotes the growth of the customer base
while maintaining at the same time a
differentiated service level.
Banco Supervielle’s objective is to provide a
close, efficient service with deep financial
expertise on SMEs, offering a more
personalized business advisor -with more
officers per number of customers than
market levels- to ensure that each customer
is adequately served to boost their business,
in line with our Human Banking principle.
In 2020 the focus was also placed on the
management of early NPL to guarantee a
higher degree of repayment.
It is worth mentioning that in terms of
volume and profitability per
average
customer, subsegments are above
the
general portfolio average.
In 2021 Supervielle will continue launching to
the market special proposals for different
sectors/industries reaching over 50% of the
SMEs in the country.
Education
Franchises
During 2020, the design of the value
proposition was completed, holding Focus
groups with customers and alliances with
Partners. The proposition was introduced in
the market with a strong impact in social
media, commercial campaigns and an account
planning. 100% digital events were held on
the current situation of education in times of
a pandemic, sponsoring the magazine with
the widest circulation in the country, “Revista
Colegios”.
In 2020 the Bank reinforced its participation
in digital events specific for the sector, to
support an activity affected by the pandemic,
by means of Sponsorships and Partnerships
with representatives of the sector such as
AAMF, GAF and Adiras.
the
finances
Banco Supervielle
initial
investment at prime rates. By virtue of the
agreement with MGSs, maximum financing
caps may be increased according to each
brand’s performance.
25
Transportation
Despite the economic situation the number of
customers increased by 3% and the volume of
deposits by 80%, well above the average
volume of the SMEs segment in 2020.
Health
This value proposition is aimed at health care
and diagnostic centers, external doctor’s
companies and
offices, pharmaceutical
2. Corporate Banking
Corporate Banking department of Banco
Supervielle is formed by four commercial
areas:
1) AMBA Corporate Banking, which deals with
companies operating in the city of Buenos
Aires and Greater Buenos Aires.
2) Corporate Banking for the Interior, which
deals with the commercial relations in the
Provinces of Mendoza, Córdoba, Tucumán,
San Juan, Neuquén and Santa Fe.
3) Mutual Guarantee Societies “MGS”
Division and Value Chain, which operates at
the Headquarters in the City of Buenos Aires.
4) Products and Services, which operates
from the Headquarters in the City of Buenos
Aires and provides assistance to companies
located both in AMBA and in the Interior.
specialized
The customer service model consists of
working in constant synergy with commercial
teams
Cash
Management, Foreign Trade, Plan Sueldo,
Insurance and Investments, and is aimed at
and
meeting
transactional needs of the companies through
operational
Leasing,
daily
the
in
Wine Division
Banco Supervielle’s Wine Division continues
consolidating its position as a benchmark in
industry, remaining the only
the wine
Argentine bank among the top 20 to have an
expert team to deal with the sector.
The wine division provides services to grape
producers, vineyards and suppliers of raw
materials and related capital assets. One of
the main objectives is to take part in the
different parts of the Value Chain. To such
end, specific products were developed such
as the Harvest and Carriage Loan, the Wine
Visa Distribution Card, Value Chain financing
in
granting
wholesalers. In order to offer a tailored
proposal, focus groups were held with sector
featured by
companies and customers,
promptness
and
credit
agreements with vendors. The bank financed
through a leasing contract the first post-Covid
acquisition of a tomograph in the province of
Mendoza. Together with Adiras and sector
referents, we held 100% digital events to
provide advice and support to our customers
during the current situation.
companies:
customized instruments and services. This
synergy is also present in the rest of the
Group’s
Supervielle Asset
Management, Supervielle Seguros, IUDÚ, etc.
first
The objective
transactional bank for our customers and
increase profitability.
to become
the
is
We strongly believe that providing high
quality customer services is one of the main
drivers for generation of new businesses and
support of our business relations. Our
business and support officers are highly
skilled and play a critical role
in the
relationship with companies. Therefore, we
have various service points
in regional
branches in the most densely populated
industrial
areas.
Communication, assistance, negotiation and
operational
in
teams are
Corporate Banking nodes.
commercial
centralized
and
Focus was also placed on risk management,
using RAROC tools in order to strike a balance
between profitability and portfolio quality
ratios.
and industry-specific capital assets such as
oak barrels or stainless-steel tanks.
Publication continued of quarterly reports on
the sector’s situation which are available in
the Bank’s web page. The presentation of the
annual report has become a traditional event
of the wine industry. The 2020 presentation
was held online, reaching executives of the
industry in different parts of the world.
During 2020, greater support was provided to
the Vineyard Tour, expanding the wine
tourism options.
26
In March we launched the wine market place
in Tienda Supervielle, and at year end 20
wineries sold their products through that
sales channel.
In October the Innovation Program began for
companies of the wine sector, organized by
UnCuyo, financed by CAF and coordinated by
the Chilean consulting company Transforme.
Mutual Guarantee Societies (MGS)
As of December 2020, the Mutual Guarantee
Societies system was made up of 51 entities
(45 Mutual Guarantee Societies and 6 Official
Guarantee
Supervielle
operates with 27 of these entities (22 MGS
and 5 Guarantee Funds) which represent 53%
of the total companies in the sector.
Funds).
Banco
Banco Supervielle also remained its leading
position in the sector and was recognized as
the “MGS’s Bank” by the Cámara Argentina de
Sociedades y Fondos de Garantías [Argentine
Chamber of Guarantee Societies and Funds]
Value Chains
In 2020 we worked in the development of
value chain financing, as part of our objective
to achieve comprehensive relations with each
value
of our
propositions
that
generate new businesses with their suppliers
and customers.
customers, developing
large companies
for
To that end, a general business model was
developed which design contemplates a
Products
Loans
As regards commercial loans, a renewed offer
of special facilities was developed to suit the
needs of the different corporate segments
together with sales in digital and in-person
channels, enhancing services such as invoice
discounting, echeqs, overdrafts and financial
loans. The offer to SMEs was also improved by
joining the Fogar Fae Mipyme, Fondep plans
and by taking part in the offer of production
and investment loans.
During 2020 a
communicational and
management strategy began to increase the
market share in the regions where the Bank
does business, which resulted in the Bank’s
participation in various credit and financing
in the supply of
programs as well as
subsidized credit facilities for development
and investment. To such end, the Bank
This is the second stage of the process started
in 2018 with Innovation Week and will be
completed with the creation of an Innovation
Center in the facilities of UnCuyo in Mendoza.
More than 100 executives from 25 companies
of the wine sector participated of the IW. Ten
leading companies of the industry participate
in this new 9-month program in which the
Wine Division plays an active role.
(Casfog), by other banks and by
(Ministry
Authority
Supervisory
Production/Sepyme).
the
of
Banco Supervielle also remained a leader in
terms of development and
innovation,
extending operations to other companies of
Grupo Supervielle to increase the synergy
with these companies. In addition, Check
discounting continued consolidating in the
Securities Market directly and
through
Invertir Online during 2020.
for
the bank’s
procedure
commercial
operations, also applicable to the other
companies of Grupo Supervielle.
As of this date this model is currently being
implemented in the value chain of 15 large
companies, both domestic and international,
of different economic sectors, which means
approximately a $1,100,000,000 financing in a
variety of operations.
participated
exclusively
almost
development programs and entered
agreements with
intended to foster production activities.
in
into
institutions
financial
it
implemented a change
With a view to improving the customer
experience, the Bank fully reviewed the
management process of credit products. As a
result,
in the
management model with the focus on digital
the
transformation,
agile
methodology
discounting,
financial loans, agreements, leasing, foreign
trade, analyzing different management
models and current processes and detecting
points of improvement to obtain significant
customer-centric benefits for the Bank.
introducing
invoice
for
In that sense, a more fluid communication
was achieved with the real time viewing of the
27
proceeding status, agility in credit product
management and a significant reduction in
from
times
disbursement.
the
first contact
to
loan
Leasing
With the focus on financing capital goods for
leasing, operational
SMEs, the
financial
leasing and sale &
lease back products
continue being offered through the bank’s
branches and business centers under a
specialized service model that provides advice
and enhances the use of this financing tool
that has tax benefits.
the pandemic
During the first half of 2020 placement of this
product was slowed by the economic context
and
the
investment
in capital goods. During the
second half, due to subsidized production and
investment loans, the placement rate of this
that affected
Foreign Trade
During 2020, the BCRA continued with the
in 2019 as regards the
process started
regulations,
issuance of new exchange
delegating to the Banks the task to control
documents related to exchange and foreign
trade transactions and to inspect foreign
currency collection and settlement of export
proceeds, and the establishment of quotas for
payment of imports. The BCRA restrictions
remained in place for the purchase of foreign
exchange by individuals and legal persons, as
well as for exchange transactions between
related parties. The Information Schemes
were maintained for collection of exports and
payment of imports. Finally, in October 2020
the BCRA established
customers’
obligation to report 48 hours in advance
about any payments above USD50,000 per
day made to banks (all banks considered).
the
Foreign exchange financing related to foreign
trade transactions showed a sharp reduction,
both for imports and exports alike.
level),
Additionally, in line with the objective to
improve customers’ experience, and the
Bank’s of GPI- certified status
(Global
Payment Innovation, the innovative SWIFT
development for international payments at a
global
the Bank’s performance
assessment began in January 2020, reaching
an annual quality average of 96%, above the
90% standard set forth by SWIFT. With the
implementation of SWIFT, payments are
promptly and safely forwarded within the
banking hours of the receiving entity. On the
other hand, thanks to its new system, users
product recovered and maintained its market
leadership, with almost 200 agreements for
$1,800 million, allocated mainly to the oil and
industry, the sector of medical
mining
supplies and equipment and technology,
among other.
through digital
In 2021 work will be done mainly on
improving asset management and self-
management
channels,
introducing this product to the digital
transformation process that the entity is
undergoing with the objective of making the
business management more efficient and
improving customer experience.
may track their transactions until they are
received by the final beneficiary by means of
our e-Comex tool.
In the same innovative line and as a result of
our commitment to offer a value proposition
especially designed for each segment, in 2020
we partnered with SIDOM – a market leader
and key partner - to enhance and facilitate
foreign exchange transactions through the
development of an innovative proposal.
In May 2020, in order to provide a better
service and to protect the health of our
the
customers and employees during
pandemic, we implemented a digital tool that
enables customers to comply with the
transaction reporting requirements through
our digital platform without the need of
delivery of the documents in physical form at
our offices.
The direct export collection product designed
by Banco Supervielle in 2019 (for the delivery
of shipping documents directly from the
customer’s office to the importer’s bank to
avoid delays in the handling of documents,
tracked by the Bank under the provisions of
the URC 522 - Uniform Rules for Collections
Revision ICC 1995) recorded an increase of
87% against the previous year as a result of
the lockdown and its ease of use.
In connection with International Factoring,
Banco Supervielle remains the only bank in
the Argentine financial system to operate in
such market, through FCI (formerly Factor
Chain International).
28
Finally, our “Contacto Comex” service center
created by mid-2017 and made up of
dedicated experts, responded an average of
2,600 inquiries in 2020.
Cash Management
Our Cash Management products were part of
the Bank’s transformation which enabled us
to restructure the offer focused on funding
products and digital proposals in an agile and
dynamic way,
for
management of payments and collections in
different customer clusters.
tough year
in a
In 2020 Cash Management teams, which are
critical
for product marketing and a
differentiating feature of Banco Supervielle,
were enhanced with the creation of squads
that facilitated product placement in an agile
way. It has an exclusive cash management
middle office and implementations scheme
large companies,
that serves SMEs and
answering queries and
to
complaints
strengthen customer relationship.
The Bank’s Cash Management area provides
end-to-end services, with technical and
commercial advice throughout the process,
ensuring a prompt and agile implementation
and that the products are available for use
from the start.
The team made a cash product discovery and
started working on agile schemes with a
squads team focused on specific product
development. Focus was placed on Botón de
Pago-Cobranza Ágil
Button-Agile
Collection], a supplemental feature of the
collection product, which, together with
Collection, offers customers the possibility to
expand their collection management through
a website.
[Pay
Another differentiating feature that was
implemented in 2020 was the Host-to-Host
operation for mid and
large companies:
customers may carry out their operations
Omnichannel Service Model
Digital Banking - Personal
In 2020 the Digital Banking area adopted a
mixed building strategy with new products,
digital processes and specific experiences
tailored to the needs of the different
segments and changing functionalities to a
new UX to generate new resources for
customers.
Technological improvements were developed
that increased stability and scalability of the
digital ecosystem, with new business
using a
link that directly connects the
company server with the Bank server. This
functionality has already been available to
Supplier Payment.
Remote check readers and ECHEQs are aimed
at digitalizing
treasury operations of
companies, thus eliminating the need to go to
the bank and generating positive value
experiences. As regards readers, the term for
delivery of physical checks was extended
while the delivery of readers was accelerated,
offering
and
customers
differentiating process.
simpler
a
or
checks
Electronic
ECHEQs were
implemented following a BCRA regulation and
are in use since July 2019. In 2020, the fact of
having this product fully operational was a
great advantage because it was the most
widely used method of payment during the
pandemic.
As a result of the exponential growth in the
use of electronic checks, other functionalities
were developed to cover businesses’ needs,
such as the possibility to issue up to 1,500
ECHEQS at the same time. Our customers
issued
for
thousand
approximately $50,000,000,000. Another
improvement was the possibility to discount
ECHEQS online.
ECHEQs
140
Finally, the transformation process of Cash
Management teams improved the delivery of
transactional
a
products,
substantial change as regards agility, follow-
up and evolution of our products, placing
customers in the center and offering digital
solutions in a tough year for management of
collections and payments.
generating
monitoring,
variables
and
measurement tools. As a result, and boosted
by the Covid-19 context, the number of active
customers increased by 60%.
control
Customers’ Digital Onboarding
2020
In
consolidated as a tool for lead generation.
the Onboarding
platform
In order to promote financial inclusion and
attraction of sight deposits, free-of-charge
savings accounts were offered to meet the
29
need of an increasing number of people for
bank products through a digital process and
to pay IFE benefits. A functionality was
implemented for online customer activation
through biometrics validation, strengthening
the platform’s security and reducing the risk
of phishing. Finally, a 1 to 1 Payroll Plan
customer acquisition was enabled, open to
the market so that people who want to
proactively bring their salary to the bank can
do so.
Supervielle Jubilados App
The “Supervielle Jubilados” app provides
senior citizens solutions to their recurring
needs, such as information on check payment
date and payment
receipt, ATM cash
withdrawal without using a debit card.
Registered users of the biometric recognition
tool amounted to 148,457, with the app
obtaining a score of 4.52 /5 points.
The number of customers registered through
this new functionality amounted to 273,330,
and the score obtained by the app was 4.4
points.
Online Banking - Personal
We enhanced
the mobile experience
including new functionalities such as stop
debit for payment of credit card balances,
follow up of card delivery and new simplified
experience for cash withdrawal without using
a debit card. As regards cash withdrawal
without using a debit card, more than 400,000
withdrawal orders were made through this
channel during 2020 (up 1626% against 2019).
Online Banking - Business
Channel management procedures turned to
digital and customer self-managed without
delivery of any physical documents to the
Bank.
Supervielle App
Automatic Account Opening
The App is used for a 100% digital registration
to Online Banking without the need to go to
the bank or an ATM, and also
for
activation/change of the SMS password
required for online transactions.
E-Channels
Automatic Banking
In 2020 we continued improving the self-
management model with the implementation
and strengthening of Caja Rápida (cash
dispenser with biometric identification), with
100 Cajas Rápidas placed at lobbies so that
customers may during non-bank hours and
even during the weekend (in March only 4 of
these cash dispensers were placed in lobbies,
the rest were placed inside).
Granting of loans through Caja Rápida and
ATMs was promoted, reaching a total
placement of $418,754,000 at the end of
December 2020. The Caja Rápida channel was
also used to register or validate customers’
phone number, increasing our database. A
total of 674,299 transactions were carried out
through this channel in November 2020,
representing a 40% year-on-year increase.
Contact Center
The Contact Center manages queries and
complaints and sales to customers by phone,
e-mail and social media.
improvements not only generated
in support sectors but also
increase of monetary
These
efficiency
permitted a +14%
transactions (Dec 20 vs Dec 19).
regards ATMs,
in November 2020
As
3,706,903 transactions were carried out
through this channel, a 22% decrease as
compared to November 2019. This was due to
an increased use of Caja Rápida - available 7
days a week – and a reduced use of our ATMs
by other bank’s customers as a result of the
pandemic.
As a result of the pandemic and through a
BCRA resolution, customers only went to the
bank by appointment, with more than 1
million appointments
to
December.
from March
the new
to
installation
flow
Migration continued
manager, with
in 70
their
branches, two times the number of branches
with the new customer identification system,
thus covering 77% of the branch network.
In 2020, calls received at the Contact Center
through the different customer service lines
averaged 554,000 per month, 79% of which
were solved on an automated basis. Over
22,000 emails were answered per month.
30
During the year improvements continued in
automatic banking aimed at reducing online
time and enhancing customer experience and
quality of response and increasing sales. The
following changes were implemented: debit
card activation, creation of a 0800 line for
Senior Citizens (from the outbreak of the
pandemic to this date), debit card campaigns
with massive PIN resetting and debit cards
issued in Lógico (entering their ID number,
customers were instructed by the system as
to the steps to be taken to withdraw their
IFE
identification of
pension payments);
customers at
the beginning of BTA,
generating an exclusive tree to answer
queries on Zero Interest Rate Options; loan
application option for unidentified senior
citizen customers; request for automatic
printing of damaged debit cards 7x24,
customer identification and prioritization by
segment, irrespective of the line to which
they call; identification of new customers,
with follow-up of the first 90-day journey,
offering a specific queries tree; automated
sworn statement from the investment center
for creation of time deposits, change of
domicile, transfer chargebacks, elimination of
outstanding credit card charges
in ATP;
repayment of personal loans in whole or in
part, account association to personal loans,
Branch Network
We conducted 3 MVP in service centers to
test the new lobby (now known as Espacio
24). In this new space, which is open 7 days a
week, customers may use cash dispensers
with and without fingerprint recognition,
make deposits, transfers, payment of taxes,
print of salary payment slip and statements of
account and of credit cards. The 132 m2
Espacio24 is larger than the previous 22 m2
lobby.
3. Treasury and Finance
Trading Desk and Institutional Sales
related
During 2020, Banco Supervielle’s trading desk
increased its operations in public securities
and derivatives against 2019 and maintained
those
trade. Said
operations became automatic during the year
and developments began in the area of
algorithmic trading with strategies that
impacted simultaneously in various markets.
foreign
to
The total share of institutional deposits grew,
Banco Supervielle being one of the four
private banks with the largest share in mutual
loan
extension and reversal of personal
reimbursement of
request
installments,
foreign currency tax [Impuesto País] on
exempted items, debit card chargebacks,
verification of declined customers
for
purchase of foreign currency, repayment of
BCRA refinancing with credit card and
enabling customers to use digital brand so
that they may operate through Pago mis
Cuentas.
Focused on efficiency of operations,
strengthening and development continued of
autonomous channels for the comprehensive
management of the customers’ investment
transactions.
The Investment Center that operates since
September 2017 within
the Telephone
Banking department is formed by a Team of
Experts on Capital Markets who provide
advice on and manage the transactions of
customers in all Bank segments. In line with
the Bank’s strategy, the area favors the
unification of management platforms,
achieving agility, a larger number of products
and better investment alternatives, securing a
greater penetration in terms of managed
funds and an
income
increase
customer generation.
in high
We also changed the internal service system
of the automatic banking equipment located
within Espacio 24, which allowed promptly
solving any inconvenience with devices and
thus improve availability/uptime.
These developments generated a 35%
in customer NPS regarding the
increase
involved branches.
funds during the second half of the year.
Additionally, the trading desk participated in
the placement of twenty issues of corporate
bonds during the year.
In 2020, the sector added two new teams to
the area: 1) relationship with local and foreign
financial entities, in charge of developing
relationships with all financial entities, and 2)
in charge of
retail exhange rate sector,
boosting foreign exchange market decisions,
31
which is facilitated by the fact that the sector
is close to the trading desk.
Correspondent Banks
During 2020, commercial relationships were
maintained with foreign banks both as to
management of correspondent accounts and
as to financing of foreign trade transactions
and to guarantees and letters of credit.
Public Sector
As regards the province of San Luis, the Bank
continued acting as financial agent. The
agreement, that has been effective for 3 years
now, was extended for a quarter, until March
2021.
Martín (Province of Mendoza) was extended
from February 2020 to February 2021 and the
agreement with the Municipality of Mendoza
was extended from March 2020 to October
2021.
On the other hand,
in May 2020, our
agreement to act as financial agent of the
Municipality of San Luis was renewed for
another two years. The agreement to act as
financial agent of the Municipality of San
In addition to the services rendered
in
Mendoza and San Luis, the Bank worked with
the public sector in the provinces of San Juan,
Buenos Aires and also with public national
universities.
4. Capital Market and Structuring
The main objective of the area of Capital
Market and Structuring is to originate and
structure financing products for the Argentine
corporate capital markets. The idea is to
provide financial advice services which allow
both its customers and Grupo Supervielle and
its subsidiaries to optimize their financial
resources and capital structure in order to
maximize the profitability of their operations.
is mainly
focused on
The sector
the
organization and placement of Negotiable
Obligations, structuring of Financial Trusts
and Syndicated Loans, IPOs, Private Capital
Transactions and Mergers and Acquisitions,
with a view to providing comprehensive
advice on each product, generating long term
relationships with customers and investors.
During 2020 the capital market was featured
by the uncertainty generated by the impact of
Coronavirus (Covid-19) pandemic. However,
Banco Supervielle maintained its presence in
the debt market and collaborated with its
issuance of Negotiable
clients
in
Instruments, which
totaled 30.9 billion
pesos*. Some of such clients are frequent
issuers such as YPF S.A., Vista Oil & Gas,
Rizobacter Argentina S.A., Telecom Argentina
S.A., San Miguel S.A, among other.
the
Banco Supervielle successfully carried out the
placement of SMEs secured and unsecured
financial instruments, becoming one of the
major players in this segment. In 2020 we
participated in the placement of four SMEs
Negotiable Obligations and three SMEs
Financial Trusts. As regards placement of own
and related parties’ instruments, we acted as
arranger and dealer of Banco Supervielle Class
G Negotiable Obligations for USD30,000,000.
As regards the financial trusts market, Banco
Supervielle acted as arranger and dealer of
the following trusts: Unicred Cheques Serie 8
and Unicred Factoring Series XI, R.G. Albanesi
Series XI and Concepción Series II. The Bank
also acted as dealer and manager of the
closed-end mutual fund “Adblick Ganadería
Fondo Común de
Inversión Cerrado
Agropecuario”.
As regards Mergers & Acquisitions, the Bank
acted as exclusive financial advisor of wineries
Bodega Dante Robino S.A. and Cavas del
Perdriel S.A. and their shareholders for the
sale of said companies to Cervecería y
Maltería Quilmes. During 2020 the sector also
to various
provided advisory
companies
regarding Assessments and
Mergers & Acquisitions.
support
*TC = Com. “A” 3500 as of 30/12/20 (84.145).
Includes Third party SME and non SME
Negotiable Obligations.
32
5. Support Areas
Credit
The Corporate Credit department’s mission is
to achieve an adequate credit quality of the
asset portfolio in line with the Bank’s risk
appetite. Credit processes use scoring models
in the different customer segments (Senior
Citizens, Payroll Payment, Open Market) that
support admission decisions and credit
facilities updates based on behavior models.
An admission scoring model is also used in the
Entrepreneurs & SMEs segment.
