Bank cards

Vozrozhdenie Bank traditionally aims to provide the full range of banking services to both corporate and retail customers. Development of the bank card segment, multi-channel remote banking services, improving cash-in-transit mechanisms help us to offer the widest possible range of services. We adhere to the policy of healthy conservatism and the use of a well-balanced approach in the implementation of business development plans. At the same time, we count on technological effectiveness and advanced technologies. We have completely updated our ATM network, providing full online access to accounts from all ATMs. We continue our work on enhancement of the Internet bank and mobile bank. Vozrozhdenie Bank offered its clients an innovative service of cash-in-transit management with the use of a mobile application for the first time in the history of the Russian market. In the future we are planning to expand the potential of remote services and remote sales with the use of various channels even further.

The development of the bank card segment traditionally ranks among the priority activities of the bank. The bank consistently implements the strategy of the bank card segment development despite the complication of the economic situation and the impact of other external factors, including changes in regulations in respect to international payment systems. The bank worked on increasing the issuing volume of credit cards in 2014 and increasing the share of transactions through remote service channels.

KEY RESULTS

  • At year-end, the number of debit cards was 1,100.1 thousand; the number of credit cards reached 92.1 thousand.
  • During the year the number of credit cards increased by 42.8%.
  • The number of ATMs grew by 5.6% to 904.
  • The bank attracted 165,000 individual customers within new payroll projects.

The bank participates in the transition to the National Payment Card System, under which all settlements in Russia will be carried out in the nearest future.

BANK CARD ISSUING

The bank put a priority on increasing the number of credit cards in 2014. Thus, at the end of the reporting period, the number of credit cards grew by 42.8% to 92.1 thousand, including thanks to the introduction of the technology of active sales of instant-issue credit cards under payroll projects. The share of credit cards in the total portfolio increased during the reporting period from 4.6% to 7.7%.

The total number of accounts in 2014 decreased by 13.1% to 1,023.7 thousand, along with a reduction in the number of debit cards by 16.3% to 1,100.1 thousand cards. This was associated with the general deterioration of the macroeconomic situation.

The bank continues to develop the payroll projects: 165,000 individuals who are the employees of 1,050 organisations became the bank’s clients in 2014. Vozrozhdenie Bank is strengthening its competitive advantages in this segment by offering flexible rates, preferences for company employees and an extensive ATM network.

The bank records a stable increase in the share of non-cash payments with the use of bank cards: in 2014, the share of transactions in retail outlets in the total volume of transactions increased from 9.5% to 11.6%.

In 2015, the bank plans to launch a bank card with a transport application for travel by underground railway, buses, trolleybuses and suburban trains.

DEVELOPMENT OF THE ATM NETWORK AND REMOTE SERVICE

Development of the multi-channel remote service traditionally ranks among the priority activities of Vozrozhdenie Bank. In 2014, the bank continued to improve its services through the ATM network, Internet banking and mobile banking. According to research of Markswebb Rank & Report, an independent analytical agency, completed in 2015, Vozrozhdenie Bank entered the TOP-3 banks providing the most user-friendly remote deposit services.

The bank expanded the list of services available 24 hours in real time through the remote channels during the year. Today, any ATM as well as Internet bank and mobile bank, offer clients access to such operations as opening a deposit, deposit non-cash replenishment, partial withdrawal of funds from deposits (by transferring funds to any card or account), cash replenishment in one transaction, receiving information on deposits and bank statements. This saves the client’s time and relieves offices from long queues. Clients can transfer funds via the Internet and mobile banking to any banking details of legal persons and individuals (payments of taxes, payments to the state budget, etc.) and to make regular payments.

The ATM network is expanding: 80 ATMs were replaced in accordance with the renovation programme during the year, and the total number of ATMs grew by 5.6% to 904. The top priority remains the provision of the highest level of security to the ATM network and remote service channels. The bank issues only chip cards, which guarantees their reliability. The bank also issues Visa PayWave proximity cards, “The Whole World With You” co-branded cards, which enable their holders to become participants of the iGlobe.ru loyalty programme, and, when paying with the card for everyday purchases, to receive miles for the transactions and accumulate them in a special “Mile” account on the www.iglobe.ru website.

The bank carries out 24-hour monitoring of card transactions. The use of 3D Secure technology allows for control over risks when conducting operations in the Internet. The bank managed to reduce losses from fraudulent transactions by 38% in 2014 year-on-year.

The bank uses advanced software in its ATMs. With the help of the Vozrozhdenie Bank card, customers can conduct a wide range of transactions through a single interface for all remote service channels. The software of the ATM network also permits using the marketing opportunities of this channel and increases sales of various banking products.

In 2014, the bank significantly increased the functionality of its remote service channels. In particular, it switched the CyberPlat payment integrator, which facilitates deposit management and online money transfers. In the future, the bank is planning to continue the development of remote services, including the ATM network, Internet bank and mobile bank.

STRUCTURE OF INCOME OF THE BANK CARDS BUSINESS

RUB million
Net interest income232
Net fee and commission income
Acquiring75
Commission for cards167
Payment systems314
Remote banking service324
Payroll projects375

NUMBER OF ACCOUNTS
thousand accounts

-13.1%

DYNAMICS OF THE VOLUME OF BANK CARD TRANSACTIONS PER YEAR
RUB billion (excluding operations of top-up/opening deposits)

+1.3%

CHANGE IN THE NUMBER OF ATMS
units

+5.6%

CHANGE IN THE NUMBER OF CREDIT CARDS
units

+42.8%

CHANGE IN THE NUMBER OF DEBIT CARDS
units

-16.3%

DYNAMICS OF INCOMING PAYMENTS TO RUBLE CARD ACCOUNTS PER YEAR
RUB billion

+0.5%

DYNAMICS OF THE NUMBER OF CREDIT CARD TRANSACTIONS PER YEAR
million transactions

-14.6%

DYNAMICS OF THE VOLUME OF PAYMENTS VIA ATMS
RUB billion (excluding operations of top-up/opening deposits)

+59.1%

CHANGE IN THE AVERAGE BALANCE ON CARD ACCOUNTS PER YEAR
RUB billion

+1.1%

CHANGE OF THE NUMBER OF ATMS WITH THE CASH-IN FUNCTION
units

+5.7%

VOLUME OF CUSTOMER PURCHASES (RETAIL) MADE USING BANK CARDS
RUB billion

+23.8%

NUMBER OF CLIENTS USING VBANK WITH YOU SERVICE
thousand clients

+8.0%

VOLUME OF TRANSACTIONS ON POS-TERMINALS
RUB billion

+20.1%


PAYROLL SERVICES
14,200 contracts

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