Russian Banks: Fast Digital Conversion During Quarantine

Interview with the Head of Mortgage Commodity and Digital Department of Societe Generale Rosbank

CONSTANTINE FELUKOV: What is your role in the Bank of Russia? What makes this bank different from other Russian financial institutions?

IGOR DMITRIEV: I am the Head of Product, Marketing and Digital Business of Industrial Bank Group Rosbank Guaranteed Loan and Real Estate Ecosystem Business Line. I am responsible for product release and management, digital platform construction, project management, marketing and digital acquisition, digital B2B and digital marketing development. B2B channel.

Our bank is the digital business leader in the field of Russian mortgage loan. We are the first bank to start pre-approval through online channels(on our website), chat tools(on Facebook, Russia’s popular social network VK) and AI real estate databases. If we talk about the general approach, we will provide customers with several ways to get mortgage loans from partners(network, IOS and Android applications) on the website, through chat robots, via phone approval.

We know that without modern back office and credit procedures, we cannot occupy a strong market position in the forefront of cooperation with customers and partners. Our priority is to reduce operating costs in order to provide customers with better prices and better business profitability. We have launched a wide range of internal automation programs: AI and; machine learning, roboticization, document recognition, our branch’s phased process, business process automation.

In addition to developing classic mosquito products, we are also committed to developing ecosystems and bundled products for customers and partners.

How about the competition of Russian financial institutions? How does Russia compare with other western companies in terms of IT development? As a part of Industrial Bank Group, what advantages does the bank have?

DMITRIEV: Six years ago, when I analyzed the products of Bank of Russia, the typical digital solutions in our market were very poor in function and design. Things have changed in the past few years. The Russian banking market is one of the most modern at present. But if we talk about the most interesting markets, there will be new developments. We will focus on the Asia Pacific region(APAC).

Obviously, Rosbank, as a part of the global group, can occupy many advantages. For example, Dell can share business experience, design and expertise globally.

FELUKOV: In history, how did Rosbank manage the IT department? What is IT practice and how to outsource IT work?

DMITRIEV: If we talk about Mozi’s line of business, we not only have a long history in project methods(Agile, Scrum, Less, Waterfall). Seven years ago, there were only eight developers in our company. The outsourcing team consists of about 10 developers and analysts. At present, our team consists of about 80 internal digital analysts, product managers, system analysts, developers, and 30 developers and system analysts. There are about 5 members outsourcing the model. We choose to develop expertise internally and use external suppliers to manage the flexible part of our team. This “hybrid” team has proved to be very successful. Fortunately, As the main partner of our front-end solutions, CMD soft, an IT company, understands our goal of having internal expertise and adjusts its methods to better meet our needs as a good partner.

FELUKOV: Can you tell readers more about the cooperation between Rosbank and CMDSoft, an IT company?

DMITRIEV. .

I think the success of effective cooperation comes from the efforts of both parties. CMD software understands the requirements of business and project management and is an excellent expert, It provides complex solutions for digital platform development, such as outsourcing development and technical consulting. We learned about the details of partner resource management, and found that if we plan resource requirements in a long-term way, we can get lower prices. To be honest, CMD soft is a win-win business approach. It is a flexible partner for. There is a popular saying in the IT industry: “Because it is not included in the technical requirements, it will not do so.” But I have never heard the CMD software administrator say that. On the contrary, What I heard is: “It is not included in TR, but we need to find a way to achieve it.” I think it is really important to have a partner with common values.

FELUKOV: When the government requires to isolate and effectively close all retail stores in March 2020, does it pose a threat to the bank’s business?

Dmitriev: Yes, it sounds like a threat. Our mortgage business, especially before it is closed, requires customers to go to the bank’s office to confirm transactions and sign their names in the normal business process. It is difficult to visit branches during quarantine.

Farukov: What strategies and additional procedures did Rosbank adopt to position itself at the victory end of quarantine? How does this bank prepare for the post quarantine world?

DMITRIEV: Isolation lets us do what we always want to do, but we don’t think our business depends on it. Our strategy is to ensure the security of our customers and perform tasks remotely as much as possible. This means that you can rely more on digital components and provide a way to completely eliminate branch office access. This is all our products and coverage, that is, the whole Russia.

We quickly reached a completely digital transaction with our partners(electronic signage). The manager visited the customer and reached a transaction without branches. “Hybrid” IT teams need to be able to accept these tasks in an intensive manner. And continue to develop our business. Facts have proved that such adaptation efforts are not only the basis for Chinese enterprises to cope with the crisis, but also the driving force for future growth. For example, using electronic signatures can provide mortgages to customers in Singapore.

FELUKOV: What is Rosbank’s vision for future development and what role does IT play?

DMITRIEV: I think the main competitors of banks are social networks and social media platforms. They are currently trying to provide their own financial products. I also believe that if he is currently an integrated enterprise of bank partners and can only use the bank as a service provider, he will be the first person to lose the bank in the first contact with customers. However, banks have long relied on financial expertise to provide capital management technology – valueless value, which has great advantages. Fund management, in a broader sense, is the management of bank customer welfare and financial future, so it is particularly important. I think banks can win the battle for customers. But to achieve this, the bank must transform its business model and become an IT company that truly owns the soul of the bank and a series of values.