Mejprombank (International Industrial Bank) set out its claims last week for the traditional patrimony of the Russian Savings Bank (Sberbank). The bank singled out retails as a branch structure, which was called Mejprombank Plus. The ambition of its administration is quite impressive: Mejprombank Plus has big ideas about 5-10 percent of the market, 60 percent of which is controlled by the state-owned Sberbank.
Natalia Samkova, the chairwoman of the Mejprombank Plus's board of directors, stated at a press conference that the development of the retail branch company of Mejprombank would be conducted in two stages. All retail operations from the parent bank will be transferred to Mejprombank Plus during the first stage. “We are starting this work at this moment, and we are determined to complete it within three and a half months,” Natalia Samkova said. During the second stage the bank will have to make a breakthrough and bring its share on the retail market to the above-mentioned five percent within two years.
It is obvious that it will be extremely difficult for the bank to do it, as the competition on the market of retail services is very high. It is not only Sberbank or Vneshtorgbank that enjoy quite firm positions in retails. Citibank, Russian Standard and Home Credit banks, which mainly specialize in consumer crediting, are very good at retails as well.
Natalia Samkova sees the basic competitive advantage of Mejprombank Plus in the complex of services, when clients can use any services anywhere – from a trivial bank deposit to a credit card or express credit. PRAVDA.Ru asked this question to specialists, who said that they doubted about the fact that the technique would be helpful in attracting clients. “If a client raises a loan for urgent needs in Sberbank, it does not mean that he will open an account there too. Most likely, he will go to Sobinbank, Soyuz, or International Industrial Bank, where deposit rates are a lot higher,” an analyst with Banki.ru, Aleksei Borisov said.
Nevertheless, he believes that Mejprombank has good chances for consolidating its grip in retails. There is a room on the market currently: the consumer crediting on reasonable conditions. “Clients do not want to pay 40-70% per annum for express-loans or for using credit cards,” the specialist said.
Mejprombank has always been distinctive for sparing terms for clients. It is one of the few banks that declined latent commissions and adhered to the claimed interest rate. For the time being, however, the bank works with car crediting only. If the Mejprombank Plus takes this policy from the parent-bank and expands the range of consumer crediting (the bank promises to do it), it will have quite good chances for obtaining its market share.
In this case, Natalia Samkova's plans to establish a bank on the base of Mejprombank Plus, in which a client will not wish to receive services from another financial institution, are likely to come true. Eleven-percent ruble deposits and an open credit line for 19 percent per annum – these are relevant facts for a client to keep loyalty to a bank, under good servicing conditions, of course.
JSC International Industrial Bank (Mejprombank) was founded in 1992. The authorized capital of the bank is evaluated at 25 billion rubles. Its equity capital puts the International Industrial Bank on the top ten list of largest banks (the list is released by the Central Bank of the Russian Federation monthly).
Natalia Samkova (on the photo) is the chairwoman of the board of directors of Mejprombank Plus, a top manager of Mejprombank. Natalia Samkova is listed as the “Best woman-pilot of the Russian business” on the Professional Reputation Rating prepared by the Association of Russian Managers.