- Main article: Lending in Russia
- Main article: Installment Services (BNPL) in Russia
2023
The volume of POS loans issued in Russia for the year increased by 42% to 497 billion rubles
In 2023, more than 15 million POS loans worth 497 billion rubles were issued in Russia, which is 23% and 42% more than a year ago, respectively. This is evidenced by FrankRG data released in January 2024.
Tinkoff Credit Broker estimated the growth of the Russian POS lending market at 24% at the end of 2023. Tinkoff Credit Broker itself for the same year issued more than 2.1 million installments and POS loans (+ 50% by 2022). The main share in this volume (87%) was taken by installments. At the same time, installments and POS loans issued online accounted for 88% of the total volume of issuance, the company said.
According to Kommersant, consumers in the last months of 2023 reduced interest in the lending market due to rising prices for goods and services, high credit rates and strict regulation of the Central Bank of the Russian Federation. Market participants interviewed by the publication note that in 2024 the segment's growth will mainly be ensured by an increase in the size of loans amid rising prices for goods, the popularization of installments as a way to pay and connect new retailers. In turn, growth will be restrained by tightening regulatory policies - high loan rates, tightening macroprudential limits. Also, pressure on the classic POS lending segment will be exerted by the activities of marketplaces with the participation of related banks.
 | Marketplaces are taking potential buyers away from traditional retail, where installment services for buyers were presented, "said Maxim Zaytsev, head of Tinkoff Credit Broker. |  |
According to Infoline-Analytics, the volume of sales of online retail in Russia in 2023 may amount to about 7.7 trillion rubles. The marketplaces surveyed by the newspaper deny the fact of issuing POS loans.[1]
The Central Bank has established restrictions on the issuance of loans to Russians
On January 1, 2023 Russia , direct restrictions on the issuance of unsecured consumer loans to the population for banks with a universal license and microfinance organizations (MFIs) began to operate. We are talking about the so-called macroprudential limits (MPL).
In accordance with the innovations of the Central Bank of the Russian Federation, the share of loans with a borrower's debt burden above 80% should not exceed 25% of the issuance volume or 35% of loans for microfinance organizations. The maximum permissible share of unsecured consumer loans for a period of more than five years is limited to 10%.
According to the regulator, a further increase in the debt burden of citizens in the conditions of structural restructuring of the economy may create additional macroeconomic risks. Citizens' problems with servicing loans and loans can lead to a reduction in demand in the economy, and bank losses as a result of writing off "bad" loans can lead to a decrease in their ability to lend to the economy, the Bank of Russia added.
Macroprudential limits will apply to consumer loans (loans), which from January 1 to March 31, 2023 will be granted and acquired, as well as to consumer loans (loans) with a credit limit, the limit on which will be set (increased) during the specified period.
The introduction of macroprudential limits will make the structure of consumer lending and microfinance more balanced, but at the same time will not create additional capital requirements for banks and microfinance organizations, according to the Central Bank.
The impact of the measures taken on banks will be heterogeneous, as banks differ in the share of unsecured consumer loans provided to borrowers with a high debt burden and for long periods. It is expected that in the banking sector as a whole, the imposed restriction will affect no more than 10% of the volume of unsecured consumer loans provided.[2]
2022
12.5 million consumer loans issued
According to 4,000 lenders submitting information to the National Bureau of Credit Histories (NBCH), in 2022 the number of consumer loans issued amounted to 12.53 million units, a decrease of 27.1% compared to the previous year (in 2021 - 17.18 million units). At the same time, compared to the "pandemic" 2020, the issuance of consumer loans in 2022 decreased less significantly - by 14.3% (in 2020 - 14.62 million units) (Chart 1). The NBCH reported this on February 27, 2023.
The largest number of consumer loans in the regions of the Russian Federation in 2022 was issued in Moscow (715.3 thousand units), the Moscow region (608.4 thousand units), the Krasnodar Territory (476.4 thousand units), the Republic of Bashkortostan (461.7 thousand units) and St. Petersburg (439.7 thousand units).
