“Dmitry Musienko Member of the Retail Business Board of PrivatBank Too Big to Fail. Innovations are a condition for business development, but there is a great risk on February 28, 08:30 saved a reading list → Read later to share: Ukrainian customer online services are probably the fastest in the world. You can become a bank client for 10 minutes, get a payment card. How do bank innovations create and what can interfere with implementation?”, – WRITE ON: ua.news
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Ukrainian customer online services are probably the fastest in the world. You can become a bank client for 10 minutes, get a payment card. How do bank innovations create and what can interfere with implementation?
Innovations in the banking sector are about processes and products that should simplify customer lives.
As an example, if you look at the B2B segment, last year we launched a service opening for FOP online. About 1 million FOPs are served in PrivatBank and 40.6% of new customers open online accounts. Business service is also a popular service in your phone.
Innovative product for B2C – Our loyalty program hello in Privat24. Today, about five million customers are its regular users. Three million active users, that is, those who at least once a month use the proposals we send. The program uses tools of AI, machine learning, mathematical models. Thanks to this, we can provide specific personalized offers of discounts and cache.
How do we find ideas for innovative development?
Some of the ideas are created by people inside the bank. But we have 18.5 million customers and many ideas about improving processes and products, we get from them. Customers write that it is necessary to improve what product is missing. And if you look at Papplain products and services we want to develop or improve now, it will reach 2027.
Innovations and increased risks in Ukraine
There is such an American expression: too big to fair – too big to fall. When the scale of business is large, any innovation is always a risk. Even the risk is not that the project, product or service will be unsuccessful, but the risk to the operating stability of any company, any bank.
At the beginning of the war, the Russian rocket fell near our Data Center in the Dnieper. It seems it was the beginning of March 2022. If the rocket hit the economy of Ukraine would probably stop. Because PrivatBank is the largest in Ukraine – seven thousand ATMs, 300 thousand terminals in stores. Most of non -cash and cash payments would simply stop. So for us always the number one task – Ensure operating stability.
The greatest innovation we did during the war is transferred all our datas centers to the cloud, did it for 45 days. And now we are absolutely calm: anything happens-all the data is preserved. There is no threat to the bank’s operating stability, and therefore a large part of the economy of Ukraine.
PrivatBank provides 43% of Ukraine’s banking system. We received 81 billion income before tax. Probably, for our shareholder, the state, most importantly – not our innovative products and services, but to generate a constant cashflow, a constant profit that goes to the Armed Forces and support of defense. We have not stopped lending since the beginning of the war. 2.5 million of our customers alone went abroad, people needed access to credit. Now it seems normal when banks are lending. And if we recall the beginning of the war, there was a huge stress. And when people had access to loans, it greatly facilitated their lives.
Therefore, probably the biggest obstacle to PrivatBank’s innovation is our size. We are not a Didzhital Bank that has two products and three services. If it falls tomorrow, no one will notice. But if something happens to PrivatBank, it will be huge losses and a blow to the economy of Ukraine.
The material was created on the basis of a discussion during the NV “Ukraine’s event changes. Dialogues about opportunities. “
