Svyaznoy Bank has officially announced the beginning of its operations on the Russian market and unveiled its development strategy for 2011—14.
According to the lending institution’s management board chairman Sergei Radchenkov, the bank’s goal is to establish the best settlement bank in Russia. In the next four years the bank plans to gain leadership in terms of use of its own cards within the Russian acquiring system, become a Top 5 plastic card-oriented bank and a Top 10 lender by the retail portfolio among private banks. By the end of 2014 Svyaznoy-Bank’s assets are expected to total Rub 120 bln, capital to reach Rub 13 bln and cards issued to amount to 6 mln.
Svyaznoy Bank was established on the basis of Promtorgbank, which was incorporated in 1992. For the record, in 2010 Svyaznoy Group and Promtorgbank entered into a strategic partnership in a bid to set up a large universal bank. According to Svyaznoy Group CEO Maksim Nogotkov, planned cash injections into the bank will total around $340 mln by the end of 2014. The lender’s products are expected to be available at all 2,200 Svyaznoy outlets. And the bank plans to open 300 full-service sales offices in the next four years.
According to Radchenkov, Svyaznoy Bank is a universal bank targeting both the retail and corporate segments of the market. “We’ll offer retail customers near-home sales offices, unmatched products and fast operations. Svyaznoy Bank will offer corporate customers credit and deposit products, payroll projects, acquiring services, and also a convenient package of cash settlement services," he said. At present, the bank services around 2,000 corporate customers. Also, 15,000 cards were issued on a pilot basis within the retail market strategy.
Currently the lender issues universal credit-debit cards on the MasterCard platform. A card is issued and ready for use within 20 minutes. A customer can hold on the card both own money, and also make use of credit options. The bank accrues 10% interest on balances held on a customer’s card, while the rate on funds taken using the credit limit ranges from 24% to 48%. The grace period is 50 days and the largest credit limit is up to Rub 100,000.00. No fee is charged for cash withdrawals at any ATM, up to 20% of the value of non-cash buys are added to cards as bonus marks within the Svyaznoy Club program. According to the bank’s management board chairman, no similar product is offered on the Russian market at the moment. The card-related pilot project was launched in July 2010 in Nizhny Novgorod and Kazan. From October through December 2010 the bank will implement the first stage of its federal program, bank cards can be issued at 1,200 Svyaznoy sales offices and in 2010 customers can get cards at all the company’s outlets.
