In conditions of fierce competition, banks are coming up with new chips to increase customer loyalty to their products: they are developing mobile applications, promote Internet banking, create bonus programs... Today we will focus on the last point: we will figure out what bonus offers are being implemented by the largest Russian banks.
Bonuses, cashback and miles
In general, there are 3 types of bonus programs:
- In the first case, the client receives bonuses for the active use of a bank card, paying with it in supermarkets, pharmacies, etc. Bonuses are credited to the account, converted into rubles, and in the future they can be used to pay for purchases in partner stores (or get a discount).
- The cashback program assumes that percent of the money spent is returned to your card.
- Co-branding loyalty programs stand apart: they combine two brands, for example, Aeroflot and Sberbank. By purchasing a co-branding card, for every N rubles spent, you get miles, which can then be exchanged for real tickets for the dream trip.
Review of bonus programs
Top 10 credit institutions by assets, published on the Banki.Ru portal. Let's take a look at their bonus offers."Thank you" from Sberbank
- at an ATM;
- in the Internet bank Sberbank Online;
When paying with a card in partner stores, you will receive from 0.5% of the purchase price to your bonus account, with 1 bonus equal to 1 ruble. The list of partners is published on the official website of the program; in some cases, the amount of bonuses from purchases can reach up to 30%.
With the accumulated bonuses, you can pay up to 99% of the cost of goods in companies and online stores participating in the program.
"Thank you" applies to all types of cards, but there are also special offers, for example, an increased percentage of the Youth card.
"My bonus" from VTB Bank of Moscow
The "My Bonus" program from VTB Bank of Moscow is designed only for credit cards and works like Cash Back: a portion of the purchase price is credited to your account every month.
You can connect to the program at a bank branch or call the round-the-clock Customer Support Service. Bonus categories are selected every three months:
- air and railway tickets;
- repair / car wash and others,
for purchases in which you receive from 3 to 10% of their value.
"Collection" VTB24
The number of bonuses accrued by VTB24 Bank under the Collection program varies depending on the card package (Classic, Gold) and its type (debit or credit). To receive 1 bonus, you need to spend from 23 to 50 rubles.
To become a member of the bonus program:
- the cardholder must register on the website;
- get access to your personal account;
- enable the program through an ATM.
Accumulated bonuses can be exchanged for rewards: the catalog of goods available for order is posted on the program's website.
With the help of bonuses, you can purchase financial and insurance products bank, certificates, household goods and even pet supplies.
"We're on the way" with Gazprombank
Gazprombank implements the loyalty program "We are on the way" - by and large, this is co-branding in cooperation with OOO Gazpromneft.
When you pay for gasoline or purchase goods at a gas station using a Gazprombank - Gazpromneft card, you will receive bonuses on your account, depending on the status of your card: from 3 to 5 bonuses for every 100 rubles.
Subsequently, the accumulated bonuses can be exchanged for a discount when buying fuel or goods for gas station Gazpromneft (1 bonus = 1 ruble).
"Harvest" in the Russian Agricultural Bank
The Rosselkhozbank bonus program is quite young (it appeared in September 2016) and has the atmospheric name "Harvest".
When paying for purchases by credit card 1.5% of the cost are returned to your account in the form of points.
To connect to the loyalty program, you need to contact the contact center or the nearest office with an ATM. When issuing a Travel Card, an increased accrual of bonuses is provided.
What is in FC Otkritie
As such Bank "FC Otkritie" does not have a bonus program- they work on Visa systems Bonus and Peace Visa privileges... By paying with these cards, you get discounts in partner stores. Read more on the bank's website.
Cash Back at Alfa-Bank
Alfa-Bank's product line has appeared - the bank returns 10% of refueling at gas stations and 5% from bills in restaurants and cafes.
Depending on the package of services, you can receive from 2,000 to 5,000 rubles per month, while the amount spent must be at least 20,000 - 30,000 rubles. Also, the site regularly publishes special offers and promotions for cardholders.
"MKB Bonus"
The "MKB Bonus" program from Moscow Credit Bank is available when you connect an annual service package (you can do this online or at a bank branch). The scheme is the same: we pay for purchases with a card - we get part of the cost back to the account.