For SMEs segments as well as for Medium and
the expert analysis
Large Companies,
methodology is used through credit analyst
teams specifically dedicated to each segment.
Additionally, credit information is provided on
portfolio evolution, recovery levels, collection
processes and credit alerts
in order to
continue training the organization in credit
matters and provide information to the
commercial areas so that they have credit
management indicators and can act directly
on their portfolios.
During 2020 work was done to control the
lockdown on the
effects of mandatory
identify non
to
portfolios. Campaigns
performing customers were intensified, and
alternative solutions were offered, in line with
the BCRA rules.
The Collection department of the Personal
and Business Banking area modified the
structure of its two agile squads (which
became the Collection Tribe, with Emerix as
core of the collection and automation of the
debt restructuring process, added a score for
collection of early NPLs and implemented the
telephone refinancing tool (no customer
signature being required) for call centers and
pre-court agencies.
Rendering of accounts by collection agencies
were automated, the verbal agreement
module was implemented in Emerix, the API
Renaper was integrated to identify deceased
customers and developments started to
implement collection of FOGAR secured loans
through credit cards. Finally, the audit plan for
collection agencies and pre-court agencies
was carried out.
The Personal Credit department continued
developing a new supply engine to ensure the
alignment of credit rating with the business
objectives, maintaining the risk appetite at
established
levels and making customer
admission /maintenance processes more
efficient, which began to be implemented for
Payroll Payment Plans (Planes Sueldo) and
Senior Citizens Benefit Payments.
The SMEs department was also affected by
the effects of the Covid pandemic. The offer
in those segments more
was adjusted
affected by
lockdown. During 2020 we
continued minimizing exchange rate risk of
the portfolio through reduced disbursements
of dollar denominated loans.
to
Renewal of behavior scorings continued,
contributing
the management and
rescoring of existing SME customers. The
different scoring versions will contribute to a
prompt customer response and portfolio
control.
Mass classification campaigns were carried
out for Personal and Business customers, thus
significantly improving the response speed.
These campaigns helped meet certain BCRA
regulations on placement of credit facilities
with benefits for the finance area.
During 2020, hard work was done by the
department of Credit for Large and Medium-
Sized Companies and Financial Entities on the
identification and proactive management of
NPLs with a view to improving the bank’s
relative position in terms of guarantees and
reduction of exposure to economic sectors
and customers mostly affected by the Covid
crisis.
Together with the Corporate Risk Department
we analyzed portfolio stress scenarios for the
different economic sectors, mainly those
related to exchange rate and the expected
effects of restrictions
imposed by the
for COVID prevention and
Government
control.
In addition, a Portfolio Limits policy was
developed and implemented to fix maximum
portfolio concentration ratios based on: a)
Economic sector and b) Customer credit
rating.
Economic sectors were classified as Very High,
High, Mid and Low, according to their risk
perception. These sectors are regularly
the
monitored
classification according to their evolution.
to confirm or change
Finally, a new Business Banking Credit Manual
was developed which includes the segments
of SMEs, medium and large companies, public
sector and financial entities. This manual is
33
intended to establish the best credit practices
implement the
of those segments and
concept of Rating to credit approval process.
In the Credit Intelligence Area, we continued
developing a proprietary Datamart for the
Corporate Department, a database for data
analysis and mining. Power Bi was
implemented as main business intelligence
tool as support of the MIS for Credit and
Collection of the Personal and Business
segments. The migration to Data Warehouse
from Emerix collection
of data cubes
application was completed. The SAS Miner
Information Technology
was implemented as machine learning tool
for the generation of predictive models, and
the first steps were made as regards the
integration with the agile collection tribes
began for preparation and management of
OKRs.
Prospects for 2021 are to maintain the credit
quality of our credit exposures, enhancing
portfolio reviews and providing a proactive
support to those customers with sustainable
businesses and financial capacity that require
some kind of debt reprofiling.
Supervielle
underwent
transformation
During 2020 the Information Technology Area
a
of
Banco
process
comprehensive
aimed at: becoming a facilitator of technology
based businesses; acting as an agile
technology area focused on improving time to
market; providing Banco Supervielle new
business opportunities, not only from the
application of new technologies or trends but
integration with all the
also from the
ecosystem. Due
transformation
process, in line with the new organization
operational model, we managed to define a
technological vision based on a reference
architecture, integration with the ecosystem
and an agile model.
this
to
Additionally, the area decided to move
towards a proactive role, modernizing the
operative system with a focus on key domains
including employees, processes and
and
technologies. Thus, a 4 ½ year plan was
developed, giving priority to transformation
initiatives, the first stage of which ended on
December 2020.
initiatives,
transformation
During this first stage, and in line with Banco
Supervielle’s
process,
together with the accelerated adoption of
digital methodologies as a result of the
mandatory lockdown, the area worked on
including, without
certain
limitation:
operational
comprehensive
continuity program (to enhance the analysis
of critical applications and electronic channels
improving
with a view
availability, modernizing
services desk,
reducing the time of
implementation of
closing processes and advancing towards a
high availability scheme); evolution of the
Bank’s Core business (vis-a-vis the new
transformation requirements), consolidation
to continuing
reference
development),
architecture with
of the API catalog (with over 100 active APIs
and more than 300 under construction),
validation of the technological strategy for
the commercial platform (boosting its use and
exploitation), evolution of Personal Online
Banking and mobile application (aligned to
an
the
omnichannel concept), deployment of new IT
model (increasing efficiencies at the time of
of
software
Excellence Centers related to Architecture
and Agile practices (providing support to the
new operative model of Banco Supervielle),
definition of the way to the cloud and its
governance model (training more than 50
employees on this new technology; building
data lake; modernizing the Contact Center
and developing a first 360 degree MVP View
of Customers and a first MVP for Advanced
Analytics applied to the business), update of
on-site channels (through the purchase of
over 100 terminals).
launching
During 2020, within the Covid-19 context, the
IT area carried out some initiatives to cope
with that situation, such as: facilitating home
office activities (extension of VPN capabilities
and bandwidth and purchase of more than
1,200 new
IT equipment), adapting the
Contact Center (design and implementation
of a new referral scheme), enhancing the
infrastructure
Channels
(implementation of various developments
requested by the regulatory authority, and
also a new online Supervielle Registración
App, so there is no need to go the ATM to get
the password) and installing and refurbishing
more than 75 Cajas Rápidas [cash dispensers]
for cash withdrawal using fingerprints, among
other.
Digital
of
34
Operations
In line with the work started two years ago,
during 2020 the Operations Area focused on
an internal reorganization process to support
Digital Transformation, involving the redesign
of strategic processes and a structural order
in furtherance of higher efficiency, with a
view to
improving customer experience.
Different improvement opportunities were
identified that have a direct
impact on
customer experience and that will be dealt
with by the Digital Transformation squads.
This initiative aligns operation teams with a
common goal. To support this change, new
process automation capabilities are being
developed (based on RPA – robotic process
automation), together with a team of
independent consultants, in connection with
the governance model and the Intelligent
Automation Center, aimed at improving the
efficiency of operation processes across all
the organization.
The Central Services and Processes areas
were merged, management indicators and
reports were developed that help teams in
the management and decision making
process. Besides, a map of “process owners”
and a document reordering plan were
developed to ensure an adequate operation.
In a scenario of continuous regulatory
changes, the Foreign Trade and Foreign
Exchange area was changed to Management
Area, with a more strategic position for the
Bank’s operations. Within the area of
Strategic Supply, SAP Ariba was implemented
as a solution to Payment to Suppliers,
improving management.
B.3.2. Consumer Finance Segment: Cordial Compañía Financiera
Cordial
through
The Consumer Finance business is mainly
Compañía
developed
Financiera. Cordial Compañía Financiera (in
process of change of its corporate name to
IUDÚ
Cordial
Compañía Financiera (CCF) started operations
in August 2011, when Grupo Supervielle
acquired GE Money, the financial services
division of General Electric.
Financiera).
Compañía
During 2020 CCF consolidated
its digital
transformation with the launching of IUDÚ,
innovative Digital Financial Services
an
platform available at Google Play and App
Store. In November 2020 the process began
to change the corporate name from Cordial
Compañía Financiera S.A to IUDÚ Compañía
Financiera S.A, which registration
is still
pending.
Its business model is based on providing
financing solutions to specific target groups,
mainly C2 and C3, and
is currently
consolidating in the field of comprehensive
financial services through the development of
new accounts deposits and investment and to
a wider customer segment, offering a
personalized and omnichannel experience.
As from the launching of IUDÚ the company
extended the digital proposal through an
innovative app, 100% digital onboarding
(customers may request personal
loans,
credit cards and self-manage all bank
transactions on the mobile). This proposal will
continue improving during 2021 with the
launching of new products and with easier
and faster ways to deal with personal finance
and promote financial education with tools
that help customers’ decision making process.
Management is based on two main pillars:
• Accessibility: flexible customer centric
proposals adapted to the omnichannel
concept.
• Diversification: tailored products to meet
customers’ needs in every stage of their
life with customized offers and value
propositions for each cluster.
The omnichannel concept enables
the
company to be present countrywide, and it is
currently settled in 22 provinces through 99
points of sales of its 2 main marketing
channels:
• Walmart financial services
• Tarjeta Automática
And the digital channel through the web, the
social media and Google Play and App Store
apps:
• Walmart Tarjeta App
• Carta App
•
IUDÚ
As a result of the pandemic, during 2020 the
company mainly focused on the care of its
customers and employees, guaranteeing
certain levels of services during the lockdown.
Work continued on the business growth and
implementation of
strengthening
strategic pillars, which were:
and
35
• A
structural
transformation process
began towards an agile and horizontal
structure, with the customer at the center
of the organization. The design of an agile
organization was based on customers’
lifecycle and the three main tribes that
are focused on customer acquisition,
loyalty and delinquency/close in order to
generate a better customer experience in
these instances.
• A digital transformation process began,
both at an internal and external level,
with the launching of IUDÚ in November
2020, with a 100% digital onboarding for
personal loans and credit cards. The
company will continue growing and
developing to offer a wider array of digital
financial services.
• Customer segments were extended,
focused not only on mid and low socio-
economic level customers but also on mid
socio-economic level customers.
• New products were added to the value
proposition,
the
development of core retail franchise
deposits.
that will enable
• The application assessment process
reengineering continued
to provide
flexibility and speed to credit policy
implementation while maintaining said
policy at prudent risk levels.
• Changes were
to
implemented
the
origination policy to maintain repayment
capacity, mainly of those segments
mostly affected by the macroeconomic
situation resulting from the pandemic.
• Work continued on screening strategy
implementation, collection management
review of
tool optimization
guarantee
predictive models
collection levels.
and
to
•
Implementation of ERP- SAP S4 HANA
and of the new financial CORE software
began.
Channels and Regions
The strategy for 2020 mainly focused on the
following three channels. Besides, a brief
description is made of the 2020 positioning,
• The funding structure was modified
and
cost
in
reduction
instruments
achieving
implementing hedging
case of rate variations.
a
• Product cross selling increased.
• The structure was tailored to the new
situation and expenses were cut down.
• Focus was placed on portfolio quality,
reducing exposure.
During the year the following products were
marketed:
(open) or
• Open Credit Card, which may be used for
purchases in the stores of merchants
accepting Mastercard
for
purchases only at Walmart stores and at
Change Más (close) stores. Said cards may
be obtained at the Financial Services
Booths located at Walmart Argentina
S.R.L. stores and at any of the 20 Tarjeta
Automática S.A.’s stores.
• Personal Loans: fixed rate cash loans
using the French amortization system.
• Consumer Loans: Credit facilities for the
purchase of certain products;
the
transaction is completed upon delivery of
the purchased products.
reached with MILA
of
• Car Loans: marketed by means of an
(a
agreement
subsidiary
Supervielle
specialized in the marketing of car loans),
which offers car loans through car dealers
using MILA channels.
Grupo
•
Insurance: a wide array of Personal
Bag,
Accidents,
Unemployment, Total Protection and
Pets insurance policies.
Protected
• New products under development:
interest bearing digital accounts in Pesos
and in USD, interest bearing accounts and
Fixed Term Deposits, among other.
its situation and competitive advantages to
develop the 2021 plan.
Walmart, Chango Más and Tarjeta Automática Networks
In August 2020 an addendum was entered to
the current agreement whereby we remained
the exclusive financial partner of Walmart y
Chango Más until August 2021.
During 2020, the financial market was directly
affected by the reduced purchasing power
and repayment capacity of the consumer
segment caused by the pandemic.
Faced with that situation, the company
focused on protecting the portfolio quality,
maintaining at all
times a segmented
financing and adapting originating processes
36
to the pandemic context, managing to
challenge the status quo and introducing the
following changes to commercial operation:
• New
remote
sales processes
for
origination of personal loans and credit
cards, which provides a financial solution
without the need of going personally to
the
obtain
implementation of a new digital
onboarding process remotely operated
by the sales force.
products. Also,
said
and
• The new system reduced the time for loan
and/or credit card origination from 40 to
7 minutes, and substantially improved
productivity
to new
customers.
Implementation of safety protocols for
customers and employees, redesigning
the way of operations and
the
commercial management model within
service
•
Digital Channels
During 2020 this strategic area focused on
developing the 100% digital business of the
different business units. Public apps – such as
IUDÚ, the new digital brand - and webs were
developed, and digital channels were
reengineered. Besides, product and service
self-management projects were developed
and implemented within digital channels, as
well as setting up automatic debit and e-
Statement delivery and payment of products
in
network
time. MasterCard
functionalities were implemented, with a new
one called consumptions which was added to
the App for 12 categories of credit card
purchases in the latest 90 days (PFM).
real
Since the beginning of the pandemic, and in
order to meet the requirements of our
customers and care for our employees, a chat
box was made available for all queries and
proceedings through the web and the app,
with a total of 111,300 queries made from
April to December.
A digital process was created to activate
credit cards through videocalls, and 14,834
activations were made.
Marketing and Communications
2020
the Marketing
During
and
Communication Area worked on the creation
of the initially digital new brand, IUDÚ, aimed
at promoting the personal growth of persons
and the achievement of their dreams and
projects. It is a young brand, flexible and
Walmart, Chango Más
Automática stores.
y
Tarjeta
• The differentiated product offer was
maintained
various
during
commercial events of the major partner
(Walmart).
the
In order to achieve a differentiated proposal
and enhance the physical presence together
with the new digital launching, the company
currently has a network of 79 sales and
services points at Walmart and Chango Más
stores, and an own network of 20 branches of
Tarjeta Automática, thus totaling 99 physical
sales and services points throughout the
country.
As regards the commercial strategy, and
aimed at expanding the value proposition, we
introduced new products with a wide
portfolio to our own branch network, to
satisfy the needs of customers and leads.
developed
The
information governance model was
created with all central areas and the
customer MDM solution was implemented,
data was loaded to the model to feed all loan
and card campaigns. Additionally, all ETLs
retrieval,
were
for
transformation
from
and
transactional systems to the MDM model. In
2020 said data repository will be providing
real time services (through API REST) to the
Customer Origination platform and Digital
Channels.
data
loading
A customer contact policy was developed and
implemented
to
customers was automated.
and digital delivery
During 2021 the team will be working on the
automated opening/origination for all digital
channel products (credit cards, personal
loans,
insurance policies, accounts, debit
cards, time deposits), and the following
procedures will be automated: increase of
credit limit, cancellation of products, request
of debt clearance certificate,
filing of
chargebacks, among other.
Additionally, payments with QR Codes were
implemented, integrated with MODO.
human, that intends to boost the life of those
who choose it.
The new brand was launched to the market in
November 2020 with a first MVP for personal
loans and credit cards. The process to become
37
a customer and apply for products is simple,
agile and clear. With a 100% digital
onboarding from the mobile phone, it only
takes a few steps for a qualified customer to
obtain a IUDÚ product on the spot. The app is
available at Google Play and App Store.
Credit and Collection
During 2020 reengineering of the application
assessment processes continued, so as to
provide greater flexibility and speed to the
implementation of credit policies.
The new assessment process simplified the
burden of applications filed and improved
controls by using the data available in credit
bureaus. The goal is to enhance control
automation minimizing
risks while
providing a more agile service to customers.
the
Besides, a new admission scoring model was
developed and the internal behavior scoring
model used in cross selling will continue to
improve so as to obtain a better model for the
evaluation of new customers and of those
customers that do not have the required
length of bank-customer relationship.
Information Technology
Based on a business strategy for the next 3
years and a Digital Transformation approach,
in 2020
implementation began of the
technological roadmap.
Implementation began of ERP - SAP S4 HANA
and also of a new financial CORE software
solution, which will enable offering new
products and services in the digital banking
segment.
Experience
As part of company’s strategic objective to
achieve a customer centric culture, the
Customer
Relational
Marketing areas were created to design the
best experiences, interactions and relations
with customers and to promote said values
across the organization.
and
to
loan
to guarantee
Changes were implemented to origination
policies
repayment
capacity in all segments, particularly those
mostly exposed
the macroeconomic
uncertainty generated by the pandemic.
Besides, in order to improve the repayment
capacity assessment, an income prediction
model developed in-house was implemented
which improved those models supplied by the
credit bureaus.
During 2020 work continued on the review of
screening strategies, the optimization of
collection tools and the review of predictive
models to obtain a better approach to non
performing customers, and therefore a more
effective management.
One of the 2020 milestones was the
development of the digital channel through
the new IUDÚ mobile app.
The development and implementation of the
new web sales platform (ODIN) for the in-
person channel was completed, considerably
reducing customer registration times and
optimizing the use of resources.
In 2020 this platform was made available to
all branches, improving the credit card and
personal loan origination process.
Consumer Finance Segment: Espacio Cordial de Servicios
Cordial Servicios has been part of the
consumer finance sector of Grupo Supervielle
since August 2018.
The company was
established in October 2012 and started doing
business in December of such year. Its object
is the sale of any type of goods and services
related to insurance, tourism, health care
plans and/or services and other goods and
services provided for in its corporate by-laws.
During 2020 Cordial continued operating in
the already developed direct and indirect
channels. The direct channel continued
developing through sales points located at
services Branches of Banco Supervielle
throughout the country, trading mainly home
appliances, health care plans, security plans,
prepaid services and tourism. The home
appliances category strategy during 2020
continued looking for stocks optimization and
product mix under the motto: “Primer precio,
Primera marca” [Best price for a leading
brand]. The Services and Assistance category
continued developing in partnership with
Walmart, with 100 additional sales points.
As regards indirect channels, the telephone
channel continued to be used for the sale of
prepaid health care services.
through
channel,
The digital
Tienda
Supervielle Marketplace, was used to sell
home appliances, technology, home and
furniture, sports, wellness and beauty, toys,
perfumes, tires and accessories. As regards
the tourism category, it continued offering its
38
products through Tienda Supervielle and the
integration to the Rewards program of Banco
Supervielle, as the main vertical portal for
flights and hotels.
services and assistance
category
The
continued developing the digital channel with
the sale of health care plans through a strong
online strategy
in the social media and
developing digital self-management products
for the companies of the consumer division
and the launching of new digital products
such as “Doctor en línea” [Online doctor] and
“Veterinario en línea” [Online vet].
In June 2019, the company purchased
Deautos.com, a new and second-hand vehicle
purchase and sale platform, one of the
leading sites in its category with over 10 years
in the market. The aim was to create a digital
ecosystem, integrating and simplifying the
offer of services and increasing the synergy
with other Grupo Supervielle companies to
deliver a better customer experience through
the best market offers. During 2020 the
business was focused on the integration to
the
to car
purchases.
services platform
related
During 2020 18,300 home appliances were
sold, generating an income of over $178
million, and 100,000 service plans, generating
an income of over $640 million.
Consumer Finance Segment: Microlending S.A.U (Mila)
Microlending S.A.U (Mila)
is a Company
engaged in the origination of motor vehicle
loans and was acquired by Grupo Supervielle
on May 2, 2018.
In 2020 the Company originated pledge loans
for a total of $ 1,205 million from 4,698
transactions. That represented a 107% year-
on-year growth in terms of capital and 42% in
terms of number of transactions.
The abovementioned performance occurred
in an economic environment featured by a
strong reduction in the sale of cars, both new
and second hand. In 2020 a total of 323,738
B.3.3. Insurance Segment
Supervielle Seguros
At present Supervielle Seguros S.A.is focused
on the marketing of insurance policies, in
particular Personal Accidents, Protected Bag,
Life, Home, Protected Content, Total
Protection, Broken Bones, Pets, Multi-Peril
and Protected Technology
the
networks of Banco Supervielle S.A. and
Cordial Compañía Financiera S.A. and the
digital channel, as well as on Credit Related
and other insurance intended to meet the
needs of our different channels and
customers.
through
In 2020 the company began a digital
transformation process, and some sales pilot
tests through the digital channel were carried
new cars (118,474 of which were financed
with loans) and 400,233 second hand cars
(48,154 of which were financed with loans)
were sold in Argentina. As compared to 2019,
the sale of new cars fell by 26% while the sale
of second-hand cars decreased by 12%. The
financing of new cars fell by 34% while the
financing of second-hand cars fell by 22%.
Throughout the year MILA operated with six
insurance companies, offering a wide array of
products,
income
represented approximately 29% of the total
Company income.
resulting
and
the
out both for life insurance and for home
insurance. In addition, a capabilities building
process was carried out both in the area of
Systems and of products, particularly in the
area of Customer Experience that will enable
the company to move forward
in the
organizational transformation process.
The company is constantly introducing new
products that are offered to the different
customer segments of Grupo Supervielle
individuals
companies: high net worth
(Identité), senior citizens, Entrepreneurs and
SMEs, Consumer segment customers and
Medium and Large entities.
Supervielle Productores Asesores de Seguros (Supervielle Broker de Seguros)
In 2019 Grupo Supervielle created a new
company Supervielle Productores Asesores
de Seguros which started operations in the
second half of 2019.
39
In 2020 the business gained momentum,
focused on Entrepreneurs and SMEs and
SMEs and Medium and Large Companies. This
allows an improvement in risk management,
offering advisory services to customers and
adding value to the comprehensive proposal
of Grupo Supervielle.
2021 Prospects
continue
consolidating
During 2021 the current insurance businesses
will
and new
developments and actions will be carried out
as are necessary to issue Fire, Health and
Unemployment insurance, among other, with
the focus on the Entrepreneurs and SMEs,
Medium and Large Companies, Senior
Citizens and Consumer segments. In addition,
new sales channels will be developed, and an
assessment will be carried out of those
products that contribute to the provision of
financial services and insurance.
In 2021 the insurance business will continue
adapting its products to the needs of our
customers and channels. One of our goals is
to develop new insurance marketing channels
and new products, in line with the needs of
our customers throughout their lives.
Thus, moving towards the creation of new
channels, we will work on the digital strategy,
defining a set of products and experiences
that may communicate and consolidate our
value proposition. The main vehicle to reach
new customers and generate engagement
will be segmented communication through
the
a
communicational style that enables a fluid
and close dialogue.
audiences
creation
and
of
the
level of
To obtain customer
feedback we will
implement digital touchpoints, with KPIs that
recommendation,
indicate
satisfaction and effort of each contact and
experience. The objective is to obtain high
to make
performance
improvements that reduce frictions and pain
points.
levels,
and
selection and
At the same time, the ongoing training
program will be maintained, as well as the
permanent
induction of
employees of all areas, that will be part of the
multidisciplinary work squads operating
according to agile methodologies. We will
also advance with the implementation of
defined IT systems to make the company’s
commercial management and the internal
processes more efficient.
As part of the company’s growth and
development, we are evaluating
the
technology available that may be most
efficiently and effectively used for the digital
business transformation.
