Interview Bugrov

Denis BugrovMember of the Management Board,
Senior Vice President
>> Sberbank is a unique financial institution in the Russian market. Our actions have an immediate impact on Russia’s economic development and on development in the regions in which we operate. The effectiveness and customer focus of our operations affects the well being of an enormous number of people

It is our fundamental position not to separate our business interests from our social responsibility programmes, since these two areas are integrated and interrelated. It is important for us that there be no conflict between growing our business and acting as a socially responsible corporate citizen.

Our 170-year history is an enormous source of confidence. Social responsibility has today become not only a fashionable topic but also an integral element of our work. Let me give an example. One priority area of our business activities is improving the financial literacy of our customers to help them make better use of the Bank’s advanced financial products and services. At the same time, there is also an element of our role as a socially responsible company in this: we want our customers to make informed and balanced financial decisions. This convergence between social responsibility and business interests is characteristic of a modern financial institution. This new stage in the development of the financial services market is a vital element of our work.

First of all, we adopted a Corporate Social Responsibility Policy, thus providing a formal foundation for Sberbank’s extensive activities in this area

2011 saw several important events. First of all, we adopted a Corporate Social Responsibility Policy, thus providing a formal foundation for Sberbank’s extensive activities in this area. This is a major milestone for us, since historically Sberbank has always been a socially oriented institution. By adopting the policy we sent a signal — first and foremost, to ourselves, but also to all our stakeholders — that we take corporate social responsibility seriously, defining its principles, goals and objectives, and that we are going to expand activities in this area to the maximum extent possible.

In addition to the adoption of the policy, we implemented a broad range of stakeholder engagement activities. In our customer relations, we developed and expanded Customer Voice, a large-scale customer feedback programme, improved the quality of service and expanded our product and service range. We increased the transparency and openness of the Bank’s operations, using, among others, suggestions from our minority shareholders. In employee relations we used a variety of feedback channels ranging from the CEO’s hotline to large-scale crowdsourcing projects. We maintained an effective and constructive dialogue on a broad range of issues with the government — our key counterparty.

In 2011, we not only used our traditional stakeholder engagement methods but also piloted new mechanisms. We are particularly proud of our crowdsourcing initiative. To celebrate the Bank’s 170th anniversary, we implemented Sberbank 21, a large-scale project that united tens of thousands of participants who told us how we can make Sberbank and the country better, more dynamic and efficient.

Participation in the crowdsourcing project

We will continue to develop crowdsourcing mechanisms, working on integrating them into the Bank’s day-to-day activities. For example, most of the decisions proposed about Sberbank’s new products and processes, as well as updates to procedures and policies, will undergo a crowdsourcing-based assessment by the Bank’s employees. These mechanisms will also play a key role in identifying new solutions to optimise systems and processes.

In 2011, transformation processes initiated earlier at the Bank came to fruition. The year saw many important events; we expanded the geography of our operations through the acquisition of Volksbank International and entered the investment banking market through the integration of Troika Dialog. We also developed our banking insurance business and decided to enter the long-term life insurance market. The Bank launched Thanks from Sberbank, a unique loyalty programme, and developed a special offering targeting the young — the most interesting but at the same time the most under-served customer segment.

In our view, quality is composed of four elements. It is our ability to give customers what they want, when they want it, at a good price for both the customer and us and with acceptable risks for both parties. This concept of quality is incorporated into all of the instruments we use to assess internal and external customer satisfaction, the most important of which being mystery shopping, customer surveys and analysing customer feedback. We work to integrate these three instruments so as to use them in planning further improvements to the Bank’s business.

In 2011, we continued to work to improve the efficiency of our operations and made serious modifications to the Sberbank Production System

In 2011, we continued working improve the efficiency of our operations and made serious modifications to the Sberbank Production System (SPS). SPS is an important instrument that “industrialises” our systems and processes and transforms the mindset and values of an enormous number of our employees. SPS helps the bank maintain a steady increase in staff productivity. In 2011, SPS rollout led to good results in several divisions at the Bank, including IT and various support functions. Optimisation of accounting functions reached an efficiency level of over 25%. We were able not only to optimise costs but also improve the quality of work, thereby reducing the number of errors in the course of preparing accounting documents many times over. Assessments of the impact of SPS on the quality of customer service show that we were able to improve customer satisfaction and attitudes towards the Bank.

Each day Sberbank offices are visited by over six million customers, and the effectiveness and quality of our work affects their financial well being, mood and, as we would like to believe, their success in life. We strive to assist our customers in making the right financial decisions that will help them fulfil their dreams and aspirations. This balanced and well-thought-out business approach, combined with an understanding of our influence on the national economy, is our way of integrating Sberbank’s business interests and its social responsibility as a corporate citizen.


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