The points received are converted into rubles, they can be used to pay for up to 100% of purchases in partner stores and airlines.
PSBonus from Promsvyazbank
The last bank in our review is Promsvyazbank and its PSBonus program. You can become a participant in the Internet bank, office or by phone.
By paying for purchases from the card, you become the owner bonus points based on 15 rubles = 1 point.
You can use points for the following purposes:
- discounts when making payments online;
- payment for services and bank commissions;
- transfer to another person;
- donation and transfer to rubles.
Let's summarize
Thus, we see that bank bonus programs are gaining popularity and becoming more beneficial for clients. This encourages cashless payment, which, let's be honest, has already become a favorite - it's convenient, easy and safe. And with bonus and cash-back programs - it's also profitable.
Promsvyazbank, which was reorganized at the end of 2017 at the Consolidation Fund banking sector, flew out of the top three in the new Frank RG rating for the quality of service in the premium banking segment, follows from the company's annual review (available from Forbes). Last year, the bank took third place, and in the current version of the rating it has moved to fifth. The first place went to Alfa Bank, which ousted last year's leader - Raiffeisenbank (second place this year). Citibank and Sberbank were in third and fourth positions, respectively.
The decline in Raiffeisenbank's position is caused by a change in the rating methodology, explains project director of Frank RG Lyubov Prokopova. “This year, when assessing the level of service, we took into account not only the results of our 'secret purchases', but also the results of a survey of premium customers. Compared to last year, Alfa-Bank performed better at the stage of “secret purchases” and received high ratings of satisfaction with the service from its customers, which allowed it to take the first position in the rating, ”explains Prokopova.
Frank RG experts gave Promsvyazbank a C grade (on a scale from A to D) in terms of reliability, service, non-banking privileges, offers debit cards and loan conditions. The bank received the highest category "A" only for conditions on deposits and for tariffs for non-banking products and services.
It is noteworthy that this is the only credit organisation from the top 5, which received the highest rating for conditions on deposits. Alfa-Bank and Raiffeisenbank have a “C” rating in this category of services, while Sberbank has a “D” rating.
Alexey Ermakov, Development Director of the Wealthy Retail Business Segment of Alfa-Bank, notes that the bank offers its clients to increase interest rate for opening a package of services. At the same time, clients receive not only a higher return on their investment, but also many other products and services that allow them to get the most out of the bank.
Kirill Matveev, Head of the Raiffeisenbank Premium Clients Department, in turn, assures that the bank is constantly analyzing the feedback it receives from clients. “If earlier the premium banking market was primarily of interest to more conservative clients who have significant savings, which were kept in deposits and accounts, often without active operations, now the picture has seriously changed. There is a demand for premium banking among active users who often use banking products and constantly make transactions. For example, they pay on a mortgage, transfer their salaries to the bank, and often use cards. Moreover, their account balances may not be very high, but there is a large turnover of funds, ”says Matveev.
Sanitation is to blame
The premium service was assessed according to parameters grouped into nine categories. Reliability, service level, remote banking service, tariffs for banking products and services, conditions for deposits and accounts, investment proposal, proposal for debit cards and conditions for loans and credit cards.
According to Lyubov Prokopova, the reorganization of major players in 2017 generally influenced the premium segment. During the period of negative information background around large banks, which eventually fell under the rehabilitation, there was an outflow of premium clients, since the amounts they kept in their accounts exceeded 1.4 million rubles guaranteed by the DIA. After the situation was resolved, some clients began to return, notes Prokopova. However, due to a decrease in reliability, Promsvyazbank dropped from third to fifth place compared to last year, she explains.
According to Vitaly Rogovoy, Head of the Department for Development of the Wealthy Clients Segment of Promsvyazbank, his bank's premium clients identify three key factors as criteria for choosing a service: stability and reliability financial institution, terms of the program and product line, quality of service and personal service.
Now banks that were reorganized in 2017 (FC Otkritie, Promsvyazbank, B&N Bank) are faced with the task of attracting deposits from the population, so these banks have rates slightly higher than the market, says NRA Managing Director Pavle Samiev. In his opinion, this situation will persist for about six months.