B.3.4. Supervielle Asset Management (SAM)
SAM offers mutual fund services designed to
cover a broad range of possibilities
in
investment objectives and risk profiles. It
manages the PREMIER family of funds.
December), similar to the results of the
industry. The average of managed funds as of
December was $38,836 MM, which
represents a 2.10% market share.
The PREMIER family of funds consists a
Money Market Fund (Premier Renta Corto
Plazo en Pesos), two Argentina Short Term
Fixed Income funds in Pesos (Premier Renta
Plus, Premier Renta Fija Ahorro), six Argentina
Fixed Income and Mixed Income funds in
(Premier Renta Fija Crecimiento,
Pesos
Premier Capital, Premier Commodities,
Premier Inversión, Premier Balanceado and
Premier Renta Mixta), two Argentina Fixed
Income funds in US dollars (Premier Renta
Mixta en Dólares and Premier Performance),
a Variable
Income fund (Premier Renta
Variable), and an Investment Fund in SME
assets (Premier FCI Abierto PyMEs) and a
Fixed Income Latam fund (Premier Global
Dólares) and a close fund (Adblick Ganadería).
Assets managed at the end of 2020 show an
(on average as of
increase of 131%
The Money Market fund showed an increase
of 118%, mainly due to the investments of
corporate
customers,
representing 74% of the managed funds in
December 2020.
institutional
and
The Argentina Fixed and Mixed Income funds
in pesos showed the greater growth (T+2),
with a 469%, and represented 13% at the
close of 2020 (5% in 2019). Within this group
the dollar linked fund was the one that made
the greatest contribution to growth.
The Argentina Short Term Fixed Income funds
in pesos (T+1) grew by 230%, and its share on
the total managed funds grew by 3% in 2019
against 5% at the close of 2020 but still way
far from 28% over the total managed funds at
the close of 2018.
40
The Argentina Fixed and Mixed Income fund
in US Dollars and the LATAM fund grew below
the average, measured in pesos as a result of
the outflow of customers that was not offset
by the revaluation in Pesos at the financial
exchange rate. The share of these products on
the total funds managed went down from 8%
in 2019 to 5% at the close of 2020.
In Q2 the Close Adblick Ganadería Fund was
launched, as an differentiated investment
alternative focused on a specific market of
real economy.
by
grew
investors
As regards the type of portfolio customers,
corporate
140%,
institutional investors grew by 127% and
individual investors by 54% in 2020. Thus, the
customer base changed as compared to the
previous year, and at present corporate
investors represent 59% (57% in December
2019), institutional investors represent 38%
individual
(39%
in December 2019) and
investors represent 3% (4% in December
2019).
Products are marketed through the channels
of the Depositary Company, representing 98%
of managed assets, and External Placement
Agents, which make up the remaining 2% of
the managed assets.
funds
The Depositary Company places
through the in-person channel of its Branch
network, Centro Integral de Inversiones (call
center) and mainly through the Home
Banking digital channel.
Transactions carried out by corporate
customers through Home Banking reached
57% in December 2020, and 94% if Retail
Banking corporate customers are considered.
In December 2020, 97% of the transactions
carried out by individual customers were
made through Home Banking.
The objectives for 2021 are based on the following pillars:
• Processes: improvement of settlement process during retrieval of Market Money funds: T+0 on
line
• Digital Platform: redefinition of digital platform: IOL-Mobile- Premier mutual fund
•
• ACDIs: Placement agreements with Markets and ALyCs.
Internal Channels: redefinition of incentives for the sale of mutual funds. Investments squad
B.3.5. InvertirOnLine
InvertirOnLine is a fintech Company which
was established at the end of 2000 and was
acquired by Grupo Supervielle from
its
founder in May 2018.
At present InvertirOnline is an online platform
that offers brokerage and savings and
investment services, aimed at reinventing the
way people invest so as to help people boost
their income and savings.
In 2020 there were 4,888,260 transactions
were carried out, representing a 435%
increase as against 2019. In 2018 transactions
made through InvertirOnline had hit a record
of over 1,123.000 transactions. Besides, the
transacted amount in 2020 exceeded the
$208 billion, representing a 274% increase as
compared to the previous year, and over
134,000 accounts were opened by new
customers during the year, which represents
a more than 228% increase against 2019
when 59,000 accounts were opened.
2020
during
Besides,
InvertirOnline
participated in events and talks on finance,
such as the “Fintech Forum”, “Efi WEEK
Online”, which were attended by a large
information and
audience who received
training on stock exchange matters.
It should be taken into account that within the
framework of restrictions imposed by Covid-
19 pandemic, InvertirOnline focused on the
organization of more than 45 webinars, which
thousand
were attended by over 50
participants and delivered by well-known
market experts.
InvertirOnline mapped and
During 2020
addressed the automation needs of the
platform
to obtain business scalability:
deposits and withdrawal processes were
the onboarding
improved as well as
automatic opening of accounts, the end-to-
end process was automated and market
integrations were made more efficient, for a
prompt processing of all transactions.
41
As from November improvements were made
to the US investment product platform: the
customer experience changed and
fees
charged for these transactions were reduced,
enabling diversification of invested assets to a
larger number of customers.
Finally, our APIs were made available to the
public, offering an array of products to our
new customers, fostering financial inclusion
and making it possible for a larger number of
people to obtain revenues from their savings.
2020 was an iconic year for InvertirOnline
Academy. As a result of an increased demand
of financial education the number of students
increased by 300% year-on-year. Due to the
increased demand
to
consolidate
InvertirOnline Academy
business unit which comprises the areas of
and
product
content.
development, marketing
team grew
the
the
As
regards
the educational platform,
improvements were made
technological
(migration to a more scalable platform),
forms of marketing (price adjustments and
sales schemes) and customer service, where
inquiries
the average response time for
B.3.6. Bolsillo Digital
From the point of view of the business,
Bolsillo Digital is a Fintech that is part of the
growing payment industry that designs and
develops collection processing and offers
individuals
to businesses and
solutions
facilitating their integration to the digital
payment system.
The main activity of Bolsillo Digital is to
provide payment services with focus on the
“Aggregator of Means of Payment” business,
with an active participation in the growth of
the business acquired by Grupo Supervielle.
Bolsillo Digital also promotes digitalization
and a reduced use of cash to foster financial
inclusion and offers more opportunities to
merchants,
and
professionals,
entrepreneurs.
SMEs
The company’s vision is to contribute to the
development of a payment and collection
ecosystem within Grupo Supervielle, where
customers may find solutions related to
issuance, acquisition, e-wallet, e-payments, e-
commerce, among other.
In June 2020, the “IUDÚ PAGO” app was
launched, a “business aggregator”
that
enables companies and individuals to get
changed from 72/96 business hours to less
the
than 24 business hours. Besides,
platform’s courses were updated and
reshaped, so that a wide array of products
may be offered to students in 2021 that will
enable them to develop new personal and
corporate skills for the world of finance.
to
the
During the year under analysis visits and
website
registrations
www.invertironline.com
increased
considerably, with over 30 million visits and
213 thousand registered users, a very
important growth as compared to the 129
thousand registered users of 2019.
In addition, and in line with the objective of
improving the quality and quantity of
information provided to customers, in the
year ended on December 31, 2020 the
Company focused exclusively on the delivery
of On demand courses, which number
increased mainly due to the changes caused
by the Covid-19 pandemic.
During 2020, the total income from courses
amounted
$24.18 million, which
represents a 258% growth as compared to
$9.37 million of the previous year.
to
payments through debit and credit card using
an Mpos and a payment link. The value
proposition includes e-wallet products, such
as recharge of SUBE card and mobile phone,
Prepaid Card (for purchases, cash withdrawal,
etc.)
Various promotional actions were carried out
for the launching of Bolsillo Digital, such as
the reduction of fees for sales charged to
merchants during a determined period of
time, and of the financial cost for payments in
installments. As cashback promotion, a 20%
discount was implemented during the second
semester to transactions made with Banco
Supervielle Credit and Debit cards.
As regards distribution channels, Bolsillo
Digital developed its own channels (such as
Self- Onboarding or sales force), and also
created synergies with the other Group’s
companies (such as Banco Supervielle or
IUDÚ), for the sale of products.
regards
cooperation
As
partnerships,
for the
agreements were entered
promotion of
the
municipality of Las Heras, the companies Sol
Puntano and Mercado Municipal de San Luis,
the municipalities of the city of Mendoza and
the product with
into
42
Godoy Cruz and with Círculo Odontológico de
Mendoza. As a result, 40% of IUDÚ PAGO
customers are from the Province of Mendoza
and 11% from the Province of San Luis.
In terms of customer experience, based on
surveys, the NPS reached a 32% score. 52% of
users indicated that they subscribed to the
service due to referral by their sales
executive. Besides, the “IUDÚ PAGO” app was
rated with 3.9 stars at the Stores, well above
its direct competitors.
The year ended with 6,067 new customers
(with reader), who made more than 70
thousand transactions
for 131,8 million
pesos.
B.3.7. Futuros del Sur S.A. (in process of changing its corporate name to Supervielle
Agente de Negociación S.A.U.)
On December 18, 2019, Grupo Supervielle
acquired 100% of the capital stock of Futuros
del Sur S.A., a trading agent registered with
the Argentine Securities and Exchange
Commission. Through this acquisition Grupo
Supervielle seeks to expand the financial and
institutional and
investment services to
corporate customers and
selling in an efficient and profitable way.
increase cross
While in 2020 the Company focused on own
trading transactions, the objective for 2021 is
to boost trading operations and provide
brokerage services to institutional customers.
B.3.8. Digital Innovation Entrepreneurships
(digital solutions applied
The strong belief that Fintech capabilities
have a direct
impact on the “customer
centric” culture boosted the creation of the
Fondo Corporativo de Capital Emprendedor
(Fideicomiso Fintech Supervielle I), which
allows the Company to partner with Fintech
companies
to
finance) and Insurtech companies (digital
solutions applied to insurance) which are
within the strategic verticals of Grupo
Supervielle. The goal is twofold: to generate a
financial return on investments and to create
commercial synergies to mutually add value.
At present the company’s portfolio is made
up of 4 companies: 123Seguro, Blended,
Avancargo and Increase.
In 2020 Grupo Supervielle consolidated and
moved forward in the integration of digital
products with the companies of the insurance
area porftolio, offering an improved digital
B.3.9. Other Companies
Sofital
Sofital is mainly a holding company.
experience to customers with solutions that
simplify management of recurring payments,
cooperating with SMEs in their digitalization
process
value
offering
propositions tailored to strategic customers,
such as those engaged in education and
transport.
specific
and
With a view to creating incremental business
for portfolio and Grupo
opportunities
Supervielle
continue
companies we
supporting the cooperation and co-creation
with fintechs, with new proposals to our
customers.
Banco Supervielle continues participating in
the Arfintech fund together with another 7
in
local capital Banks and participates
investment
fund
portfolio already has 10 companies in the
insurance, payment, security, SMEs and
blockchain segments.
the Arfintech
rounds;
43
B.4. Human Resources Management and Organizational Development
Grupo Supervielle is an ecosystem formed by businesses and business units with a total 5,021
employees and diversity at its core. All subsidiaries work synergically searching for talent
opportunities among the different companies.
Business Units
Banco Supervielle S.A.
Cordial Compañía Financiera
Espacio Cordial de Servicios S.A.
Grupo Supervielle S.A.
Invertironline S.A.
Invertironline.com Argentina S.A.
Mila Micro Lending Argentina S.A.
Supervielle Asset Management
S.A.
Supervielle Broker de Serguros
S.A.
Supervielle Seguros S.A.
Tarjeta Automática SA
Total
HeadCount
3.706
477
119
7
124
11
29
11
22
129
386
5.021
Women
Men
1.810
287
73
5
29
4
5
1
10
74
313
2.611
49%
60%
61%
71%
23%
36%
17%
9%
45%
57%
81%
1.896
190
46
2
95
7
24
10
12
55
73
2.410
51%
40%
39%
29%
77%
64%
83%
91%
55%
43%
19%
During 2020, Banco Supervielle ranked 14 in the annual Best Employers’ Ranking of Apertura
Magazine, climbing 1 position as compared to 2019 and positioning itself once again as the third
best place to work among Argentine banks.
This ranking analyzes and assesses the staff management policies and practices in organizations.
Employee Development
Building of new Competencies
Taking into account the VUCA context in
which we move, the cultural and digital
challenges we must face, we identify the need
to change the competencies we have been
working with so far and replace them for new
ones with new behaviors to achieve our goals.
This is why, in the case of Banco Supervielle,
into account our vision, values,
taking
strategic objectives, listening to our leaders
and teams, we define 7 new competencies,
one of them with strong focus on the Leader.
Our competencies speak of leadership to
solve, flexibility to adapt, curiosity to learn in
an agile and exponential way, leading change
through our own actions, cooperating and
working with others in an agile way, listening
to, talking and inquiring to make decisions
based on multiple perspectives, focused on
objectives, generating impact and placing
customers at the center of our actions,
focusing on the needs of the people and the
business. With an inspiring, Developing and
Human leader, transforming and acquiring
new behaviors and cooperating
in the
transformation process of others with a close
and simple communication,
i.e. “Human
Banking”.
We will announce them in 2021 and will work
on different actions so that they are
implemented by everyone.
Building the area concept and focus on internal development
At the beginning of the year we focused on
working and developing a new concept of
Development, so as to find the rationale of
the area and continue building within the
Bank an identity that represents us all and
that encompasses all our processes. A
concept related to the curiosity and concerns
we may have
in connection with our
development and experiences within the
organization. Working together with the
communication area led us to develop “CLIC
en tu experiencia.”
For such reason and with focus on internal
development and curiosity, at the Bank we
conducted 195 internal search processes,
mapping 900 employees, and we continue
working on the identification of Talent, with a
30% search increase as compared to 2019. At
44
such meetings we continued managing PDA
(Personal Development Analysis – a tool for
behavior profile identification) techniques
and assessments of potential. We also
adapted our activities and meetings to the
new virtual reality, which was a challenge
both for employees and leaders at the time of
candidate assessment.
led us to continue
The business model
working with the Agile methodology, to build
new roles in the Agile Methodology. We
Tools that enhanced the area
We are working to integrate with a Talent
Management Platform, which
includes
performance, climate, continuous feedback
and talent map modules. In 2020, we focused
mainly on the integration of the platform, on
implementing different MVPs, related to
Conversation processes (in the world of the
Agile methodology), Pulse Surveys and
loading goals to platform. We used these pilot
tests to check the tool in real time and live the
experience, integrating the business to launch
in 2021 processes related to performance,
continuous
workplace
conversations, among other.
surveys,
climate
Team climate management
In the context of the pandemic we got closer
to our leaders to listen to them, understand
how they and their teams were feeling, which
were their needs and to take different actions
together to support teams.
During the year we conducted several surveys
related to context and to tools. In relation to
what we were listening, we decided to carry
worked together with business referents and
Agile behavior profile specialists in PDA, with
a view to being more assertive in the selection
of candidates and
to providing more
information to employees and leaders so as to
work on internal development and on their
experiences
The
aforementioned profiles include: Experience
Leader, COE Leader, Tribe Leader, Agile
Coach, Technical Leader (ETL), Scrum Master
and Product Owner.
learnings.
and
centralize
At WorkPlace
all
we
communications on our core processes by
leadership, which
fostering curiosity and
enables us to increase the visibility of internal
opportunities, of Leaders talking about those
opportunities, of employees talking about
their development experiences, empowering
leaders at the time of conversation and
management of pulse survey action plans. In
addition, we focused on fostering closeness,
visibility of issues and communication. As
from its launching in March, we made over 80
postings and received 390 comments and
2155 reactions.
out a pulse survey on issues related to
Leadership and Wellness. The survey was
made up of 13 sentences and was answered
digitally; it as a good answering experience
and good way to view results. Leaders have
direct and autonomous access to results and
can communicate them to their teams so as
to agree on action plans to continue working
on team climate and needs.
45
Performance Models
lessons
learned,
the
In 2020, we made emphasis on
importance of conversations on objectives
and
under
#conversacionesqueimportan [Conversations
In addition, we continue
that matter].
reinforcing
and
feedforward, which continue being the key
between
of
subjects
employees and their leaders.
conversations
recognition
feedback,
The pandemic made us
adapt our
performance assessment forms and deliver
them online, facilitating and permitting a
virtual conversation. It is a specific adaptation
Employees’ Training and Development
During 2020 more than 105,000 virtual hours
were devoted to training, 64% of such hours
being asynchronous sessions and 36% of such
hours being synchronous sessions. 96% of our
employees participated
least one
training session. Such data reveal that on
average, each employee received 28 training
hours.
in at
In general, topics dealt with in 2019 and prior
years were continued in 2020, related to
expertise, team and personal management
language
tools, mandatory
regulations,
enhancing
for 2020 since we were also working on the
2021 Performance Model where we
disaggregated competencies targets to make
greater focus on objectives better aligned
with the strategic pillars of the organization
and on
conversations on
development strongly focused on our new
competencies. This new 2021 model includes
the Continuous Conversation module, which
enables two-way feedback that may be
to
recorded
strengthening our culture we incorporated
new competencies and continued building
close links to generate confidence.
tool. With a view
in a
in-person
development and new ways of work
organization. However, this year we had to
adapt our
formats to virtual
formats, particularly to asynchronous training
sessions (available at Campus Virtual). In
2020, Campus Virtual, that had been in place
for one year, reached over 3500 active users
of Banco Supervielle, and all of Grupo
Supervielle’s companies were added to the
platform. The role of the Campus was critical
to reach each of our employees in a very
particular year.
In 2020 Grupo Supervielle made emphasis on the following training sessions:
Team Building – Leader Development
Work continued on building
links that
enhance the daily work through coaching
tools and integration, communication and
cooperation activities, with the assistance of
independent consultants. Taking into account
the pandemic, contents were created for the
remote management of teams, with the focus
on the role of the leader and its teams and
sharing good practices. In such line, training
spaces were created for design of OKRs. New
workshops were designed such as Emotional
Intelligence, Management
Change,
Personal Value Brand, among other.
of
Internal Coaching Program
A training program was designed with two in-
house coaches focused on conversation,
interpersonal aspects and concept. Leaders
and teams participated in this program which
made reference to the need of training in the
needs assessment survey.
Agile Methodologies
We continued training on, and enhancing,
agile methodologies, cooperating with our
employees’ certification processes, and
providing
the
to Agile
organization on
Methodologies and Introduction to Design
Thinking and developing the skills required for
such transformation.
training sessions
Introduction
to all
Business Management Model
A new management model was co-designed
for the Services Branch Network, defining
routine tasks with the participation of all
branches in the selection of the model’s
name, ZOOM. The implementation of the
model remained on hold due to the lockdown,
and focus was placed on the urgent, i.e.
developing Remote Business Management
Skills. In this regard, together with the same
supplier (Sellutions) with whom we co-
designed ZOOM, webinars were designed to
develop these skills for all the Network. 2625
people received training, which represented a
46
total 4038 training hours, introducing them to
the necessary methodologies and skills to
reach
the customer and sell products
remotely.
Sustainable Businesses School
Together with a specialized consulting firm a
training program was designed for Business,
Personal banking and SME Executives, and
Corporate Banking Officers to strengthen
their expertise on credit analysis.
English
lessons continued for Corporate
English
Managers,
those
employees that regularly use English for their
activity.
Executives
and
all
Mandatory Regulations
Emphasis was placed on developing the
IFRS Standards, Anti-
regulatory aspects:
Employment and Recruiting
Young Professionals Program
The Young Professionals program was
launched in January 2020, with a view to
incorporating talent that may develop and
to
transform
generating a nursery of digital leaders and
promoting the employer’s Brand through an
innovative recruiting process.
the company areas, and
This program was aimed at students or
graduates from different courses of study
(mainly engineering), with the following
competencies:
*Innovation and change
*Self-development
*Digital Mindset
*Collaborative Work
*Result Oriented
*Global Vision
9450 candidates applied for the program, 55
of whom participated in the Assessment
Center. On April 1 we opened the 100% digital
onboarding and 12 Young Professionals
joined us.
In the first year, the program includes a
follow-up with tutors, integration activities
and
strategic,
sessions
management and innovation.
training
on
IT School
Faced with the challenge to incorporate IT
talent in Mendoza, especially in development
Money Laundering provisions and SOX rules,
among other.
Scholarships
A scholarship program was
launched to
cooperate in the development of the Bank’s
employees, either
their managerial,
in
business or other specific training.
In-house Trainers
In 2020 we rewarded our internal trainers
that work with us and share their knowledge
organization-wise, and we designed a
learning plan to enhance their teaching role.
They are essential to assist us in sharing
knowledge and endow the learning with
Grupo Supervielle’s values. During 2020,
40,000 hours were devoted to In-House
Training, with over 40
internal trainers
delivering more than 12 various workshops.
areas, we created the IT School, which used as
a basis many lessons learned from the Risks
School.
The program objectives included:
Generating a nursery of engineers
Exploiting a niche with great talent potential
Generating an organic growth and vacancies
filling system
In addition to having mentors, selected
candidates participated in in-house training
sessions focused on technical skills: NetCore,
OpenApi, C#, etc.
Employer Brand
In 2020 we designed and implemented our
Employer Brand strategy, based on the
following pillars: Closeness, Transformation,
Improvement, Community.
During the year we generated content for
LinkedIn, which
greater
leads
engagement with followers and impacts on
the information candidates have when they
participate in a recruiting process.
to
a
Candidate’s Experience
With the introduction of digital tools, we seek
that the candidates’ experience is in line with
our employer Brand pillars. We implemented
gamification experiences, 100% digital
onboarding, among other.
47
Events and Job Fairs
Volunteering
During the lockdown the traditional job fairs
became virtual and we participated as
sponsors, delivering different lectures on
topics related to the young audience: Agile
methodologies, Young Professional Programs
and Virtual Interviews.
We continued working with universities
through marketing projects at Universidad
Torcuato Di
students
participated in a business initiative, with the
support of the Product and HR team.
Tella, where
Internal Communications
In 2020, we focused on 3 key items: launching
of Workplace, the customer experience
campaign under the slogan #modocliente and
digital
the
transformation
our
#TransformarseEsSupervielle.
of
process
communication
the
with
The launching of Workplace was a success,
with 95% of active users. Active users are
those who interact (comment, like, share,
read). It was a great growth against the past
year’s 53% with Yammer. We transformed
our weekly Newsletter in a video with the 5
weekly highlights, which reinforced our
communications. In addition, we launched
#HolaCeo for the Bank, a live broadcast with
Alejandro Stengel where the employees of
Banco Supervielle team could be in contact
with him. We continued with our in-house
Influencers program:
employees were
communicated who to follow in Workplace
taking into account the topics they need to be
informed of. In addition, an annual digital
transformation campaign was launched to
introduce the agile methodology, its roles and
the processes and projects on which the
Compensations and Benefits
Benefit Management
In 2020, in line with the Health sector,
implementation continued of the Corporate
health Program of Grupo Supervielle, focusing
on achieving a better service level by the
service provider countrywide.
We engaged
in a digital transformation
process, shifting to a QR Code system in
vending machines (hot and cold beverages
and snacks) at the headquarters. The service
was
improved by with different coffee
varieties free of charge and healthy products
at the vending machines.
The recruitment team participated in the
selection of the beneficiaries of “BisBlick -
Talento Joven” scholarship. The program
provides economic support to low income
youths to facilitate their academic and
professional development. Beneficiaries are
also assigned tutors who cooperate with
them throughout the different stages of their
courses of studies.
is working. For all
organization
these
implementations we were considered a
Facebook success case.
We used a communication campaign so that
our employees could speak of the reasons
why they chose to work at Supervielle. In
addition, the OOPS! Otra oportunidad para
superarse” event was held, where two
leaders of Banco Supervielle went on stage to
talk about their mistakes and lessons learned.
