"Settlements and operational work in a commercial bank", 2012, N 5

In the conditions of fierce competition, the modern banking sector needs to optimize its organizational structure and build a more flexible management system. In this regard, one of the most common trends in recent years in the development of the regional banking sector has been the transformation of branches of large commercial banks into operational offices, that is, the construction of the so-called matrix management structure. The topic discussed in the article is relevant for banks with a wide branch network, focused both on the development of retail business and on servicing a limited circle of legal entities.

Some large banks such as TRUST, VTB24, Alfa-Bank<1>, Raiffeisenbank<2>and Promsvyazbank<3>, this procedure has already passed and continue to move in the direction of centralization. Others, such as VTB Bank<4>and not very large banks (Bank "Otkritie", "Russian Capital"), this procedure is just starting.

<1>Alfa-Bank began the process of converting branches into operating offices back in 2008. The need for changes in the bank's structure was dictated by two main factors - changes in banking legislation and the introduction of the most modern and multifunctional IT platform that unites all the bank's regional clients.
<2>The Supervisory Board of Raiffeisenbank made a decision during 2010 to close 11 branches.
<3>48 branches of Promsvyazbank were transformed into operating offices.
<4>As part of the reform of VTB's regional network, 7 base branches, 80 operational offices, 17 additional offices and 3 operational support centers will be created.

Obviously, not only unprofitable branches are closed (transformed), but also profitable ones, as a rule, if the directions of delegated functions change due to a change in the policy of the head bank or if the programs under which the branch was opened did not bring the expected result.

Branches are transformed into operational offices, thus moving to a new management system. The most modern and efficient matrix structure is chosen, which is designed to standardize the service throughout the network, minimize back-office functions at points of sale through centralization, save costs and concentrate on sales and service quality in places. Thanks to these transformations, the bank will be able to optimize the management of all resources and provide customers with new opportunities: the product range will be expanded and the quality of service will increase.

Positive aspects of the transformation of branches into operational offices

Let us list the main advantages of the banking sector transformation based on the experience of the largest Russian banks.

First of all, during the transformation of a branch into an operating office, a separate accounting unit is liquidated, that is, the need to form a separate balance sheet and other mandatory reporting in accordance with the requirements of the Bank of Russia disappears for the operating office. In other words, there is no need to form a separate accounting unit for the preparation of these reports, but the question remains where and to whom these functions will be transferred.

The next point is that the newly created structural unit of the bank does not have the position of chief accountant, which, in turn, frees the bank from the approval process at the Bank of Russia and reduces personnel costs, which is especially important for banks with small regional offices. In addition, the regime for appointing the head of the operational office is also changing: when the status changes, the need for coordination with the territorial department of the Bank of Russia changes to the obligation to simply notify him of his appointment.

Due to the fact that the legal operating office is not a separate (separate) structural subdivision of the bank, it only has a sub-correspondent account and does not make independent payments, which leads to a decrease in operational risks (including those associated with fraud) and a decrease in the amount of non-performing assets.

The requirements of the Bank of Russia regarding the premises of branches, including the requirements for technical strength and the availability of a vault (or safe room), which lead to significant additional costs, cannot be ignored, while the Bank of Russia does not impose such requirements on operating offices. As a rule, operational offices are equipped with credit institutions, depending on the degree of protection and the range of services offered by the office.

It should also be noted that the procedure for registering an operating office is much shorter than the procedure for registering a branch. This is extremely important to ensure the manageability of the network, that is, to ensure the continuity of the bank's activities in the region of presence (in case of relocation, opening, closing).

In general, the decision-making system remains the same as in branches: operational offices are left independent in making credit decisions, in using established credit limits, in concluding credit and economic agreements, that is, regardless of the status, regional points of sale can be endowed with all the powers necessary for making managerial decisions and successful business development.

So, the main reason for the expediency of converting branches into operational offices is the need to increase the efficiency of the existing network of branches by reducing the cost of supporting operations, in addition, strict centralization increases the level of control and automation of processes and, as a result, reduces costs: such a transformation creates an organizational platform to transform the process of horizontal delegation of authority (when many large regional branches report to one head office of the bank) into a two-level (matrix) system, when the head office manages the so-called bushes, that is, several base branches, which, in turn, have operational management several operating offices.

Stages of branch network transformation

The process of transformation of the branch network requires a large-scale analysis and involvement of special experts working in the market of such services. As a rule, a "pilot" branch is selected, where the transformation process is tested.

The main task of the bank is to develop a plan for the transition to a new structure and the introduction of a single reliable automated banking system. In this regard, business units are preparing a methodology for carrying out organizational measures related to the transformation of branches, and specialized firms, as a rule, provide the bank's IT specialists with the necessary advice on using the developed functions.

A huge amount of work also falls on the shoulders of the central accounting department, since it is responsible for inventory and reserving accounts, transferring balances with zero balance, transferring contracts, terms of servicing accounts, tariffs, interest rates, etc.

In the future, the development of a replicated solution and the mass transformation of the branch network are carried out. As for the organization and management of the project, after the "pilot branch" a typical matrix of project roles, standard methods of communication and interaction with bank departments, a standard plan for carrying out all IT and business activities to prepare and conduct the migration of branches, etc. are approved. The main effect is achieved through a reduction in the number of employees, who in the regions after the reform require less than before.

Accounting aspects in the context of centralization

As we have already said, building a matrix management structure allows you to standardize the service throughout the network, minimize back-office functions at points of sale through centralization, save costs and concentrate on sales and service quality in places. Operating offices are freed from the need to prepare and submit reports to the Bank of Russia, reporting to tax authorities is simplified, etc.

In the conditions of the so-called transitional period, a bank that has decided to reform its branch network approves regulatory documents regulating the issues of document circulation, accounting and areas of responsibility between newly created structural divisions, including, in order:

• implementation of client settlement transactions (non-cash payments);
• conducting cash transactions;
• maintaining a file of settlement documents;
• suspension of operations on customer accounts;
• conducting operations with securities (usually promissory notes and certificates of deposit);
• conducting credit operations;
• conducting deposit transactions, etc.

