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New opportunities of communications in retail banking promotion. Deputy CEO, VTB24 Mikhail Kozhokin. Overview of VTB24. Profile. Leading Russian retail bank with full range of banking products and services for individuals and SME. Distribution Network. 531 branches/outlets

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new opportunities of communications in retail banking promotion

New opportunities of communications in retail banking promotion

Deputy CEO,VTB24

Mikhail Kozhokin

overview of vtb24
Overview of VTB24


  • Leading Russian retail bank with full range of banking products and services for individuals and SME

Distribution Network

  • 531 branches/outlets
  • Approx. 5000 ATMs
  • Nationwide branch network that is significantly larger than those of most competitors

Net Income Growth (in RUB mln)*

Total Asset Growth (in RUB mln)*

Market Position


  • Second largest retail bank in Russia
  • Fifth largest bank in Russia by assets
  • Retail loans market share – 10,6%
  • Retail deposits market share – 6,4%
  • Very strong position in all Russia’s regions: 69 regions – 86% coverage
  • Focus on major cities

Business Lines

  • Loan and deposits for individuals
  • SME lending and services
  • Private Banking
  • Cards
  • Investment products for individuals


  • Over 7.8M individuals clients with 6.9M active clients
  • Approx. 200 000 SMEclients with 49 500 active

CAGR = 42%

CAGR = 100%

*IAS, standalone VTB24. 2010 data preliminary, non-audited


Retail Banking – History of VTB24

2004 – 2006

2007 – 2008

2009 – 2011

  • SET UP
  • Acquisition of Guta Bank in Russia
  • Based on Guta Bank, a specialized retail bank, VTB24, was created, focusing on serving and providing loans for retail customers and small businesses as a part of VTB.
  • Product lines and sales process were set and launched
  • Significant growth of VTB24’s business volumes and market share evidenced by branch network expansion across the country and creating new office forms and bank products sales modules.
  • Retail customers’ migration from VTB and VTB North-West
  • The second largest retail bank in Russia
  • Wide branch network throughout Russia
  • Developed retail infrastructure, including front office, processing center and internet banking
  • Significant retail client base
  • Leader in customer service*
  • VTB24 actively develops its retail business and product line, leading banking service technologies and cross-selling, and steadily grows its share on the retail market.

The strategic focus is further leading growth with client-oriented and segment-based approach to ensure profitability and high efficiency

* Awards granted in 2010 presented on next slides

business growth supported and customer loyalty by efficiency improvement

Number of clients

Branches and ATMs

Business Growth Supported and Customer Loyaltyby Efficiency Improvement

Structure of client-flow by time in queue

Average time of operation


Rising Customer Satisfaction Contribute to Stable Growth

  • EPSI (Quality assessment to meet European standards) – Annual research «Customer saticfaction’2010» – VTB24 is recognized as absolute leader for customer satisfaction and loyalty
  • «The Retail Finance» magazine– 1st place by results of 2010: «The best retail bank», «The best service quality»
  • SPEAR’S Russia Wealth Management Awards - in 2010 VTB24 Private Banking is recognized as the best Russian bank, providing private banking services and wealth management


Industry average






Other banks



Raiffeisen Bank

#1Private Banking

segment oriented approach and the internet

The share of the Internet users in different income groups

The share of Internet in the sources of information about the bank

Segment-oriented approach and the Internet
  • VTB24 implemented a segment-oriented approach in client attraction. Key target segments are High/Ultra HighNet-Worth’s, mass affluent and the upper mass segment.
  • The upper mass segment is characterized by high level of activity in the Internet, especially in social networks:52% of the respondents access the Internet every day, 81% - no less than once a week. In comparisonnational average is 40% and 61% respectively.
  • The marketing policy of VTB24 rests on following features:
    • Internet Advertising (high share in the advertising budget, emphasis oncontextual advertising)
    • General creative concept (celebrities)
    • Presence in social networks

Family Income, per person, per month, $

Family Income, per person, per month, $

internet audience in russia
Internet audience in Russia
  • The number of the Internet users in the Russian Federation increased by 31,8% in 2010 and amounted to 59,7 million people. It’s about 42,8% of the total population of the country.

Source: Internet World Stats

internet advertising in russia
Internet Advertising in Russia

The Internet is the only segment of the advertising market that has been continuously increasing even during the crisis in 2008-09 years.

  • Except for the post-crisis 2009, the growth rate of internet advertising in Russia in 2006-2010 didn’t descend below 40%.In 2010 the internet advertising market capacity in Russiaaccording to MindShare Interactionamounted to 21,9 billion rubles.
website attendance dynamics www vtb24 ru

Website visitors

The product structure of site attendance in 2010

Website Attendance Dynamics –
  • The amount of website visitors is continuously rising with a 25% increase in 2010. For 4 years in a row (2007-2010) the VTB24 site attendance has grown by 7.5 times.
  • About 50% of visitors are interested in cash loans and credit cards.
  • VTB24 site reach is less than the amount of Internet users in Moscow or St. Petersburg, but exceeds that of Ekaterinburg and the other Russian cities.
vtb 24 expands its communications via the internet

Internet Advertising Costs, $mln

The Structure of Advertising Costs

VTB24 Expands Its Communications Via the Internet
  • Internet Advertising costs increased by 80% in 2010.
  • The share ofInternet Advertising coats in the advertising budget is rising from year to year. In 2010 it reached 26,1%.

Website is a Generator of Sales

  • The amount of cash loans applications via increased by 28% in 2010, which is three times more than in 2009 (9%).
the effectiveness of internet advertising increases the example of cash loans

Internet Advertising Costs and Conversion Ratio (Number of Visitors-Number of Applications)


The Effectiveness of Internet Advertising Increases:The Example of Cash Loans
  • With the increase of Internet advertising costs by 80% in 2010 the conversion ratio of the number of VTB24 site visitors into the number of internet applications for cash loans decreased by 21%. So the effectiveness of Internet advertising has risen.

VTB24 in Social Networks

VTB24 is represented inFacebook, Twitter, on (leading Russian site on banking), LiveJournalandBlogspot.

vtb24 internet banking
VTB24 Internet Banking

In 2009-2010the number of internet banking clients of VTB24 has grownby 4,6 times. At present every eighth client of VTB24 uses internet banking.

specifics of russian financial internet development
Specifics of Russian financial internet development
  • Banking technologies development can’t catch up with the Internet technologies
  • Russians don’t have enough trust in the Internet for financial transactions.
  • In general in Russia the Internet is yet a communication environment and information search engine, rather than a tool for business matters and for solving personal financial questions.
  • The core of financial internet audience are young successful professionals, a new and attractive generation of clients
  • This is yet narrow but fast growing segment with a high potential for both financial internet and client base of retail banks development

They would open new opportunities for the banking sector