We continued using StarMeUp. In 2020 over
half of the employees sent stars to their
teams, up by 2% against 2019, and more than
15,000 recognitions were made during the
year.
A documentary series was made for LinkedIn
"Players de la Transformación" where teams
tell how digital transformation is lived from
within.
In addition, we received 3 awards:
2 Eikon and 1 Fundacom,
#TransformarseEsSupervielle
communication campaigns.
for our
and OOPS!
An in-person event was held together with
pharmaceutical company Pierre Fabre, where
by means of games employees gained
awareness of the importance of dental care
and controls and related products were sold
at special prices.
All those employees that as from April were
required to work on site were included in the
free of charge influenza vaccine campaign. To
that end vaccination teams visited two times
each branch throughout the country.
The in-company health care advice service
continued online so that our employees could
48
an
have
communication channel to make inquiries.
exclusive
and
improved
As regards health care and wellness services,
a nutritionist, a skin specialist and a heart
specialist were hired for online consultations,
which were also available to all employees in
the country. Appointments were assigned
through an online reservation system.
Distribution continued of breastfeeding kits
and
baby birth gifts for new parent
employees.
As regards wellness, the practice of sports at
home was encouraged, and the running team
and Yoga classes continued.
A race was held where each employee
participated individually from their area of
residence.
The partnership with Megatlón and YMCA
continued, with preferential prices
for
employees, and an agreement was entered
into with Gympass, an online platform with
exclusive discounts in gyms and training
centers countrywide, for online services to
employees so that they could continue taking
care of their health from home.
in
As regards school supplies for employees with
line with the
school children, and
innovating and services culture, the online
platform was improved so that employees
could choose the supplies they needed and
received a customized school kit.
With a view to improving the purchasing
power of employees, different events were
held together with food companies such as
Bimbo (bread products), Mondelez (cookies,
Compensation Management
With a view to rewarding the employees’ for
their performance, retaining talent and
maintaining the company’s competitiveness,
the salary structure was reviewed taking into
account the market trends.
to
and
analyze
A review was carried out (compensation
window)
determine
promotions and salary adjustments to the
payroll, analyzing the market benchmark,
internal equity and different management
and talent variables, employee potential,
candies), Arcor (oil, flour, canned products),
Cascanueces (nuts and dried fruit), Uiwi (sale
of fruit, vegetables and healthy products),
Frizata
(frozen products), Supermerdado
Digital Smart Order (cleaning, personal care
and food products), and Grupo Peñaflor so
that employees could buy online products of
leading Argentine brands and wineries at
exclusive prices.
To enable our employees to maximize their
free time, an agreement was reached with
Lavaap, an app that offers laundry service
throughout the country at preferential prices.
Online agreements were entered into with
Lenovo, Edding and ShopGallery (free shop
items), with preferential prices for our
employees.
With a view to contributing to the work-
personal life balance an event was held at
Paseo la Plaza where our employees’ children
learnt how to build paper cities. In addition,
as part of the celebration for the Bank
Employee Day, our employees were offered
an exclusive Martín Bossi online. On Book
Day’s eve, together with bookshops and to
encourage reading, we organized voucher
raffles. We provided online healthy cooking
classes for employees and their families.
An upgrade was made to Mastercard Black
and Visa Signature credit cards for those
employees of Banco Supervielle that were
formerly in lower segments, and at Grupo
Supervielle’s companies an upgrade was
made to the highest possible credit card
segment according to the income level.
review of past management assessments,
market shortages.
Dashboards were implemented through the
Qlik Sense tool to maximize data analysis so
as to be able to make decisions based on
dynamic data.
Data for the Qlik Sense Dashboards are taken
from the payroll system and the data bases
is
managed by HR
consolidated for the purpose of analysis and
conclusions, taking
into account multiple
variables at the same time.
the data
teams;
Human Resources Business Partner
At present
the Bank has 11 HBRPs
commissioned to the different business areas.
The Business Partner is a strategic partner
whose objective is to ensure an adequate
implementation of human resources policies
and practices through actions oriented to
team building, encouraging conversations
49
that foster leadership and cooperation and
creating a good workplace climate.
2020 was a year marked by the COVID-19
pandemic and the HRBPs team was key for
the transformation derived from the new
normal, with different crisis management
initiatives, designing prevention protocols, to
take care of our employees and customers.
Actions were taken to mitigate the risk of
infection at the workplace, through the use of
personal protection
items, establishing
physical barriers for prevention purposes,
hygiene devices in common and individual
spaces. We created new work routines to
avoid close contact with customers and
in the different
ensure social distancing
facilities, generating new digital spaces so as
to avoid meetings at enclosed and non-
ventilated places. A new work organization
method was established which enabled 1,200
people of all areas to work from their homes,
with access to the same IT systems as in the
workplace. In the branches, teams were
formed to work in 14-day work cycles in
bubbles to ensure onsite operations and
avoid the spread of COVID-19.
Mandatory COVID-19 prevention courses
were delivered to all employees through the
virtual campus as well as in-person courses to
raise awareness, delivered by Health and
Safety specialists, strengthening the medical
team, doubling the number of professionals
and extending service 24x7. A health strategy
was implemented in partnership with internal
and external service suppliers, for testing,
confinement and follow-up of cases so as to
ensure operation
the branches
throughout the country, with a view to taking
care of our employees and ensuring
continuity of operations, as the bank business
is considered an essential activity.
in all
In addition, as part of the change in the work
scheme resulting from the pandemic, a
diagnosis was made for organization leaders,
seeking to find out how teams were feeling,
with a focus on the workplace climate,
assessing the communication level between
B.5. Sustainability
At Grupo Supervielle we are committed to our
employees, customers and communities to
achieve a sustainable growth while protecting
the environment and acting with social
responsibility. We integrate the sustainability
strategy to our business model and promote
a responsible culture among our employees.
team members and their direct
leaders.
Approximately 350 leaders were contacted,
50 held
interviews while 300
participated of a Pulse survey through
RankMe.
individual
on
working
leader
To
continue
empowerment,
individual meetings were
held with leaders to train them on team
management, advising them on how to
handle difficult conversations, and individual
employee training sessions were held, with
focus on decision-making. Taking into account
the pandemic context, support was provided
to employees of the branches, since, unlike
those at the headquarters, they worked
onsite:
• Meetings in central areas with leaders
•
and teams: 570
Individual Meetings with Division
Managers: 180
• Meetings with the commercial and
operating Leader and the Business Center
Manager: 18
Individual meetings with
managers: 732
Branch
•
• Participation in Division Staff meetings
with the teams: 72
Individual meetings with employees: 240
•
Without disregarding productivity, and in
support of work teams, a work Agreement
Project was developed together with the
business which
reached 350 branch
employees with a view to supporting,
strengthening
their
commercial skills. Such project lasted three
months and consisted of monthly Feedback
meetings and follow up of objectives, as part
of the remote training model, with the intent
that they acquire digital marketing skills.
developing
and
As part of the support required during the
lockdown, a line for psychological advice was
available to all employees, in charge of
independent psychologists so as to guarantee
issues dealt with,
confidentiality of the
whether personal,
family-related and/or
team management, in the case of company
leaders.
We report on our non-financial performance
in a clear and transparent way, in connection
with environmental, social and corporate
governance (ESG) factors.
50
Our Environmental Responsibility
We implement a responsible environmental
management
the
system
environmental impact of our operations.
reduce
to
Energy Management
We
implement programs that promote
energy efficiency and extend the sustainable
use of renewable resources.
• We donated 3,073 kilos of paper, 23.30
kilos of plastic caps and 9.5 kilos of other
materials to Hospital Garrahan.
Sustainable Finance
We develop financial products and services
that promote financing of companies and
positive
a
projects
environmental and social impact.
generate
that
In 2020:
In 2020:
• We were the first Argentine bank to be
certified as Sustainable Generator User
due to the installation of solar panels at
the Caballito branch, with 20% savings in
electricity. Any surplus generated by the
solar panels is fed back to the grid.
• The electricity used in our headquarters
and the building located at Reconquista
street comes 100% from wind power.
• Carbon
footprint: Greenhouse gases
(GHG) originating from our activities
continue
the
to be measured
calculation of the 2020 Carbon Footprint
and Energy Intensity.
for
Management of Natural Resources, Supplies
and Waste
We adopt internal processes that promote
the efficient use of natural resources in our
daily operations and reduce the negative
the environment of waste
impact on
generated in production and consumption
processes.
In 2020:
• More than 200 computers that were not
in use were donated to Fundación
Equidad, to give them a second life and
also generate a positive impact on the
community and the environment. These
computers are refurbished by Equidad
and later donated to schools and social
organizations across the country. Those
parts that cannot be reused are disposed
of following applicable provisions. In 2020
we donated 58 notebooks, 56 desktops,
100 CPUs and 24 monitors, benefitting
1,390 persons in vulnerable situation.
• We created a sustainable supplier
catalogue so as to make the supply chain
more sustainable. 41 authorized new
suppliers were added in the following
areas: catering, office supplies, printing
services, training, uniforms, cleaning
services and products, furniture.
• All customers of the Corporate Banking
segment were classified under
the
Environmental and Social Risk Policy.
• We
140
social
prepared
and
environmental
reports
under the Environmental and Social Risk
Policy.
assessments
• A Sustainable Credit facility of $75MM
was made available
to companies
presenting projects in the fields of Energy
Efficiency and Renewable Energies,
Sustainable Agriculture and Livestock,
Sustainable
Construction,
Ecotourism/Sustainable Tourism, in order
to promote actions that generate a
positive environmental and social impact.
• We sponsored the Conference of the
Argentine
of
Corporate
Environment [Convención de la Cámara
Empresaria de Medio Ambiente] (CEMA)
2020 "Towards a Sustainable Production
and Consumption Model in Argentina and
the European Experience”, with the
lecturers
participation of well-known
government,
representing
companies,
the
academic world and civil organizations.
the
industry
chambers,
Chamber
Awareness Campaign
raise awareness and promote an
We
adequate environmental training in order to
promote a sustainability culture among
employees, suppliers and customers of Grupo
Supervielle.
In 2020:
• Publications were posted in the internal
communication
network Workplace
related to the environment and the care
of natural resources.
• An online training event was organized,
which was delivered by experts
in
sustainable consumption.
51
Social
We are working to become agents of change
and to create sustainable social value so as to
generate a positive impact on our customers,
employees and communities.
Customers
We extended the use of financial products
and services (financial inclusion) by those who
already have an account with Grupo
Supervielle, facilitating the adoption of new
financial
tools and promoting
digital
education.
As of December 2020:
• 95% of monetary transactions were made
through digital channels, 60% of which
were
self-service
terminals and Cajas Rápidas, 24% through
home banking and 11% through mobile
devices.
through
ATMs,
• 76% of time deposits were made through
digital channels.
• 661% of the growth of personal loans
originated from digital channels
• 44 tutorials were published in the web,
with 1,080,218 views.
Employees
create opportunities
We
to promote
employees’ growth and potential and foster a
diverse and inclusive work culture that values
individuals for who they are and what they
contribute.
In 2020:
• 96% of Grupo Supervielle employees
received some kind of training.
• 28 average training hours per employee
trained
• 105,000 training hours delivered
• 3,500 employees attended online courses
Diversity: a multidisciplinary
team was
created to define the organization’s Diversity
and Equality strategy in a participative way.
Community
We promote social investment with impact
on projects related to education, childhood,
the elderly and institutional strengthening,
and actions that promote culture and the arts.
Our 2020 achievements:
Elderly People
In partnership with Escuela Argentina de
Negocios, Asociación Surcos.
• Together with Escuela Argentina de
Negocios and as part of our Program
“Hacelo Vos Tecnología sin Edad” we
delivered online courses on e-banking
to 301 55+
inclusion
and digital
customers.
contest
• We organized the 6th edition of the
“Grandes Autores,
literary
Relatos Cortos”, with the participation of
1,144 55+ customers and 75 volunteers.
There were 3 winners, 13 finalists and 70
special awards.
• Together with Surcos we made 45 online
publications (images and videos) in the
social media with advice and activities for
elderly people, receiving 107,334 views
per month.
• We
the
supported/sponsored
First
Innovation Forum for the care of elderly
people. The forum, that had more than
500 attendants, participants from 30
institutional alliances and 4 working
tables, received 1,500 views.
Childhood
In partnership with Banco de Alimentos,
Pilares, Casa Rafael.
• We donated 291,287 meals to Bancos de
Alimentos, for children and adults in a
vulnerable situation. Contributions for
that action came from the company itself
and from our customers.
•
to
the COPIF
• $ 333,440 were donated to Banco de
Alimentos under the sponsorship by Club
Supervielle that invited customers and
employees
support Banco de
Alimentos, Emprendedores Sociales and
Anpuy.
In partnership with Fundación Pilares and
together with
(Cuidados
Oportunos para la Primera Infancia en
Familia en Comunidad [Timely Care for
Small Children and their Families in their
Community]) program we mentored 120
children and their families living in slum
Villa 21-24 of the city of Buenos Aires in a
psychologically and socially vulnerable
situation. The program is intended to
promote the integral health of pregnant
women and children up to 5 years old,
promoting family strengthening, games
and a healthy nutrition.
• Together with Casa Rafael we promote
inclusion and resilience through art. More
than 250 children between 4 and 18
52
attend art and educational workshops
online, and approximately 140 families
residing
in La Boca neighborhood
received food bags.
for
• We organized the contest “Lápiz, Papel,
the children of our
creativity
the
ACCIÓN”
employees,
through picture
participation of 50 children.
to encourage
stories, with
Education
In partnership with Cimientos, Enseñar por
Argentina,
Consejo
Empresario
Fundación
Compromiso – Potrero Digital and Mayma.
Mendocino,
Bisblick,
Anpuy,
• Together with Cimientos we granted
scholarships to 71 secondary school
students from San Luis y Mendoza to help
In 2020 17
them complete school.
students graduated
from secondary
school in Mendoza.
• For the second year we granted a
scholarship to a talented underprivileged
student so that she may study at Liceo
Francés in the city of Buenos Aires.
• Together with Fundación Bisblick and
Anpuy we granted scholarships to 19
university
underprivileged
talented
students through a program that seeks to
offer equal opportunities. In 2020 2
students completed their Nursing studies
and Psychology professor
studies,
respectively.
• Together with Consejo Empresario
Mendocino we granted scholarships to 20
school heads on education management
and leadership. We sponsored two GAP
(Grupo de Apoyo entre Pares)[Peer
Support Group] tables, which were
attended by 23 school heads already
graduated from the program.
• First edition of the Mayma Mendoza
for training of social and
program
35
entrepreneurs.
environmental
entrepreneur
participated,
teams
together with 9 Banco Supervielle
volunteering mentors. 2 projects from
Mendoza received a special award at
national level.
• Together with Potrero Digital, Fundación
Compromiso and the Municipality of
Mendoza we financed the training of 197
people on Community Management and
Front End Programming.
• We sponsored the National Virtual Youth
Meeting where mock job interviews were
carried out by human
resources
volunteers, with the participation of over
400 youths from all over the country and
3 Supervielle volunteers.
In 2020 we sponsored the supplementary
training of 10 professionals of Enseñá por
Argentina, creating an impact on 1,200
students in 10 education communities.
•
• 123
in
participated
the
youths
“Construyendo mi
futuro” program,
aimed at introducing them to their first
job experience in Banco Supervielle. 46 of
the participants came
social
organizations and 77 were children of
Banco Supervielle employees.
from
Institutional Strengthening
In partnership with CIPPEC, GDFE, RIL.
• We supported CIPPEC in the design of
home office promotion policies
in
law, as
Argentina,
regulated.
line with the
in
de
Cuyo
consortium.
• Together with Fundación YPF, PetroCuyo,
Municipality of Lujan de Cuyo, RIL and
DGFE we founded the first public-private
Lujan
23
organizations participated together with
the consortium in 49 hours of meetings
and more than 80 hours of analysis and
development of a document on the
feasibility of the project for the Luján de
Cuyo logistics hub.
Art and Culture
Patronage
• Within the framework of the Patronage
Scheme of Cultural Participation we
contributed with $40,625,928.00 to 12
projects: 3 related to childhood, 2 related
to cultural heritage, 2
to
education, 2 related to theater, 1 related
to visual arts, 1 related to classical music
and 1 to websites of the city of Buenos
Aires.
related
Museo Moderno, Nuestra Señora del Socorro
church and Vergel
• We continued with our
institutional
support to annual programs of the Museo
de Arte Moderno de Buenos Aires
[Buenos Aires Modern Art Museum],
offering our customers artistic content
through guided virtual tours. 4 meetings
were held with an average attendance of
70 people each time.
53
• Within the framework of the Cultural
Participation Law, we made contributions
for the construction of the new Library of
the Modern Museum.
In the Nuestra Señora del Socorro church
some repair and maintenance works were
done in the church and conservation tasks
were carried out in the archives and the
choir of the church.
•
• Together with Fundación Vergel we
contributed to Hospital de Clínicas and
Hospital de Niños Dr. R. Gutiérrez
[Children Hospital] of the city of Buenos
Aires 70 kits with materials containing the
book "Xul Solar para pintar", Ronda
publishing house, 5 podcasts, 320 virtual
classes delivered by 3 artists.
Volunteering
their
• 190 volunteers participated in 9 social
initiatives, devoting
time and
commitment to the community. Our
volunteers -54% of which are women-
delivered talks and remedial teaching to
youths of Cimientos, Bisblick and Anpuy,
read to them the stories of the literary
contest Grandes Autores, Relatos Cortos,
in Construyendo Mi
acted as tutors
Futuro
of Mayma
entrepreneurs.
and mentors
Actions related to Covid-19 emergency
In 2020 we supported different initiatives to
fight against Covid-19, such as projects of
partner organizations intended to meet the
needs arising from the pandemic in the
communities in which we operate through
donation of food and medical supplies and
equipment for over $13 million, to wit:
• We
Banco
supported
the
(CARITAS,
campaign
de
#SeamosUno
Alimentos, CIAS-Compañía de
Jesús,
Consejo de Pastores Evangelistas de
CABA, AMIA, ACIERA- Alianza Cristiana de
la República
Iglesias Evangelistas de
Argentina and other organizations) that
took place in the city of Buenos Aires and
in the province of Buenos Aires. The aim
was to donate all together 1 million food
boxes for those most in need.
• Together with Fundación Conciencia
(campaign and volunteering) we donated
400 food bags and cleaning elements to
be distributed in the greater Buenos
Aires.
in Barracas
• We strengthened our partnership with
Fundación Pilares in slum Villa 21-24
(Conín Center)
located
through the donation of
food and
personal care items for 100 households
that are part of the Feeding Assistance
program.
•
•
• We supported Fundación Trauma with a
total of 20 scholarships for the virtual
training course PARES on critical care and
organization of health institutions in the
context of Covid-19.
In
the province of San Luis, we
cooperated with the purchase of medical
for health
equipment and supplies
centers of the province, such as face
masks, gloves, digital thermometers, face
shields and more than 30,000 surgical
face masks.
In
the province of Mendoza, we
cooperated with Consejo Empresario
Mendocino (CEM) and together with
other companies we donated
two
Emergency Service Units (ESU) to improve
the infrastructure of the health system in
the province. We also donated medical
and sanitary supplies to the municipalities
of Luján de Cuyo, San Martín and Las
Heras. Finally, we donated food through
Banco de Alimentos together with the
local authorities of the city of Mendoza as
well as
for underprivileged
students of the municipality of Godoy
they could continue
Cruz so
attending classes.
tablets
that
Actions to fight natural catastrophes
Fires in Córdoba and San Luis
• We made money donations to the fire
brigades of San Luis, Villa Mercedes and
Río IV (province of Córdoba), fighting
against the forest fires in the region.
Corporate Governance
We do business pursuant to the highest
corporate governance standards, promoting
transparency, ethical behavior, respect of the
principle of legality and sustainability of our
activities and those of our value chain.
Respect of the Principle of Legality
We regularly review the degree of compliance
with applicable laws and regulations and we
take
to correct
deviations.
the actions
required
54
In 2020:
• 86% of Banco Supervielle employees took
the course on Anti-Money Laundering
and Terrorist Financing.
Transparency
We provide clear, accurate and objective
information to allow interested parties to
impact of Grupo
accurately assess the
Supervielle’s decisions and activities on their
respective interests.
ETHICAL BEHAVIOR. We promote an ethical
behavior based on our value matrix and on an
integrity culture, both in development of our
activities and in the decision-making process
and in the interaction among our employees
and in the interaction with our focus groups.
C. BOARD OF DIRECTORS, STRUCTURE AND INTERNAL CONTROL
Board of Directors
The Board’s responsibility is to promote and review the general business and risk policies and
strategies and to control that measures are taken at management level to identify, monitor and
mitigate the assumed risks.
The Board’s duty is to manage Grupo Supervielle businesses and approve general policies and
strategies.
The Board of Grupo Supervielle is made up of three to nine directors. The Shareholders' Meeting
may also appoint the same number or less of alternate Directors.
At present, the Board of Directors is made up of eight members, with no alternate directors.
Chairman
Julio Patricio Supervielle
First Vice-Chairman
Jorge Oscar Ramírez
Second Vice-Chairman Emérico Alejandro Stengel
Directors
Atilio Dell’ Oro Maini
Eduardo Pablo Braun
Laurence Nicole Mengin de Loyer (1)
José María Orlando (2)
Hugo Enrique Santiago Basso
(3) Appointed by the Annual Special Shareholders’ Meeting held on April 28, 2020 to replace
Ricardo De Lellis, who resigned to the Board of Directors on such date.
(4) Appointed by the Annual Meeting held on August 12, 2020, to replace Victoria Premrou, who
resigned to the Board of Directors on such date.
Eduardo Pablo Braun, Laurence Nicole Mengin de Loyer and José María Orland are “independent”
directors pursuant to the provisions established by the Rules of the Argentine Securities and
Exchange Commission.
In 2020, the Board of Directors conducted the yearly self-assessment in line with the guidelines and
criteria of the Compensations and Appointments Committee and the Ethics, Compliance &
Corporate Governance Committee. As a result of such process, an annual report was prepared that
included, without limitation: the Board of Directors’ structure, culture, information and resources,
processes and dynamics and a self-assessment of each director on their performance in the Board
and in the committee in which they are members. Such report was sent to the Compensations and
Appointments Committee for their consideration.
55
Statutory Audit Committee
The Statutory Audit Committee is in charge of supervising and monitoring that the company’s
management of Grupo Supervielle S.A. is carried out according to law.
Statutory auditors are appointed by the Annual Shareholders' Meeting for a term of one year and
may be re-elected. Alternate statutory auditors take office in case of temporary or permanent
absence of statutory auditors.
As of this date, the Statutory Audit Committee is made up as follows:
Statutory Auditors
Enrique José Barreiro
Carlos Alfredo Ojeda
María Valeria del Bono Lonardi
Alternate Statutory Auditors
Carlos Enrique Lose
Roberto Aníbal Boggiano
Jorge Antonio Bermúdez
Corporate Governance
The Code of Corporate Governance adopted
by Grupo Supervielle seeks to reflect the best
corporate governance practices based on
stringent standards of complete information,
efficiency, control, ethics, investor protection,
equal treatment of investors and corporate
transparency, so as to create and preserve
its shareholders,
value
customers, employees and the general public.
the Bank,
for
The Code of Corporate Governance adheres
to the guidelines of the Rules of the Argentine
Securities and Exchange Commission (CNV
Rules). The Code also follows the guidelines of
the Central Bank of Argentina, which are
observed by its subsidiaries Banco Supervielle
and Cordial Compañía Financiera (in process
of change of name to “IUDÚ Compañía
Financiera”).