The greatest difficulty, in our opinion, is caused by the issues of organizing document management when maintaining card files of settlement documents and suspending operations on customer accounts, since the originals of primary accounting documents (payment requests, collection orders, decisions and resolutions of authorized bodies on suspension of operations / blocking of funds) are received by operating office at the place of registration of a legal entity, and accounting is maintained in the bank's division that performs accounting and control functions.

Let us turn to some definitions and functions of the structural divisions of the bank, which directly affect the process of transforming a branch into an operational office.

Front office (front office) is a subdivision that concludes bank transactions. In the conditions of transformation, these functions fall on the divisions of the parent organization (additional offices) and base branches, which remain in the structure of the bank.

The back office (back office) is an internal structural unit of the bank that processes transactions, performs settlements and maintains accounting, that is, it performs auxiliary functions in relation to the front office. This subdivision carries out accounting, storage of primary accounting documents, prepares financial statements, monitors compliance with limits, if necessary, and provides information to the central accounting department in accordance with the requirements of the Bank of Russia.

Back office functions can be distributed among several departments. Advanced banks also distinguish the middle office (middle office) as a separate staff unit, emphasizing its difference from both the front office and the back office.

Middle office (middle office) - an internal structural unit of the regional operational office, interacting with clients in terms of signing contracts for banking services and other framework agreements (master agreements, etc.), accepting client orders for transactions (settlements, purchases) sales, confirmation of accounts, transfer of funds, etc.), provision of statements / responses to customer requests in accordance with the established procedure. The middle office is subordinate to the front office.

The back office does not serve bank customers, unlike the middle office, but interacts with counterparties.

Centralized accounting<1>- an internal structural subdivision of the bank, formed in the area of ​​presence of the base branch (can be formed on the basis of several branches), exercises control (in terms of accounting) over all regional operational offices subordinate to the branch.

<1>Operational Support Centers.

Centralized accounting takes over the operational functions of all branches, which allows you to concentrate the activities of regional points of sale on business development, as well as standardize service and improve the quality of customer service throughout the network.

The given distribution of responsibilities may vary slightly for different banks - for example, control over compliance with limits can be assigned to the internal control unit (which is methodologically more correct, but this raises the question of the levers of influence of this unit on the back office), in some cases, management reporting may also be transferred to other divisions (which, in turn, may lead to discrepancies in reporting), etc.

In our opinion, the process of centralization meets the requirements of the modern banking system. The purpose of creating a centralized accounting department (operational support centers) is to consolidate the functions of the back office, accounting department and the operations department, which processes client transactions. In practice, for clients, all the changes in principle remain imperceptible: it does not matter for them where and by what collegiate body of the bank their applications are considered, where the bank's accounting department is located and where their documents are stored. The main thing is the quality and speed of service. This network reform just allows you to achieve this. At the same time, the reduction of the bank's expenses will allow offering customers more profitable products, while the optimization of business processes will increase the speed and quality of service.

As noted above, with the full centralization of accounting in the staffing of the operational office, the position of chief accountant is not provided, the functionality of accounting services is significantly reduced. Settlement and monetary documents are executed by operational employees. All settlements are made through centralized accounting, operating offices do not open their own accounts with other credit institutions. Non-cash settlements are carried out centrally through the correspondent accounts of the base branches.

The parent organization of a commercial bank bears all obligations to the clients of the closed (reorganized) branch. Customer service continues on the basis of the operating office. Closing client accounts and opening new ones in this case is not required.

Only in the event of the complete liquidation of the branch, the bank can unilaterally change the numbers of bank accounts of the clients of the closed branch, loan and other intra-bank accounts, while the bank's obligation is to notify its clients in writing in advance.

The balance of funds from the accounts of the closed branch in the event of complete liquidation are transferred to the correspondent account of the credit institution (balance sheet account of the second order 30101).

The following accounts opened on the balance sheet of the branch are subject to closure:

• accounts for accounting for income and expenses (in this case, the balances are previously transferred to the accounts for accounting for income and expenses of the head organization);
• accounts of interbranch settlements (balance sheet account of the second order 30301/30302);
• accounts for settlements with other debtors on business transactions (balance sheet account of the second order 60312).

Access to accounts for accounting of a card file of settlement documents (off-balance accounts of the second order 90901, 90902) and for other operations (credit, deposit, securities transactions - a purely technical issue, closing previously opened accounts in this case is not required until the expiration of the contracts.

Upon the decision to close a branch, it should be removed from the register with the tax authorities and the territorial office of the Bank of Russia supervising the activities of the bank should be notified, as well as the territorial office of the Bank of Russia at the location of the branch should be notified. The date of closing of a branch of a credit organization is the date of sending the said notice.

Additional risks arising from settlements in the conditions of centralization of back office functions

Many years of experience in the formation of the banking sector in Russia has shown that opening a branch is too expensive for a bank, and therefore there is an opinion that an operating office is a point of sale of a small bank with a limited range of banking services, which is subordinate to the branch. Operational offices were opened, as a rule, in the regions of the Far East, the Far North and Siberia, in hard-to-reach places. In some cases, some managers do not see any difference between the operating and additional offices. This has an impact on the bank's personnel policy and the ability to select a responsible, representative manager responsible for attracting customers. In other words, in some cases, the absence of branches in the regions where a commercial bank operates may affect its status and image.

Operating offices are, in fact, intermediaries between the bank (branch) and the client. The main task of their creation is the centralization of back-office functions and the reduction of document flow. At the same time, in the absence of your own correspondent account, the process of processing client payments becomes a little more complicated. Settlement documents of clients served at the operating office are processed in one region, and funds can be transferred to clients of other banks from the correspondent account of a branch or parent organization located in another region of Russia. In other words, if the operating office and the branch from which it is opened are subordinate to different territorial departments of the Bank of Russia, there is a certain delay in the payment traffic, which is also exacerbated by the bank’s internal procedures (accumulation of payments for a flight in a branch can occur without taking into account the urgency of payments operating office clients).

