INTERVIEW

Ștefan Buciuc, CEO BCR Social Finance & HEAD of Social Banking BCR

 

What are the key components of your organization’s sustainability strategy, and how do they align with your overall business goals? Is there any challenge specific to your industry?

BCR Group has developed specific social impact financing vehicles – BCR Social Banking department within the bank and BCR Social Finance NBFI. Both are deeply rooted in Erste’s 200-year history of fostering financial inclusion and social impact. BCR Social Finance’s mission is to support entrepreneurs, social organizations and students to achieve their goal and contribute to the development of the community. More importantly, the NBFI operates without distributing dividends, and although not registered as a social enterprise, it embodies the principles of one in its operations. In parallel, over the last seven years, BCR Social Banking team has evolved into a critical player in addressing the socio-economic challenges in Romania.

As part of one of the leading financial institutions group in CEE, we view it as both our purpose and responsibility to ensure that individuals and communities, regardless of their socio-economic background, have access to essential financial services, ultimately contributing to prosperity, economic growth, and social inclusion. Our efforts are aligned with the UN Sustainable Development, especially Goal 8 (Decent Work and Economic Growth), where we aim to foster inclusive economic participation and improve livelihoods.

All our areas of focus are designed to ensure prosperity generation and social-financial inclusion:

1. Development of dedicated financial products and non-financial initiatives: we actively facilitate access to financial services for underserved and marginalized groups, including NGOs, startups, small businesses, and individuals facing financial hardship. By tailoring solutions to their specific needs, we help empower these segments to participate fully in the economy. We do this through impact financing, where over €110 million in financing has been provided through BCR Social Finance since 2018, contributing to the creation of over 24,000 new jobs. In addition, more than 100 NGOs have received over €10 million in financing from BCR Social Finance and BCR Social Banking combined. At the same time, we also focus on education financing, supporting the education sector by financing service providers and offering student loans, with 250 study loans granted to date;

2. Piloting Complex projects addressing vulnerable communities and social innovation: Hero project – financial education, training for employability, improved living and empowerment for Roma communities conditions; project with IOM – International Org. for Migration – business education and selection of Ukrainian refugees that will receive grants for opening a new business; Jobs4all platform – platform for increasing employability among disabled; Gender diversity projects with IFC – initiative meant to strengthen our capacity to collect gender-disaggregated data & market research on the access of Romanian women to financial services and products;

3. Capacity Building & Partnerships: We believe that sustainable change requires strong partnerships and capacity building. Through initiatives such as AmpliFY ONG and the Marc Impact Program, we equip NGOs and impact centric startups with the skills and resources necessary to scale their operations and maximize their social impact. In addition, we are committed to promoting diversity, equity, and inclusion through targeted research, social innovations, and partnerships that address systemic inequalities;

4. Other special initiatives together with ERSTE Foundation – ex.: 0 interest campaign & grant program for NGOs supporting Ukrainian refugees.
By combining our financial expertise with a strong commitment to help develop the social infrastructure of Romania, BCR Social Finance & BCR Social Banking continue to create a positive and lasting impact on Romanian society. We are not only contributing to economic growth but also ensuring that this growth benefits all members of society, especially those most in need;

 

Can you describe the specific steps your organization is taking to transition from traditional business/ business as usual practices to more sustainable ones?

From the start, we have not operated fully as a typical business. Through our activities, we focus on fostering inclusive economic growth, reducing inequalities, and enhancing social impact. Firstly, we do this by integrating SDGs into our core operations, by ensuring that all our financing decisions consider the social impact, and we prioritize projects that have a positive impact on underserved communities. Through these actions, we aim to contribute meaningfully to the prosperity of Romania while promoting financial inclusion.
Secondly, we do it through our specialized financing products for impact-driven businesses and financing for people who want to continue their education. By steering capital toward these sectors, we aim to support both sustainable development and social cohesion in Romania. The last step is by innovating through social impact programs. We are continuously piloting innovative projects aimed at tackling systemic social issues. These pilot programs are critical to shaping the future of our sustainable operations.

 

How do you measure and track the progress of your sustainability initiatives, and what metrics or benchmarks do you use?

We track the progress of our sustainability initiatives through a well-defined framework, closely aligned with the UN Sustainable Development Goals (SDGs). Our measurement approach is centered around our key social impact metrics, such as: loans provided to micro-businesses, social enterprises, NGOs and students, ensuring access to financial resources for underserved groups, decent Jobs created or preserved through social financing and number of NGOs and social organizations supported, helping them achieve financial sustainability.

In 2022 we have started producing the BCR’s Social Impact Report that consolidates data from our initiatives, providing a comprehensive view of the outcomes we have achieved. We are currently developing extensive impact measurement tools that will help us evaluate the social and economic effects of our projects, ensuring continuous improvement.

 

What challenges have you encountered in the transition to a sustainable business model, and how have you addressed them?

Client education and resistance to adopting new technology has faced as a challenge. Some clients, particularly in underserved communities, are hesitant to adopt digital financial solutions. In order to solve this, we focus on education, financial literacy and customer support to help clients understand the advantages of embracing digital tools, ensuring they feel confident in the transition.

Furthermore, the effect of climate change on our Agro-sector clients is also an issue. Our clients in the agricultural sector are particularly vulnerable to climate change, facing increased risks to their livelihoods due to unpredictable weather patterns and resource shortages. We work closely with these clients to offer tailored financial products that support climate resilience, while promoting sustainable agricultural practices to mitigate the impact of climate change.

Lastly, achieving sustainable impact often requires collaboration with various stakeholders, including NGOs, governmental agencies, and private sector partners. Aligning these diverse groups toward a common goal can sometimes be challenging due to differing priorities and timelines. We address this by fostering long-term partnerships and engaging in dialogue to ensure mutual understanding. Initiatives like the Marc Impact Program and AmpliFY ONG have been instrumental in building collaborative platforms that align efforts and drive shared goals.

How do you engage and motivate your employees, customers, suppliers and other relevant stakeholders, to support and participate in your sustainability efforts?

We offer examples of successful initiatives and engage them in proposing and implementing new measures. For our customers, we offer tailor-made financial products, provide transparent updates on our impact, while also supporting NGOs and social enterprises through capacity-building programs and targeted financing to scale their social impact. Finally, we run research and awareness campaigns on financial sustainability and participate in public events to advocate for systemic change.

 

 What do you consider will be the most pressing challenges that the company will need to address in the next 5 years in order to maintain economic performance while also achieving sustainability goals? (For example, economic/geopolitical instability, energy prices, climate change, limited natural resources, talent acquisition and retention, supply chain issues, global conflicts, etc.)

In the next five years, our biggest challenge will be shifting the traditional funding paradigm to create intentional impact alongside financial returns. Balancing economic performance with an impact focus means redefining success—not just in terms of profits, but by the social value we create. This will require innovation in social financing, adapting to economic and geopolitical instability, and fostering a purpose-driven culture, all while ensuring we continue to deliver long-term, inclusive growth.