C.1. Board Committees
C.1.1. Audit Committee
The audit committee has no executive duties
and acts pursuant to the provisions of the by-
laws, the Internal Rules and the applicable
laws, in particular the Capital Markets Law,
the Rules of the Argentine Securities and
Exchange Commission, the rules of the U.S.
Securities and Exchange Commission, the
governance standards of the New York Stock
Exchange,
the
Superintendence of Insurance, the standards
of Bolsas y Mercados Argentinos S.A., the
Minimum
Internal Control Rules of the
Central Bank of Argentina and the resolutions
resolutions
the
of
Grupo Supervielle also adopted a Code of
Ethics that establishes the main guidelines of
professional performance and moral conduct
and for all employees of the Bank and their
suppliers and other stakeholders.
Rights of Minority Shareholders
For Grupo Supervielle, it is important that
minority
shareholders have an active
participation at their Shareholders’ Meetings.
Grupo Supervielle’s commitment is to ensure
that minority shareholders exercise their
rights. Therefore, there are no restrictions
whatsoever on
their participation at
Shareholders’ Meetings. The Board of
Directors
voting
recommendations and/or notify shareholders
of any motion proposed for consideration at
the Shareholders’ Meeting.
introduce
may
of the Financial Information Unit, among
other control agencies.
The Audit Committee is in charge of assisting
the Board in the supervision of financial
statements and the control of compliance
with the policies, processes, procedures and
rules set forth by Grupo Supervielle S.A. and
its subsidiaries.
The Audit Committee is made up of three
independent directors pursuant to the criteria
of the Argentine Securities and Exchange
Commission.
56
C.1.2. Anti-Money Laundering and Terrorist
Financing Committee (AML and TF).
and
Terrorist
Grupo Supervielle has an Anti-Money
Laundering
Financing
Committee, in charge of verifying compliance
with current regulations on anti-money
laundering and terrorist financing applicable
directly and at subsidiary level, to ensure that
Grupo Supervielle and its subsidiaries have an
adequate compliance level in line with the
best practices in that matter.
The Anti-Money Laundering and Terrorist
Financing Committee is made up of two
directors (one of whom is the Corporate
Compliance Officer with UIF and Chairman of
the Committee and the other is the alternate
compliance officer) and the Chief of Anti-
Money Laundering and Terrorist Financing
area.
C.1.3 Risks Committee
rate,
institutional
The Risks Committee’s is in charge of dealing
at
level with strategies and
policies applicable to the management of
liquidity,
interest
credit, market,
operational and any other risks that may
affect Grupo Supervielle and its subsidiaries
and submit to the Board of Directors, for
approval, the strategy and policy documents
on risk management. Besides, it is in charge of
defining the risk appetite and tolerance levels
of Grupo Supervielle at consolidated level and
of approving the threshold and limit structure
for risk management. It must also evaluate
the capital adequacy ratio, analyzing the
Annual Capital Self-Assessment Report (IAC),
as well as defining
the policy and
methodological framework for stress tests as
part of the risk management of Grupo
Supervielle.
The Risks Committee is made up of at least
two directors, the CEO, the CFO and the CRO.
C.1.4 Ethics, Compliance and Corporate
Governance Committee
The Ethics, Compliance & Corporate
Governance Committee is a body of Grupo
Supervielle, the decisions of which are also
applicable to all its subsidiaries and is in
charge of assisting the Board of Directors in
the adoption of
corporate
governance practices to maximize the growth
capacity of Grupo Supervielle and
its
subsidiaries and to prevent value destruction.
It is also in charge of assisting the Board of
Directors in the supervision of the ethics &
compliance program.
the best
It is made up of at least two directors, the
Compliance Officer, the Head of Legal Affairs
and AML, the CRO, the Head of Internal Audit
and the Head of Corporate Affairs.
C.1.5. Nominations
Committee
and Remuneration
The
Nominations and Remuneration
Committee is a body of Grupo Supervielle, the
decisions of which are also applicable to all its
subsidiaries, and is in charge of assisting the
Board of Directors in matters related to the
appointment of Directors and senior officers
and succession plans; compensation policies
for the Board members and senior officers
and employees in general, and in human
resources,
performance
assessment policies (including bonuses and
variable compensation.)
training
and
This Committee is made up of at least three
non-executive directors. The chairman of the
Committee must be an independent director
pursuant to the criteria of the Argentine
Securities and Exchange Committee.
C.1.6. Information Disclosure Committee
The Information Disclosure Committee is a
body of Grupo Supervielle, the decisions of
which are also applicable to all its subsidiaries,
in charge of ensuring the timeliness, quality
and transparency of the relevant information
of Grupo Supervielle S.A. and its subsidiaries
that must be disclosed to holders of company
securities and the markets where those
securities are listed.
It is made up of at least three directors of
Grupo Supervielle (including the Chairman of
the Audit Committee), the CEO, the CFO, the
Investor Relations Officer, the Chief of Legal
Affairs and AML, the Head of Internal Audit
and the company’s accountant.
C.1.7. Fintech Investments Committee
The Fintech Investments Committee is in
charge of analyzing and making decisions
about the company’s participation in fintech
endeavors, and related products and projects,
including the execution of cost estimates and
investments for each endeavor and the follow
up of their evolution.
The Fintech Investments Committee is made
up of at least one director and other officers
of the Company or its subsidiaries.
C.1.8 Cybersecurity Committee
Cybersecurity
The
Committee’s main
objective is to assess and implement the
57
information
policies proposed as regards
in particular, cybersecurity,
security and,
including among them the definitions of risk
appetite and information security risk map. In
addition, the Cybersecurity Committee must
see to the compliance of such policies,
including the contingency plan for the
cybersecurity events.
The Cybersecurity Committee is made up of
two directors, the CEO of Grupo Supervielle,
the CEO of Banco Supervielle, the Head of
the CIOs of Grupo
Technology and
Supervielle’s companies, the CRO and the
CISOs of Grupo Supervielle’s companies.
C.1.9 Committee
Operations with Related Parties
for
the Analysis of
in charge of monitoring
The Committee for the Analysis of Operations
with Related Parties is a body of Grupo
Supervielle with consultation and supervision
powers
that
transactions among affiliates are in line with
the Policy for Approval of Transactions with
Related Parties, Connected Counterparties
and Related Persons and sees that they are
carried out in a transparent way and pursuant
to the provisions of aplicable regulations.
It is made up of at least one director (which
must be the Chairman of the Ethics,
Compliance and Corporate Governance
Committee), the CEO, the CEO of the affiliate
involved in the transaction, the CCO, the Chief
of Legal Affairs and AML, the Compliance
Officer, the CRO and the Head of Treasury.
C.2. Compensation Policy for the Board of Directors and Senior Management
The members of the Board of Directors and of
the Statutory Audit Committee receive
compensation
performance
pursuant to the provisions of the Argentine
Companies Law and the rules of the Argentine
Securities and Exchange Commission.
Information relating to design and
structure of compensation processes
their
for
total
The
compensation of Directors
determined or approved by the Annual
Shareholders' Meeting pursuant to Section
234 of the Argentine Companies Law, cannot
exceed the limits established by the CNV and
by Section 261 of the Argentine Companies
Law.
If the performance by any Director of
technical and administrative tasks justifies
payment of compensation in excess of the
amounts established by the CNV, said
payments may only be made if they are
expressly agreed by
the Shareholders’
Meeting, to which end the matter must be
in the agenda of the Annual
included
Shareholders’ Meeting.
The total of compensations paid to Directors
of Grupo Supervielle, paid or accrued for by
Grupo Supervielle S.A. or its subsidiaries,
amounted in 2020 to $296,166,238.17.
The Compensations and Appointments
Committee is in charge of approving all
incentive systems and of determining fixed
compensation policies and performance
assessment
Senior
Management and other members of the staff,
excluded the members of the Board of
Directors. The most relevant features of the
system are:
systems
the
for
The underlying concept of the compensation
its
structure of Grupo Supervielle and
subsidiaries is to strike an adequate balance
between obtaining results and managing risks
in general. The design of compensation
remunerating and
processes aims at
recognizing employees’ contribution to the
achievement of individual, unit and company
goals
in an environment of healthy
competition and merit and performance-
based payment, within a robust risk control
framework.
Description of the measures which take into
account
in
current and
compensation processes
future
risks
The variable component of the compensation
of Grupo Supervielle executive officers is
determined considering the achievement of
individual objectives, those of their business
units and the goals of each company, as well
as the achievement of specific goals aimed at
keeping the different risks within the desired
thresholds.
Some of the risks considered in the
incentives plans include:
1) Credit Risk
The objectives of
the Credit and
Commercial areas of Personal and
Business Banking and of Corporate
Banking are to keep credit risk below
(i)
desirable parameters, such as:
delinquency; (ii) percentage of non-
performing portfolio (determined by the
58
Board of Directors) over total portfolio,
and (iii) loan loss provisions, among
other.
2) Strategic Risk
The objectives of the Chief Executive
Officer and CFO are to alert about any
deviations from the main performance
variables of the bank’s finances vis-a-vis
the annual plan, and to take measures to
adjust said deviations.
3) Market, Liquidity, Rate and Securitization
Risk
The objectives of the Bank’s Head of
Treasury and Global Markets are to
achieve profitability targets by executing
miscellaneous operations within a
framework that ensures that risks
ranges
assumed are within
accepted by the Bank and those
permitted by the regulatory body.
those
Profitability is determined by the applicable
policies
financial area and are
monitored by the Assets and Liabilities
Committee (ALCO)
in the
Description of the method implemented by
Grupo Supervielle and
its subsidiaries to
calculate performance-based compensation
during the evaluation period.
department
Each
compensation
has
a
scheme based on
variable
the
calculation
achievement of
individual objectives and
those of the company. Individual objectives
define a performance score that impacts on
compensation.
the
Achievement of
the
company and/or business unit is an indicator
for
increasing or reducing the variable
incentive amount.
the objectives of
of
Variable compensation schemes for risk
takers take into account among the objetives
and expected results compliance degrees of
the risk level which are monitored to define
whether the determined risk appetite was
met or not.
Description of the method implemented to
adjust compensation taking into account long-
term performance (including the deferral
policy of the organization)
Grupo Supervielle established for certain
senior executives a long-term performance
bonus, which is paid by way of a retirement
insurance policy. This program was not
applied in 2019 or in 2020.
Description of the different types of variable
compensation used by Grupo Supervielle and
its subsidiaries and justification of same.
Variable compensation is only paid in cash, in
the understanding that this is the most direct
and convenient way of compensation.
Departments Reporting to the Board of Directors
SOX /Internal Control Department
the
created
Supervielle
Given its condition of foreign issuer before
the US Securities and Exchange Commission,
Grupo
SOX
Department, reporting directly to the CFO of
Grupo Supervielle to ensure alignment with
the criteria outlined in the “Internal Control
Framework” issued by the Committee of
Sponsoring Organizations of the Treadway
Commission (“COSO” Report) and meet the
requirements of Sections 302, 404 and 906 of
the Sarbanes Oxley Law (SOX). Its main
activities during 2020 were:
a) Definition of the annual scope of the SOX
certification process, and generation of
control matrix supporting said processes.
b) Inclusion of the accounting and financial
reporting processes of
companies
acquired by Grupo Supervielle during this
year in the annual certification process.
c) Monitoring of compliance with
the
execution of controls defined as key for
each process.
d) Advice for the continuous incorporation
of the best internal control practices for
the main processes of Grupo Supervielle’s
companies.
e) Continuous
training
Grupo
personnel,
companies’
Supervielle’s
including the duties and responsibilities
of each line of defense.
Implementation of remediation actions in
case of deviations detected by the
internal or external audit.
of
f)
Additionally, the Head of SOX certification of
Grupo Supervielle was
included as a
permanent guest in the Operational Risks
Audit
the
Committee
Committee.
Internal
and
59
At the end of 2020 no material control
deficiencies had been reported that should be
informed to the Internal Audit Committee and
Compliance Department
During 2020, the Compliance Department,
independent of the business and reporting
directly to the Ethics, Compliance and
Corporate Governance Committee of the
Board of Directors, continued working to
expand the culture of integrity of Grupo
Supervielle, focused on the following pillars:
Regulatory Compliance
The Regulatory Risk Assessment started in
September 2019 was completed; 700
statutory obligations were mapped and 613
statutory
assessed
obligations were
applicable to the companies of Grupo
Supevielle. The assessment yielded a positive
result as regards the acquisition of knowledge
and compliance by the different areas of the
regulatory obligations assigned to them.
Processes and procesedings associated with
the obligations assessed were reviewed and
action plans were established in those cases
in which deficiencies were identified.
Ethics and Values Line
In 2020 the Compliance Department received
and handled 55 reports through the Ethics
and Values Line. All reports were investigated
and handled with the different sectors
from
plans,
through
reinforcement of values and coaching to
reported
of
to
employment if necessary.
termination
persons
ranging
action
Product Governance
D. RISK GOVERNANCE
Grupo Supervielle promotes a strong and
efficient organization in risk management, an
adequate framework to optimize the use of
capital and identify good opportunities in
business, markets and geographic areas in
which it operates, seeking the best risk-
benefit ratio for their shareholders. Risk
management
the whole
is a duty of
organization and provides the framework
within which our vision is developed to
become an innovative and customer-centric
entity recognized for its agile, simple and
friendly operation, promoting a robust risk
culture.
that should be included in the accounting
reports submitted to the SEC.
The Committee of Product, Service and
Channel Approval of approved the launching
of 4 products.
Review continued of the Sales Quality
Program implemented in 2018.
Training
In 2020 a new training methodology was
implemented through the publication
in
Workplace of ads related to the different
topics of the Code of Ethics and of postings on
awareness on specific topics.
The Code of Ethics aspects that were dealt
with included Conflict of Interests, Gift Policy,
Use of Social Media, Confidential Information,
Customer Policy, Fair Treatment, Diversity
and Respect.
in”,
20 postings were made on awareness which
dealt with the following themes: “What we
believe
vs.
“Act Right”,
Compliance” and a specific posting on the
“International Day against Corruption”. Such
postings obtained 938 likes and 14000 views
by employees.
“Ethics
In addition, training sessions were carried out
on “Obligations
the Marketing of
Investment Products” and “Compliance &
Good Practices”.
in
The Compliance Department
continues
working in line with the best market practices
to guarantee transparency and a proper
conduct by its employees and the company.
related
to good
The Central Bank of Argentina issued relevant
guidelines
corporate
governance practices and risk management
for financial entities, which have been fully
complied with by the entity. The Board of
Directors of Banco Supervielle considers that
the guidelines and criteria
the
comprehensive management of the Banks’s
risks are critical components of
their
corporate governance structure. The risks to
which the entity is exposed are those typical
in the banking activity, such as the credit risk,
the market risk, the interest rate risk, the
liquidity risk, the securitization risk, the
operational and technological risks, the
for
60
reputation and strategic risks in addition to
those related to cybersecurity which are
becoming increasingly common.
The
is
Information Security Department
included in the Risk management structure of
Grupo Supervielle, which deals with the
protection of
information assets and
establishes mechanisms for the management
and control of logical security on the different
technological
its
information resources.
environments
and
is responsible
The department
for the
protection of information assets and for the
implementation
and
management
maintenance
policy
the
established by the Board of Directors of
Grupo Supervielle.
security
of
of
Information Security management includes
different aspects such as: strategy, policies,
practices, procedures and organization
structure which are required by Grupo
identification,
Supervielle’s companies for
analysis,
measurement,
mitigation and monitoring of cybersecurity
risks.
assessment,
for
Risk Governance
Pursuant to the guidelines set forth by the
Central Bank of Argentina
risk
management and corporate governance,
Banco Supervielle
risk
management program which introduces the
new local regulations and the guidelines
recommended by the Basel Committee on
Banking Supervision.
implemented a
the correct alignment of
The Board of Directors of Grupo Supervielle
defined a Corporate Governance model to
ensure
the
management of the business units with a
control and risks environment according to
international standards. Thus, at Grupo
Supervielle, holding company of Banco
Supervielle, the organizational structure is
defined as follows:
2020 was a highly challenging year for the
Information Security Department, with an
increased control on decisions and knowledge
on the maturity level of cybersecurity in the
group’s companies.
In addition, various activities and projects
were carried out to improve the security of
group companies, such as implementation of
resources for information security in group
companies, creation of an
information
security committee in charge of analyzing
cybersecurity issues, purchase of a global
cyberinsurance, definition of improvements
to be developed together, maturity model,
etc.
By the end of 2020, the Risks Committee
approved a set of regulations establishing
specific controls to investments, liquidity and
indebtedness, covering Grupo Supervielle and
its affiliates. These policies introduce new
limit the risk appetite at
elements that
level and are additional to
consolidated
already existing elements, mainly
in the
financial entities of Grupo Supervielle (Banco
Supervielle and Cordial Compañía Financiera).
a) The CFO (Chief Financial Officer) of Grupo
Supervielle, reports directly to the CEO of
Grupo Supervielle, to ensure an adequate
management control framework and to carry
out all the duties related to information that,
as public company, must provide to current
and prospective shareholders.
b) The CRO (Chief Risk Officer) of Grupo
Supervielle, in charge of the Corporate Risk
Department, reporting directly to the Board
of Directors of Grupo Supervielle, and in turn
to the Board of Directors of Banco Supervielle,
is also the CRO of Banco
since he/she
Supervielle. Thus, the principle of good
corporate governance of separating business
management from risk management, is met.
The risk governance structure is completed with the Board Committees and Senior Management of
the specific areas.
61
Risks Management in Banco Supervielle
Corporate Principles for Risk Management
The risk management of Banco Supervielle is based on five pillars which are the general principles
described below:
Pillar I:
Pillar II:
Pillar III:
Independence between risks control and business and management functions.
Risk control and management integrated in a highly professional corporate
structure.
Decision making by a multi-member body with a high involvement of the Board of
Directors and the Senior Management.
Pillar IV:
Risks in line with the Risk Appetite defined by the Board and constantly monitored.
Pillar V:
Risks management based on three lines of defense and a comprehensive vision at
Grupo Supervielle level.
2020 Risks Management Highlights
The 2020 risks management highlights are
described, by Department reporting to the
CRO.
By way of summary, the main duties of these
Departments include:
• Corporate Financial Risk Department, in
charge of the management of market,
interest rate, liquidity and securitization
risk and of the preparation of the annual
capital self-assessment report.
• Corporate Credit Risk and Stress Test
Department,
in charge of credit risk
management, including the development
of Grupo Supervielle scoring and rating
models, PD, EAD and LGD parameters
estimation and monitoring/review of
credit portfolio. It is also in charge of the
implementation of comprehensive stress
tests and risk adjusted profitability
models. This area also develops duties
related to the calculation of loan loss
provisions and accounting
charges,
among other.
• Corporate
Non-Financial
Risks
Department: in charge of operational,
technological,
environmental,
reputational and supplier risks. It is also in
charge
continuity,
comprehensive fraud management and
internal control testing.
business
of
• Corporate
the
includes
Security
Information
Department: as from August 2019, Banco
Supervielle
Information
its risks
Security Department within
management structure. This department
is
the protection of
information assets and establishes
mechanisms for the management and
control of the logical security of the
different technological environments of
the Bank and its information resources.
in charge of
62
Credit Risk and Stress Test
Credit Risk (standalone balance sheet of Banco Supervielle)
Credit Risk is the possibility that an Entity
suffers losses and/or impairment of its assets
as a result of non-performance or irregular
performance of its debtors or counterparties
with the terms agreed on the credit
agreements. Any event that
implies an
impairment of the current value of credits
granted
risk,
considered a
irrespective of whether there is or not an
actual non-performance by the counterparty.
credit
is
The Bank has customer scoring models
intended to determine the maximum risk
limits which is willing to assume, establishing
credit facilities, the contract terms and the
guarantees to be posted. To such end, the
Entity uses Scoring Models and Rating Models
to manage the Credit Risk to obtain an
objective score for each customer, which is
then associated with a probability of default
(PD). These models are used for decisions
related to loan granting and the associated
limits, and later for loan pricing. Such models
and their cut off are key for loan granting
policies.
Banco Supervielle reports are reviewed by the
Risks Committee and the Board of Directors.
Such reports analyze the credit risk and the
entity’s evolution in terms of exposure at
different granularity
(Commercial
Banking, Segments, Teams, Products, etc.)
levels
indicator approach
As regards Risk Appetite, the Entity has a Drill
including: NPL
Down
(Non-Performing
Loan), Non-Performing
Portfolio Coverage Ratio and Cost of Risk. In
addition, during 2020 the entity developed a
portfolio
to
concentration at standalone and economic
group level, debtor concentration, supplier
value chain, economic activity, facility risk
rating and foreign currency exposure.
scheme
related
limit
Stress Test
in Financial
In compliance with the “guidelines for risk
management
Institutions”
established by the Central Bank of Argentina,
Banco Supervielle developed a stress test
program within the framework of the Entity’s
risks management. Such program evolved
tools and
with
methodologies.
the new upgrades
to
Stress tests show the risk profile of an Entity
and its resilience to internal and/or external
disturbances and are used together with
other risk management tools in the decision
making process.
Stress tests are defined as the assessment of
the economic/financial situation of the Entity
Additionally, Banco Supervielle implements
RAROC Measurement and Management
methodologies with the aim of monitoring
the risk-profitability ratio of its businesses.
by
2020
Banco
Throughout
Supervielle
continued working on developments that are
part of the RAROC project to estimate the
risk-adjusted
product,
profitability
customer and operation. In line with the Basel
Accord principles and the provisions of
Communication “A” 5398, as supplemented,
of the Central Bank of Argentina, these
developments promote the inclusion of costs,
internal pricing
income and risks
system, in performance measures and in the
new product approval process.
in the
In connection with scoring and rating models,
Machine
Learning methodologies were
analyzed.
In 2020 an income prediction model and a
new rating model were estimated, a behavior
scoring model
for Previsional, Mercado
Abierto and Plan Sueldo was reestimated as
well as the admission model to Mercado
Abierto, and a quarterly monitoring was
implemented for model performance by the
Risks Committee.
IFRS 9,
Progress was done on the expected credit loss
approach under
focusing on
improvements on parameter estimate
methodologies (PD, EAD and LGD), aligning
parameter definitions to the credit process.
The forward looking model was redesigned to
include a greater number of variables and
breakdowns. In addition, pandemic effects
were evaluated and
in the
calculation of the expected credit loss.
incorporated
Finally, the current validation plan of the
implemented models continued.
vis-a-vis various adverse yet possible
scenarios in order to know and analyze the
Bank’s capacity to face those scenarios and
their associated impact.
Stress tests are mainly important to:
• Provide a prospective risk assessment;
• Overcome model and historical data
limitations;
• Support
external
and
internal
communication;
• Establish capital and liquidity planning
procedures;
• Determine risk tolerance levels;
63
• Develop contingency and risk mitigation
plans in possible stress situations.
During 2020, work was done on credit risk
risk models
sensitivity
financial
and
Financial Risks
Banco Supervielle includes within Financial
Risks the following:
•
Liquidity Risk and Risk of Concentration of
Funding Sources
Interest Rate Risk
•
• Market Risk
(price, exchange
rate,
interest rates and options)
• Securitization
risks
securitization activities and
credit and interest rate risks)
(including
involved
associated to pandemic scenarios and their
effect on the different economic activities, as
well as the impact of high inflation scenarios.
The Risks Management Committee delegates
the implementation of policies and strategies
related to these risks to the Assets and
Liabilities Committee (ALCO), which is made
up of senior officers and members of the
business units where the
financial risk
originates, and provides an adequate
interdisciplinary scope
for an expedited
consideration of changes in market conditions
which may alter the exposure to financial risk.
