Other retail banking services

Cash and settlement services

Cash and settlement services remain the most significant service line in terms of transaction volume and income from fees and commission. In 2011, commission income on retail cash and settlement services amounted to RUB 41.5 billion or 27.3% of total income from fees and commission.

Processing payments from individuals is the service that accounts for the bulk of the Bank’s business. The aggregate volume of payments processed in 2011 was more than RUB 1.8 trillion, with the total number of payments approaching 1 billion. Payment's volume growth was driven by improvements in billing technologies and the expansion of self-service and online banking channels. Payments made using billing technologies accounted for more than 74% of total payments processed by the Bank.

In 2011 the Bank launched its Auto-Payment service, which allows customers to automatically top up their mobile phone accounts directly from their bank card accounts. By the end of the year, a total of 1.1 million people were taking advantage of this service.

Sberbank continued to grow its share in the highly competitive money transfer market. The number of transfer orders amounted to around 25 million and the total volume of such orders was more than RUB 750 billion.

BLITZ express international money transfers between Sberbank divisions in Russia and subsidiary branches in Kazakhstan, Ukraine and Belarus are gaining popularity, with the number of transfers exceeding 340,000 in 2011. Additionally, more than 8,200 Sberbank outlets provide express money transfer services through the international MoneyGram system. In 2011, the Bank processed a total of 150,000 transfer orders for USD 119 million.

Sberbank successfully competed with other banks in payroll and pension-related bank account transfers. The Bank maintains payroll accounts for over 50% of Russia’s workforce. 95% of people who receive pensions from national security, defence and law enforcement agencies do so through a Sberbank account. 46% of social pensioners receive their pensions through Sberbank. Throughout 2011, the number of people receiving their salaries and pensions through Sberbank rose from 43 million to 48 million.

Bank cards

Bank cards are the second largest business generating fee and commission income of RUB 35.1 billion or 23.1% of total fee and commission income earned in 2011. The rapid growth of this business helped extend Sberbank’s lead over its competitors.

In thousands 2010 2011 Change, %
Number of active cards 68,626 51,390 33.5
Including credit cards 4,327 1,927 124.5
Number of ATMs 34.5 27.9 23.7
Number of active retailers and service providers using the Bank’s
acquiring service
137.0 100.2 36.7

In terms of the number of cards issued, Sberbank remains the absolute leader not just in Russia but in the whole of Europe. The Bank also became Russia’s largest credit card lender in 2011.

In 2011, Sberbank successfully completed a number of major initiatives in this area, including issuing the first ever 3D card in Russia, virtual cards for secure online banking, individually designed cards based on an image created by our customers or selected from our existing image gallery, cards that can be issued instantly and cards that can be used as metro passes. In celebration of the Bank’s 170th anniversary, we launched Thank You from Sberbank, a customer loyalty programme that allowed cardholders to earn bonus points on each purchase they make using their Sberbank card. These bonus points could then be used to pay for goods and services in participating stores.

Insurance products

Sale of insurance programmes played a prominent role in boosting income from fees and commission in 2011. The Bank earned RUB 14 billion from insurance programmes in 2011, which represented 9.2% of total fee and commission income.

2011 saw continued growth in our insurance business, propelled by the expansion of existing programmes and the launch of new products. Corporate Insurance, a programme focused on individual entrepreneurs and corporate customers, was introduced across the Bank’s branch network. The Bank rolled out its voluntary life insurance and health insurance programmes to cover mortgage borrowers. Clients can now buy travel insurance, accident and illness insurance and card fraud insurance policies at each retail branch.

As a result, by the end of the year, the Bank, in collaboration with its partner insurance companies, was in a position to offer an extensive range of insurance programmes, including: life and health insurance; accident and illness insurance; pledged property insurance; domestic and international travel insurance; card fraud insurance; and cumulative and unit-linked life insurance.

More than 2.7 million clients, including over 10,000 corporate clients, benefited from our insurance programmes in 2011. With about 2.1 million clients, voluntary life insurance proved to be the most popular insurance product.

All the insurance programmes we offer are voluntary. Clients can turn down any of the policies we offer without the risk of being denied access to any banking services. In 2011, the Bank introduced a refund scheme for clients withdrawing from voluntary life and health insurance programmes. The Bank also offers assistance to clients in difficult insurance-related cases.

Sberbank has acquired a life insurance company, which will be used as a base to further expand our insurance product offerings. The division will focus on cumulative and unit-linked life insurance.

In addition to traditional life insurance products, the Bank offers mandatory pension insurance to its private and corporate clients. Over 250,000 policies were sold in 2011.

Other banking services

Sberbank also offered other services to retail clients in 2011:

  • Foreign exchange transactions — foreign exchange transactions were performed at over 9,000 Bank outlets and amounted to the equivalent of USD 15.6 billion.
  • Selling coins of precious metals — within “Worldwide Coins — though Sberbank of Russia” programme more than 1.2 million coins were realised.
  • Leasing individual safety deposit boxes — 241,000 safety deposit boxes are available at over 1,000 outlets.
  • Paying grants and copyright royalties under agreements with charity foundations — the aggregate volume of payments amounted to around USD 600,000 in 2011.
  • Selling lottery tickets under agreement with Sportloto LLC to support the Sochi 2014 Winter Olympic and Paralympic Games.

Retail sales and services

The Bank continued to develop its full service telephone contact centre to provide round-the-clock customer support via telephone and through other multimedia channels across Russia. A new platform in Volgograd was added in 2011 to the existing four platforms operating in Moscow, Voronezh, Ekaterinburg and St. Petersburg. The total number of employees in the centres increased from 833 to 1,760. The growing number of calls handled each day (which increased from 57,000 in 2010 to 132,000 in 2011) serves as proof of the high level of demand for call centre services. Despite the rapidly expanding workload, the contact centre remains a high performing business unit: two thirds of all calls are answered within 40 seconds.

We are actively developing our remote sales channels to ease the workload on service outlets and simplify operations for customers. Over the reporting year, the percentage of transactions processed through remote channels grew from 57% to 71%. The number of cash machines and payment terminals increased 1.3 times in 2011 to reach 56 thousand. The number of active users of our Mobile Bank service soared to 5.3 million or 3.8 times the figure from 2010, while the number of customers using Sberbank Online rose to 2.4 million or 3.4 times what it was in 2010.

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