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“We plan to grow faster than the market”
This year, the manager Nikolay Dolgushev spoke about the goals of the Far Eastern branch of Otkritie Bank
In the struggle for a client in a competitive financial market, banks are trying to offer the most favorable conditions and products, and then achieve high rates and stable profit growth. Financial organizations achieve this in different ways. Otkritie Bank attracts clients to the Far Eastern Federal District and sets its goals for itself, in an interview with EastRussia, the manager of the Far Eastern Branch of Otkritie Bank Nikolay Dolgushev told.
- Nikolai Aleksandrovich, can you share the results of last year and plans for 2019? What does the bank focus on in its interaction with corporate clients, on which - with retail?
- If we talk about the results, then the objectively past year was for us a year of challenging ourselves and passed under the sign of significant structural changes. The bank entered 2018 with a new shareholder - the Central Bank of Russia. During the year, the bank underwent major changes in the organizational structure, the restructuring of business processes, a cardinal revision of the product line and the first stage of modernization of the regional network. Due to these positive changes, we very successfully completed the 2018 year, earning a net profit of 7,7 billion rubles. The bank has increased the volume of business in the retail direction: the issuance of consumer lending increased five times. For example, in December, the amount of consumer loans issued by a bank exceeded the issue volumes of the entire 2018 of the year. Also, the volume of mortgage payments increased five times. If we started the year 15-mi in the ranking among all banks, then by the end of the year we took the fifth place.
Successful year for the bank 2018 was in the segment of small and medium businesses. In the second half of the year, Favorable Refinance and Super Revolving Shares were launched for SME clients with the 8,7% rate. The launch of these proposals has allowed us to significantly increase the volume of loans in this segment - 57 billion rubles for the year. In 2019, these shares continue to operate with the 8,9% rate, which today is one of the best deals on the market. If we talk about the corporate and investment business, in this segment the volume of loans issued by the bank in 2018 amounted to about 300 billion rubles. The amounts are impressive.
As for plans for this year, we plan to continue rapid growth. An increase in the loan portfolio in the retail and corporate investment business segments is planned at the level of 60%, and in the SME block - at the level of 120%. We plan to grow significantly faster than the market.
Speaking about retail development plans, I note that since the beginning of March a new product has been launched in the bank with excellent conditions - a cash loan, at which the rate in the first year will be 9,9%. This rate is currently one of the best on the market. High expectations are associated with the flagship card product - Opencard. This card has many advantages. The advantages are that the holder of this card can withdraw cash at any ATM of any bank in the country without a fee, it is also possible to make transfers using bank details to other banks without a fee, and the amount of transfer is not limited. In addition, Opencard allows you to perform transfers from card to card without commission to cards of third-party banks. It is important that the use of the card is free. And the cherry on the cake is a cashback on this card up to 3%, under certain conditions. According to the customers of the portal Vyberi.ru, last year, Opencard was recognized as the best debit card, which generally confirms that we have created a truly sought-after product.
This year we see great prospects in the development of large corporate business. We will focus on companies with revenues from 3 to 15 billion rubles, with a decision-making center in the regions. The sectors we will focus on are: construction, both residential and infrastructure, pharmaceuticals, transport, agriculture, manufacturing and manufacturing, as well as gold mining, fish and forestry, and, of course, trade, characteristic of the Far East. Another important area of work this year is working with the public sector. This is close cooperation with regional authorities, with government agencies operating in the region, lending budgets, support projects in the social, municipal and transport sectors, as well as participation in PPP programs and concessions.
I note that we pay special attention to our payroll clients, and in 2018, the product offer was significantly improved for this category and the quality of service was improved. For employees of the public sector, we have implemented a product - a salary card of the MIR payment system with all the bonuses that Opencard offers.
- The bank has a very good history in the Khabarovsk business segment. Does this Regiobank help? How large is the share of loyal customers holding accounts in your portfolio for more than a decade?
- Of course, the fact that Otkritie Bank entered the market not from scratch, but relied on the base of Regiobank, played a very important role in the development of our business in the region. When the bank began work in the Khabarovsk Territory, it was already a serious financial institution with an impressive client base and significant business volumes. These circumstances have played a key role in the further development. A lot of time has passed since then, and, of course, much has changed: new customers have arrived, the structure of the customer base has changed in general due to changes in the bank's business model. But if we talk about the share of those customers who have served us for more than 10 years, then there are about a third of them. And I want to express my gratitude to the clients who have been working with us for so many years, having gone through periods of integration, changes of names, details, and operating platforms. For us it is very important. Today we are a large, universal state bank, and I am sure that those customers who stayed with us did not regret it.
- Can you offer a complex product to legal entities?
- We offer legal entities not only lending, but also interesting products for documentary operations, organization of settlement and cash services, support of foreign economic activity, placement of funds. We are actively promoting our mobile application for business. We tried to make it convenient, comfortable, functional in order to take into account all the needs of our customers. The system turned out to be simple and logical, the Otkritie bank application took the sixth place in the Usability Lab rating.
