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BM-Bank (earlier Bank of Moscow)

Company

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BM-Bank — one of the largest universal banks of Russia (enters in top-5) providing a diversified range of financial services both for legal and for individuals.

Owners:
VTB - Vneshtorgbank
8346 employees in 2016

Assets

JSC BM-Bank (the former name — JSC JSB Bank of Moscow) — the bank formed within process of reorganization of JSC Bank of Moscow. Key activity of bank is work with troubled and non-core assets within implementation of the plan of financial improvement.

The bank services more than 120 thousand corporate and 9 million private clients. Among clients — legal entities — the largest industry enterprises, the SMB enterprises.

The bank is provided head and one additional by offices in Moscow. 2 subsidiary banks also are a part of group: JSC BM Bank in Ukraine and JSC JSB Zarechye in Tatarstan.

The annual average number of employees of group for December 31, 2016 was 8,346 people, including bank — 5,574 persons (for December 31, 2015 — 18,249 person, including Bank of Moscow — 11,682 persons).

As of February 1, 2015 in regions of Russia the 139th division of bank worked. In Moscow and the Moscow region 146 offices of bank worked. Besides, services were rendered to the population in 424 mail and bank departments of the capital region.

The budget on information technologies

2012

Bank of Moscow in the fall of 2012 published the reporting for the third quarter 2012 in which separate point is devoted to expenses on scientific and technical development, licenses and patents, new developments and researches. According to documents of bank, in 9 months 2012 the bank spent 158.8 million rubles for scientific and technical development. Let's remind that for the first 6 months of the current year development by Bank of Moscow was spent for the same purposes by 103.9 million rubles. Thus, directly in the third quarter 2012 expenses of credit institution on IT made 54.9 million rubles. For comparison, the similar indicator for the third quarter 2011 equaled 41.1 million rubles, and for the first 9 months 2011 — 88.9 million rubles.

Bank of Moscow adheres to the former policy in the field of scientific and technical, directed to mastering and implementation of the advanced banking technologies for the purpose of providing to clients of access to modern complexes of banking services. In bank optimization of the unified information and technology environment integrating head office, departments, branches, subsidiary companies and clients continues, the park of ADP equipment is improved.

In credit institution projects on implementation of an internal informational portal with expanded with functionality for employees of the bank and also on upgrade of the external website of Bank of Moscow for the purpose of gain of its role as instrument of sales of banking products are kept.

Informatization

2012: Course towards electronic services

As told CNews in December, 2012 the senior vice president of Bank of Moscow Sergey Mednov, development of electronic services for legal entities will become one of its priorities on new work location (transition of the head from Alfa Bank took place at the end of fall of 2012). "I will strongly change the block of electronic business", - he says.

Listing functions which will have to appear, Mednov calls electronic calculations between suppliers, including services of marketplace for public procurements, accounting online services and products for management of medium business of finance (cash management).

"There is a lot of services which can be integrated, - he says CNews. – It will be created, most likely, in the usual interface of a personal account of the client"[1].

Mednov explained that it is not about writing of completely new applications, and about embedding of developments of the third companies in already existing electronic channels of bank.

Also focus will be made on Internet acquiring. "This market will seriously grow due to transfer of increasing number of payments to an electronic form", - Mednov considers.

In addition, the bank intends to expand use of contactless technologies of Visa and MasterCard payment systems (PayWave and PayPass, respectively) including in transport applications. "We have quite good positions regarding payment of the Moscow municipal services, including travel by the subway and on land transport", - the head says.

Mednov does not intend to change the main banking information systems: "The core banking system works effectively, it is not necessary to change it, also as well as a set of other key systems created by developers of bank". As for change of the IT budget in 2013, it speaks about "the reasonable growth", without calling the absolute amounts. The number of employees of IT service - "several cells at the central office, taking into account regional divisions – are more. Total number of IT services quite conforms to standards in the industry".

2015: Course towards import substitution

The board member of Bank of Moscow Sergey Mednov calls import substitution the trend, main for bank, in the IT direction for 2015. In February he told TAdviser that Bank of Moscow makes several experiments  in this direction.

