In the spring on financial markets is reviving. In addition, almost in all directions is already enough information to draw conclusions and make predictions for the coming year. How banks meet spring and that they have prepared for this season, “Today” said the Chairman of the Board Forward Bank Andrey Kiselev, a member of the Board of PJSC “Idea Bank”, Director business development Vladimir Maly, Deputy Chairman of the Board Bank “Credit Dnepr” Andrey Moyseyenko, Director of Department of products of retail business FUIB Dmitry Polishchuk, and head of mass market segment “Ukrsotsbank” Dmitry Sakhno, as well as the press-service of “Oshchadbank”.
IN THE DIRECTION OF THE CLEARING
“In the spring began high business season, and banks has offered the Ukrainians a number of new products and special offers”, — says Andrey Kiselev. “The trends of this spring in the context of the banking products are as follows: development of retail lending, lower interest rates on deposits, — says Andrey Moyseenko. — In addition, financial institutions will continue to focus on the improvement of remote service channels, increase the volume of cashless payments and upgrade technological services. Overall this is a trend that will be followed in the financial market throughout the year.”
CLEARING. Among the challenges now faced by the financial sector, the experts note the development of transactional business. “The volume of cashless transactions in the market grow, says Moyseenko. — It is profitable for banks, so they continue to encourage people to switch from cash to cashless payments. This work is conducted in several directions: development and improvement of payment infrastructure, improving motivation and loyalty programs (when for card payments, the customer receives a reward) and technology development”.
As an example, a loyalty program of one of the banks in which for payments with premium cards, customers receive points that can be redeemed on purchase of tickets, payment of bills in cafes and restaurants, rent cars and pay hotel rooms worldwide. According to the Bank, thanks to this program in the past year, they have increased the turnover on the cards for affluent customers by 76%.
TECHNOLOGY. It is expected that Ukraine will continue to develop NFC payments (contactless) that work using credit cards and using gadgets. So, fresh for our country is an e-wallet. “Electronic purse built into a smartphone that modern man has become not just a communication tool, but a real personal assistant, will gradually turn into a payment tool that is card will be able to interact with the POS terminal to make payments,” — said Moyseenko.
THE YIELD GOES DOWN
The attraction of unprecedented generosity, which has long demonstrated, Bank deposits, especially in the national currency gradually collapses. Bank deposits are becoming less and less profitable. “Over the past year, interest rates on deposits monthly reduced all banks without exception”, — says Dmitry Polishchuk. It is not a coincidence but a reflection of long-term trends.
“Today we can say that the crisis has passed. Banks last year were able to accumulate sufficient amounts of liquidity to return to pre-crisis level of deposits, but continue to lower interest rates on all types of deposits, — says Andrey Moyseenko. — The main task of banks in the next couple of years — to return available, lifting, long-term crediting of economy and population. Which means that the financial sector simply cannot afford to keep rates even at the current level, because they are one of the highest among the banking systems of the world.”
As pointed out by Moyseenko, over the past month, the yield on all types of deposits the market on average decreased by 0.5—1%. For term deposits in UAH for a period of 6 months the average yield of 16-18% in us dollars and 4.5—6.5% and in the Euro — 4-6%.
Will LAST. “We expect that this trend will continue throughout the year. Therefore, if the intention is to place savings in the Bank for Deposit, it is more profitable to do now”, says Dmitry Polishchuk. As pointed out by Vladimir Mali until the end of the year, the NBU plans to reduce the discount rate to 10% from the current 14%.
Banks (especially public) will be able to obtain cheaper financing and to pay as high as today, interest rates on deposits to them will be pointless.
“In turn, the banks can push the market interest rates, because they have concentrated more than 60% of all deposits of physical persons”, — says Vladimir Maly. As an example, the state Bank, one of the largest in the country, on the last day of February has reduced rates in the range of 1.5—1.75% for deposits in UAH, 1-1,25 p. p. in US dollars and 0.5—1 percentage points in euros.
However, there is another point of view. “Deposit rates, according to our forecasts, in the next few months will remain at the March level, — says Andrey Kiselev. — Banks that wanted to cut rates on deposits, did it back in January-February. And to predict the development of the market for more than three months the situation is sufficiently difficult.”
LOANS TO GET CHEAPER IN NO HURRY
The reduction in Deposit rates theoretically provides the basis to reduce the cost of loans. Moreover, after significant cooling to the lending showed that banks in recent years, they have clearly renewed interest in this case. “Banks have surplus cash resources and are looking for new destinations for investment,” — said Vladimir Maly. “Retail lending submitted credit cards and cash loans, — one of priority directions of activity of Ukrainian banks, — says Andrey Moyseenko. Is a high-margin product, and financial institutions highly interested in building these loan portfolios”.
ARE NOT REDUCED. It would seem that the market has observed a widespread reduction in interest rates. But, alas, according to the company “Prostobank Consulting” as of mid-March the average rate on loans to purchase housing, after declining in 2016, again returned to the level of 22-23%. Overall for the year, the average rate of secured loans has increased by 3-5 percentage points. According to experts, the reason is the decline in lending.
Experts estimate that future is not too rosy.
“If we talk about the rates, amounts and terms of loans, they will remain at the same level. In the long term 2-4 months a significant reduction in rates will not. But the growth will be,” predicts Andrey Kiselev. Andriy Moyseenko explains: “because Of the slow decline in Deposit rates and unresolved issues with troubled assets, the remaining banks inherited from the crisis of previous years, a serious decline in lending rates for retail segment — the question is not today.” However, Vladimir Maly is more pleasing to the consumer eye vision of the near future: “Banks will start to compete among themselves rates, will improve credit conditions and to improve speed in decision-making. Lending rates will gradually decline”.