It is worth noting that compared to 2021 in 2022, the Samara region (-28.4%), Stavropol Territory (-28.2%), Volgograd Region (-27.9%), Primorsky Territory (-27.8%) and Nizhny Novgorod Region (-27.6%) demonstrated the most serious dynamics in reducing the number of issued consumer loans (among the 30 leading regions in this type of retail lending). In turn, the smallest decline in the issuance of consumer loans was noted in Novosibirsk (-19.8%), Kemerovo (-20.3%) and Tyumen (-20.8%) regions, as well as in the Republic of Bashkortostan (-21.0%), St. Petersburg (-21.9%) and Moscow (-21.9%) (Table 1).
| | The situation with the issuance of consumer loans in 2022 is largely reminiscent of 2020 with its "quarantine" spring. In both cases, following the "spring" fall, in general, there was a trend towards some recovery in the segment of consumer loans. So, if compared to 2021, the issuance of consumer loans in 2022 fell by more than a quarter, then its reduction in relation to the "pandemic" 2020 turned out to be not so significant. The overall cooling in this segment is generally due to the more conservative credit policy of banks that refuse customers with insufficient Personal Credit Rating (RCC) and excessive debt burden. The reduction in issuance in consumer lending is also due to the fact that recently citizens have been increasingly inclined towards a savings model of financial behavior, not seeking to increase their debt burden. | |
Russian POS lending market contracted
The volume of the Russian POS lending market (issuing funds for the purchase of goods directly in retail outlets) in 2022 reached 351.1 billion rubles against 379.8 billion rubles a year earlier. This is evidenced by the data of Frank RG analysts, which the Kommersant newspaper published on February 15, 2023.
In recent years, as noted in Frank RG, the volume of POS loans remained in the range of 300-400 billion rubles without pronounced dynamics. In late 2022 - early 2023. the segment recovered to the values of previous years, while in the segments of cash lending and car loans, the lag still remains. At the same time, only about a dozen banks are engaged in POS lending, and the largest of them are HCF Bank, OTP Bank, Post Bank, Renaissance Credit. In February 2023, Loko-Bank entered this market.
According to Frank RG, in December 2022, in the POS lending segment, the growth in issuance was a record in the entire history of observation - 46.9 billion rubles (+ 9.6%). Compared to December 2021, the indicator increased by almost 1%, but by the end of 2022 the volume of issuance of such loans was 7.6% less than in 2021.
The number of companies that connected installment plans and POS loans to Tinkoff Credit Broker in 2022 exceeded the 2021 result by 40%, Izvestia writes with reference to the service data. The volume of installments and POS loans issued in 2022 also increased - by 7.5% compared to 2021 to 57 billion rubles.
Market participants interviewed by Kommersant consider the POS segment attractive despite its restrictions. The POS lending market is traditionally the first among all types of unsecured loans, since thanks to the low average check, high turnover and targeted use, it has the lowest risk profile for banks and maximum clarity for their clients, said Irina Zhimerina, director of partner business development at HKF Bank.[3]
Record 1.29 million contracts for loans for the purchase of goods in September in 5 years
In September 2022, the Russians signed 1.29 million loan agreements with banks for the purchase of goods. This number of POS loans is a record in five years.
Reduction in consumer lending by 43% to RUB 1.65 trillion in 8 months
The issuance of consumer loans in Russia in January-August 2022 against the background of a special operation in Ukraine fell by 43.2% - to 1.65 trillion rubles.
2020
NBCH: Banks issued 14.6 million consumer loans over the year
On January 20, 2021, the NBCH announced that 14.6 million consumer loans were issued by banks in 2020.
According to 4,000 lenders transmitting information to the National Bureau of Credit Histories (NBCH), 14.57 million consumer loans (loans for the purchase of consumer goods) were issued in 2020, which is 25.9% less than in 2019 (19.68 million units).
In December 2020, 1.47 million consumer loans were issued, which is 24.7% less than in December 2019 (1.96 million units). In turn, the issuance of consumer loans in the 4th quarter of 2020 amounted to 4.04 million units, or 24.9% less compared to the same period in 2019 (in the 4th quarter of 2019 - 5.35 million units) (Chart 1).
In turn, the average value of the borrower's Personal Credit Rating (RCC) for consumer loans in December 2020 was 633 points (minimum value - 300 points, maximum - 850 points), which did not actually change over the year (Table 1).
The largest number of consumer loans in the regions of the Russian Federation in 2020 was issued in Moscow (711.2 thousand units), the Moscow region (632.5 thousand units), the Krasnodar Territory (553.9 thousand units), as well as in the Republic of Bashkortostan (502.0 thousand units) and Sverdlovsk region (478.8 thousand units).