However, the rates alone are not enough to compete in the premium banking segment, you also need high-quality customer service, good distance services and investment programs, Samiev lists. Nevertheless, it is impossible to argue that banks that have been rehabilitated will not be competitive in this segment, he adds.
Investment focus
Premium banking is focused on clients with monthly income from 250,000 rubles with free in cash from 2.5-3 million rubles. It does not imply an individual approach to the products offered, but provides customers with additional options that are not available to a mass customer: service without queues with a personal manager, an increased rate on deposits and savings accounts, a platinum or black card, extended card privileges - bonuses, miles, cashback , priority pass, insurance for those traveling abroad, etc.
Also, a competent premium manager can advise the client on the placement of funds in investment assets: Mutual funds, structured products, stocks and bonds.
One of the trends in the premium banking market is precisely an increase in the intensity of sales of investment products, comments Lyubov Prokopova on the results of the study. “As part of our research, we found that the average share of investments in a premium client's portfolio increased from 3-5% in 2016 to 7-10% in 2017,” she says. However, some banks exceed these figures. For example, Citibank, which took the third position in the rating, but received D marks in the categories of remote customer service and offers on debit cards, the share of investment products in the portfolio of premium clients is significantly higher - 38% on the Russian platform, says Olga, Head of Citigold and Citigold Private Client. Vaksin. She noted that all premium personal managers are certified to sell investment products in accordance with Citigroup's global requirements before beginning customer service.
At the same time, the sale investment insurance life (ILI) continues to dominate, which is a rather alarming sign, since many clients at the end of 2017 received not the profit they expected, Prokopova notes. This could lead to a churn of dissatisfied customers, she said.
In a still whirlpool
In general, over the past year, no striking changes have occurred in the premium banking market - large players have launched their programs long ago and continue to develop them, says Prokopova. “Also, the places of banks in the rating have been fixed and from year to year they are kept at approximately the same positions. It is difficult for banks to make a quantum leap. According to the survey results this and last year, the most important for a premium client are reliability and level of service - indicators that are most difficult to influence in the short term, ”says Prokopova.
Also, no new players appear in this segment. This is partly due to the fact that launching a bonus program from scratch is too expensive for a bank, Prokopova notes. “Finding and retaining the right team of qualified managers is even more challenging for new players,” she concludes.
Mikhail Doronkin, an expert from ACRA's bank ratings group, agrees that the positions of banks in the premium service segment have traditionally remained virtually unchanged, since premium clients are quite conservative - in addition to reliability and brand, they focus on the quality of service both in branches and remotely. The level of interaction with a personal manager is also important, which usually takes more than one year to build. For such clients, attentive attitude and a clear understanding of financial needs and tasks are more important than the cost of service or more high rates on deposits, explains Doronkin.
This explains in many ways why banks that were bailed out could have faced lower demand from premium customers, he adds. “Often, reorganization is accompanied by a change of not only key personnel, but also line managers, and also introduces uncertainty in the development strategy, which can negatively affect the quality of customer service. For the premium segment, even a small “failure” in the service can be critical, ”the expert notes.
Anton Ionov, head of the practice for private clients at EY, adds that the services that Russian banks provide to their clients are not very different from each other, and therefore there is nothing to compete with. “There is no such diversity that a private person can get in a foreign bank for investment products in Russia. Perhaps this is due to strict regulation, and perhaps also due to the fact that not much time has passed since the appearance of market economy and neither banks, nor clients are ready for a set of such tools, "sums up Ionov.