While shopping for a consumer loan cash without pledge in the amount of 12 thousand UAH for one year is the lowest effective rate was 35.8 percent. Well and further — on increasing, up to 146% (according to calculations of “Prostobank Consulting”).
SOCIAL. However, there are categories of loans that are more accessible to the public. “State banks continue to build on previously initiated programs of social lending (lending to energy-saving technologies)”, — points out Vladimir Maly. As recalled in “Oshchadbank” to make “warm” a loan with an interest rate of 17.99% per annum.
One of the concerns of the banks — to keep track on what stocks are best peck customers. “The analysis showed that the most popular guaranteed gifts that can be of practical use. And it is not always about expensive prizes”, — says Dmitry Sakhno. So, some customers want more guaranteed to get the soccer ball than to win a more valuable prize.
ALLOWANCES. “Among the common banking stocks today — bonus percent to Deposit, subject to placement in Internet banking”, — said Andrey Moyseenko. For example, a Bank pays depositors an additional 0.5% in UAH and 0.2% in foreign currency, if funds were placed in FreeBank a private system of Internet banking. Another Bank offers a premium of 2% to the standard Deposit rate.
“As already noted, banks have become more active in the development of remote service channels and thus motivate clients to implement a number of its operations on the Internet,” explains Moyseenko.
However, motivating contributions not only via the Internet. So, one of the banks offers a bonus of 0,8% and current deposits in national and foreign currencies for all customers who open a Deposit until 31 March 2017. Another event: all customers are one of the financial institutions from 15 March to 31 may have the opportunity to place a Deposit for a period of 3, 6 and 12 months in UAH with the added bonus of up to 1.5% to the current rate on the Deposit.
JOKES. Some banks offer variations on the theme of “pay the map — participate in drawing of tickets for the final of the Eurovision song contest”. A major Bank has launched a campaign for customers-pensioners paying purchase pension card of the Bank, — “TV” which is valid from March 1 to June 10. Participates in the drawing each purchase from 100 UAH. Every ten days there is one TV and determined a new winner. Another example of stock quotes Dmitry Polishchuk: among active customers, the cardholders, the Bank plays smartphones.
A NEW MECHANISM OF PAYMENTS TO DEPOSITORS WILL GO FASTER
This spring on the domestic financial expanses appeared another innovation, the results of which will be able to feel the depositors of failed banks. The Deposit guarantee Fund of individuals (fgvfl) has launched a new automated system for payments of guaranteed amounts: it needs to simplify the return of deposits and make it more comfortable.
CHOICE. “Before the Fund is distributed by investors registers for each particular Bank, and the man could get his money in the Bank, in which it is defined. Now the investor has received a much more convenient tool: it can choose the Bank where it is convenient, a better percentage, or where it used to be served,” explains the head of Department of regional client service “alpha-Bank Ukraine” Elena Zhihartseva. Of course, you can only select from agent banks, which are connected to the processing center of the Fund. While there are only seven (some more — in the process of connecting to the system), but that banks with extensive branch network, so that the person will not be difficult to find the office conveniently located for him.
The DGF. A person can come to any branch of their chosen Bank, but the downside of this freedom is the risk of queues and loss of time. Therefore, bankers are advised to still arrange a visit in advance. “Of course, and the depositor, and the Bank, if the visit will be prepared. That is why in the early days of the “alpha-Bank Ukraine” as a participant in the project processing, proposed vkladkami to contact the contact center and dogovarivatsya about a convenient time and place to receive their funds. After us this example was followed by other banks. Now, investors can call to sign up and comfortable to get their money,” — says Elena Zhihartseva.
COMPETITION. Once a depositor has the choice, banks have to compete for customers. “Among the banks there was a competition, and this is a way to improve service. This means that banks will offer customers best services and products,” explains Zhihartseva. The fact that the banks are interested in payments was addressed to him — in fact, experience shows that 30-50% of the returned funds remain on Deposit in the Bank, after which they were returned. Because of the contributions come people who have once made the decision to keep their savings in a Bank Deposit. If they get their money quickly, conveniently and in a comfortable environment, it reduces the negative effect of the fate of the failed Bank. And only from the facility agent to make this man his client, and what other services he could use.
TIME. As noted in the Fund, the service time of customers after the introduction of the new system was reduced several times, including by increasing the number of service points. Besides, as specifies a press-service of the Fund: “Previously, payments were made in a clearly defined period of time. When it was over, to receive compensation the investor needs to write to the Fund statement. Time consideration could last up to 3 months. Now the payment process is continuous and lasts until the end of the liquidation of the Bank. Investors no longer need to send to the Fund applications for payment of funds at maturity payments on the General registry as it was before.”
BANKRUPT. As we reported in the DGF, today the payment of the guaranteed amount through an automated system payouts are made to depositors of JSC “Fortuna-Bank”, PJSC “Bank people’s Capital”, OJSC “platinum Bank”. Before the end of this year, the system will work with any depositors of liquidated banks. As of March 16, funds received 42.6 thousand depositors totaling $ 3 billion 960 million. The largest payments are made to depositors of “platinum Bank” — 3 billion 890 million, which is more than 80% of the total amount of payments by this Bank.
FEATURES OF THE NEW MECHANISM:
- the extension of the network of points of payment, approximation of points paid to the depositor
- fast payouts
- the possibility of obtaining compensation for several insolvent banks in a single paragraph
- the opportunity of service in an arbitrary point of payment
BENEFITS FOR CLIENT:
- the accelerating payments
- the client chooses a Bank convenience for customers and competition for banks
- the continuity benefits (you can get the money at a convenient time)
THREE STEPS OF THE DEPOSITOR: