Digital business of Alfa-Bank

2019: Alfa-Bank opened the main indicators of development of digital business

In August, 2019 Alfa-Bank shared results of development of digital business. According to the director of digital business of Alfa-Bank Ivan Pyatkov, as of July of 74% of all active retail clients of bank are digital clients. In bank carry clients who at least once in a month made an input in mobile or Internet bank to like those. In numerical expression of like those in July there were about 4 million people. In total the bank has more than 6 million active retail clients.

The previous year in July the similar indicator was 61%. Pyatkov noted that on number of digital-clients Alfa-Bank advances the current average Russian indicator: according to a research of Finalta company, it makes about 50%.

The representative of Alfa-Bank noted that it is rather difficult to expect transfer of 100% of retail clients to digital channels since a part of clients prefers to use only bank departments. On this background the bank expects some deceleration of growth of their number. At the end of 2019 Alfa-Bank sets as the purpose to transfer up to 80% of the retail clients to digital channels.

According to Ivan Pyatkov, now Alfa-Bank will be focused on increase in frequency of use of online channels by clients (a photo - Gazeta.ru)

In a conversation with TAdviser Ivan Pyatkov noted that against the background of growth of users of digital channels of bank the need for physical departments and their staff of departments is not reduced. It is connected with the fact that also the number of active clients of Alfa-Bank in general grows, he says.

Customer move in digital channels allows to increase the customer base, is not strong at the same time increasing number of departments, - he explained TAdviser.

Ivan Pyatkov provided data that for the last year also online sales grew. So, for June, 2019 process of receiving 70% of credit cards and 63% of cash loans was started online, and in 36% and 25% respectively process of their design and issue was performed without participation of bank department, apart from the courier for delivery of cards.

One of results in the field of digital business give expense reduction on delivery of SMS notifications to clients at the expense of PUSH notifications in Alfa-Bank. In August, 2019 the share of PUSH notifications reached 50% though in February made about 17% of the messages sent to clients. And until the end of the year Alfa-Bank is going to send 61% of notifications in the form of PUSH.

Pyatkov explained the fact that the bank began "lean" on PUSH instead of SMS with the fact that about 1.5-2 years ago the market faced that operators significantly increased the delivery cost of SMS messages. According to the estimates of Alfa-Bank, for 2019 the bank at the expense of PUSH messages will be able to save about 1 billion rubles on SMS in total.

One of the largest digital projects of bank - equipment of the departments instruments of collecting of biometric these clients within creation in Russia of the Single Biometric System (SBS) which began to work since July 1, 2018. As of July Alfa-Bank equipped with the necessary equipment and software 354 departments, and in the end of the year expects to complete this process. Then collecting of biometrics will be able to be performed in all bank departments which it has 412.

By August the bank in total collected data of 1 thousand 179 clients that is absolutely small indicator. Ivan Pyatkov notes that, unfortunately, yet in the market there is no special demand for delivery of biometric data. According to the director of digital business of Alfa-Bank, the basic reason of it is lack of accurately formulated value proposition of services for the client using biometric identification.

It was initially supposed that the biometrics will allow clients to open far off bank accounts, but as market practice shows if the client decides to open the account in new bank, for it not a problem to visit department, to look how the bank works, Pyatkov explains.

At Alfa-Bank of services based on EBS not yet. Concerning plans of their development Ivan Pyatkov told TAdviser that the bank will look at how the base of biometric data will be filled.

Now start of these services is remunerative as only a small number of clients can use them, - he says.

According to Pyatkov, Alfa-Bank went on slightly other way concerning simplification of opening of bank accounts: it develops service of a courier delivery for those it is inconvenient to whom to visit bank departments and in regions where the bank physically is not present.

So far expenses on creation of this infrastructure excessive, he believes. According to Pyatkov, in 2019 expenses of Alfa-Bank on fulfillment of requirements on development of a system and equipment installation make $1.5 million. The main article of expenses here at the same time is made by security.

But it does not mean that EBS is not perspective, the representative of Alfa-Bank added: to all appearances remote interaction with banks and the state will be prevailing. Creation of the state remote services using EBS could become more active an incentive for citizens to hand over biometric data in a system, Ivan Pyatkov believes.

One of results of digital business Ivan Pyatkov calls the grown turnovers on the entering and outgoing payments in the system of fast payments (SFP) with benkami-partners of Alfa-Bank. But at the same time growth of volume of the entering transfers on the system of fast payments sharply slowed down, note in Alfa-Bank. In July, 2019 the volume of outgoing transfers on SBP reached 1.8 billion rubles that is 28.5% more than indicators of June. At the same time the volume of the entering transfers in a month did not change — 0.8 billion. Pyatkov explained sharp growth inhibition of volume of the entering transfers with the fact that some banks begin to take the commissions in SBP.

2018: Ivan Pyatkov's appointment director of digital business

In November, 2018 Ivan Pyatkov as the director of digital business joined a command of Alfa-Bank. Read more here.