Premium banking, or Premium Banking, is a relatively new concept for the Russian banking market. The pioneer of the Russian premium service market is Citibank, which introduced the Citigold premium program to Russian customers in 2002. In 2009-2011, specialized premium programs appeared on the market in banks with foreign participation- Raiffeisenbank and UniCredit Bank, then in the largest and most advanced private Russian bank- Alfa-Bank. Later, their premium programs were presented by largest banks with state participation - Sberbank and VTB24. Since 2014, competition in the premium service market has intensified: within the framework of strategic planning, the development of the premium segment is becoming a priority task in an increasing number of banks. In 2014-2015, a record number of premium programs entered the market: they were launched in banks FC Otkritie, Promsvyazbank, Rosbank, Rosselkhozbank, Bank Saint Petersburg, etc. In the context of growing competition, the previously launched premium programs have also undergone significant changes ... Due to the fact that premium services are offered by the largest players banking market has already formed, the market is gradually entering the stage of progressive stabilization, and more and more banks declare that they do not set themselves the task of increasing their client base. Improving the quality of service for current customers is becoming a top priority. The market shares of the premium service market participants are assigned to certain players, and for smaller banks it becomes more and more difficult for smaller banks to successfully launch a premium service program.
Source: Frank Research Group
Defluent segment definition
Under the Affluent segment on Russian market banks mean clients with total account balances from 1-4 million rubles, as well as clients with monthly income of 250 thousand rubles in Moscow and 150 thousand rubles in the regions. At the same time, the analysis of clients by income and balances is carried out in parallel, that is, even if a client does not have funds in bank accounts, he can be attributed to the Affluent segment only by the level of his income. “If we see that a client has more than 250 thousand rubles in monthly receipts on the card, then he is of interest to us, because, perhaps, he has savings in some other bank, and we want us to have his savings,” - one of the representatives of the banks shared with us his approach. Perhaps there are savings, or perhaps not, but the bank is already ready to offer the client a service premium and incur additional costs. Thus, in the Russian market, premium banking services are received not only by clients who are ready to place 2-3 million rubles, but also those clients who hold significantly smaller amounts on current and card accounts(300 thousand - 750 thousand rubles), fulfill certain requirements for card turnover (from 20 thousand rubles per month in combination with small account balances - up to 100 thousand rubles per month), receive loans in the amount of 2-3 million rubles or simply open a premium card.
Due to the fact that the premium banking market in Russia is quite young, many banks are only at the stage of forming their own understanding of the Affluent segment and how to build premium banking services. The main goal-setting is often the development of premium banking services in the sense of increasing market share, while an in-depth analysis of the revenue and expense components of the segment's business is not carried out. At the same time, the situation will change dramatically: as the Central Bank's key rate decreases, the level of banks' earnings on balances should decrease, which will limit the ability of banks to provide additional benefits a significant number of clients.
Affluent vs Emerging Affluent
As the premium service market matures, more and more banks will follow the path of tightening the principles of customer segmentation. Banks will single out into separate categories those customers who can really qualify for premium banking services, and those who can only be a premium customer in the future.
For example, at a certain period of its labor activity the client begins to receive a fairly high income, shows good turnovers on the card, takes out a mortgage. Today, for many banks, such a client is already included in the premium service channel. However, from the point of view of the life cycle, it does not have savings, and on closer examination, it should fall into the Emerging Affluent segment, which precedes the Affluent segment, which primarily presupposes the availability of free funds that the bank can manage within the framework of premium banking services. In this case, accounting for card turnover, maintaining card balances, the presence of a mortgage from a certain amount will only be indicators that in the future, as savings grow, the client can fully move to the target segment of Affluent. And since, according to statistics, the annual income of a client in the Emerging Affluent segment, as a rule, is steadily increasing and at a certain moment the client naturally "grows" to premium service, it is important for the bank not to lose this client... Often, it is the fear of losing a prospective client that compels banks to offer premium services right now, but only the level of target profitability can help banks decide where to “grow” an Emerging Affluent client - within the premium service or beyond.
Premium banking services at Promsvyazbank
IN last years banks began to actively develop the direction of premium services. It is a relatively new segment in the banking sector and began to form in 2010. Until this year, only City-Bank was engaged in premium services, offering premium cards... The rest of the banks singled out only the mass and VIP segment.
The share was divided in a proportion of about 95% and 5%, respectively, while in the masses there were clients who were slightly below the VIP level, and clients appeared in VIP who were not ready to pay for individual service. Therefore, the idea arose to highlight average level between mass and VIP service. This is what the premium level has become. Let's take a closer look at what premium service is, what are its advantages, what privileges a client can receive, compare the terms of service at VTB 24 and PSb
What is premium service?
This is a type of banking service, when the client is offered cooperation on more favorable and comfortable terms with additional privileges. Its formation began in 2010. Then Alfa Bank, VTB 24 and Sberbank entered the market with their products. Gradually, the rest of the banks began to catch up.
The bank's desire to transfer clients from the mass segment to the premium segment is based on a simple logic: many clients have good income and can afford to pay more for a more comfortable service. They actively use banking products, which bring the bank a good income from commissions (cards of high categories, investment products, insurance, etc.) and want to get more privileges from it. The most important thing is that there are more such clients than VIPs, and they do not need to be looked for separately - it is enough to analyze the mass flow and select the right people.
At the moment, the main sales of premium products go exactly to the already formed client base (up to 80%). The remaining 10-20% are formed by “recruits”. By offering existing customers more favorable conditions and additional bonuses, banks are transferring mass customers to more expensive services. This model of the formation of a premium segment takes place if the client agrees to pay more.
The main task of the bank here is to provide quality service and convince the client to pay for it. If you manage to find a balance point between the cost and the client's income, then premium service turns into a stable business. Average net profit for one such client reaches an average of 50 thousand rubles per year. Now the expectations and requirements of customers are growing every day. If in 2014, according to statistics, every second expressed satisfaction with premium service, then in 2015 - only every fourth.
Features of premium service.
- Premium clients generate up to 60% of retail business profits.
- The segment is in the stage of formation and development.
- Service takes place with a personal manager.
- Dedicated area of increased comfort for clients.
- Separate phone line for faster solution of questions and problems.
- Personal assistance in planning the client's finances.
- Deposits and loans on special terms.
- Availability of investment financial instruments.
- The program of privileges, discounts.
- Non-banking services (legal support, travel programs, increased bonuses for purchases, access to airport VIP lounges, etc.), loyalty programs, service privileges.
Thus, the most attractive criteria for a client wishing to join premium service is the availability of additional options that are not available for the mass segment, but not as expensive as in private service. This applies to higher deposit rates, accrual of interest on card balances, the ability to use high-level cards on a free basis (if there is an N-th balance), or on a paid basis, the ability to withdraw funds without commission at other ATMs or emergency withdrawals abroad, for example , in case of card loss, preferential conversion rate for currency exchange, increased cash-back, insurance for those traveling abroad, Money transfers on preferential terms and so on.
Premium service at PSB.
Promsvyazbank presented its Orange Premium Club program at the end of 2014. Thanks to her, at the end of 2015, he managed to enter the top ten banks in the Premium segment. The program is a complex of proposals for servicing wealthy clients and their family members. The peculiarity of the service is that it takes place in specially equipped rooms with increased comfort. These negotiating clients can be used as solving financial issues and conducting personal business meetings. The Premium PSB program includes:
- Priority card: increased limit up to 2 million rubles, Grace period up to 55 days, additional 1 platinum or 2 gold cards to the main account for a client or family, an emergency issue of a new card or cash collection worldwide in 24 hours, free services internet bank and sms.
- A new format of service in separate offices with a personal manager.
- Availability of emergency services, including support in cases of loss or damage to the card abroad. Within 24 hours will be issued new card or cash up to 5 thousand dollars.
- Protection program for travelers and their families (up to 4 children) for up to 100 thousand euros.
- Concierge: available up-to-date information, to book tables in restaurants, tickets, places in hotels, organize a trip, enjoy privileges and discounts, receive invitations to private events, etc.
- Access to investment programs: mutual funds, trust management.
- Special lending conditions: increased amounts, no surety, shorter period for consideration of applications, preferential conditions for early repayment.
- Currency exchange for favorable terms on the special course.
- Access to individual bank safes: a separate room, the ability to book a visit, favorable rates and discounts, various terms and sizes.
Comparison of premium services from VTB and PSB.
