Konstantin Aleksandrovich, the state became one of the key trends of recent times. It is especially important, for example, in such socially significant areas as mortgage lending. As far as today, in Your opinion, the popular mortgage program with state support?
Konstantin Bobrov: Yes, indeed, government support in various aspects in the current situation plays a huge role. If you take in the whole world, the amount of economic stimulus is unprecedented. They are very considerable and exceed the amounts of support we’ve seen so far.
Mortgage program with state support, of course, are good stimulus for the housing market and mortgage lending. Conditions on interest rates become more attractive. Never in Russia was not mortgage loans at 6-7%. If we talk about the real estate market, now there are interesting offers from developers. Therefore, those who had postponed the purchase, and today have the financial ability to repay the loan, can now apply for a mortgage on better conditions than a year ago.
the demand for these programs, says that in may-June this year, the Bank URALSIB they provided approximately 50% of applications and about 40% of the issued of the total volume of mortgage lending. In the spring we received more than 11,5 thousand in mortgage applications is the credit programme “mortgage for families with children and a mortgage of 6.5%”. Total loans issued by them has exceeded 6 billion rubles. So, Yes, programs are in demand.
What will happen to the mortgage market in the future?
Konstantin Bobrov: In the short term, during the period of state support programmes and lower rates, reducing demand for mortgages, we do not expect. Next – much will depend on how will develop economic and epidemiological situation in the world. After all, today no one can accurately answer the question of whether all the difficulties?
And requirements for borrowers has changed? When it was easier to get a loan a year ago or now?
Konstantin Bobrov: the Bank uses multi-factor analysis of borrowers. Taken into account not only income, but also how stable it is, considering the industry where the person works, the place of employment. Even if the citizen now receives the same salary as a year ago, but he works in an industry where revenues as a whole fell, it is a risk factor.
If the circumstances are not changed, then the client will not experience any difficulties getting a loan.
Many of your customers took the opportunity to restructure the loan or to use credit vacation? How, in Your opinion, were these programs effective?
the Konstantin Bobrov: From the end of March from retail clients we have received about 14 thousand applications for restructuring. Of these, approximately 6 million borrowers have asked about credit vacation, of them approved a little more than 50 percent of the applications, which generally correspond to the market level. From small businesses received about 400 applications, a third of them – on vacation, all of them were endorsed by more than 90% of the total.
the bulk of applications for restructuring came in the first month: was almost vertical rise in April, in may the number of applications began to decline, and in June recorded a single application. About the effectiveness – in August back from vacation the first customers, and in September-October – main thread. Soon we will see how clients used this pause. For us, the tool is considered efficient if it permits the borrower to return to proper debt service.
it is Important to understand that vacation or restructuring is the transfer of debt service for a specified period. People who planned to take advantage of this opportunity, we at the offices and through the call center explained all the nuances. This is very important because restructuring affects the total cost of the loan, not always their use is appropriate. In some cases, the citizen is more profitable to remain in the contract period, for example, if he is able to repay the loan.
have you Changed in the last time the ratio of retail clients to invest? Perhaps, there is a flow of demand to some alternative tools?
Konstantin Bobrov: Yes, we see a definite flow from term deposits into savings and card products, which are now allowed to receive more interesting rates.
the Flow in investment products – the most notable from clients in the premium segment, as well as private clients, who have a long-term stock savings. As rates fall the rent of existence in which the availability of capital and a specified rate provides a reasonable level of income, is now under threat. Therefore, customers are looking for alternative possibilities.
Another thing is that customers who do not have a large financial reserve, I would be called upon to treat investment instruments with care. You should always remember that higher return is higher risk. A good measure is the Deposit rate or Bank rates on government bonds. All of the above — it’s a risk, and always, the extra income covers the amount of exposure – a topic for a separate discussion.
there you have customers recently request any new products or services?
Konstantin Bobrov: it is Obvious that during a pandemic the real��tively increased request for online services, remote interaction with the Bank, delivery. We had to accelerate the introduction of solutions for remote banking products sales and to expand the possibilities of online services, also in the first weeks of isolation, we offered customers a range of support measures for individuals and businesses.
in addition, during the isolation, the Bank launched the service of electronic registration of mortgage transactions, which allows you to apply and register real estate transactions electronically across the country, free of charge for customers, partners, developers and realtors. Was introduced services such as on-site services on opening a current account for entrepreneurs, delivery of cards to the house by courier, and a number of other proposals. Customers, in turn, in this period, tried and tested online services, I realized that online is not scary or complicated, and I hope I was able to appreciate the convenience.
the work of the Bank changed in a period of massive restrictions?
Konstantin Bobrov: Important for banks in this period was the ability to change quickly, quickly adapting to new conditions. The main priorities in the first weeks of the pandemic is safeguarding the health of customers and staff and continuity of banking services and means of communication.
the Translation of processes to the new conditions took the Bank about two weeks of full readiness we have achieved by the end of March, before the introduction of large-scale quarantine measures. Just this period, on the remote operation mode has been translated about 3 thousand employees across Russia – almost a third of the staff of the Bank. By itself, the remote operation mode has not been something completely new for the Bank, and all measures to ensure the safeguarding of information, commercial and personal data have been developed before. But in the new conditions it was necessary to scale this practice.
And today, the easing of restrictive measures has not led to a situation that we should all immediately return to the office. In the first step, we expect that approximately 15% of staff in Central office will be in combined format, that is, some part-time work in the office, and some outside of the office.
But, of course, is itself a remote format is not a panacea. Search of an optimum combination of online and offline – is critical for banks, this all will be doing in the near future. There are a lot of management issues and also issues of data access and protection.
As I said, during the isolation increased demand for the delivery of services to the client. We’ve worked with delivery services, but now it has become the definitive standard
Can be banks generally�� not will need in the future, it will all go online?
Konstantin Bobrov: online will be more to leave easy trades, a standard operation that can be done literally in one click. But for complex products (e.g., mortgages, investments) when it is necessary to weigh all “for” and “against”, to get advice, to compare alternative proposals – here offline will remain important. Most people want a live chat with the Bank Manager, an important conversation “face to face”.
And the banks will eventually turn into a kind of showrooms – just as it happens in the online sale of clothing. You can give this analogy: the more complex and costly clothes are, the more we want to try it beforehand. Socks can be bought in one click, but when we are talking about the suit or dress, you first want to understand whether the choices we make. Therefore, the total displacement of employees of the Bank “digit” is unlikely to occur.
PJSC “BANK URALSIB”. General license of Bank of Russia No. 30 issued 10.09.2015 G.
