BPCE_REGISTRATION_DOCUMENT_2017

6 SOCIAL, ENVIRONMENTAL AND SOCIETAL INFORMATION Sustainable and responsible value creation

In an environment where the customer experience via mobile and internet have become a key factor in the appreciation of services offered by the bank, customer interactions with digital devices are also assessed on a daily basis. In fact, Groupe BPCE companies have tools in place to assess the customerexperiencein real time and can adapt this experience both in-branch and with its digital interfaces with the aim of improving the quality of its services. The NPS (net promoterscore) was selected as a key indicatorin 2017 because it can be used to compare the customer experience in the banking industry and in other services industries as well. It is an internationallyrecognized indicator which not only gauges customer satisfaction, but also peer recommendation. Initial observations underscore a high level of satisfaction with Groupe BPCE advisors, in-branch services and the simplicity of its mobile apps. The NPS after an interaction with our advisors is over 50, which is high, and over 40 for interactions with Groupe BPCE brand mobile apps or websites. Our customersfocus their expectationson being able to interactwith the bank using all channels,receivingfast responsesto their requests, and having a broad range of services at their fingertipsonline and on their mobilesfor as many self-care transactions as possible. Implementation of an unprecedented customer service program The aforementioned customer expectations are addressed in a program designed to offer them the best digital experience on the market, while still benefiting from the expertise of our advisors and the convenience of a network of over 8,000 branches. Groupe BPCE has set a goal of having the No. 1 NPS score in two out of three regions. To this end, group companies are investingin four areas: increasing dialog with their customers through feedback ● mechanisms in order to improve the self-care and in-branch customer experience. These mechanisms not only measure the customer experience, but also aim to provide direct responses to customers who takepart intheir surveys; providing an experience based on simplicity and responsivenesson ● a daily basis by expanding the use of digital tools and improving the accessibilityand responsivenessof branchesand advisorsacross all communicationchannels; offering an experience rooted in expertise, quality customer ● relationsand personalization tohelp customers realizetheir plans; promoting employee engagement by investing in their expertise ● and interpersonal skills, and rewarding performances contributing to customer satisfaction. Management of complaints Groupe BPCE companiesplace great importanceon dissatisfactionor complaints expressed by their customers, either in-branch or remotely, including via the socialnetworks.

Complaints are handled at three successive levels: the branch or business center in charge of the relationship,the customer relations department and finally the independent mediator, who can be brought in free of charge if the dispute persists. The mediator has multiple resources available and a special website where mediation requests may be submitted online. Customers are informed of the complaint management procedure, and the informationneeded to contact the three managementlevels, on the group’s institutional websites, on their account statements, and in the price guidesand general terms and conditions. All Groupe BPCE entities have a department that handles customer complaints. The procedure for discussing or transferring complaints between the customer relations departments of group institutions, and those of the subsidiaries, is organized to ensure that each complaint is addressed asquicklyas possible. Some of the mediators for the institutions are already accredited as consumer mediators, while others are in the process of being accredited by the CECMC (Mediator Evaluation and Oversight Committee), subsequent to the July 2015 enactment of European directive 2013/11/EU on alternative dispute resolution for consumer disputes. The complaint managementprocedure is closely monitored in terms of the reasons for the complaint, the products and services involved, and handlingtimes. A report is then periodicallysubmittedto Groupe BPCE bank directors,internal control departmentsand all commercial structures. 60% of complaintsare handled in less than 10 days, with an average of 15-16 days in2016. Employees review complaints in an effort to detect any problems, failings or improper practices and thus define corrective actions for implementationwith therelevant divisions. This continuous improvement process is also aided by customer comments shared through satisfactionsurveys and observed through an Internet watch. Additionally,to meet regulatory requirementsin terms of alternative resolution of consumer disputes, in November 2017 the Banque Populaire network established a consumer mediation procedure backed by its national federation. The aim of this new service is to seek an out-of-courtsolution to disputes between institutionsin the Banque Populairenetwork and theirnon-professional customers. Data protection and cybersecurity The Group’s IT system security policy (PSSI-G) incorporates the Group’s security requirements. It is comprised of anIT System Security framework associated with the group’s Risks, Compliance and Permanent Control Charter, 430 rules divided into 19 categories and three organizational instruction documents (1) . This policy is revised annually according to an ongoing process of improvement.The 2017 review of the PSSI-G examined legal and regulatory developments (French Military Spending Act, new directive on payment services, EuropeanData ProtectionRegulation)and changesin group structure and governance.

Operating procedures of the Groupe BPCE IT System Security department, information system security permanent control, classification of sensitive IS assets. (1)

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Registration document 2017