Let's consider the main points:
| Conditions | VTB 24 | PSB |
|---|---|---|
| Availability of a personal manager | Yes | Yes |
| Service cost subject to special conditions Without observing special conditions | Is free 6000 RUB per quarter | Is free 2800 RUB month |
| Minimum account balance | 1.5 million rubles | 2 million rubles |
| The minimum amount of transactions per month on the card | 75 thousand rubles | 50 thousand rubles |
| Availability of additional services: Card protection Traveler protection Concierge Investment services Insurance programs Personal conditions of deposits | Yes for everyone | Yes for everyone |
| Dedicated service area | Yes | Yes |
Thus, the terms of premium service of VTB and PSB have differences and similarities. VTB's advantage is its well-developed branch network, which PSB cannot boast of. If in capitals this factor is not quite essential, then in the regions VTB is unambiguously the leader. Both banks are betting on improved service, personalized service and a package of privileges. When choosing between these two organizations, you should focus on the level of your income, ease of service and the range of services that you can use when you order the Premium package.
Directions banking business, which are commonly called premium and private banking in the world financial system formed over the centuries. And it is not at all necessary to serve the client in a separate room with expensive furniture. This aspect is not excluded, but it is far from the main one.
IN different countries this type of service was created under the influence of various economic and historical factors. Clients of Swiss banks, for example, needed a special level of confidentiality, American clients - initially, they needed to solve problems related to taxation, the British at one time had many features associated with the inheritance of capital. But in all cases, clients required special assistance from bankers.
Banks operating in the Russian market have recently joined the development process of this service in relation to world history. It is all the more interesting to see what transformations this segment is going through now.
Our interlocutor is the head of the department for work with premium clients of Raiffeisenbank Kirill Matveev.
Difference in expectations
- Kirill, let's first define the concepts, VIP-service, premium service, private banking ... What do banks invest in these concepts and what are the differences?
Globally, the idea of premium service is a personal service for a significant client (premium), plus improved conditions for banking products and non-banking privileges. Private banking - complex work with the client himself, his capital and business, including not only financial and investment, but also insurance, legal and tax support.
Premium clients regularly study the offers of not only the main bank for themselves, but also of other banks, they are quite mobile and try to maximize the benefits of working with the bank. A private banking client, when choosing, relies on the most long-term asset management. This difference also manifests itself in the expectations of clients in terms of service: private banking clients address to the bank not only questions about direct banking products, but also related questions concerning their business, as well as family members (for example, taxation peculiarities, advice on the selection of real estate, etc.). ). That is, it is important to understand that a private banking client comes to the bank for a solution, not for a product. A client of this segment needs a comprehensive solution for their business and investments. Private banking employees develop and offer such solutions, which requires expensive infrastructure. Certainly, some of these services are available for premium clients, but in a more standard version. Offering solutions designed for private banking clients to premium clients is simply ineffective.
All these differences are based on the fact that clients of one segment may simply not be interested in the services of clients of another segment. For example, the service of free access to business lounges priority pass, which is very popular for premium clients, is not relevant for private banking clients, since they prefer to travel in first class or business aviation, planning trips with the help of personal assistants.
Many banks provide all levels of service in one segment with the collective name "VIP-service", but the differences I have listed are quite a weighty argument to separate the private banking and premium banking segments, as we do - to define different criteria for attributing a client to one or a different segment and offer different service models and sets of products and services. These different segments have one similar feature - ultra-high service requirements, both from the client's side to the bank, and offered by banks to clients. I would like to note that more often than not, when we talk about VIP-service, we are talking about premium-service.
Peaceful sleep for VIPs
- Have the consumer preferences of premium customers changed in recent years?
To begin with, the client hasn't changed much over the past three years. The age of our premium clients is still 30-50 years old, 70% of them are men, the annual income is more than 2.4 million rubles (from 200 thousand rubles per month). Clients lead an active lifestyle, are engaged in "status" sports (alpine skiing, tennis, hockey, football, fitness clubs), devote time to personal development, have hobbies and hobbies and travel a lot.
- Has this consumer model changed at all during the general economic downturn?
Of course, our clients cannot but react to these changes, so their financial behavior has changed. At the same time, there have not been any cardinal shifts; rather, we are talking about the correction of the consumption structure.
