- Business lines
- Retail banking
Retail banking
Prior to the adoption of its new Development Strategy in February 2003, the Bank’s activity in the mass retail sector had been limited mostly to servicing its own and corporate clients’ employees. Implementation of its strategic plans aimed at broadening the customer base and the range of services means that the Bank’s retail product package now targets a wide number of individuals and is being enhanced to comprise all basic components available in the market.
In 2003, ROSBANK started to expand retail banking business through its own branches and agencies. This process was significantly supported by the acquisition of OVK banking group, with its prime focus on retail operations, extensive branch network and certain customer base, made by Interros in October 2003. In the course of 2004 and 2005, operations of OVK banks were fully integrated into ROSBANK, which included transfer of existing retail loans and deposits to the balance sheet of ROSBANK. The integration was generally welcomed by OVK clients, as they were expecting to receive better quality and a wider range of services while banking with a stronger and more reliable institution. Therefore, the bulk of such customers had accepted the offer to transfer their accounts to ROSBANK.
Presently, ROSBANK’s retail business continues to develop throughout the integrated branch network on a consistent basis. One of the key focuses is on further improvement of the product mix and additional marketing initiatives. In particular, in the second half of the year 2005, ROSBANK commenced implementation of its newly-adopted corporate style that was designed to make a better appeal to general public.
Currently, the total number of ROSBANK’s individual clients exceeds 3.4 million. The services offered to retail customer comprise the following key products:
- Consumer loans and mortgages
- Term and saving deposits
- Accounts and payment services
- Debit and credit cards
- Money transfers
- Foreign exchange and precious metals
- Deposit boxes rentals
- Cross-selling products (insurance, mutual funds, etc).
Following the integration of OVK business, the Bank became one of the country’s leading retail banks in terms of franchise and business volumes. Thus, as of end 2005, ROSBANK ranked 3rd in Russia by the amount of consumer loans, with the market share of 4.9%, and 4th by the volume of deposits collected from individuals with the market share of 2,2%.
Being a principal member of Visa and MasterCard International, ROSBANK issues all plastic cards of these systems under its own brand name. Utilisation of payment cards in Russia has been increasing relatively quickly over the recent years, and the number of ROSBANK and OVK-issued cards grew to over 3.3 million by the end of 2005, which accounted for about 5% of the total Russian market. As of 31 December 2005, the number of ATMs serviced by ROSBANK was 850.
