In a recent study, consulting group NEO Company, arrived at the following conclusions regarding the shape of Russian banks in the wake of a somewhat chaotic year:
82% of Russians use fintech services, placing Russia in 3rd place behind China and India
✅From the top, banks are in good shape.
The fall in oil prices, collapse of the ruble and the pandemic in the first half of 2020 had an impact on Russian banks, but not critically so. Key performance indicators continued to grow throughout the year. Six out of the past 9 months saw banking sector profit amounting to 630 billion rubles. This is 70 billion rubles more than during the same period in 2019.
✅Private loans to individuals increased by 4% and amounted to 18.4 trillion rubles. The largest increase occurred in the last week of March, which is associated with an increase in demand before the introduction of a quarantine.
✅Private banks represent only 4 out of the top 10 in terms of number of clients. Government-owned Sberbank and VTB make up the top two largest banks in the sector, while privately-owned Tinkoff took the third place. It is noteworthy that Tinkoff also showed the best asset growth dynamics among the top 20 banks. It has increased assets by 45.2% and is in the top 5 most profitable banks in the country.
✅ Russia is one of the most developed countries in terms of fintech. In 2019, the penetration index of fintech services in Russia was 82%. This puts Russia in 3rd place among the 20 largest world markets, just behind China and India, where 87% of residents respectively use fintech services. The pioneers in this area are still the same—Sberbank and Tinkoff Bank, which have created two of the largest banking ecosystems in Russia.