Premium clients have not completely abandoned foreign travel, unlike more massive clients. As before, they spend a lot of time abroad, traveling and working trips. Our statistics on bank cards show that for Lately for many premium clients, expenses abroad have doubled or more, that is, similar to the rise in the exchange rate.
The share of spending on restaurants and entertainment decreased slightly, but still remained significant. Of course, due to inflation, food costs have risen.
However, one should not conclude that a premium client is such a spender who, despite the fall in the ruble and general inflation in the economy, continues to waste money left and right. This category of clients is accustomed to a certain level of comfort and tries to maintain it in any economic situation. More affluent clients always try to rationally approach monetary issues, to act on the principle of “a penny saves the ruble”. Therefore, as a rule, they have savings for “difficult times” and invest in various assets in advance in order to have an additional source of income, since they have an individual financial strategy built with the help of a personal manager - in fact, this is the basis of premium banking services.
This approach is one of the reasons for the lesser sensitivity of the wealthy segments of the population to crisis periods. For example, in the memorable December 2014, premium banking clients' funds were distributed between currency and ruble instruments in a 70/30 ratio, which, of course, made their sleep a little more restful than everyone else's.
- Does your statistics allow you to highlight any regional features, for example, customer preferences in the Urals?
If we talk about the expenses of premium customers of the Urals, then in the first place they have expenses for food and goods of daily need. This picture is also typical for other regions, except for Moscow and St. Petersburg, where the share of spending on restaurants and entertainment is higher. Interestingly, premium customers are more likely to visit convenience stores than large hypermarkets. In second place are the costs of air tickets and travel - here Ural premium customers behave similarly to any other customers of this class.
- Is it profitable to work with premium clients? What is the share of premium services in your bank's revenues?
The share of premium services in the bank's retail income is not prevalent, since we universal bank and offer an extensive product line. Significant is the fact that this income is less dependent on the economic situation than, for example, retail lending, which explains the fact that more and more follower banks are also beginning to highlight this segment and create separate products for it. Someone has just launched this direction and is at the beginning of the journey, someone has extensive experience working with such customers and every year improves the offer and service. But in general, everyone is fighting for good customers, which is especially important in times of crisis. We were one of the first to start working with a premium audience, and it is easier for us in this regard - we already have a stable client base.
- What characteristic features of the behavior of clients in this category would you highlight with the beginning of the emergence of difficulties in the economy - distrust, leaps from currency to currency, something else?
2015 turned out to be a difficult year, both for clients and for the banking market as a whole. Many clients were confused by the kaleidoscope of events and news. In an environment where every day the news is full of headlines about currency surges, bank losses, mass layoffs, etc., it is very difficult to remain sober.
Raiffeisenbank is in a better position - our historically conservative policy of asset management and risk assessment in times of crisis fully justifies itself. Thanks to the timely measures taken and the available margin of safety, Raiffeisenbank was one of the few in 2015 to remain profitable.
For customers who keep in banks large sums own funds, the reliability factor came to the fore. It was premium clients who felt calmer last year: firstly, they could call their personal manager and just talk about what was happening, tell about their worries (our clients actively used this opportunity), and secondly, many of them was financial plan, and the crisis did not have a tangible impact on its achievement.
- What products and services have been added to the premium banking line in the new conditions? What are you planning to implement this year?
Product line updates are a response to changing customer needs. In 2015, we were actively engaged in replenishing the line of investment products that are relevant taking into account the situation on foreign exchange market and the market valuable papers... Introduced new structured currency products with capital protection, updated strategies trust management, an investment life insurance (IOL) program, began to provide brokerage services.
This year we have a plan to expand the range of offered bank cards and we will continue to develop insurance products. In the near future we will launch a premium banking program especially for clients health insurance, unique for the Russian market, with the possibility of treatment in any clinic in Russia and Europe.
- It would be interesting to follow the evolution of this direction in the Russian market using your example. What was the difference between Raiffeisenbank premium banking at the time of its launch and now?