One of them is a porting  of the automated banking system (own development of Bank of Moscow - a comment of TAdviser) on alternative DBMS: in particular, on PostgreSQL

"In that volume in which we already tried to make it porting  proved to be  quite successful. By our estimates if  the positive decision will be made, process of migration will take several months", - Sergey Mednov says.
 
Bank of Moscow is interested in substitution of both American software, and \"iron\"
Bank of Moscow is interested in substitution of both American software, and "iron"

According to Sergey Mednov, the bank is going to continue experiments on import substitution regarding all program stack: "we look at the Russian  OS, first of all, as an alternative of Microsoft  and also on the different products middleware which exist in the market as an alternative   to the products IBM WebSphere  and similar".

Also Bank of Moscow the Russian and Israeli systems of providing a computer security which should succeed "potentially dangerous American analogs" strongly interest, he adds. 

As for server and telecommunication equipment, here, according to Sergey Mednov, the bank of serious options of use of alternative  import-substituting domestic technologies does not see yet therefore in a relevant alternative hardverny stack  there are only  solutions of the Chinese production. 

History

2013

In April, 2013 the new line of credit cards, in December – the charitable card "Gift to a Shrine" and federal co-brand with S7 was started. At the same time within a year activation campaigns were regularly waged.

The number of bank departments was reduced, but their efficiency grew. At the end of 2013 retail business of BM brought to Group nearly 2 billion rubles.

As for the RBS systems, the number of users of Internet bank grew to 61%, users of mobile bank - to 35%. Remain basic functions and the key directions of electronic business: development of profitable business in the market of e-commerce (B2C), attraction new and deduction of the existing clients at the expense of the innovation products and services (B2B), support of the status of municipal bank at the expense of city electronic products (B2G).

Growth of turnover of Internet acquiring in 2013 was 250%. Planned growth by 2016 - 380%. In 2013 the market share of Internet acquiring made 5%. The purpose for 2016: a market share - 10%.

Also bank representatives noted that in 2013 the universal Bmmobile payment application and the application on bicycle rental were started (Velobayk). In 2014 start of mobile bank for corporate clients on smartphones and tablets is planned.

On processing service are in Bank of Moscow: 40 banks - agents, from z them 10 — regional banks. 15 banks are planned to connection in February-April, 2014.

2015

Bank of Moscow will be a part of VTB

Bank of Moscow since January 1, 2016 will join VTB bank, the deputy president-chairman of the board of VTB bank Mikhail Oseevsky told in the feval of 2015 to journalists at a press conference.

Bank of Moscow will remain till 2018, but will change functions and powers

VTB, most likely, will save Bank of Moscow as the separate legal entity till 2018, the head of bank Andrey Kostin told in June, 2015 to journalists. The head of VTB, in particular, noted: "As for process of legal accession, here, really, there are certain questions which, maybe, were not up to the end considered"

"... They are connected with certain financial aspects including the plan of financial improvement. I think that really we should save in a varying degree Bank of Moscow as a certain legal person, but is perfect with other functions and powers, maybe, with other capital... Moreover, most likely, we will go on the way of selection of "good" bank and a certain bank of less good", - A. Kostin added.

2016

Completion of reorganization

On May 10, 2016 reorganization of Bank of Moscow in the form of accession to VTB bank was complete. Within integration the main part of business of Bank of Moscow — about 70% of assets passed to the last that makes more than 900 billion rubles according to international standards of the reporting.

As it appears from the materials published earlier on reorganization, authorized capital of the "good" part of Bank of Moscow attached to VTB makes about 20.963 billion rubles, and at Bank of Moscow which remains as the legal entity and which main objective will be program termination of financial improvement, there are 13.537 billion from former 34.5 billion rubles of authorized capital. The former divisions of Bank of Moscow were transformed to retail divisions of VTB bank and continue work with individuals and the companies of small business as before. All products and the services provided to clients earlier continue to act on former conditions.

After completion of reorganization Bank of Moscow received the official name of PJSC BM-Bank. On September 30, 2016 the form of business was changed from public joint stock company to joint-stock company.[2]

Change of a logo

Bank logo from 2005 to 2016
Bank logo from 2005 to 2016

Due to completion of reorganization in the form of accession to BM-Bank VTB bank replaced the logo which used since 2005.

Notes