In regions far from the head office, the selection of clients was based, as a rule, on the human factor. Thus, when the branch is closed, the question of the safety of funds belonging to large corporate clients and individuals remains. Branch managers, having at their disposal a cash desk and a correspondent account, could guarantee a certain segment of customers a refund, despite the state of the parent organization and the bank as a whole. The head of the operational office is deprived of such an opportunity (only the balances on the cash desk remain under his responsibility). This fact significantly affects the relationship with VIP-clients in the regional markets.

It cannot be overlooked that the centralization of back office functions leads to increased operational risks. Despite the fact that there is a decrease in the staff of the bank's accounting apparatus and the bank is striving to switch to electronic document management, there is a high probability of incorrect processing of settlement documents on paper, which continue to exist in the settlement system of Russia: in the operating office, documents are received by one operating window, and its final processing - another division of the bank. The function of operational workers in such conditions is reduced only to the receipt of settlement and monetary documents, which "blurs" their responsibility.

In such circumstances, the banks are obliged to develop and approve internal regulations that clearly regulate the issues of document flow and areas of responsibility between the newly created structural divisions of the bank.

The technology for processing accounting information for the operations of newly created operating offices is based on the principle of programmatic follow-up control and autonomy of the work of accounting departments. Opening of accounts, accrual of interest and other cash flows on customer accounts are carried out directly in the back office, while the responsible employees of the accounting department (operational support centers) monitor all operations of the regional operating offices subordinate to them. Compliance with a clear distribution of functions between the back, front and middle offices and the implementation of well-established interaction will make it possible to competently structure business processes within a credit institution and reduce banking risks.

Particular attention should be paid to the operational risks that arise in the course of settlement operations on customer accounts. There is a tendency to shift most of these risks to the back office, but the best solution to the problem is to work in such a way that the front office is directly involved in minimizing these risks.

As practice shows, the often overlooked operational risks of the back office are sometimes costly and potentially more significant than market risks. Examples of operational risks arising from settlement transactions through operational offices are:

• software failures;
• shortcomings in organizing the storage of documents on paper and in electronic form;
• deficiencies in management, supervision, organization of control;
• errors in reports submitted to the base branches;
• attempts to hide losses or achieve personal gain (fraud by employees of operating offices);
• third party fraud (by customers).

It is not difficult to establish and control certain levels of market and credit risks. But identifying and assessing the levels of operational risks and their sources is not an easy task. The main problem is that operational risks cannot always be identified in time. Losses often arise as a result of a complex combination of events, which makes it difficult to predict and model risk situations.

And it is no coincidence that the Bank of Russia pays great attention to the recommendations of the Basel Committee on Banking Supervision in the area of ​​risk identification, which has done a lot of work in this area. In February 2003, Sound Practices for the Management and Supervision of Operational Risk was published. Thanks to the joint efforts of researchers and risk managers of large banks, on the basis of recommendations, it was possible to identify methods for managing operational risks. The final version of the Basel II agreement appeared in 2004. According to the decision of the Basel Committee, operational risk is the risk of losses associated with inadequate or unsuccessful internal processes, systems or human errors or external events. It should be noted that this definition does not take into account risks of loss of reputation, although it is clear that some operational events may affect the "good name" of a credit institution. The Basel Committee identified seven main categories of events that lead to losses, the likelihood of which increases significantly with a centralized form of accounting:

• dishonest actions of employees of the operational office (internal fraud): losses associated with fraud, embezzlement of someone else's property or non-compliance with the law or internal regulations of the bank, in which at least one of the officials is involved;
• external fraud: losses of the bank related to fraud, misappropriation of other people's property or non-compliance with the law by the bank's clients and other third parties (theft, robbery, hacker attacks and other similar factors);
• work practices and work safety: losses associated with actions that are contrary to laws or agreements regarding labor, health and safety, resulting in the payment of compensation for claims for personal injury or for discrimination (litigation between the bank and employees of back offices);
• Customers, Products and Business Practices: Losses arising from an unintentional or negligent error in the performance of professional duties for specific customers or from the nature or design of products offered to customers;
• damage to physical resources: losses associated with the loss or damage of resources due to natural disasters or other events;
• business disruptions and system failures: losses associated with business disruptions or systems failure. This category includes losses due to failure of computer hardware, software, networks or utility services;
• execution, delivery and process management: losses associated with failures in transaction processing or process management, as well as losses caused by unsuccessful relationships with third parties.

With regard to operational risk management practices, the Basel Committee and various supervisory bodies prescribe a set of operational risk management (ORM) standards for banks and similar financial institutions.

In view of the foregoing, the parent organization (base branch) of the bank should pay great attention to identifying and minimizing operational risks when opening operational offices. In other words, the process of monitoring the activities of newly formed structures should include:

• procedures for timely identification of risk factors;
• operational risk assessment;
• constant monitoring of all operations;
• reduction of operational risk factors.

Back office staff should provide relevant information on settlement exposures, etc. However, overall planning, coordination and monitoring should be provided centrally - the centers of operational support.

conclusions

So, the main group of reasons that necessitated the reform of the branch network of large Russian banks is the low level of profitability of branches, excessive concentration of efforts on the development of those areas of banking activity that brought immediate, mostly speculative income. It should also be noted the insufficient qualifications of the management personnel of many banks, the lack of reliable methods for managing assets and the branch network, and the underestimation of the danger of risks adequate to the volume and nature of operations. It is not uncommon for banks to allow unreasonably high expenses for opening branches, building buildings, which increased the cost of their operations and, as a result, reduced profits.

The purpose of the reform is to reduce costs and achieve the reliability of the bank (quality and speed of service, ensuring the continuity of client payments). As practice shows, for banks focused on retail business, a wide network of cheap operating offices is more attractive, for universal and focused on servicing only large customers - legal entities and individuals in the region of presence - a branch.

O.Yu.Kashanova

Internal Auditor

There are many worrying moments in the current state of the Russian banking system. This is both the excessive enlargement of the main players and the desire to leave the market of large foreign bankers. And the total number of banks in Russia is declining. But the remaining players have relied on development and are gradually increasing their presence in the regions.