We were among the first to single out among our clients a separate category- affluent. Since we are part of a European banking group, we have seen by the example of colleagues from Western countries that at a certain level of development of the banking sector, everyone comes to the need to single out a segment of wealthy customers and offer them other products. Raiffeisenbank decided to launch premium banking in a difficult year of 2009, despite the fact that it was a year when it was risky to introduce some completely new concepts. However, we did not abandon our plans, and this was the right decision.
At the beginning of our journey, we simply selected, according to certain criteria, clients who, in terms of income or account balances, matched the concept of premium, and "by default" began to offer them premium service. After a couple of years, we have evolved to the need to introduce not only clear criteria, but also to offer this service to customers as a separate product - the "Premium" service package.
At the first stage, this led to some outflow of customers, but those who remained were already consciously approaching the choice.
And since then, the number of our clients with the "Premium" service package has been growing. By the way, many banks that introduced premium service as a separate area after us, took into account our experience and immediately created a package offer.
Of course, over these seven years, the clients themselves, their requirements for the bank and premium service have changed. Together with the general evolution of the market, we are also developing: for example, once premium managers conducted financial consultations with clients using a simple diagram on paper, then we introduced a European financial planning methodology adapted to our market with a more complex logic. We are now thinking about separate software. Over the years, the requirements for the level of personal managers have become more stringent - we have a methodology perfected over the years for the development of employees to the level of competent financial consultants.
- How do premium clients come to the bank? What channel works best for them?
The main, and the simplest and most reliable source of premium customers of any bank is to improve the level of customer service for existing customers. Sberbank is in an advantageous position here (due to the fact that they have a historically huge current client base) and VTB24 also due to the size of the bank and the number of serviced salary projects... Raiffeisenbank also has good competitive advantages, since the bank's policy in the first years of its operation on the Russian market assumed a focus on a relatively wealthy audience. Then the range of services offered expanded, but the reputation of a “bank not for everyone” remained, and the income level of the average client of our bank is certainly higher than that of many competitors.
Now, with the abolition of "wage slavery", when each person can choose a bank for himself payroll service, a new round of banks' struggle for these clients began, including applicants for premium service. We even introduced a new criterion free service in its premium direct segment, based solely on the use of us as a bank for receiving salaries.
More than money
- Which side of premium service is rated higher - quality or cost? In other words, what is the premium customer paying for?
A premium customer does not have to pay for anything at all. We have criteria for a free premium service, upon fulfillment of which the customer is not charged anything extra.
In other words, I am a fairly well-to-do person, I have “X” rubles that I do not need for my current spending.
I can put these X rubles under the mattress at home, but then this money will gradually be consumed by inflation, and I will not get anything, except, perhaps, moral satisfaction from the fact that I constantly see them and can control them. The second option is to put this money on a deposit in some dubious bank, even at a high interest rate. This brings a sense of daily concern for the safety of funds. The third option is to invest my X rubles in various tools that my personal manager has selected just for me. I am much more confident in the safety of money (perhaps more confidence only in the case "under the mattress"), this money starts to work for me and at the same time I get a whole set of privileges and services from the bank, for which in any other scenario I would have to to pay. And it's not just about banking services, but also other services that make my life easier. As an example, there is a concierge service, which you can call on almost any issue from the selection and booking of a trip to the search for the nearest veterinary clinic.
In addition to additional privileges, banks are trying to prepare more interesting product offers for customers - increased rates on deposits, reduced rates on loans, special investment products, the absence of some commissions for day-to-day operations, etc.
- Show on specific examples, how can you manage finances so that the client saves?
Strictly speaking, savings are divided into two types - spent less than expected or received something for free. If we talk about the first type, then premium customers, using platinum cards, receive discounts from partners of the Visa, Mastercard privilege programs and programs of the bank itself. If we take as a basis the fact that the average premium client spends about 100 thousand rubles on cards monthly, then his savings can be up to 10-15 thousand. Or if a premium client needs consumer credit, then the bank will give him a loan at a fixed rate, the best for all retail customers of the bank. Free privileges would also cost the client dearly - for example, a client would pay $ 120 to visit the lounge for a family of four. This is how it turns out that premium clients, without saving on themselves, save on the services they are used to.