Liquidity Risk and Risk of Concentration of Funding Sources
Liquidity Risk
Banco Supervielle developed a system to
manage
and Risk of
Concentration of Funding Sources which
includes risk appetite that define the risk
levels and types the entity is willing to assume
to carry out the budget plan without relevant
deviations, even under stress.
Core metrics used
management include:
for
liquidity
risk
•
Liquidity Coverage Ratio (LCR): measures
liquid
the ratio between high-quality
assets and total net cash outflows during
a 30-day period. Banco Supervielle
calculates this ratio on a daily basis. The
regulatory estimated minimum value as
well as the internally established ratio
according to the risk appetite were met
during the year.
• Net Stable Funding Ratio
(NSFR):
measures Banco Supervielle’s capacity, at
standalone and consolidated level, to
fund its activities with sufficiently stable
sources to mitigate the risk of future
stress situations deriving from its funding.
Banco Supervielle calculates this ratio on
a daily basis. The regulatory estimated
minimum value as well as the internally
established ratio according to the risk
appetite were met.
this
• Coverage of Interest-Bearing Demand
Accounts and Early Withdrawal Time
Deposits:
to
concentration of funding sources, seeks
to limit dependence on unstable funding
sources in illiquid scenarios, either of an
idiosyncratic or systemic nature.
related
ratio,
to disaggregate
Additionally, daily monitoring is carried out
on follow-up metrics by the Assets and
Liabilities Committee (ALCO). Such indicators
intend
the main LCR
components through the assessment of the
entity’s liquidity and warning about possible
trend changes that might jeopardize the
the
guidelines on
the
monitoring
Committee assesses the availability of liquid
assets in case of an outflow of more volatile
deposits, such as interest-bearing demand
accounts and the public sector deposits in
foreign currency.
risk appetite. With
dashboard,
indicators
local financial market
During 2020, the
operated with high liquidity levels following
the impact of the restrictions on mobility, the
fall in the economic activity level and the
currency issuance by the BCRA to aid those
sectors most affected by the COVID-29
pandemic. The monetary authority used
LELIQs and Reverse Repurchase transactions
to absorb liquidity derived from the initial
strong growth of the monetary base. In line
with
the aforesaid, Banco Supervielle
experienced a strong growth of demand
deposit accounts, both from retail and
institutional customers.
US dollar liquidity grew throughout the year.
On the one hand, a strong fall of deposits in
the system which had started in August 2019
diminished slowly until
it reversed and
showed slight positive monthly variations by
late 2020. This combined with an active
management of collection of US dollar
denominated loans, which was reflected in a
64
significant fall of balances in this balance
sheet item.
Interest Rate Risk
This type of risk is the potential impact of
fluctuations in the interest rate prevailing in
the market on the interest margin and the
Bank’s economic value.
Banco Supervielle uses the interest rate gap
analysis to manage the interest rate risk. This
analysis presents a basic representation of
the balance sheet structure and detects
interest rate concentrations at different time
periods. The gap accumulated during the first
ninety days draws special attention as it is the
holding period used for assessing the interest
rate risk exposure, and due to its importance
to assess the actions that may modify the
balance sheet structure.
The management of balance sheet interest
rate risk seeks to maintain the Bank’s
exposure in line with the risk appetite profile
accepted by the Board in case of interest rate
movements in the market.
With this goal in mind, the interest rate risk
management depends on the monitoring of
two metrics:
• MVE – Var Approach: measures the
difference between
the estimated
economic value with the market interest
curve and the estimated economic value
with the interest rate curve arising from
the
stress
simulation of different
scenarios. This is the approach used by
the entity to calculate the economic
capital arising from this risk.
• NIM – EaR Approach: measures the
change
for a
in expected accruals
specified term (12 months) in case of a
shift of the interest curve originated in a
simulation of different stress scenarios.
Following the publication of Communication
“A” 6397, the Central Bank of Argentina
described the guidelines applicable to the
interest rate risk in the investment portfolio.
The rules make a distinction between the
impact of fluctuations in the interest rate
levels on the underlying value of assets,
liabilities and the entity’s off-balance sheet
items (economic value or MVE by its acronym
in English) on the one hand, and the
alterations that might be caused by such rate
movements on income and expense sensitive
to them, affecting the net interest income
(NII). As aforesaid, this same criterion was
used by Banco Supervielle at standalone and
consolidated level so that the new rules
to
implied a readjustment of the management
model
the proposed measurement
methodology, maintaining certain criteria and
including others.
Banco Supervielle must use the Standardized
Framework described
in para. 5.4. of
Communication “A” 6397 for measurement of
the impact of six fluctuation scenarios on the
economic value of entities (∆EVE). These
scenarios include parallel up and parallel
down changes in market interest rate curves,
flattening or steepening of such curves, as
well as short term rate up or down. A market
is considered for every
rate base curve
significant currency of each entity’s balance
sheet. As Banco Supervielle belongs to Group
“A” of financial institutions, pursuant to the
classification provided for in para. 4.1. of the
rules on “Financial Institution Authorities”, at
standalone and consolidated level it must use
an internal measurement system (IMS) for
the(∆NIM). As Banco Supervielle
is not
temporarily rated by the Central Bank of
Argentina as of local system relevance (D-SIB),
it is not bound to have its own internal
measurement system (IMS) for the economic
value-based measurement (∆EVE).
(∆EVE) and on
Irrespective of regulatory provisions, Banco
Supervielle has been working with internal
measurement systems (SIM) to measure de
impact of rate changes, both on the economic
value
(∆NIM).
Development of these systems included the
the
establishment of assumptions
determination of the maturity of different
items of assets and liabilities that do not have
a defined maturity or with implied or explicit
behavior options.
income
for
During 2020, a material methodological
change was introduced as the entity decided
to align with the provisions established in the
Standardized Market in relation to UVA-
adjusted assets and liabilities, and ceased
considering them as sensitive to the interest
rate risk in the calculation of risk calculation
with internal measurement systems (IMS).
Following good practices in terms of risk
management and to prove the need to adjust
internal models, a backtesting methodology
was developed for results obtained through
the economic capital measurement tool for
interest rate risk (MVE-VaR approach). In
65
particular, an assessment
is made of
estimated discount rates for the critical
scenario.
Market Risk
Banco Supervielle defines Market Risk as the
risk from deviations in the trading book value
as a result of market fluctuations during the
period required to settle portfolio positions.
The measurement, control and follow up by
the Financial Risks Department encompasses
transactions with a risk of loss of the Entity’s
equity, at consolidated and standalone level,
as a result of changes in market factors. This
risk derives from the changes in the risk
factors under analysis (interest rate risk,
exchange rate risk, equity risk and options
risk), as well as liquidity risk of the different
products and markets in which the Entity
operates.
Due to its business profile, Banco Supervielle
is the entity with the greatest exposure to this
risk, while Cordial Compañía Financiera has a
much lower exposure, more associated with
the Entity’s liquidity management. For such
reason, market risk controls of Banco
Supervielle’s trading book are more detailed
and thorough.
In order to measure risk of the different
positions and establish a structure of limits
and thresholds for management and control
purposes, Banco Supervielle uses the VaR
(value at risk) model, which is the maximum
expected loss in the value of a financial assets
portfolio in normal market conditions over a
determined time horizon and subject to a
specified level of confidence. On this basis,
indicators are defined to detect the level in
which a potential market risk may be
identified so as to take preventive action.
As regards market risk, focus is on the trading
book managed by the Trading Desk of Banco
Supervielle, although a more stringent control
is carried out which
liquidity
management positions. Thus, regarding a
more comprehensive trading book, controls
are limited to the risk exposure assumed, as
per the VaR methodology, in relation to the
Regulatory Capital (RC).
includes
Controls on the Trading Desk of Banco
Supervielle are more stringent. The approved
strategies and policies are reflected in what is
internally known as Uniform Risks Map, which
explains in detail the transactions that the
Trading Desk is authorized to carry out. That
document refers to the control framework
applicable to the Entity’s risk appetite. Thus,
limitations are set on the position of certain
rate gap measurement
The
tool was
improved, enabling sensitivity analyses in a
year featured by a changing context and
several regulations which altered financial
margins.
portfolio, maximum
financial instruments, maximum VaR on the
loss
diversified
admissible before implementation of a stop
loss policy and conditions that could give rise
to the implementation of a stop gain strategy.
This control scheme is supplemented by
action plans that must be implemented when
those limits are exceeded.
The Financial Risk Department compares the
profitability obtained with the implied risks
based on the daily report provided to the
Trading Desk for monitoring the assumed risk
the diversified VaR
exposure. When
methodology is used, information must be
supplied related to the contribution made by
each portfolio asset to the aggregated VaR
measurement and basically if such asset
generates risk diversification or not. For such
reason, the variables referred to in the daily
report include the VaR component of each
asset, enabling a sensitivity analysis of the
impact of each asset on the total risk
exposure.
To contribute to the assumed risk analysis
with alternative measurement metrics
capable of mitigating the usual criticism on
the VaR methodology, Banco Supervielle
recognizes the change in market conditions
on risk exposure through an adjustment of
volatilities used in the VaR. According to the
returns on assets
methodology used,
recorded on most recent dates have a greater
impact on the calculation of volatilities.
Concurrently, the Entity makes an assumed
risk measurement and follow-up with an
Expected
thus
analyzing the universe of unexpected losses in
the distribution tail beyond the critical point
indicated by the VaR.
Shortfall methodology,
In a year featured by the sovereign debt
restructuring process and by the uncertainty
arising from the COVID-19 pandemic and its
effects on the economic activity, the foreign
exchange and bond market was subject to a
In this framework, risk
strong volatility.
management was satisfactory, market risk
was always below established VaR limits, and
very good results were achieved
in the
portfolios managed by the Trading Desk and
Financial Planning. Taking into account the
changing market
conditions, quarterly
reviews of risk appetite were carried out
throughout the year to debate and adjust risk
tolerance, if necessary.
66
Non-Financial Risks
During 2020 the rating of operational and
technological risks improved with a new score
system, with more categories for a greater
In addition,
these risks.
granularity of
Operational
Incident Reports (OIR) were
implemented so that the applicable areas
may carry out surveys and follow-up of
operational incidents until their resolution.
Finally, with regard to operational risk,
management information migrated to the
Archer app, which has an online dashboard
for all risk correspondents.
In connection with business continuity plans,
tests and drills were carried out throughout
the year on continuity strategies and action
protocols at branches related to COVID-19
pandemic plan.
In addition, the annual
Technological Recovery Plan drill was carried
Information Security
The Information Security Area is responsible
for the information assets protection and for
the implementation and maintenance of the
security policy established by the Bank’s
Board of Directors.
into account
The guidelines for management of Banco
Supervielle’s information security generally
the provisions of
take
Communications “A” 4609, “A” 6375 and
companion provisions of the Central Bank of
Argentina which are the framework for the
management of matters related to the
protection of IT assets and the management
of Operational and Technological risk.
of
strategy,
Information
policies,
Security
Management
includes:
practices,
procedures and organization structure which
Banco Supervielle must rely on to identify,
analyze, assess, measure, mitigate and
monitor cybersecurity risks.
the
2020 was highly challenging
Information Security Department. At context
level, three large events had an impact on
management actions.
for
• The Covid-19 pandemic had a strong
impact on the Bank’s existing operating
scheme Initially, the team focused on
operational changes, facilitating remote
access – VPN – to most of the personnel
and setting up new security and
communication equipment options to
provide support to this new work model.
out more comprehensively with all systems
and services operating in contingency mode.
to
respect
With
fraud management,
improvements were implemented to certain
controls in terms of prevention and in the
raising of awareness for in-house staff and
customers.
sustainable
in Argentina.
Finally,
in connection with social and
environmental matters, we participated in
different
protocol
finance
In addition, we
meetings
continued reviewing cases and reporting to
the Operational Risks Committee, on a
monthly basis, the portfolio status including
social and environmental risk levels, with an
indicator of
restricted companies, and
training was delivered to company, credit and
transaction officers on the new topics to be
considered.
technological
infrastructure
• The exponential growth of cyberattacks
by expert hackers. As a result of the
pandemic, the use of digital channels and
remote work increased, companies at
global and local level were affected by
major cyberattacks. To face such situation
we launched different actions to protect
–
our
antivirus upgrades, ethical hackings,
vulnerability detection process upgrades,
etc. - and our customers. Three material
actions were: a) hiring of a Threat
Intelligence service, to proactively detect
attacks against its key executives, data
infrastructure attacks, etc.; b)
leaks,
hiring of a cyberinsurance at Grupo
Supervielle level, in addition to the Bank’s
comprehensive insurance against digital
the
attacks; and c) expansion of
protection shield
for service denial
attacks for internet apps.
to
join
carried
• Acceleration process related to Digital
Transformation and
IT Department
transformation. Several actions and tasks
were
the
out
transformation process: creation of a
Cybersecurity Center of Excellence
interacting with squads, tribes and COEs
that were created; definition of the
Golden Rules to govern the actions of
squads
respect of cybersecurity
aspects; and the establishment of OKRs –
Objective & Key Results – which guided
the actions of the Cybersecurity COE.
in
67
Economic Capital
In compliance with the guidelines for financial
entities risk management established by the
Central Bank of Argentina, Banco Supervielle
developed an internal, integrated and global
process to assess the economic capital
sufficiency based on risk capital, and annually
prepares the Capital Self-Assessment Report
(CSR).
Economic capital is that required to cover the
entity’s expected and unexpected originating
in all the risks to which the entity is exposed.
Therefore, economic capital estimates are
used to determine the capital or own
resources Banco Supervielle would require to
cover such losses.
The risks used by Banco Supervielle to establish methodologies for economic capital calculation,
weighted as of December 2020, were as follows:
E. SHARE STRUCTURE – SHAREHOLDERS – SHARE BEHAVIOR
Since March 19, 2016, Class B shares of Grupo Supervielle are listed on the ByMA (formerly MERVAL)
and MAE under the symbol “SUPV”. Grupo Supervielle’s ADS, which represent 5 Class B shares each,
are listed on the New York Stock Exchange with the symbol "SUPV".
68
Controlling Shareholder
Class B Shares
ADRs (Class B shares)
Total
Class A Shares Class B Shares
Total
61.738.188
61.738.188
98.684.713
88.278.566
208.020.855
394.984.134
160.422.901
88.278.566
208.020.855
456.722.322
All common shares have the same economic rights, but Class A shares have a right to five votes per
share while Class B shares have the right to one vote per share.
The following chart shows the evolution of share price and the volume operated by Grupo
Supervielle in BYMA during 2020.
The following chart shows the ADR price evolution and the volume operated by Grupo Supervielle
in NYSE during 2020.
69
F. DIVIDENDS PAID AND RECEIVED
in
its
As a general rule, each year, the Board of
Directors is in favor of the efficient use of
distribution
capital
capital
recommendation made at
the General
Shareholders’ Meeting. Therefore, the Board
may recommend reinvesting profits when
investment opportunities exist or distributing
dividends when there is a capital surplus.
In 2020, as resolved by the General Annual
and Special Shareholders’ Meeting held on
April 28, 2020, the optional reserve created
for distribution of dividends was released, as
approved by the Board on March 14, 2020. On
May 29, 2020 cash dividends were paid for
$426,000,000. The distributed amount was
equal to 93.273304036% on the capital stock
of $456,722,322 and to 0.93273304036 per
outstanding share and $4.663665202 per
ADS.
Additionally, in 2020, the company received the following dividends from its subsidiaries:
Dividends received from subsidiaries
Date
Dividend ($)
Supervielle Seguros S.A.
Supervielle Asset Management
InvertirOnline.com
Sofital
Total
Abril
Octubre
Mayo
Septiembre
Mayo
190.000.000
361.000.000
147.250.163
14.500.000
29.218.216
741.968.379
G. ANALYSIS OF THE BALANCE SHEET AND RESULTS
Consolidated Data
70
Consolidated Balance Sheet
(in thousands of pesos)
Assets
Cash on hand and cash in banks
Securities at fair value through profit or loss
Derivatives
Repos
Other financial assets
Loans and other financing
Non financial public sector
Other financial entities
Non-financial private sector and residents abroad
Other debt securities
Financial assets used as security
Assets for income tax, current
Investments in equity instruments
Property, plant and equipment
Investment property
Intangible assets
Assets for deferred income tax
Other non financial assets
Inventories
Noncurrent assets for sale
Total Assets
Liabilities
Deposits
Liabilities at fair value through profit or loss
Derivatives
Repos
Other financial liabilities
Financing received from the BCRA and other
Issued negotiable obligations
Liabilities for current income tax
Subordinated negotiable obligations
Provisions
Liabilities for deferred income tax
Other non financial liabilities
Total Liabilities
Shareholders’ Equity
Shareholders’ equity attributable to the owners of the controlling
company
Shareholders’ equity attributable to non-controlling interests
Consolidated Comprehensive Income Statement
(in thousands of pesos)
Interest income
Interest expense
Net Interest income
Fee income
Fee expense
Income from Insurance Activities
Net fee income
As of
December
31, 2020
As of
December
31, 2019
As of
December
31, 2018
23.530
12.062
39.301
87.834
36.674.869
9.871.903
143.944
22.354.735
4.284.340
35.945.321
773.959
350.679
-
2.875.979
70.551.282
31.439.537
33.349
-
4.347.282
105.974.985 121.028.573 163.609.714
68.697
834.679
105.939.393 120.901.438 162.706.338
9.212.805
14.528.311
41.264.149
4.203.681
7.261.332
4.904.935
1.292.809
139.487
21.789
19.847
4.536.193
5.450.311
865.687
5.520.143
5.626.709
5.929.802
1.075.226
1.781.699
3.763.758
1.762.140
146.428
60.655
-
5.864
-
249.918.936 203.428.032 300.732.111
116.328
7.103.638
5.997.945
6.782.538
3.020.783
1.352.880
70.964
-
435.401 -
178.641.594 121.176.255 198.760.086
561.448
197.328
258.060
-
2.002.005
1.995
-
7.529.685
5.851.412
4.226.748
1.288.267
1.140.469
681.092
42.005
12.146.092
10.833.123
12.411.386
16.823.037
12.276.610
19.491.853
8.286.163
1.656.517
-
2.898.105
2.886.028
182.025
901.203
511.920
643.354
11.346.062
11.196.159
213.551.364 170.470.619 263.261.504
37.470.607
32.957.413
37.440.924
32.931.190
36.367.572
36.338.534
29.038
26.223
29.683
249.918.936 203.428.032 300.732.111
As of
December
31, 2020
As of
December
31, 2019
64.649.919
-
28.574.136
36.075.783
11.493.824
-3.547.939
1.671.455
9.617.340
60.983.630
-47.531.380
13.452.250
11.707.556
-3.054.959
1.667.287
10.319.884
71
Subtotal
Net income (loss) from measurement of financial instruments at fair value
through profit or loss
45.693.123
23.772.134
3.315.582
28.536.370
Income (loss) from assets written off at amortized cost
Difference in quotation of gold and foreign currency
Financial income and holding gains (losses)
Other operating income
Income (loss) from exposure to changes in the currency’s purchasing power
Loan loss
Net operating income
Benefits to personnel
Administration expenses
Depreciations and impairment of assets
Other operating expenses
Operating income (loss)
Income before tax on continuing business activities
Income tax on continuing activities
Net Income (loss) for the year
Net income (loss) for the year attributable to the owners of the controlling
company
Net income (loss) for the year attributable to non-controlling interests
Other comprehensive income (loss)
Other comprehensive income attributable to non-controlling interests
Other comprehensive income attributable to non-controlling interests
Comprehensive Income (loss) for the year
Comprehensive income for the year attributable to the owners of the
controlling company
Comprehensive income for the year attributable to non- controlling interests
-
-
11.630.883
1.064.518
-7.250.783
3.886.203
8.035.834
-8.755.174
41.609.203
18.167.844
10.312.494
2.407.028
6.572.487
4.149.350
4.149.350
734.974
3.414.376
-441.188
28.095.182
3.742.326
-7.891.885
-10.524.351
37.193.406
19.283.345
10.310.670
2.691.218
8.654.873
-3.746.700
-3.746.700
250.357
-3.997.057
3.412.111
-3.993.474
2.265
525.848
525.298
550
3.940.224
-3.583
117.654
117.647
7
-3.879.403
3.937.409
-3.875.827
2.815
-3.576
Standalone Information
Standalone Comprehensive Income (loss) Statement (in thousands of pesos)
As of December 31,
Interest income
Interest expense
Net interest income
Net income (loss) from measurement of financial instruments at fair value through
profit or loss
Income (loss) from assets written off at amortized cost
Difference in quotation of gold and foreign currency
Other operating income
Income (loss) from exposure to the currency’s purchasing power
Net operating income
Benefits to personnel
Administration expenses
Depreciation and impairment of assets
Other operating expense
Operating income (loss)
Income from subsidiaries, associated and joint businesses
Income before tax on continuing activities
Income tax on continuing activities
Net Income (loss) for the year
Other comprehensive income (loss)
Income tax on other comprehensive income
Comprehensive income (loss) for the year
2020
2019
35.605
-
35.605
129.149
-2.067
127.082
211.954
385.838
-31.774
94.058
230.272
-92.347
447.768
118.094
309.806
62.134
23.654
-65.920
2.972.982
2.907.062
-505.049
3.412.111
525.298
-873
3.937.409
-
-6.077
227.737
326.137
1.060.717
211.120
226.910
61.760
29.676
531.251
-3.973.937
-3.442.686
550.788
-3.993.474
117.647
-
-3.875.827
72
Consolidated Cash Flow
(in thousands of pesos)
Cash flow from operating activities
Cash flow from investment activities
Cash flow from financing activities
Effect of exchange rate change
Total cash flow change
As of
December
31, 2020
As of
December
31, 2019
10.058.904
-4.322.243
-14.227.587
22.704.526
14.213.600
-36.736.947
-1.584.585
-20.217.093
4.573.429
-53.965.196
Net income (loss) attributable to the owners of the controlling company for the year ended
December 31, 2020 amounted to Pesos 3,412.1 million, up from Pesos 7,405.6 million as compared
to a net income (loss) of Pesos (3,993.5) million in 2019 as a result of an increase of Pesos 6,946.9
million in the income from investments in related entities (Banco Supervielle S.A. recorded a net
profit of Pesos 2,133.8 million as compared to a loss of Pesos 3,837.7 million in 2019).
Income by Business
(in thousands of Pesos)
Income from interests in Banco Supervielle S.A.
Income from interests in Cordial Compañía Financiera S.A.
Income from interests in Tarjeta Automática S.A.
Income from interests in Supervielle Asset Management S.A.
Income from interests in Espacio Cordial de Servicios S.A.
Income from interests in Supervielle Seguros S.A.
Income from interests in Sofital S.A.F. e I.I.
Income from interests in Micro Lending S.A.U.
Income from interests in InvertirOnline S.A.U. and InvertirOnline.Com Argentina S.A.U.
Income from interests in Bolsillo Digital S.A.U.
Income from interests in Futuros del Sur S.A.
Income from interests in FF Fintech
Income from interests in Supervielle Productores Asesores de Seguros S.A.
Income from interests in Easy Cambio S.A.