The professional banking resource Bankir.ru conducted a study among Russian bankers on the principles of development of territorial networks of banks. In their opinion, the industry is returning to a stage of active growth. Reviving retail banking requires expansion. Credit organizations today need personnel, space, real estate. Everyone has different strategies for building a branch network - from aggressive to conservative. However, it is obvious to the market that the banks have set their sights on growth and the capture of new territories.

Where to go

Among the most active players are representatives of the largest Russian state-owned banks and regional bankers who are not ready to give up their positions in the local markets they know well. For example, Vyacheslav Vorobyov, Deputy President - Chairman of the Board, Director of the VTB24 network department, said: “In 2010, we opened 55 offices, 90% of them in large cities with a population of more than 500,000 people.” The size of VTB24's sales network in the most capacious, Moscow, market has reached 90 offices. The largest increase in the VTB24 network in 2010 was in Moscow, where the bank opened 13 offices. There are five offices in St. Petersburg. Four offices each in Yekaterinburg, Samara, Chelyabinsk. “As of the beginning of this year, we have 530 branches in 203 cities,” said V. Vorobyov. “Now our services are available to 71% of the urban population of Russia in 69 regions.” This year VTB24 has grandiose plans - to open 70 points of sale.

Among the energetic regionals is Express-Volga Bank. At the end of last year, the number of its branches doubled - from 30 to 60, and in the first half of this year, the target was announced - 100 branches. Another regional SKB-Bank has achieved nationwide coverage. To date, SKB-Bank is present in 96 cities of Russia in 35 subjects of the Federation. The new network expansion strategy has also been adopted by Pervobank. Today it serves clients in 33 offices in nine Russian cities: in Samara and the Samara region, Moscow, St. Petersburg, Ulyanovsk, Orenburg and Tarko-Sale (Yamalo-Nenets Autonomous Okrug).

It is also worth noting Metkombank, OTP Bank, First Republican Bank, Moscow Renaissance Credit.

Bank office development strategies depend on the “origin” of banks. As a rule, regional credit organizations first develop within their own region, and then spread their expansion to neighboring regions, focusing primarily on regional capitals, and then on large cities. Large banks, which form their strategies from Moscow, immediately focus on million-plus cities, and subsequently on the periphery.

The paradox of development: the presence of the economic potential of the region, and not the presence / absence of banking services, becomes a priority in choosing a direction for all players. That is, bankers are ready to compete with each other for an economically active region, and not build new areas with undeveloped infrastructure.

Many bankers agree with this opinion. For example, according to Oleg Shemyakov, head of the marketing department at Interkommerts Bank, the bank is not very interested in regions with low development of banking services. After all, the payback period of a branch in underdeveloped regions often stretches for several years.

Another important development factor is the presence of strong managers in the region. Priority is given to regions with well-developed specialized higher education.

In terms of the number of bank offices, the leaders are the Central and Volga Federal Districts. Based on banking strategies, it is unlikely that rapid development should be expected in the most backward North Caucasian and Far Eastern districts. The Siberian, Urals, Southern and Northwestern federal districts look more promising.

What departments are needed

Bankers again start not from market expectations, but from their own development strategy. Large banks prefer to open regular branches. This allows you to be closer to the client.

Regional banks work more directed. For example, Svyaz-Bank is increasing the number of points of sale in order to be closer to individual customers.

VTB24 is expanding its network for the same reasons. In all regions where VTB24 operates, "large formats" are already open. There are 120,000-140,000 inhabitants per one sales office. This is much better than three years ago. Now the benchmark is taken to a high network density in cities with high potential. If necessary, VTB24 creates additional backup points in areas where a large client base has already been formed, and the existing office is overloaded. The main formats opened in the last two years are standard departments with four to six workplaces, with an area of ​​150-250 sq. m. At the same time, the format of a standard branch has changed significantly: the client area and the 7 x 24 area have expanded, the number of ATMs has increased markedly.

Banks of medium size use all network formats, based on business objectives in a given territory, development prospects and achieved results. For example, PRB bank began to develop a regional network by opening full-fledged branches. In the process of development, efficient and successful branches were supplemented by a network of branches, and inefficient ones were transformed into "lightweight business formats" - operational offices. Bank Express-Volga believes that the format of a classic additional office is optimal. The same format is called the most promising in VUZ-bank, Chelyabinvestbank. SKB-Bank also considers an operational office to be a quite suitable format. Primsotsbank prioritizes additional office and branch.

Binbank advocates a more flexible approach: a reasonable compromise is needed in building the network. It all depends on the specific goals. If the goal is to expand the network in the same city or subject of the Russian Federation, then an additional office. If the goal is to enter new subjects of the Russian Federation, then through a representative office, which will subsequently grow into either a branch or an operational office.

However, today the undisputed leader among all banking formats are additional offices, in second place are operating cash desks. Meanwhile, it is in these segments that the last six months there has been a drop in the number. At the same time, the number of credit and cash offices and operational offices is growing.

What if the calculation is not justified?

The open banking division falls short of the required level of efficiency. What to do? Firstly, it can be closed (however, bankers use this method less and less), secondly, it can be sold, and thirdly (by the way, this method is now the most relevant), the unit is either transferred or restarted in the same or another format . It happens that the point is ineffective for a long period, and all methods of business development do not work in it. In this case, the PRB, for example, tries to improve the economy by adjusting costs to the size of the business, changing the format of the territorial division (branch becomes an operating office, CCO, etc.). The last step is when bankers close inefficient divisions.

The stories are known not of closing, but of transferring the division, dictated by the development of the banking business in a particular region. For example, the BKF bank closed a branch in Krasnoyarsk last year, but opened it in Novosibirsk.

There are also more optimistic tasks: the existing outlet is temporarily closed in order to be reformatted into the next format in the hierarchy. Such a story is remembered in SKB-Bank: in Krasnoyarsk, the representative office was transformed into an operational office. Representative offices have fewer powers and can perform a limited number of transactions. Having received convincing results of work in this city, SKB-bank decided to transform representative offices into full-fledged offices. The Smolensk Bank temporarily suspended the work of one of the offices to expand its functionality. Before the transformation, there was only one cash desk for the services of customers, and only one teller could help them carry out the necessary banking operations. Over time, queues began to appear, there were clearly not enough specialists to service all those who applied to this office.