A decrease in the issuance of consumer loans was noted in all regions of the country. At the same time, the most serious dynamics of reducing the number of issued consumer loans (among the 30 leading regions in terms of the volume of loans of this type) in 2020 compared to 2019 were demonstrated by the Stavropol Territory (-32.7%), Tyumen (-30.6%) and Rostovskaya (-29.5%) regions, as well as Primorsky (-29.4%) and Altai (-28.8%) regions. In turn, in the least significant way, the issuance of consumer loans decreased in Moscow (-21.2%), Belgorod region (-23.8%), St. Petersburg (-24.0%) and Moscow region (-24.1%) (Table 2).
| | The issuance of consumer loans in 2020 compared to 2019 decreased by more than a quarter, - believes the general director of the NBCH Alexander Vikulin. - This indicates that the trend towards banks following a conservative approach in retail lending is still continuing. At the same time, the value of the Personal Credit Rating (RCC) of borrowers remains a determining criterion for creditors when deciding on the issuance of a loan and its parameters. In 2020, consumer loans were issued only to those citizens whose level of debt burden and the importance of PCR were at a high level. | |
Decrease in the share of consumer loans issued from the number of approved
The crisis and the COVID-19 pandemic kill the desire of Russians to take consumer loans: in 2020, they began to agree to the conditions of banks much less often.
In January-August 2020, the average difference between loans approved and issued on unsecured loans was 31.9%. Less than a third of borrowers agreed to the terms of banks and eventually took out a loan. Compared to the same period in 2019, the figure decreased by 13.1% - then 45% took the approved loans.
Growth in consumer lending in July from 8.1 to 9.1 billion rubles year-on-year
NBCH: The number of consumer loans issued by banks in May decreased by 44.7% over the year
According to 4,000 lenders transmitting information to the National Bureau of Credit Histories (NBCH), 0.82 million loans for the purchase of consumer goods (consumer loans) were issued in May 2020, which is 44.7% less than in the same period in 2019 (in May 2019 - 1.48 million units) (Table 1). This was reported on June 16, 2020 by the NBCH.
At the same time, compared to the previous month, in May 2020 there was an increase in the issuance of consumer loans - by 22.4% (in April 2020 - 0.67 million units).
In turn, the average personal credit rating (PCR) of the borrower for consumer loans did not change for the year and in May 2020 amounted to 633 points (minimum value - 300 points, maximum - 850 points)
In May 2020, the largest number of consumer loans in the regions of the Russian Federation was issued in Moscow (33.3 thousand units), the Moscow region (30.6 thousand units), the Republic of Bashkortostan (30.0 thousand units), the Krasnodar Territory (28.1 thousand units) and the Sverdlovsk region (26.1 thousand units).
The reduction in the issuance of consumer loans in May compared to the same period in 2019 was noted in almost all regions of the country. At the same time, the most serious decline dynamics (among the 30 leading regions in terms of the volume of loans of this type) in May 2020 was demonstrated by Moscow (-51.7%), Tyumen Region (-51.4%), Krasnodar Territory (-51.3%), Moscow Region (-50.9%), as well as Stavropol Territory (-49.3%) (Table 2).
| | The drop in the issuance of consumer loans in May 2020 compared to the same period in 2019 turned out to be quite significant - by more than 40%, - believes the marketing director of the NBCH Aleksei Volkov. - Risk management of banks still adheres to a conservative approach when lending to citizens, in April-May consumer loans were issued only to those citizens whose level of debt burden and the value of personal credit rating (RCC) were at a high level. And the number of applications of these citizens for loans in April-May 2020 decreased by more than 70%. This means that people choose the tactics of reducing their debt burden, limiting consumption and, as a result, treating debt obligations more carefully. | |
Notes
- ↑ Goods run out of borrowed money
- ↑ ~: text= of% D0%A6%D0%91%20%D0%B2%D0%B2%D0%B5%D0%BB%20%D0%B4%D0%BB%D1%8F%20%D0%BA%D0%BE%D0%BB%D0%B8%D1%87%D0%B5%D1%81%D1%82%D0%B2%D0%B5%D0%BD%D0%BD%D1%8B%D0%B5%20%D0%BE%D0%B3%D1%80%D0%B0%D0%BD%D0%B8%D1%87%D0%B5%D0%BD%D0%B8%D1%8F, %D0%BF%D1%80%D0%BE%D1%86%D0%B5%D0%BD%D1%82%D0%BE%D0%B2%20%D0%B7%D0%B0%D0%B9%D0%BC%D0%BE%D0%B2%20%D0%B4%D0%BB%D1%8F%20%D0%BC%D0%B8%D0%BA%D1%80%D0%BE%D1%84%D0%B8%D0%BD%D0%B0%D0%BD%D1%81%D0%BE%D0%B2%D1%8B%D1%85%20%D0%BE%D1%80%D0%B3%D0%B0%D0%BD%D0%B8%D0%B7%D0%B0%D1%86%D0%B8%D0%B9 of the Central Bank set restrictions for issuance of credits to Russians
- ↑ Banks go into trade
| The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |