Dmitriy Pyanov from VTB: Smaller Banks Face Increasing Difficulty in Competing
In the face of larger financial institutions hogging resources, smaller banks are skirting competition by emphasizing the preservation of their unique services, according to Dmitriy Pyanov, the first deputy president of VTB Bank. He stressed that the bank's expertise and experience enable them to execute complex deals with ease.
"The digital gem of RNKB lies in its digital ecosystem that extends the bank card's functionality beyond conventional payments. The RNKB card offers more than just transaction tools. The four cornerstones of this ecosystem, operational in Crimea and Sevastopol, hold significant importance for us, and we strive to preserve them as a blueprint for our digital platform," Pyanov explained.
He also noted that the addition of "Pošta Banka" implies the creation of a new business model, "VTB nella Pošta."
Speaking on the state of the banking sector, Pyanov underscored that Russia boasts over three hundred banks, which he considers excessive.
"To compete successfully today, you need a significant IT budget, advertising budget, and a vast client base. Therefore, the natural path to increasing efficiency in banking lies in the expansion of scale," he added.
Experts estimate that the banking system, on the whole, is stable.
The Central Bank predicts the sector's profit to range between 3 and 3.5 trillion rubles by the end of the year, slightly lower than last year's record 3.8 trillion rubles.
The photos were provided by the bank.
Small banks thrive in the competitive landscape by offering specialized digital ecosystems, niche and personalized services, and cultivating agility and innovation in adapting to technological advancements and regulatory changes. This focus on digital transformation and prioritizing customer-centric solutions sets them apart from the bureaucratic and broad product offerings of larger institutions. In essence, the battle for market share becomes a battle of speed, services, and user experience.
- "In an effort to distinguish themselves from larger financial institutions, small banks like RNKB are emphasizing digital transformation, offering specialized digital ecosystems that extend beyond conventional payments, as exemplified by the unique RNKB card."
- "As competition in the banking-and-insurance industry intensifies, smaller banks are leveraging their agility and innovation in adapting to technological advancements and regulatory changes, providing a more personalized service experience than larger institutions."