- As a rule, the problem of small business at the initial stage is that there is a working idea, but there is not enough turnover and there is no collateral. How to go to the bank? If such potential clients come to you, what do you offer them?
- To be honest, there are not so many clients who come to us without having experience in business, equity and mortgaged property. As a rule, small business understands what requests to go to the bank. Coming to a “classic” bank only with an idea, it is almost impossible to get financing. For such start-up projects, other types of financing are assumed, including venture ones. At the same time, there are entrepreneurs on the market with work experience, but insufficient volume of equity capital and collateral. In this case, I would recommend paying attention to various ways of state support, including regional guarantee funds, which can provide the entrepreneur with a guarantee of the fulfillment of his obligations under credit transactions. If we talk about our bank, small and medium business for us is one of the key focuses, and we are actively growing in this segment. The increase in the volume of the loan portfolio for small and medium-sized businesses in relative terms is the largest in 2019 in the year — twice as much as in retail and corporate and investment businesses. Our programs are adapted to market realities. We do not live in a world of illusions and understand what our customers need, what they can offer us, and we provide really popular services and services on attractive terms. The dynamics of issuing loans to customers of the SME segment confirms the demand for our services and the adequacy of our requirements. Therefore, I advise entrepreneurs if there is a need to contact the bank in any case - competent employees will always find a suitable option.
- In your opinion, is there any alternative mechanism for attracting customers in the corporate lending market, except for a really low interest rate?
- Undoubtedly. In general, the interest rate on a loan is undoubtedly an important criterion for a credit transaction, but far from the only one. In the structure of the transaction, in addition to the rate itself, there are still quite a few conditions that play an equally important role. This is, first of all, the term - of the credit line itself and tranches, secondly, it is the level of security with collateral, a guarantee of the group companies, business owners. Often, banks can offer an interesting rate, but can not offer a working structure of the transaction. The speed of consideration of applications and generally the speed of work within the framework of a loan also play an enormous role. With an attractive interest rate, banks may consider a loan for three, or even six months, and as a result, they will not give the initially promised conditions. Of course, no business will wait, because time is always money. Another important factor, in my opinion, is the quality of service, which is largely reflected in the professionalism of bank employees.
- Competition in the retail lending market is high. You can summarize: who is your client and how do you get it? Why is the bank "Opening"?
- Otkritie is a universal bank that works with a wide client segment, providing products that are beneficial to customers, with attractive price parameters and the lack of pitfalls. It is important for us to correctly understand the needs of the market, our client. That is why last year our consumer lending campaign enjoyed great success in the market - guaranteed refinancing, with an attractive fixed interest rate, no “from”, and without compulsory insurance. Since March of this year, a new campaign has also started on consumer lending, under which we offer our customers a fixed interest rate of 9.9% in the first year of the loan. I am sure that this product will be very interesting to our customers, especially those who are planning to repay the loan ahead of schedule.
It’s no secret that reliability is a very important factor for customers when choosing a bank. In this aspect, I would like to note that Otkritie Bank is a state bank, and this is an additional guarantee of our reliability. Plus, the bank is included in the list of systemically important banks, and this means that the regulator exercises particularly close control over our organization and applies increased requirements to financial sustainability indicators. In the aggregate, all this gives the client confidence in working with us.
Returning to the question of who our client is, I can say that we work practically with all categories of clients. In the retail business, we have internal segmentation in which the categories Mass, Premium and Private banking are presented. For any client, we select the appropriate product. When a customer needs a small amount, and such a need arises from time to time, a credit card would be the most appropriate option. This is an alternative to microloans, but with a favorable rate, a long grace period and a reliable bank. If we talk about legal entities, then in small and medium businesses we also work with all clients. Microbusiness comes for quality settlement and cash services, small business comes for small loans, medium - for more serious amounts. We are a universal bank and will be happy to work with any client.
- Consumer loans, as a rule, are promoted by mortgages. Recently, Vladimir Putin instructed the Central Bank to work out measures to reduce the average mortgage rate to 8%. As a market participant, what measures do you expect from the regulator in this direction? How will this affect your business?
- It depends on how the regulator will achieve this goal, but I can say that the Central Bank gradually reduced the key rate from 2015 to 2018, which affected the cost of mortgage loans in the market. The market reached the minimum point by the middle of last year. Today, rates have risen somewhat. If the Central Bank decides to lower the key rate to the level of mid-year 2018, and market conditions favor this, then such a goal is quite realistic. This is one of the key tools, I think the Central Bank will use it in 2019 year. Let me remind you that in the Russian market there is a positive experience in working with a mortgage within the framework of state support programs, when it is planned to directly subsidize the difference in interest rates. I suppose this is also quite a working tool for reducing the rate to the level of 8%.