In connection with the active reduction in the total number of banks and the redistribution of their assets and divisions among the remaining players, another reason for the closure of banking divisions has appeared - internal competition. Thus, the branch network of the bank "Solidarity" after the merger in 2008 into a group with the bank "Potential" (Togliatti), accepted for reorganization, has doubled. Some additional offices of the two banks began to compete on the same sites. Therefore, in 2008-2010. the branch network was systematically optimized, five outlets had to be cut.

When it comes to closing business units, VTB24 prioritizes cost optimization. During the crisis, this approach was the most reasonable. As a result, 34 offices that did not correspond to the formats of a retail bank were closed. However, VTB24 acted not only with harsh methods. For a third of offices, VTB24 has reduced the rental rate by almost 20% and continues to negotiate with landlords to reduce rates. The total savings from the reduction in rental rates on an annualized basis amounted to almost 100 million rubles.

In general, the cost of renting premises for banking units is becoming an increasingly significant factor. In some cases, especially during a crisis, it is high rent that can lead to the closure of an additional office.

Number of bank offices in the federal districts of Russia

Structure of territorial subdivisions of banks

Russians are used to going to bank offices. And banks understand this.

Photo: Alexander Nikolaev/TASS

Despite the fact that the Central Bank of the Russian Federation records an annual reduction in the branch network of banks, some credit institutions, on the contrary, are building up retail networks. At the same time, against the background of the reduction of Sberbank offices, the Post Bank network is increasing and is now only 1.7 times smaller than Sberbank.

Where are we going, comrades?

The statistics of the Central Bank are relentless. At the beginning of April 2017, there were 33.3 thousand "internal structural divisions of existing credit institutions" in Russia. The Bank of Russia refers to this term additional offices, operating cash desks outside the cash center, credit and cash and operational offices.

Since last April, the number of internal structural units (VSP) of banks has decreased by 3.1 thousand units, and since January 2012 - by 7.2 thousand, that is, by one fifth. Such a reduction is a consequence of both the policy of the regulator to “clean up” the market, and the policy of the credit institutions themselves to optimize costs, experts point out.

Banki.ru polled the largest credit institutions in Russia on the topic of what changes their retail branch networks have undergone over the past year. It turned out that along with the general trend towards the reduction of bank offices in the market, there is another one - some banks are slowly building up their networks for servicing individual clients.

Retail branch networks of the largest banks

Source: bank data

The table shows that not all banks are reducing their branch networks. Some are increasing. At a minimum - networks for individual clients. A noticeable increase for the calendar year (April 2016 - April 2017) was shown by Post Bank, Binbank, Promsvyazbank and Moscow Credit Bank (MCB).

“The significant growth of the regional presence is due to the key socially significant tasks that Post Bank faces. First, it is an increase in the availability of financial services for Russians. Second, increase the share of non-cash payments in the economy. Obviously, without the development of a wide regional network of points of presence, where residents of our country can get a free plastic card to pay for purchases and services (including on the Internet), as well as a basic set of financial services (the ability to make a deposit, get a loan, make a transfer or pay utility bills), it is impossible to solve these problems. However, thanks to a business model that provides for synergy between the bank and the Russian Post, as well as a unique opportunity to work within the infrastructure of post offices, we are successfully coping with them,” says Georgy Gorshkov, First Deputy President and Chairman of the Board of Post Bank.

Binbank explained: the total number of branches increased due to the merger with other banks included in the group. In particular, in November 2016, the legal merger with MDM Bank was completed.

Binbank will be merged with MDM Bank and will give it its own brand

Shareholders of Binbank and MDM Bank at an extraordinary general meeting on October 7 approved a scheme for the legal merger of the two banks. According to Binbank, it has been decided that it will be merged with MDM Bank, while the merged bank will continue to operate under the Binbank brand (MDM Bank will be renamed Binbank).

Promsvyazbank also clarified that the branch network has grown mainly due to the addition of offices of subsidiary banks - Avtovazbank and Pervobank - following the results of integration.

MKB expanded its geography of presence in Moscow and the Moscow region.

“Based on the analysis of the demand for our products and services, as well as the activity of customers, we concluded that the previously existing infrastructure did not cover all possible demand - bank customers prefer to be served in branches located in close proximity to their homes. The Bank made a decision to increase the network and expand the geography in Moscow and the Moscow region. So, in 2016, in addition to new branches in Moscow, we opened bank offices in all major cities near Moscow: Pushkino, Khimki, Zheleznodorozhny, Ramenskoye, Sergiev Posad, Voskresensk and Dolgoprudny, ”the press service of the MCB said.

Let's build "by growth"

In the ranking of Banki.ru, the first place in the retail branch network among banks was expectedly taken by Sberbank. As of April 1, 2017, it had 13.8 thousand retail service offices (excluding VSP of the corporate block and Sberbank 1). This is 832 offices less than a year earlier.

One business office of Sberbank accounts for about 20-25 thousand inhabitants

As told Banki.ru in Sberbank, the backbone of the lending institution's network is business offices, where clients can receive a full range of all services and products, including advice on mortgages and investment products. Such offices are located in all cities of the Russian Federation, as a rule, there are about 20-25 thousand inhabitants per office. Based on this, the number of RCAs in the subject is proportional to the total number of inhabitants. The main format in rural areas is operational offices that provide the population with a limited list of the most popular financial services. Sberbank operates in more than 5,500 villages and urban-type settlements.

“The format of operating offices is also presented in cities. In total, over the past year, 832 operating offices were enlarged - in cities with a population of "100 thousand plus", which could not provide the required level of service and were not in demand by customers. The bank seeks to be closer to the client and plans to open offices where it is in demand, - said the press service of Sberbank. - Taking into account the fact that for 85% of clients the average distance to the nearest branch in these cities does not exceed one kilometer, the closure of small offices did not affect the availability of financial services. The rural network in the bank remains unchanged, no actions are planned in this direction.”