Total
12/31/2020 12/31/2019
2.133.763
-31.389
-194.467
293.850
-37.588
480.711
168.310
9.158
109.430
-23.664
85.643
3.655
-25.054
624
2.972.982
-3.837.741
-85.349
-295.844
180.149
-31.167
245.600
34.106
-249.099
63.911
-37
-54
1.645
-57
-
-3.973.937
Administration expenses
The administration expenses of Grupo Supervielle S.A. as of December 31, 2020 and 2019 were:
Items
(in thousands of pesos)
Total as of
12/31/2020
Total as of
12/31/2019
statutory
Banking expenses
Professional fees
Fees of directors and
auditors
Taxes, charges and assessments
Insurance
Office expenses and services
Other expenses
Total
650
49.667
2.109
69.341
197.006
93.635
14.113
533
7.585
40.252
309.806
21.659
2.275
7.911
29.980
226.910
73
Benefits to the Personnel
The benefits to the personnel of Grupo Supervielle S.A. as of December 31, 2020 and 2019 were:
Items
(in thousands of pesos)
Personnel expenses
Total
Total al
31/12/2020
Total al
31/12/2019
-118.094
-118.094
-211.120
-211.120
Net income from measurement of financial instruments at fair value through profit or loss
Items
(in thousands of pesos)
12/31/2020 12/31/2019
Interest from Fixed Term Deposits
Income from holding of government bonds
Income from holding of mutual funds
Total
48.120
67.991
95.843
211.954
132.987
113.446
139.405
385.838
Financial income (expense) and holding gains (losses) provided by assets mainly consist of
revaluation of, and interest on, time deposits in Financial Instruments and not allocated income
from temporary investments in liquidity funds.
Other Income and Expense
On December 1, 2008 and on January 16, 2010, the Company and Banco Supervielle entered into a
services contract whereby the Company undertook to provide financial, strategic and commercial
advisory services for the search and generation of new businesses and expansion of existing
businesses.
In addition, Grupo Supervielle entered into similar agreements with Tarjeta Automática S.A.,
Supervielle Asset Management S.A. and Sofital S.A.F. e I.I., effective as from January 1, 2009, with
Cordial Compañía Financiera S.A. effective as from August 1, 2011 and with Espacio Cordial de
Servicios S.A. effective as from December 26, 2013. As of December 31, 2020 and 2019, the income
for such services amounted to Pesos 194,200.87 thousand and 142,783.65 thousand.
In 2013, Grupo Supervielle S.A. entered into agreements with Espacio Cordial de Servicios S.A. and
Cordial Compañía Financiera S.A. to grant licenses to use certain brands on behalf of the Company
with the intent to promote the marketing of goods and services provided by the aforementioned
companies, which agreements were amended on January 2, 2020. These agreements resulted in an
income for the Company of Pesos 1,137.18 thousand and Pesos 1,137.28 thousand as of December
31, 2020 and 2019, respectively.
On May 26, 2014, Grupo Supervielle entered into an agreement for call center services with CAT
Technologies Argentina S.A. for an indefinite term. In addition, on March 31, 2017, Grupo
Supervielle entered into an agreement for use of the Brand License with Ciudad Microfinanzas S.A.,
whereby Grupo Supervielle shall receive a consideration during a term of 12 months. Based on such
agreements, Grupo Supervielle reported as of December 31, 2019 an income of Pesos 1,676.67.
Income Tax
As of December 31, 2020, the Company recorded a charge for income tax of Pesos (505,049)
thousands on its taxable assets, mainly derived from financial income on the investment portfolio.
Income from interests in other companies is not considered for determination of the taxable income
(it is paid at company level) and dividends are exempt.
74
Regulatory Capital
The table below presents the consolidated minimum capital position of Banco Supervielle.
Consolidated Information
CAPITAL STOCK PAYMENT
Tier 1 (a) Capital
Tier 1 (b) Capital Deductible Items
Supplementary Shareholders' Equity (Tier 2 Capital)
CAPITAL REQUIREMENT
Requirement for Credit Risk
Requirement for Operational Risk
Requirement for Market Risk
EXCESS CAPITAL
Basic Shareholders' Equity (a) - (b)
Risk Weighted Assets
Millions of $
12/31/2020 12/31/2019
Change
Amount
%
30.444
-7.206
1.091
24.329
10.451
3.298
552
14.301
10.028
23.238
126.312
17.284
-3.090
1.034
15.228
8.030
2.411
252
10.693
4.535
14.194
130.744
13.160
-4.116
57
9.101
2.421
886
300
3.607
5.494
9.044
-4.431
76,10%
133,20%
5,50%
59,80%
30,10%
36,80%
119,20%
33,70%
121,10%
63,70%
-3,40%
Pro forma consolidated Tier 1 capital ratio of Grupo Supervielle amounted to 13.79% as of December
31, 2020. This ratio includes $893.9 million which the Company maintains as liquidity excess which
could be applied to the growth of its business and its subsidiaries.
Proposed Profit Distribution
As set forth in Title IV, Chapter III, section 3.b of the Restated Rules of the Argentine Securities and
Exchange Commission, the Entity used the option to absorb accrued losses arising from the
adjustment for inflation due to application of NIF 29. Based on the aforesaid and pursuant to the
order to absorb accrued losses as set forth in such rules, the Stockholders’ Equity of Grupo
Supervielle as of 01.01.2020 (transition date) was as follows:
Capital Stock
Capital Adjustment
Additional Paid-in Capital
Other Comprehensive Income (loss)
Total Stockholders’ Equity
01.01.2020
Thousands of $
456.722
2.968.586
28.858.170
117.647
32.401.125
The profit for fiscal year 2020 amounted to $3,412,111 which the Board of Directors proposes to
distribute as follows:
• To Statutory Reserve: $352,343,000.
• To reserve for future dividends: $341,000,000, to be distributed as determined by the Board
• To Optional Reserve: $2,718,768,000 for future investments.
If the above proposal is approved by the Shareholders' Meeting, the shareholders' equity of Grupo
Supervielle S.A. will be as follows:
Capital Stock
Capital Adjustment
Additional Paid-in Capital
Statutory Reserve
Optional Reserve
Reserve for future dividends
12.31.2020
Thousands of $
456.722
2.968.586
28.858.170
352.343
2.718.768
341.000
75
Other Comprehensive Income
Total Shareholders’ Equity
642.945
36.338.534
If an additional dividend distribution is approved using the total amount of the reserve thus created,
the shareholders’ equity of Grupo Supervielle S.A. will be as follows:
Capital stock
Capital Adjustment
Additional Paid-in Capital
Statutory reserve
Optional reserve
Other Comprehensive Income
Total Shareholders’ Equity
12.31.2020
Thousands of $
456.722
2.968.586
28.858.170
352.343
2.718.768
642.945
35.997.534
76
IV. COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE
GRUPO SUPERVIELLE S.A. (the “Company”)
COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE
AS OF DECEMBER 31, 2020
A) DUTIES OF THE BOARD
1. The Board creates an ethical work culture and sets the company’s vision, mission and values.
The Board of Directors of Grupo Supervielle
complies with this duty, and sets the
company’s vision, mission and values, and
faith
implements an ethical and good
regulatory
conduct,
in
requirements
corporate
executives.
line with
applicable
the
to
Those values are included in the Code of
Ethics approved by the Board, which sets the
basic principles and practices of good
corporate governance as well as the defense
of honesty, ethics and
legal provisions
applicable to the Company’s businesses. The
Code of Ethics is published in the Company’s
website:
https://www.gruposupervielle.com/Spanish/
Gobierno-Corporativo/Corporate-
Governance-Policies-/default.aspx
In addition, the Company has an Ethics,
Compliance and Corporate Governance
Committee which provides for these matters
and which is formed by 2 Board members.
This Committee’s duties and responsibilities
are published in the Company’s website:
https://www.gruposupervielle.com/Spanish/
Gobierno-Corporativo/Committee-
Composition-ES/default.aspx.
2. The Board sets the general corporate strategy and approves the strategic plan to be developed
by the management. In so doing, the Board considers environmental, social and corporate
its
governance factors. The Board uses key performance
implementation, in furtherance of the best interests of the Company and its shareholders.
indicators to supervise
The Board complies with this duty, and
defines the strategic objectives of the
Company are communicated
to Senior
Executives for implementation, and the scope
and goals are in turn informed to the different
business areas of the Company, so that the
personnel is aligned accordingly.
social
assessment.
For application of this duty, the Board
approves the annual Budget considering the
macroeconomic
the different
scenario,
the business challenges and
variables,
environmental,
corporate
and
factors, and carries out a
governance
In
quarterly performance
particular,
the Company has a Risks
Committee which, among other duties, is in
indicators
charge of monitoring
corresponding to the Social-Environmental
Risk. The Risks Committee is made up of 4
Board members and other Senior officers. In
addition, as stated below, the Company
regularly publishes a Sustainability Report
indicators,
which
follow-up
includes
risk
measurements and data of social and
environmental factors.
takes
The Budget
into account Grupo
Supervielle’s objectives, and establishes
specific goals and metrics for each of the
subsidiaries.
The aim of this follow-up is to assess business
performance and make corrections to ensure
that the objectives established in the annual
budget are achieved. It includes the position
of each portfolio, a breakdown of income,
expenses, and other items for each of the
companies of Grupo Supervielle and for
Grupo Supervielle at consolidated level.
This analysis is submitted by the Senior
Management to the Board on a quarterly
basis, and includes the results for the period
at consolidated level of Grupo Supervielle,
and monitors the key indicators and the
general and specific situation of each
subsidiary.
3. The Board supervises the executives and sees that an adequate internal control system is
developed, implemented and maintained in line with clear reporting guidelines.
77
The Board complies with this duty. Grupo
Supervielle has in place rules and procedures
intended to guarantee an adequate level of
internal control and to mitigate all risks
inherent in the Company’s activity. The Board
of Directors has three defense barriers to
internal control
protect the Company’s
line of defense:
environment. The first
business Executives whose duties include, in
addition to running the business, identifying
risks and events of default, such as taking
action to manage and deal with them. The
first line of defense reports to the CEO. The
second
line: the Risks and Compliance
departments which establish standards and
supervise risks. This second line reports to the
Board of Directors. The
line:
independent assurance suppliers who report
to the Board of Directors: Internal Audit,
External Audit and other
independent
advisors. The Internal Audit assesses: a) the
effectiveness of the organization’s first and
second defense barriers; b) adjustment to and
compliance with procedures and policies; c)
risks (low, medium, high) and also controls
that the organization operates within the
appetite parameters established by the Board
of Directors.
third
In addition, the Company has an Audit
independent
Committee made up of 3
Company’s
directors: its internal rules are published in
the
website:
https://www.gruposupervielle.com/Spanish/
Gobierno-Corporativo/Committee-
Composition-ES/default.aspx.
Besides, as a foreign issuer listed on the
Securities and Exchange Commission, Grupo
Supervielle has a SOX Department reporting
directly to the CFO to ensure alignment with
the criteria set forth in the “Internal Control
issued by the Committee of
Framework
Sponsoring Organizations of the Treadway
Commission (“COSO Report”) and meet the
requirements of sections 302, 404 and 906 of
the Sarbanes Oxley Act (SOX). Its main duties
are: (i) to define the yearly scope of the SOX
certification process and the generation of
control matrices underlying said processes;
(ii) to include in the annual certification
process accounting and financial reporting
processes of companies acquired by Grupo
Supervielle during that fiscal year; (iii) to
monitor compliance with key controls of each
process; (iv) to advise on the constant
introduction of the best internal control
practices for the main processes; (v) to
provide on-going training to the personnel;
and (vi) to promote remediation plans for any
deviations detected by the
internal or
independent audit.
4. The Board designs the corporate governance structures and practices, appoints the officer
responsible of their implementation, monitors their effectiveness and suggests changes when
required.
Corporate Governance
The Board complies with this duty. The Code
of
of Grupo
Supervielle sets forth the guidelines for
the organization,
performance
particularly
the Senior
the Board and
Executives regarding the corporate object,
the relationship with shareholders, investors,
suppliers and stakeholders.
for all
of
complete
The Code stipulates the conduct guidelines
and corporate governance practices of Grupo
Supervielle, which are based on stringent
standards
information,
efficiency, control, ethics, investor protection,
equal treatment to investors and corporate
transparency, so as to create and preserve
value for the Company, the shareholders,
in
customers, employees and the public
general.
The Board is in charge of the creation,
dissemination and update of the Code of
Corporate Governance.
in
is
The Code of Corporate Governance
published
the Company’s website:
https://www.gruposupervielle.com/Spanish/
Gobierno-Corporativo/Corporate-
Governance-Policies-/default.aspx.
to
the
and
according
Compliance
corporate
Besides,
governance scheme, the Company has an
Ethics,
Corporate
Governance Committee, in charge of assisting
in the adoption of the best
the Board
corporate governance practices, aimed at
maximizing the growth capacity of Grupo
its subsidiaries and at
Supervielle and
preventing destruction of value.
The duties of the Ethics, Compliance and
Corporate Governance Committee include: (i)
preparation and submission to the Board for
approval of
the Code of Corporate
Governance and the Ethics and Compliance
Program, aimed at the gradual fulfilment by
Grupo Supervielle and its subsidiaries of the
and
international
compliance
ethical,
78
standards;
governance
corporate
(ii)
presentation to the Board of an agenda and
an annual schedule for the implementation of
the Code of Corporate Governance and Ethics
and Compliance Program; (iii) definition of
policies and procedures on ethics and
compliance; (iv) fostering, follow up and
supervision of compliance with the Code of
Corporate Governance and the Ethics and
Compliance Program and reporting to the
Board of any deviations and making
recommendations as may be deemed
convenient; (v) submission to the Board of the
Annual Report on compliance with the
Corporate Governance objectives; (vi) review
of the results of audits conducted by the
Central Bank of Argentina and by other
regulatory agencies and consideration of the
objections made by the independent auditors
on matters related to ethics, compliance and
corporate governance; (vii) submission to the
Board of reports on the general status of the
Code of Corporate Governance and the Ethics
& Compliance Program, and on any incidents
and complaints; (viii) presentation to the
Board of any amendments to the internal
regulations of the Committees so as to
improve achievement of their objectives and
performance of their duties; (ix) proposal to
the Board of policies and procedures for the
assessment and self-assessment of the Board,
its members and
(x)
submission of recommendations to the Board
about its composition and (xi) definition of
to
guidelines
policies
transactions with related parties of Grupo
Supervielle.
its Committees;
applicable
and
The duties and responsibilities of the Ethics,
Compliance and Corporate Governance
Committee are published in the Company’s
website:
https://www.gruposupervielle.com/Spanish/
Gobierno-Corporativo/Committee-
Composition-ES/default.aspx.
5. The members of the Board have sufficient time to perform their duties in a professional and
efficient manner. The Board and its committees have clearly stated rules applicable to their
operations and organization, which are communicated through the company’s webpage.
The Board complies with this duty. The
Directors devote time and efforts to monitor
regularly
the
the matters
Company’s management.
related
to
The Board and the Board’s Committees
receive disaggregated data on matters that
are submitted for their consideration with
due anticipation to the holding of meetings,
so that they can analyze said data thoroughly
and be prepared to make decisions efficiently.
The Board may decide, if deemed convenient
and necessary or legally applicable, to create
Board
their
composition, duties and scope, and approve
their internal rules in line with the powers
committees,
determine
vested by the by-laws and the law. Each
committee has its own internal rules and
reports to the Board on a regular basis. The
Company informs the shareholders of the
composition of each committee.
Committee
The Internal Rules approved and in force of
each
their
responsibilities, duties, powers, composition
and operation.
clearly
state
The duties and responsibilities of the Board
Committees are published in the Company’s
website:
https://www.gruposupervielle.com/Spanish/
Gobierno-Corporativo/Committee-
Composition-ES/default.aspx.
B) CHAIRMAN OF THE BOARD OF DIRECTORS AND CORPORATE SECRETARY
6. The Chairman of the Board of Directors is in charge of conducting the Board meetings, drafting
the agenda, jointly with the other members, and ensuring that the directors receive with due
anticipation the necessary materials to be adequately informed so as to have an efficient
participation at meetings. Chairmen of the committees have the same responsibilities at their
respective meetings.
The Board complies with this duty.
The Chairman of the Company is in charge,
among other, of ensuring the effective
operation of the Board of Directors and the
compliance with
the procedures and
governance rules, and of organizing and
coordinating the distribution of tasks among
the members of the Board. The Secretary
assists the Chairman in the performance of
these tasks.
79
The Board’s agenda allows the directors
enough time to make an effective decision-
making process, based on high quality and
thorough debates and analysis.
The chairmen of the Board’s Directors have
the same responsibilities for their meetings
and are assisted by a secretary of the
Committee.
7. The Chairman of the Board of Directors monitors the adequate internal operation of the
Board through the implementation of formal annual assessment processes.
The Board complies with this duty.
The Chairman is assisted by the Appointments
and Compensations Committee and by the
Ethics,
Corporate
Governance Committee, who prepare and
regularly review the criteria and guidelines for
the self-assessment process of the Board.
Compliance
and
the
The duties and responsibilities of
Compensations
and
Appointments
Committee and of the Ethics, Compliance and
Corporate Governance Committee
are
published
the Company’s website:
https://www.gruposupervielle.com/Spanish/
Gobierno-Corporativo/Committee-
Composition-ES/default.aspx.
in
8. The Chairman creates a positive and constructive work environment for all the members of
the Board and ensures that they receive continued training to be updated and prepared to
perform their duties.
The Chairman creates a positive and
constructive work
and
promotes
the active
participation of the Board’s members.
the debate and
environment,
The Board designs and implements on a
yearly basis a training program for directors
and approves the training programs for senior
executives, together with the Appointments
and Compensations Committee and the Chief
of Human Resources.
forth the general
Training policies set
guidelines for training plans, based on the
business objectives, and are
regularly
reviewed to ensure that they reflect the
needs of the organization.
9. The Corporate Secretary assists the Chairman of the Board in the effective administration of
the Board and in the communication among shareholders, Board members and senior
executives.
The Board complies with this duty and
appoints a Board’s Secretary, who assists the
Chairman in the development of their duties.
At present a member of the Board of
Directors acts as Secretary.
The mission of the Board’s Secretary is to
provide for the adequate development of the
Board’s meetings and the Shareholders’
Meetings, particularly (i) provide to the
members of the Board and the shareholders
any required information, (ii) supervise the
adequate registration of
the corporate
documents, (iii) assist the Chairman of the
Board in the preparation and compliance with
the
information
the shareholders
for Board’s meetings and
the agenda
Shareholders’ meetings, (iv) distribute to the
directors
in
relevant
connection with the Board’s meetings and the
documents to be considered thereat, (v)
distribute among
the
relevant information in connection with the
Shareholders’ meetings and the documents
to be considered thereat; (vi) keep adequate
records of these meetings in the books of
minutes; and (vii) keep an adequate record of
the work papers of the Board and of the
presentations made by the executives of
Grupo Supervielle and by
independent
advisors.
10. The Chairman of the Board ensures that all the members of the Board participate in the
debate and approval of a succession plan of the company’s CEO.
The Board complies with this duty and, to
such effect, it relies on its Appointments and
Compensations Committee.
This Committee analyses
the Human
Resources Strategic Plan and submits to the
Board’s consideration and approval the
proposals for the appointment of the CEO, the
80
COO, senior and other executives, together
with the respective succession plans, which
are regularly reviewed.
C) BOARD COMPOSITION, APPOINTMENT AND SUCCESSION
11. Pursuant to the applicable criteria of the Argentine Securities and Exchange Commission,
there must be at least two independent directors in the Board.
The Board complies with this duty. At present,
the Company’s Board of Directors is made up
of 8 members, 3 of whom are independent
directors, in compliance with the criteria of
the Argentine Securities and Exchange
Commission.
12. The Company has an Appointments Committee made up of at least three (3) members and
presided over by an independent director. If the Chairman of the Board presides over the
Appointments Committee, he/she must not participate in the appointment of their own
successor.
The Board complies with this duty. Grupo
Supervielle has an Appointments and
Compensations Committee made up of 3
directors
independent director.
and presided over by
an
13. The Board, through its Appointments Committee, prepares a succession plan for its members
that is used as a guide for the preselection process of candidates to cover the vacancies, and
considers the non-binding recommendations of its members, the CEO and the shareholders.
The Board complies with this duty. In line with
its Internal Rules, the
the provisions of
Appointments
Compensations
and
Committee of Grupo Supervielle assists the
Board in the appointment of directors and
senior executives and prepares
their
succession plans.
In turn, Grupo Supervielle promotes an
equality culture, doing away with any type of
discrimination and inequality based on age,
identity, disability, race,
gender, gender
ethnics, nationality,
sexual
religion or
In such framework, specific
orientation.
strategies and action plans are developed to
identify and guarantee the removal of any
hindrances that may be faced by women, on
joining, participating in, being promoted in
the
regarding
also
and
compensation and recognition.
Company,
14. The Board implements an induction program for the newly appointed members.
The Board complies with this duty. The
Compensations
Appointments
and
Supervielle, by
Committee of Grupo
delegation of the Board, coordinates the
induction process for the newly appointed
members of the Board and Senior Executives.
D) COMPENSATION
15. The Company has a Compensations Committee made up of at least three (3) members, who
are independent or non-executive directors.
During the year under consideration, the
Board partially complied with this. The
Compensations
and
Appointments
Committee of Grupo Supervielle is made up of
3 members of the Board (one of them an
executive director) and chaired by an
independent director. However, as of the
the
adjusted
date of issuance of this report, the Board
already
Committee’s
composition, which is currently made up of 4
directors, 3 of whom are non-executive
directors and chaired by an independent
director.
16. The Board, through the Compensations Committee, sets forth a compensation policy for the
CEO and the members of the Board of Directors.
81
The Board complies with this duty. Pursuant
to the provisions of its Internal Rules, the
Appointments
Compensations
and
Committee is in charge, among other, of
assisting the Board in the preparation of
principles, parameters and guidelines related
to the compensation policies applicable to
Board members, Senior Executives and the
personnel in general, including fees schemes,
fixed and variable wages and incentive plans,
retirement plans and related benefits, as the
E) CONTROL ENVIRONMENT
case may be, in line with the applicable
regulatory provisions.
addition,
the Appointments
In
and
Compensations Committee is in charge of
assessing on a yearly basis the economic
incentives scheme for Senior Executives,
which may be prepared by an independent
firm. The Committee works jointly with the
in the assessment of
Risks Committee
incentives to the personnel, generated by the
economic incentives scheme.
17. The Board determines the company’s risk appetite and monitors and ensures the existence
of a risk management system that identifies, assesses, decides the course of action and
monitors the risks to which the Company is exposed, including – among other, the
environmental and social risks and those associated with its business in the short and long
term.
is
to
that
in charge of:
The Board complies with this duty. Within its
corporate governance structure, the Board of
Grupo Supervielle has a Risks Committee
which
(i) dealing at
institutional level with strategies and policies
applicable to the management of credit risk,
market risk, balance sheet structural risk
(interest rate and liquidity), concentration
risk, securitization risk, operational risks,
reputation and strategy risk, and any other
risks that may affect the Company and its
subsidiaries pursuant
the applicable
regulations and the best practices, and
adequately
they
verifying
implemented and
(ii)
submitting to the Board for approval the
documents related to the risk management
strategies and policies, which are reviewed on
a yearly basis to ensure their applicability; (iii)
defining risk appetite and risk tolerance levels
of Grupo Supervielle at consolidated level and
the global risk profile, which must be
approved by the Board; (iv) approving the risk
threshold and limit management structure
and become acquainted with the evolution of
the
regularly
indicators;
monitoring the different risks to which the
Company is exposed and the application of
for the
strategies and policies defined
complied with;
respective
are
(v)
management of said risks; (vi) evaluating the
capital adequacy vis-a-vis the risk profile of
Grupo Supervielle, and analyzing the Annual
Capital Self-Assessment Report prior to the
approval by the Board; (vii) defining the policy
and methodological framework for stress
tests within risk management and approving
scenarios that enable the carrying out of
individual and comprehensive stress tests,
and making
evaluating
recommendations on applicable contingency
plans; (viii) designing efficient information
channels and systems to keep the Board duly
informed on risk management; and (ix)
approving the methodological framework and
developments applicable to the quantitative
models used to manage the different risks
and the models for calculation of the
economic capital for every risk, among other.
results
the
The Risks Committee holds monthly meetings
and the minutes of these meetings are
submitted to the Board for consideration.
