Technology is rapidly evolving and dictate a new format of interaction between the Bank and the customers of small and medium business. To meet the demands of the times, banking products for entrepreneurs require the most flexible approach and a radical revision of the work.
As quickly small business loans are going to be online, banks will turn to IT companies and how big data is already helping in the assessment of clients, TASS said senior Vice President – head of unit “small and Medium business” PSB Alexander Chereskin.
– You are the head of unit SMEs, which includes regional corporate business. What caused the decision to combine them?
– Now a small business should begin to operate largely on standards relationship management (managing relationships with customers – approx. TASS) – as medium and corporate. In 2013-2014, the earlier market business model, when a small business employs only the sales of credit products, has exhausted itself, and had to come up with something more relevant.
As RM-model we have already successfully worked in the corporate and medium-sized businesses, we decided to extend it to the upper SME segment. For the rest, the focus will be not so much on credit, how calculated, commissions, products, currency control – things that are needed every day, and may be provided in the most automated mode.
Your SME loans are not need?
– This is partly true, among the companies with little revenue, the demand for credit resources is not very high. Along with this, their application is meaningless to assess in the traditional way, through a credit examination. It is very expensive from the point of view of labor costs and therefore a loss. So we launched in a pilot mode of online lending to micro and small segment, so that the client could never come to the Bank. It in the Internet Bank a button “Get money,” he presses her, and if he’s satisfied with conditions, after five minutes, get the money in the account. This is a fully digital process – from engagement to transaction. So far, besides us, no one for small business this product is not made.
As for the EU, to obtain a license to work there very difficult. Besides, from the point of view of scale, you need to understand that the Russian market is one of the largest in Europe by number of enterprises and potential revenues. Why go to a small but complex country when it is much easier to increase penetration here, on the already-built infrastructure and regulation? If you take a large country like Germany, there is already a fairly high level of competition and low tariffs.
There are a number of relatively interesting countries like Italy, Greece and, partially, the UK. However, Greece’s high country risk and a large share of the shadow economy, Italy has accumulated large debts in the banking sector, and it is unclear how this will be resolved and will affect the customers. But the situation we are watching and we look in all directions, because Russian banks are more technologically advanced than the West (except, perhaps, Scandinavian), they have gone much further in building platforms of Internet and mobile banks. Due to this, it would be possible to go beyond the limits of the Russian Federation.
– Go back to Russia. In the spring the Ministry announced the program of preferential crediting of small business, which will operate in addition to the program “6.5 percent”. How appropriate do you consider the presence of two types of support programs? Whether it will be convenient for businesses?
– With regard to the programme “6.5 percent”, here soon will need to revise the rate. Central Bank had an effective policy to reduce inflation, and we see that it decreases. Interest rates on the market also objectively reduced, and by the end of this year, the programme “6.5 percent” will not be so attractive, banks will lend to a business without it.
From the point of view of the state of the two programs is also zadavanie resources, but for recipients it is rather a plus: competition is always good. From the point of view of the size and number of support programs – the more, the better. To some of the programs in the end, the entrepreneur can get and will get the necessary funding. Especially if you limit the number of banks operating in two or three, it will greatly reduce the number of enterprises, which will reach these resources.
On the other hand, the main focus of government programs aimed at investment projects, and everything else – trade, building – behind the scenes. It is clear the state’s desire to stimulate investment growth, but the absence or presence of available funding was a major factor. In our opinion, the problem is more in the macro economy and investment climate.
– On the issue of climate: the business organization has recently proposed to introduce semi-annual moratorium on inspections of small and medium business, and create check-lists for supervisors with a complete list of rules revision. What checks can impose a moratorium and what about the check-list can be a speech?
Good idea, but I would have looked wider. It is necessary to initiate a change of mechanism for the introduction of a new type of regulation.
As for the check sheet, it is also “crutches” that allow in some cases to prove something, but it is not sturdy crutches, feet and healthy
As it is now: the system reacts to a specific incident, not realizing in General how much it will cost the economy the decision about the introduction of another type of checks. Not verified, but from the point of view of the scope of the regulation, I am convinced that the it is less, the faster and more flexible market is developing. Otherwise reduced its main driver is competition. Rather, it proceeds from the market sphere to the area of checking.
As for the check sheet, it is also “crutches” that allow in some cases to prove something, but it is not sturdy crutches, and my feet healthy.
– Let’s finish on a positive note. There are many other business support mechanisms. Which ones are effective and which are not? For example, do your customers a mechanism to support the output of products for export? How effective are regional programs?
– First of all, this program “6.5 percent” and warranty support. Often the companies do not have sufficient collateral, and warranty support significantly affects the adoption decisions of banks. Some of the risks borne by the state and must be interested in this, as it increases the stability of the financial system. The Bank is very difficult to grow SMB client, this process takes 5-7 years, and the state assumes the risk of all small segment based on the fact that part of it then it will grow medium, large and tax return money.
To the extent not used for direct subsidies to small businesses to create business give the entrepreneur 50-100 thousand deadweight money that he bought the press and continued to feed themselves. Perhaps here the banks could somehow participate in terms of control and distribution of these funds.
Among the positive changes I would like to note future amendments in legislation that will allow SMEs to work with factoring for state contracts. Now comes the second reading of the bill. Accordingly, small businesses will receive additional unsecured funding to the volume 223-th and 44-th Federal law.
Separately, a highly effective program EXIAR aims to support exporters. It has already proven its effectiveness, and we plan to continue to use it together with our customers, including creating centres of support of export contracts in conjunction with the administrations of different regions of the country interested in supporting exports.