On the second place after Sberbank sharply escaped Post Bank. As of April 1, 2017, its retail network consisted of 8.1 thousand points of presence, including 2.3 thousand client centers in post offices, 5.2 thousand sales windows with an employee of the Russian Post, 336 client centers of the former Leto Bank, as well as 233 sales counters.

However, Post Bank does not intend to stop there.

“Our retail network today is the second largest in Russia. At the same time, we do not have a goal to overtake any bank in this or that indicator. Today we are in the stage of intensive development and gaining market weight, - says Georgy Gorshkov. - The development strategy of our bank provides for the opening of about 18 thousand outlets in the first three years of operation. If, in the end, the services of Post Bank will be more affordable than the services of one of the market leaders, then we are on the right track.”

Meanwhile, held by the Banki.ru portal, Dmitry Rudenko, Chairman of the Board of Post Bank, unambiguously stated, accepting the award in the Discovery of the Year nomination: “If we work well, then in a few years we will be the Vanguard of the Year, then, perhaps, "Renaissance of the Year" And in five years we will be Sberbank of the Year!”

Recall that from 2012 to 2015, Post Bank, VTB's granddaughter, worked under the name of Leto Bank and positioned itself as a "light" bank focused on the mass retail segment, specializing in express lending, cash loans and credit cards. However, in 2015, Russian Post bought 50% minus one share of Leto Bank from VTB Group, on the basis of which Post Bank was created in January 2016. The first client centers of the bank opened in April last year. From that moment on, a large-scale procession of the credit organization across the country began, as a result of which, over the year, the number of its points of presence increased by more than ten times - up to 8.1 thousand branches. It was the client centers in the branches of the Russian Post that played a big role in the development of the Post Bank branch network.

Among the responding banks (inquiries were sent to the top 30 by assets), the third largest in terms of the number of retail branch networks was Rosselkhozbank(RSHB). Its network is slightly more than 1.3 thousand offices, and this figure has not fundamentally changed since last spring.

The RSHB announced that it plans to use new access point formats based on the use of modern technological solutions and aimed at ensuring the availability of banking services for customers, regardless of their location, together with increased efficiency and cost recovery parameters. At the same time, priority is given to the development of remote channels and the introduction of an omnichannel sales and service model using Internet and mobile banking, the bank's website, contact center, ATM and terminal networks, and partner sales channels.

VTB 24 was only fourth in the rankings. Its retail network of offices includes just over a thousand branches.

“Our principles of network development provide, firstly, its further expansion in the cities of presence, where the existing infrastructure is no longer enough to serve the growing number of our customers. Secondly, we open offices in cities where our potential clients live, but there are no bank offices. Also, a significant part of the network development program is made up of offices in the “bank at work” format, opened as part of cooperation with companies with which we have implemented payroll projects,” commented the press service of VTB 24.

In total, last year VTB 24 opened 46 new offices, additionally implemented 43 projects to improve the existing network, and closed 16 old informal offices that do not meet the bank's modern requirements.

In fifth place - Binbank with an indicator of 415 offices. The bank believes that at the moment the number of branches in its regional network is optimal for the effective development of business throughout Russia. Therefore, a significant change in the number of offices is not expected, but it is assumed that in some cities it is possible to open new branches.

Humpty Dumpty

As some credit organizations explain, instead of closed offices, they open new ones - as a rule, they are larger and more modern. Due to this, the number of newly opened offices may be less than the old ones closed, but the “client traffic” of new outlets is not lower.

So, at the beginning of the year, the chairman of the Moscow Bank of Sberbank, Oleg Smirnov, said that the reformatting of the entire branch network of the Moscow Savings Bank implies the abandonment of old-style offices and the opening of fully functional branches with a larger area. “If we close several offices, it means that one large Sberbank office is opening somewhere in this area,” Smirnov explained, adding that the number of offices is declining, but the number of jobs is only growing.

The branch network of Sberbank in Moscow will be reformatted by the end of the year

By the end of 2017, the reformatting of the entire branch network of Moscow Sberbank will be completed, which implies the abandonment of old-style offices and the opening of fully functional branches with a larger area. This was told to journalists by the chairman of the Moscow Bank of Sberbank Oleg Smirnov.

According to the head of the branch network development department Ural Bank for Reconstruction and Development(UBRD) Evgeny Sidorsky, back in 2014, the bank completed the implementation of an extensive growth strategy, which involved expansion into the regions, the massive opening of new offices and the formation of a client base. Currently, UBRD is working within the framework of the "satisfied customer" strategy and is aimed at improving the quality of service and building long-term relationships with customers. As for the prospects for expanding the branch network, the bank adheres to the following principle: the number of offices directly depends on the efficiency of business in a particular city. This is what is taken into account when considering the opening of new branches.

At this moment Russian National Commercial Bank(RNCB) has the largest network of branches in the Republic of Crimea and the city of Sevastopol, in connection with which the bank evaluates, first of all, the economic efficiency, profitability and convenience of each office for residents of a particular area. As part of the optimization, RNKB also consolidated small operating offices last year and selected the most convenient location for branches. The measures taken to optimize the network allowed the bank to improve the quality of customer service.

“We are not pursuing a policy of reducing or expanding the branch network. We have a policy of maintaining our branch network to the extent that meets the needs of our customers today. We see very good prospects for business development, we plan to expand the network of branches this year. This decision is due to the great interest of customers in our products, with the growth of business. We are also closing branches that are less in demand and opening new ones in other places where they are more needed or there is an opportunity to make the office more comfortable for customer service, ”the press service explained to Banki.ru Raiffeisenbank.

“In the context of the development of the network, it would be wrong to speak only about the reduction in the number of offices, which, of course, took place. This process also implies the relocation of offices and changing their formats in accordance with the expectations of the bank's clients, as well as the improvement of remote service channels in order to provide multi-channel access to the bank for each client,” they said. in Rosbank, whose retail network includes 400 offices.

