Zweite Sparkasse Expanded its Range of Services

Zweite Sparkasse Expanded its Range of Services in Vienna

It became easier to get a managed account from Vienna Debt Counselling Service in 2020, and there is now a microloan for people looking for housing.

Covid-19 was also a challenge for Zweite Sparkasse and its customers. On the one hand, branch opening hours were repeatedly affected by government restrictions such as lockdowns and social distancing rules. On the other hand, many volunteer employees belong to the older generation and had to be specially protected as they belong to an at-risk group. At the same time, the bank for the unbankable has to prepare for an increase in demand for its services due to economic stagnation and high unemployment in Austria in the wake of the measures taken to fight the pandemic. Even after the pandemic ends, many people in Austria will unfortunately not be able to live a normal life for a time given that half a million unemployed and many people in short-time work are in danger of losing their financial footing. The statutory debt moratorium, which expires in 2021, will further aggravate the situation.

Service centre at Schweizergarten park

With this in mind, one of the most positive developments was the opening of the new premises for Betreutes Konto (Managed Account) of Vienna Debt Counselling Service, in the Zweite Sparkasse building in Vienna at the pavilion at Schweizergarten park, on 11 September 2020. In addition to Vienna City Councillor for Social Affairs, Peter Hacker, and Anita Bauer, managing director of the Vienna Social Fund, Chamber of Labour President Renate Anderl, Education Director Heinrich Himmer and Christian Neumayer, managing director of Vienna Debt Counselling Service, the entire board of Zweite Sparkasse was represented by Günter Benischek, Brigitte Guttmann and Gerhard Ruprecht. The event also honoured the first young people to successfully complete the Finanzführerschein (financial driving licence), which was launched in February 2020. This training programme from Vienna Debt Counselling Service provides pupils with practical knowledge in the realm of money.

“Having the Vienna Debt Counselling Service’s Betreutes Konto in-house creates a large number of synergies, saves customers time and guarantees a stimulating conversation between the Betreutes Konto staff and Zweite Sparkasse,” Günter Benischek said. In order to offer the best possible service to customers, Zweite Sparkasse aligned its opening hours with those for the Betreutes Konto section. The managed account is a service that Vienna Debt Counselling Service provides in cooperation with selected banks. Zweite Sparkasse is its main partner in this regard. The target group for the managed account are people who tend to be in a care relationship with a social institution and have difficulty identifying and meeting their financial obligations, which puts them at risk of becoming homeless.

Housing microloan

Also at risk of homelessness are people who wish to rent a flat and are either living on low income or government transfers, and therefore have difficulty making the one-time payments that are usually required when taking such a step. Since the end of 2020, Zweite Sparkasse’s housing microloan has made it possible for people with minimal resources to pay a security deposit and buy kitchen fittings from an outgoing tenant, which enables them to move into their own flat. The loans have a maximum amount of EUR 5,000 and a term of five years. Caritas brokers the transactions. The current financing volume of EUR 300,000 is fully secured by a guarantee from ERSTE Foundation. For the time being, housing microloans will be granted exclusively in Vienna.

Some of the team of the Vienna Debt Counselling Service with Anita Bauer (r.), managing director of the Vienna Social Fund. Photo: FSW Anita Bauer, managing director of the Vienna Social Fund, Education Director Heinrich Himmer, Vienna City Councillor for Social Affairs, Peter Hacker, and Chamber of Labour President Renate Anderl congratulate two graduates of the Finanzführerschein (financial driving licence) programme. Photo: FSW

Die Zweite Sparkasse is a bank that does not aim to make a profit. Voluntary staff members dedicate time and patience to assisting people in difficult financial situations on their path to a life without debt. All customers of Zweite Sparkasse (Second Savings Bank) are supported by NGOs that recommend them to the bank. They receive a basic current account including bank card and access to Erste Bank and Sparkassen’s online banking service, George. In cooperation with Wiener Städtische Versicherung, the bank also offers free accident insurance and a legal advice service, available once per quarter. Other offers include the managed account and housing microloan. Zweite Sparkasse had 8,648 customers at the end of 2020. The number of managed accounts increased by 21.5% to 1,334. 2,465 customers are currently in the start-up phase and benefiting from a nearly free account. Zweite Sparkasse has served 20,583 customers since it was founded. 1,108 new customers were added in 2020. 4,335 customers have taken the step back to an account at a conventional bank since 2011, including 264 customers in 2020.