The Company has a Chief Risk Officer, who
reports to the Board. The duties and
responsibilities of the Risks Committee are
published
the Company’s website:
https://www.gruposupervielle.com/Spanish/
Gobierno-Corporativo/Committee-
Composition-ES/default.aspx.
in
18. The Board monitors and reviews the effectiveness of independent internal audits and provides
the resources required for the implementation of a risk based annual audit plan, and provides
for a direct reporting line to the Audit Committee.
The Board complies with this duty. Grupo
Supervielle has an Audit Committee made up
of 3 independent directors, in compliance
with the criteria established by the Argentine
Securities and Exchange Commission.
This body is in charge of assisting the Board in
the supervision of accounting statements and
of verifying the enforcement of policies,
procedures, proceedings and rules of the
Company and its subsidiaries.
82
As regards the supervision of the internal
controls, the Audit Committee: (i) verifies that
the Company has adequate internal control
systems and supervises its implementation;
(ii) verifies the
implementation of the
administrative accounting system and of the
reliability of that system and of the financial
information, or of other significant facts that
are submitted to the Argentine Securities and
Exchange Commission and the markets, in
compliance with the applicable reporting
scheme; (iii) verifies that the Company has
and
adequate
supervises its implementation; (iv) verifies
and assesses the performance of the Internal
Audit, providing the necessary human and
and procedures
rules
economic resources and approving the
Annual Audit Plan and any additional ad-hoc
audits; and (v) follow-up on the enforcement
of the audit work plan and issues an opinion
upon presentation and publication of the
financial statements, among other.
In addition, the Audit Committee supervises
the enforcement of the risk management
reporting policies of the Company.
The Audit Committee holds monthly meetings
and the minutes of these meetings are
submitted to the Board for consideration.
The Company has a Head of Internal Audit,
who reports to the Audit Committee.
19. The internal auditor or the members of the internal audit area are independent and highly
qualified.
The Board complies with this duty. Pursuant
to the provisions of its by-laws, the Internal
is part of the organizational
Audit area
structure of Grupo Supervielle, and reports to
the Audit Committee.
The internal auditor is an independent officer
and is in charge of auditing the different areas
and activities of Grupo Supervielle and of
reporting on its adequate operation, and, if
applicable, of making
recommendations
intended to protect the company’s property,
optimize available resources and promote
compliance with laws, rules and regulations.
responsible
for ensuring
The Board and the Audit Committee are
directly
the
independence and objectivity of the Internal
Audit area. To that end, the internal auditors
must be free of interferences regarding audit
frequency,
selection, scope, procedures,
schedule and content of reports. In such
framework,
the Audit Committee has
unrestricted access to all top officers of Grupo
information and
Supervielle and to all
documents deemed necessary for fulfillment
of their duties.
internal auditors have no
Moreover,
responsibility or power over any of the
audited activities or the employees working
on them. Therefore, internal auditors cannot
controls,
exert
develop
internal
or
implement systems, or
procedures, or
prepare records, or participate
in other
activities that may affect their opinion. Each
business unit is responsible for their audits.
and
communication
In the performance of their duties, internal
auditors must show the highest level of
professional objectivity during collection,
evaluation
of
information on the matter under review, and
must take care not to be unduly influenced by
third party opinions or by their own interests
at the time of issuing their opinion. Any
circumstance that might compromise the
independence or objectivity of
internal
auditors must be communicated to their
immediate superiors, who will take the
actions as are necessary for the case.
by
the
The
for
In addition, during
year under
consideration the Internal Audit Department
International
was
certified
the Quality
Certification Network
Management System, which meets the
IRAM– ISO 9001:2015 standard for internal
audits and assessment and improvement of
risk management and
internal control,
corporate governance.
20. The Board has an Audit Committee that acts based on rules. The majority of its members and
its Chairman are independent directors, and the CEO must not be a member. The majority of
its members have professional expertise in financial and accounting fields.
The Board complies with this duty. The
Company has an Audit Committee made up of
3 directors, one of whom acts as Chairman. All
in
of them are
independent directors,
compliance with the provisions of the
Exchange
Argentine
Commission. The CEO is not a member of this
committee.
Securities
and
83
in
the management,
The Directors who are members of the Audit
Committee of Grupo Supervielle are highly
qualified
finance,
accounting and auditing of large companies
and banks. In addition, the Chairman of the
Audit is a Financial Expert as provided for by
Section 407 of the Sarbanes Oxley Act.
The duties and responsibilities of the Audit
Committee are published in the Company’s
website:
https://www.gruposupervielle.com/Spanish/
Gobierno-Corporativo/Committee-
Composition-ES/default.aspx.
21. The Board, with the opinion of the Audit Committee, approves the selection and monitoring
policy of independent auditors, who determine the indicators to be considered for making a
recommendation to the shareholders’ meetings regarding the replacement or not of the
independent auditor.
The Board complies with this duty. The Rules
of the Audit Committee set forth that the
obligation of this committee is to give an
opinion on the proposals made by the Board
regarding the appointment of independent
said
auditors or
appointment.
revocation of
the
The opinion must contain, at least: (i) track
record assessment; (ii) the grounds for the
continuity or not of a certified accountant in
that position, and (iii) in case of auditor
revocation and appointment of a new
independent auditor, the opinion must
F) ETHICS, INTEGRITY AND COMPLIANCE
include a detailed report of the discrepancies,
if any, found in the accounting statements of
the Company.
When the Board of Directors approves the
financial statements, the Audit Committee, in
line with the provisions of its internal rules,
must issue an opinion on the independent
auditor’s
and
The
independence
Committee includes such opinion and the
grounds thereof in the Annual Performance
Report.
performance
year.
planning,
during
the
22. The Board approves a Code of Ethics and Conduct that embodies the ethical and integrity
values and principles and the corporate culture. The Code of Ethics and Conduct is
communicated and applies to all the directors, executives and employees of the Company.
The Board complies with this duty. Grupo
Supervielle has a Code of Ethics approved by
the Board of Directors, based on the need to
establish the main guidelines for professional
performance
of
and moral
employees within the company.
conduct
its subsidiaries,
This Code applies to all employees of Grupo
Supervielle and
including
temporary hires, or those under trial period,
members of the Board, independent advisors,
suppliers and any third parties who, by reason
of their relationship with Grupo Supervielle,
may affect the reputation of the company or
any of its subsidiaries.
The Code of Ethics is based on three pillars:
Values, Ethical Principles and Rules of
Conduct, and Ethics and Values Line.
in
Values are a distinctive element of Grupo
Supervielle and must be respected by its
members
their daily activities with
stakeholders. Employees are required to
have: (i) leadership to be market referents; (ii)
innovation to challenge boundaries and seek
(iii)
for
new
customers;
solutions
and
personal
commitment to offer sustainable solutions to
the demands of customers and stakeholders;
(iv) respect towards others,
listen and
understand customers’ needs and promote
constructive
business
relationships; (v) efficiency to add value and
give prompt quality responses, making a
responsible and sustainable use of available
resources, and (vi) capacity to make life easier
for
time,
operating robust and simple processes and
making decisions that take customers into
account.
customers,
respecting
their
In addition, Ethical Principles and Rules of
Conduct set forth a framework of ethics and
transparency that enables the building of long
term and trust-based relationships with
stakeholders. These principles and rules
promote a culture of integrity and compliance
with regulations and the best practices, with
the aim of promoting the development of a
sustainable and competitive commercial
environment.
84
The general Ethical Principles include: (i)
promotion of equal opportunities and
nondiscrimination; (ii) provision of a safe and
healthy work environment; (iii) promotion of
respectful, honest and committed relations
with stakeholders; (iv) fair treatment among
employees and with customers, suppliers and
the
(v)
regarding
transparency
arrangements made with customers so as to
provide a quality service.
general, and
respect
community
and
in
The Rules of Conduct for specific situations
include: (i) non-disclosure of customer and
proprietary information and prohibition to
use said information to obtain a personal
benefit; (ii) guidelines for cases of conflict of
interests; (iii) a corporate gift policy; (iv)
guidelines for a kind
relationship with
government officers, customers, suppliers,
competitors and the Company and for the
provision of agile and quality services; (v)
compliance with applicable regulations and
policies; (vi) guidelines for the prevention of
money laundering and terrorist financing
Telephone # 0800-777-7813
Website: www.eticagrupsupervielle.kpmg.com.ar
User: Supervielle
Keyword: Supervielle
practices and (vii) guidelines for hiring
employees.
The Ethics and Values Line is available to
employees and third parties, so that they may
anonymously report anomalies or improper
conducts. The Company guarantees that said
reports are kept confidential and anonymous,
and that reporting persons shall not suffer
retaliation or negative consequences for said
reports.
is published
in the
The Code of Ethics
Company’s
website:
https://www.gruposupervielle.com/Spanish/
Gobierno-Corporativo/Corporate-
Governance-Policies-/default.aspx.
is outsourced,
On the other hand, the Ethics Line of Grupo
Supervielle, which
is an
independent service for
anonymous and
reporting irregularities affecting the interests
of the Company and of its subsidiaries. It is
intended to channel the data related to
conducts inconsistent with corporate values,
ensuring confidentiality and anonymity to the
reporting persons.
23. The Board establishes and regularly reviews an Ethics and Integrity Program, based on the
risks, size and economic capacity of the Company. The senior executives openly support the
plan, and appoint an internal executive to develop, coordinate, supervise and regularly assess
the program’s efficiency. The program provides for: (i) regular training to directors,
executives and employees on topics related to ethics, integrity and compliance; (ii) internal
channels to report anomalies, which are open to third parties and are duly communicated;
(iii) a protection policy to prevent retaliation against those who make reports; and an internal
investigation system that respects the rights of the investigated parties and imposes effective
penalties for the violation of the Code of Ethics and Conduct; (iv) integrity policies in bidding
processes; (v) mechanisms for regular risk analysis, monitoring of third party or business
partners commercial record (including due diligence to verify any anomalies, misconducts or
the existence of vulnerabilities during mergers and acquisitions), including suppliers,
distributors, service providers, agents and brokers.
is
to
committed
The Board complies with this duty. Grupo
Supervielle
the
implementation of an integrity culture that
promotes strict compliance with the laws,
regulations, internal codes and good practices
applicable to the industry. Grupo Supervielle
requires that its employees act with honesty
and transparency in their relationship with
the Public Administration so as to prevent any
act that could be construed as bribery,
influence peddling or any form of corruption,
and has zero tolerance towards this kind of
conducts.
To that end, Grupo Supervielle has in place an
Integrity Program aimed at detecting and
preventing conducts that are contrary to the
objectives and culture of Grupo Supervielle.
The Board is the body in charge of reviewing
and amending the Integrity Program policy
based on the recommendations made by the
Corporate
Ethics,
Governance Committee.
Compliance
and
The Chief Compliance Officer is in charge of
construing, controlling and supervising this
policy and of verifying that it is effectively
enforced. The Chief Compliance Officer
85
conducts the regular risk analysis required to
adapt the Integrity Program and is in charge
of monitoring and evaluating its effectiveness
on a regular basis. The Chief Compliance
Officer is in charge of the development,
coordination and supervision of the Integrity
Program at internal level.
The Integrity Program consists of a set of
internal actions, mechanisms and procedures
intended to promote integrity, supervision
and control, oriented to prevent, detect and
correct anomalies and prevent punishable
conducts according to that rule. It is made up
of four elements:
(i) Integrity Policies to prevent crimes and
improper conducts: set of policies and
procedures applicable to all directors,
executives and employees that guide the
performance of their tasks so as to
prevent crimes. Said internal regulations
are embodied in the Code of Ethics, the
Policy of Gifts and Commercial Trips and
the Donation Policy.
(ii) Guidelines of conduct with third parties:
in the relationship with public agencies
transparency and accountability are key
elements for the promotion of integrity
and prevention of corrupt practices.
Therefore, the Integrity Program sets
specific rules and procedures to prevent
crimes in bidding processes, in contracts
or in any other interaction with the public
administration. In turn, prior to the hiring
of services from third parties to act on
behalf of Grupo Supervielle, the business
area carries out a due diligence so as to
become
its
intermediaries and prevent
improper
conducts by those acting on its behalf.
acquainted
with
(iii) Training: The Company has in place a
training
directors,
continued
program
anti-corruption
addressed
to
through
implemented
executives and employees. The program
the Chief
is
Compliance Officer in coordination with
the Chief Human Resources Officer, and
attendance
all
employees.
is mandatory
for
(iv) Internal Investigations and Ethics and
Values Line: The Compliance Department
may conduct internal investigations on a
specific issue or report. In those cases,
certain records, books and accounts may
investigated so as to
be audited or
prevent and detect violations of anti-
corruption laws and procedures, and to
ensure compliance with this Program and
other internal policies and procedures. All
employees must cooperate if so required.
The Ethics and Values Line is available to
all employees and suppliers of Grupo
Supervielle, and may be used to report
any alleged violation of that policy. That
report shall give rise to an
internal
investigation, that must guarantee the
rights of the investigated parties, which
shall result on the imposition of the
applicable penalties. Retaliation against
employees that make such reports in
good faith is forbidden; the right to
defense of
is
internal
guaranteed.
alleged
investigations
fraudulent acts are conducted by the
Chief Risk Officer, which has a special unit
to address these cases.
Besides,
regarding
reported party
the
is
for
anonymous
The Ethics Line of Grupo Supervielle, which is
an
outsourced,
and
reporting
service
independent
irregularities affecting the interests of the
Company and of its subsidiaries. It is intended
to channel the data related to conducts
inconsistent with corporate values, ensuring
confidentiality and anonymity
the
reporting persons.
to
Telephone # 0800-777-7813
Website: www.eticagrupsupervielle.kpmg.com.ar
User: Supervielle
Keyword: Supervielle
During the year under consideration, 55
reports were made at Group level, 45 of
which were related to Banco Supervielle S.A.
and 10 to the Consumer Division. Reports
were on various issues, such as conflicts of
interest, sales, bad manners, customer
complaints, labor harassment, discrimination,
fraud and other irregular conducts. All reports
were duly handled and investigated by the
relevant channels and applicable correction
and/or penalty actions were taken.
24. The Board ensures the existence of formal mechanisms to prevent and deal with conflicts of
interest. In the case of transactions with related parties, the Board approves a policy that sets
forth the role of each corporate body and defines how to identify, manage and communicate
transactions that are harmful for the Company or for certain investors.
86
The Board complies with this duty. The
Company has in place a Conflict of Interest
Policy that
intended to define the
framework to prevent and manage conflicts
of interest so as to avoid or limit their
negative effects on the Company’s interests.
is
Said Conflict of Interest Policy supplements
laws, rules and regulations on values related
to disclosure and negotiation, and to policies
and procedures established in the other
corporate governance documents of the
Company. In particular, the Rules of the Audit
Committee and the Code of Ethics provide
additional
the
procedures to review disclosure, conduct and
preparation of reports on non-compliance.
information
regarding
It applies to Grupo Supervielle S.A. and its
subsidiaries, and is addressed to all the
members of the Board, the Statutory Audit
Committee,
and
employees.
Executives
Senior
The Policy sets forth the obligation of
reporting parties to inform those facts that
might give rise to a conflict of interest as soon
as possible to their immediate superior and to
the Chief Compliance Officer so as to be
removed from that position that creates the
conflict of interest. Besides, if an employee is
also a shareholder, manager, director or
senior executive of a competitor or supplier of
Grupo Supervielle, they must so inform the
Chief Compliance Officer, who shall evaluate
the Audit
jointly with
the
Committee.
managers,
Executives,
professionals and technicians carrying out
activities not related to Grupo Supervielle
must reveal all the details related to that fact
to the Chief Compliance Officer. Current or
involving
potential conflicts of
controlling shareholders, the Board members,
the Statutory Audit Committee and the Senior
Executives must be informed to the Chairman
situation
interest
of the Board, the Chairman of the Audit
Committee and the Chairman of the Ethics,
Compliance and Corporate Governance
Committee.
The Policy sets forth that the reporting
persons that do not avoid or duly inform
conflicts of interest affecting or likely to affect
them will be liable for direct and indirect
damages to the Company arising from their
conduct and shall be subject to penalties
pursuant to applicable laws and the contracts
in force.
Besides, the Board of Directors of Grupo
Supervielle approved a Policy of Transactions
with Related Parties, Counterparties and
Related Persons that regulates and sets forth
the fora of analysis and the conditions for the
approval of transactions with related parties,
counterparties and related persons, pursuant
to the provisions of the Argentine Securities
and Exchange Commission and the Central
Bank of Argentina, as applicable, and the rules
of
Securities and Exchange
the US
Commission.
The aforementioned Policy is intended to
ensure that said transactions be carried out
with transparency, fairness and objectivity,
under terms and conditions in line with the
applicable laws, be clearly reported in the
financial statements, and be in line with good
corporate governance practices.
Besides, Grupo Supervielle has a Committee
for the Analysis of Transactions with Related
Parties, Counterparties and Related Persons,
which is governed by Internal Rules and has
consultancy and supervision powers to apply
the corresponding Policy in order to ensure
the transparency of these transactions and
that they are carried out pursuant to the
conditions set
the applicable
regulations.
forth
in
G) SHAREHOLDERS AND INTERESTED PARTIES
25. Financial and non-financial information is disclosed on the website of the Company, which
may be accessed by all investors. The website has a special area for consideration of
investment inquiries.
The Board complies with this duty.
Grupo
Supervielle’s
website
a public
www.gruposupervielle.com
website and is updated on a regular basis with
relevant corporate information, as follows:
is
-
Institutional information: information of
the Company, description of
its
structure,
businesses,
share
its
and
corporate
subsidiaries
social
responsibility, including the Sustainability
Reports prepared pursuant to the GRI
(Global Reporting Initiative) Standards
that are issued on a regular basis.
-
Investor Relations: presents information
related to shares, investor kit, financial
and
news,
information,
events
87
which
enables
presentations,
income reports
downloading of the
regularly submitted by the Company.
Besides, this section includes a financial
information database and the records
filed with the Argentine Securities and
Exchange Commission and
the US
Securities and Exchange Commission.
- Corporate Governance:
includes
corporate governance practices,
composition of
executives, Board
records of Shareholders’ Meetings.
the
the
senior
composition and
committees,
The Company’s website has a direct line to
contact the Investors Relations area: IR-
GrupoSupervielle@gruposupervielle.com.
26. The Board must ensure that there is a procedure for identification and classification of
stakeholders and a channel to communicate with them.
The Board complies with this duty. In 2020
Grupo Supervielle issued the consolidated
2019 Sustainability Report This Report
includes data and indicators of the Company
and
its subsidiaries and provides for a
procedure for identification and classification
of stakeholders that
in the
Stakeholders Involvement Plan.
included
is
a wide
range of
Involvement with
stakeholders enables Grupo Supervielle to
clearly identify who they are and classify them
according to their level of influence, impact,
risk, size, closeness, among other.
The aim is to have a better understanding of
the social and environmental impacts of the
commercial activities, including the indirect
impacts derived from projects and businesses
that are financed. This has an effect on risk
mitigation, crisis anticipation, and eventually,
provides tools to solve them efficiently.
Considering their operations and diversity of
stakeholders, Grupo Supervielle adopts a
involvement approach. This
decentralized
means
teams of Grupo
Supervielle must interact regularly with their
that different
stakeholders in matters of mutual interest to
explore possible associations and seek
opportunities to create value.
To get
involved with their stakeholders,
Grupo Supervielle teams follow the principles
of easy accessibility, timely response to
legitimate
transparency with
assumed commitments and disclosure of
relevant information.
concerns,
To identify their stakeholders, the relevant
teams use the
interaction and business
impact criteria, classify their profiles and
design adequate communication channels for
each of them. Said communication channels
must enable receipt, analysis, and timely
response to inquiries, and are additional to
the public information that stakeholders may
obtain
website
www.gruposupervielle.com.
through
the
The 2019 Sustainability Report, prepared
pursuant to the GRI
(Global Reporting
Initiative) Standards, included the Company’s
stakeholders
communication
and
channels for an adequate service.
the
27. The Board delivers to the shareholders, prior to the holding of Shareholders’ Meetings a
“provisional information package” to allow them – through a formal communication channel-
to make non-binding comments and issue opinions dissenting with the recommendations
made by the Board. At the time of delivery of the final package, the Board must expressly
pronounce on the comments received, as necessary.
The Board of Grupo Supervielle makes
recommendations as regards votes and/or
informs shareholders of any proposals of
motions prior to the holding of Shareholders’
Meetings.
To that end, the Board prepares a document
with vote recommendations and motion
proposals made by other shareholders and
issues a document – prepared by the
Information Disclosure Committee and later
approved by the Board – which is published as
a relevant fact in the Financial Information
Highway of the Argentine Securities and
Exchange Commission and as a relevant filing
in the Securities and Exchange Commission,
and in the Company’s website.
information
is disclosed
This
to all
shareholders at the same time, respecting the
information, and
principle of symmetric
complete
disaggregated
contains
information
the
of
each
on
Shareholders’ Meeting agenda.
and
item
88
Although there are yet no plans as to having a
formal communication channel to receive
non-binding comments and issue opinions
dissenting with those of the Board, the
Company has adequate means (website and
contact data) which may be used to channel
any said comments and opinions through the
to all
Investor Relations area. Comments received
and the corresponding answers must be
disclosed
through
publication as a relevant fact in the Financial
Information Highway and as a relevant filing
Securities and Exchange
in
Commission, and in the Company’s website.
shareholders
the US
28. According to the company’s by-laws, shareholders may receive information packages for
Shareholders’ Meetings through virtual means and participate in said meetings through
electronic communication means enabling the simultaneous transmission of sound, images
and words, thus ensuring the principle of equal treatment of participants.
receive
shareholders
The Company’s by-laws do not make any
express reference regarding the possibility
that
information
packages prior to the Shareholders’ meetings
through virtual means; however,
said
information is made available by the company
to stakeholders as a good governance
practice, as proposed by the Board (as
explained above).
Although the Company’s by-laws do not
provide for remote shareholders’ meetings, in
virtual
the year under consideration the Company
Shareholders’
successfully held
Meetings, due to the confinement measures
established by reason of the Covid-19
in compliance with the
pandemic and
Resolution
of
requirements
830/2020 of the Argentine Securities and
Exchange Commission.
General
The Board will analyze the convenience of
including provisions in such regard to the
Company’s by-laws.
29. The Dividend Distribution Policy is in line with the strategy and clearly sets forth the criteria,
frequency and terms for any dividend distribution.
Corporate Governance
The Board complies with this duty. The Code
of
of Grupo
Supervielle has a specific section on the
guidelines for dividend distribution; to the
extent there are available funds to make any
dividend
law,
declaration and payment shall be determined
by the shareholders at the annual general
shareholders’ meeting.
pursuant
payment
to
regarding
The Board makes a recommendation to
shareholders
the amount of
dividends to be distributed and the payment
method thereof, which will depend on a
including, without
number of
factors,
limitation, operating results, cash flows,
financial condition, capital
legal
requirements, contractual and regulatory
requirements and investments opportunities
and acquisitions, in line with the Company-
defined strategy.
levels,
rule,
As a general
the Board makes
recommendations in favor of an efficient use
of capital. That is to say, the Board will
recommend reinvestment profits when there
are
investment opportunities, whether
organic or inorganic, or will recommend a
dividend distribution when there is capital
surplus.
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