Chairman of the Board bank "Ugra" Dmitry Shilyaev said that his bank adheres to the strategy of progressive development of the regional network. The main focus is on improving the efficiency of work within existing units. “We go where there is a need for banking services. Thus, we have formed an optimal network structure that covers the most significant Russian regions and fulfills the tasks set in all areas of business,” he believes.

Director of Retail Sales Department UniCredit Bank Sergey Vasyatkin drew attention to the fact that the bank's attentive attitude to the efficiency of the retail network allowed not only not to reduce it in the current economic conditions, but also to open five new offices in 2016. Since the end of 2015, UniCredit also has new format branches, he said. Their main feature is the replacement of cash desks with other possibilities for depositing and withdrawing cash, such as ATMs with the function of receiving cash, a network for accepting and withdrawing cash from UniCredit partners - banking and non-banking organizations. At the same time, in terms of functionality, these departments do not differ from the standard ones. This format was specially developed as part of the bank's work plan for network transformation. It makes it possible to make the credit institution more accessible to customers in those key cities of the region where the demand for its services is steadily growing, as well as to increase the efficiency of existing branches.

Bank Rossiya also adheres to a balanced rational approach in the development policy of the branch network. Closing and opening of offices is carried out in accordance with expediency: coverage of a potential target audience, location, presence of significant customers, the bank said.

Bank "Uralsib" by the end of 2017, a number of relocations of existing offices to more convenient and accessible locations for customers are planned. But a significant expansion of the office network is not expected.

“Currently, we are specifically considering options for expanding business in those regions where we see potential growth. Also, changes in the network may be associated with optimization in terms of administrative and economic costs. We clearly understand that, despite the rapid development of remote channels for servicing and managing finances, the branch network remains in demand by customers. For many clients, the very opportunity to come to a branch, get competent advice from a specialist or solve problems with a bank employee is important, ”explains the head of the retail network development department Alfa Bank Dmitry Semyonov.

“The change in the number of offices is due to the program carried out in 2016 to close unprofitable points of sale. In addition to the closure of outlets, 26 projects were implemented as part of the network reorganization program, including ten new offices were opened, ten offices moved to new premises and significantly improved their location, space was additionally rented for six offices, customer service areas were improved. press service Bank "Russian Capital". - The Bank is carrying out a global reorganization of the regional network, within which all divisions are reformatted under new unified sales models for products and services for all customer segments: retail, small, medium and large businesses.

Branches are not going anywhere.

Experts interviewed by Banki.ru are confident that in the coming years, a mass “exodus” of physical offices from the lives of Russian bank clients should not be expected.

It is not worth expecting over the next 5-7 years that banking services will completely go online.

“Indeed, on the one hand, against the backdrop of an increase in demand for Internet and mobile banking services, the number of bank branches continues to decline. However, it is still important for customers to be able to come to a bank branch - this adds confidence in its reliability. So, it’s not worth expecting that banking services will completely go online over the next 5-7 years, ”says Victoria Selezneva, Director for Development of Retail Channels at Rosbank.

“There will be no refusal from offices in the coming years, as there is a conservative part of clients who need service in a physical office. Banks will increase the number of services that can be provided remotely, and as customers get used to online services, the volume of these services will grow. Household deposits are the most important part of banks' liabilities, and it will be difficult to replenish them remotely, since people are not ready to send money to no one knows where, ”Vyacheslav Putilovsky, junior director for banking ratings at Expert RA, is sure.

Speaking specifically about trends in the “branch” market, Yegor Ivanov, head of the banking ratings department at the National Rating Agency, noted that the growth of the retail branch network may be partly due to its recovery after the contraction in 2015, when banks, in an attempt to cut costs, closed highly specialized and unprofitable offices. Also, in a number of cases, especially in the regions, federal banks have been building up their network infrastructure by opening points of presence at the site of bank offices with previously revoked licenses. In addition, the reduction of offices can occur for various reasons, including due to a change in development strategy or cost reduction (closure of unprofitable branches). The reverse process is also possible.

“All these processes are regulated by their economic expediency, and the dissatisfaction of the client masses is far from being in the first place. However, there are exceptions, when the only bank office in the locality is closed and its residents have to travel to another settlement in order to use banking services. In this case, it is likely that the dissatisfaction of citizens may change the opinion of the bank's management and the bank will reopen the previously closed branch,” Ivanov notes.

As for Post Bank as the “new Sberbank”, analysts are not sure that anyone will be able to bypass the market giant in the foreseeable future, even if it significantly reduces the number of its offices.

“The Sberbank network will be reduced, but not “to zero”, for the reasons that I listed above. Post Bank, if it will replace the offices of Sberbank, then those that, due to their remoteness and meager client base, are unprofitable to maintain as a separate point of sale. In this case, a “reformatted” post office will remain, which will play the role of both a post office and a bank. However, this process will be greatly extended in time,” Putilovsky believes.

“Perhaps, in some settlements, Sberbank branches will be closed due to the opening of Post Bank offices there, but these will rather be isolated cases, and they will be explained by economic feasibility, and not by Sberbank’s desire to completely switch to remote service,” supports colleague Ivanov.

Mikhail Krylov, head of the analytical department at Golden Hills Capital AM, also believes that Sberbank will not leave a mass client without attention in any case. At the same time, the reduction in the number of Sberbank branches will not cause an outflow of its customers, but will teach them to work in other branches.

“Of course, the reduction of offices may be inconvenient for depositors. But basically, only by reducing the branch network, it is possible to improve the quality of service even more compared to what Sberbank has achieved at the moment, and at the same time not critically increase costs. However, I would not say that now clients in general are already ready to give up office consulting on a wide range of issues, from the choice of savings instruments to a detailed financial plan. Be that as it may, those who want to take the place of Sberbank and its offices and thereby compete for its target audience should remember that in retail banking, the office is different from the office. Without huge capital investments, branch networks of banks based on third-party premises (for example, located in shopping centers or post offices) will contribute less to the development of banking brands. And the demand for the conversion of post offices into ultra-modern sales offices as such has not yet been observed. If old, and sometimes very old, post offices are “redesigned” into more modern and functional ones in the next two or three years, the lower mass segment may reach out to a new brand instead of Sberbank. Unless, of course, the structure of the postal services market has not changed by that time, ”concludes Krylov.

A selection of the most important documents on request Operational office(legal acts, forms, articles, expert advice and much more).

Articles, comments, answers to questions: Operational office

As follows from the case file, Muzychenko AND.C. expressly consented to the debiting of funds from the current account to fulfill credit obligations. So, from paragraph 4 of the consent to the loan of December 2, 2012, it follows that Muzychenko I.S. gave an acceptance in advance for the fulfillment of the Bank's requirements (including payment requests) - for the write-off of any amounts of debts (loan amount, accrued interest and penalty (penalty)) in the amount corresponding to the Bank's requirement from accounts with the Bank opened in additional and operational offices, as well as in the branches of the Bank in regions other than the region where the loan was granted, in the event that the Bank exercises the right, in case of insufficient funds to fully repay the debt, to write off the available funds in order to partially fulfill these obligations. Clause 2.3 of the loan agreement dated May 12, 2014 contains Muzychenko I.S. acceptance for debiting funds from his accounts opened with the creditor bank until the full fulfillment of obligations.

Open a document in your ConsultantPlus system:
As follows from the case file, Muzychenko AND.C. expressly consented to the debiting of funds from the current account to fulfill credit obligations. So, from paragraph 4 of the consent to the loan of December 2, 2012, it follows that Muzychenko I.S. gave an acceptance in advance to fulfill the Bank's requirements (including payment requests) - to write off any amounts of debts (loan amount, accrued interest and penalty (penalty)) in the amount corresponding to the Bank's requirement, from accounts with the Bank opened in additional and operational offices , as well as in the branches of the Bank in regions other than the region where the loan was granted, in the event that the Bank exercises the right, in case of insufficient funds to fully repay the debt, to write off the funds in the available amount in order to partially fulfill these obligations. Clause 2.3 of the loan agreement dated May 12, 2014 contains Muzychenko I.S. acceptance for debiting funds from his accounts opened with the creditor bank until the full fulfillment of obligations.

Regulations: Operational office

Open a document in your ConsultantPlus system:
9.5.1. The operating office may be located both on the territory subordinate to the territorial institution of the Bank of Russia that supervises the activities of the credit institution (branch) that opens the operational office, and outside such territory within the federal district on the territory of which the head office of the credit institution (branch) is located opening an operating office.

Scheme of the organizational structure of a credit institution. Hierarchy and powers of divisions of the credit institution.

Typical organizational structure of a credit institution

Credit organisation is a legal entity that, in order to make a profit as the main goal of its activity, on the basis of a special permit (license) from the Bank of Russia, has the right to carry out banking operations provided for

Types of credit institutions:

• Bank - a credit institution that has the exclusive right to carry out the following banking operations in the aggregate:
  • attraction of deposits of funds of individuals and legal entities,
  • placement of the indicated funds on its own behalf and at its own expense on the terms of repayment, payment, urgency,
  • opening and maintaining bank accounts of individuals and legal entities.
• Non-bank credit institution - a credit institution that has the right to carry out certain banking operations provided for. Permissible combinations of banking operations for these organizations are established by the Bank of Russia.

Branch of a credit institution is its separate subdivision, located outside the location of the credit institution and carrying out on its behalf all or part of the banking operations provided for by the license of the Central Bank of the Russian Federation issued to the credit institution. In accordance with, a credit institution (branch) has the right to open internal structural divisions (VSP)- additional offices, credit and cash offices, operating offices, operating cash desks outside the cash center. Additional office (DO)- may carry out all banking operations or part thereof, provided for by the license of the Central Bank of the Russian Federation for the credit institution or branch that created it. It is opened only in the territory where the Bank itself or its branch is located. Operations Office (OO)– has the right to carry out all or part of the banking operations provided for by the license issued to the credit institution for banking operations (the regulation on the branch). Can be opened in any area. In the event that the PA is located outside the territory under the jurisdiction of the territorial institution of the Bank of Russia, which supervises the activities of a credit institution (branch) that opens an operational office, then it not entitled:

• carry out transactions (including transactions at the expense of customers) for the purchase and (or) sale of foreign currency both in cash and in a non-cash form on the interbank and exchange currency markets;
• carry out transactions (including transactions at the expense of customers) for the purchase and (or) sale of securities and other financial assets related to the assumption of financial risks by the credit institution (there is an exception)
• provide loans (credits) to credit institutions, as well as place deposits and other funds with credit institutions;
• receive loans (credits), attract deposits and other funds from credit institutions;
• open and maintain correspondent accounts of credit institutions (branches);
• open correspondent accounts with credit institutions (branches) for transactions;
• issue bank guarantees;
• carry out acceptance and (or) avalization of bills of exchange.

Credit and cash office (KCO)— carries out operations to provide funds to small and medium-sized businesses and individuals, as well as to return them (loan repayment), provides cash services to legal entities and individuals, accepts cash in the Russian Federation and foreign currency for transfers on behalf of an individual persons without opening a bank account (BOS transfers) are also entitled to carry out operations with foreign currency and checks established. Can be opened in any area. Carries out only those operations from the listed ones, which are provided for by the regulations on the branch. Operating cash desk outside the cash center (OKVKU)- has the right to carry out cash transactions with legal entities and individuals, carry out BOS transfers, as well as have the right to carry out operations with foreign currency and checks established by . OKVKU can be opened in any territory. WE ADVISE: If it is written in the regulatory document of the Bank of Russia that the administrative document is issued by the Credit Institution, then this means that the order / order / regulation must be developed and published in the Civil Defense for all its VSP and Branches, if it is written that the administrative document is issued by the Credit Institution, in the Branch / VSP, respectively, each one develops and publishes already at home. In practice, it is better that the main Regulations and administrative documents relating to the organization of work in general be published in the Civil Defense, in order to ensure uniformity of work. If the administrative documents relate to the appointment of responsible persons, or determine the composition of commissions, then the Branches and VSP can appoint employees on their own.