The FINANCIAL — TBC Bank, one of the leading local banks, claims to be pioneering the Mobile Banking service in Georgia. This term is also known as M-Banking, SMS Banking, and is used for performing balance checks, account transactions and payments via a mobile device such as a mobile phone.
The second leading bank – Bank of Georgia – said the number of Bank of Georgia’s mobile banking clients has reached 39,703. “We have not officially announced having launched mobile banking. The bank is supposedly to make the information public in a week’s time,” Sopo Balavadze, PR Manager of Bank of Georgia, told The FINANCAL.
“Mobile Banking could be used in terms of GSM telephone deposit subscriptions to Magti and Geocell, making tax payments to the budget and paying traffic police fines, opening and terminating time deposits and checking foreign currency exchange rates,” Nino Kacheishvili, Head of the Sales Department of TBC Bank, told The FINANCIAL during the launch of TBC Bank’s new format branch on May 24, 2008 on King Tamar Ave.
TBC Bank JSC is the leading universal bank in Georgia. The bank is owned by International Finance Corporation (IFC), German Investment and Development Company (DEG), and Georgian individuals.
“Mobile Banking will be available for ProCredit Bank Georgia’s clients as at this point the project is in the implementation phase,” Lali Svimonia, PR Manager of ProCredit Bank Georgia, told The FINANCIAL.
“Bank Republic’s future plans do envision launching mobile banking, although currently we don’t operate this service,” noted Tamar Shavdia, PR Manager of Bank Republic, Societe Generale Group.
Mobile Banking today is most often performed via SMS or Mobile Internet but can also be used with specially downloaded programs. Mobile banking is similar to internet banking and this service has the same possibilities: Check/view his/her account and print out bank/transaction statements, make transfers/currency exchanges between his/her accounts, make any desired utility bill payments.
In Kacheishvili’s words, Mobile Banking is an absolutely new offer to the Georgian market and it has no analogue yet. Mobile banking is the most advanced convenient and safe method of a client-bank relationship. It is a based system, which enables the client to contact a service bank via a modem-equipped mobile phone. Implementing such technologies does not require a huge volume of investments but it requires huge experience of the staff.
This service, created especially for busy people, will become popular among customers soon, but it needs time.
Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. According to the GSM Association and Ovum, the number of mobile subscribers exceeded 2 billion in September 2005, and now exceeds 2.5 billion (of which more than 2 billion are GSM).
According to a study by financial consultancy Celent, 35% of online banking households will be using mobile banking by 2010, up from the less than 1% today. Upwards of 70% of bank centre call volume is projected to come from mobile phones. Mobile banking will eventually allow users to make payments at the physical point of sale.
As for the cooperation between local mobile operators and banks so far, as Bank of Georgia’s February 2008 release says, the bank launched a co-branded student card (Bali Card) with Magti, Georgia’s leading Mobile Operator. Bali is Magti’s sub-brand targeted at the young population segment. The Bali Card combines a debit chip card and transport contactless application (a so-called hybrid card), which can be used at Tbilisi Metro (subway) for transit passes.
On May 14, 2007, TBC Bank opened a new branch on King Tamar Avenue as part of its drive to expand the branch network.
“New format branches convey an impression of openness: there are entrance elevators in the branch and no windows separating the client from the bank employee. Moreover, customers and officers will have the opportunity to look at computer monitors together and make joint decisions as to whether or not to purchase a product,” Maia Dzirkvelishvili, PR Manager of TBC Bank, declared to The FINANCIAL.
The new branch concept, implemented by the international consulting company Senteo, aims to emulate the operating practices of the world’s leading banks and set an industry-wide global standard for Georgia. The approach is well illustrated through the slogan My Bank is On My Side.
All customers entering the branch will receive the assistance of a branch administrator who can help the customers in using the ATM as well as answering any possible questions the client might have.
“Such branches also offer a 24-hour zone where the customers can use services in the lobby at any time of the day. The zone services include: informational kiosk, ATM, internet, call centre and others. All the branches will have a special space for children, so-called kid’s corner, and the VIP room, where such clients will receive exclusive services,” Dzirkvelishvili said.
According to Vakhtang Butskhrikidze, the General Director of TBC Bank, the bank gained USD 50 million in May, 2008. TBC Bank has managed to raise stunning funds from western capital markets. The transaction was achieved with the help of Merrill Lynch.
Merrill Lynch is one of the world’s largest financial institutions and is considered a solid leader in the financial world. The transaction reflects TBC Bank’s stability, as well as the trust it has gained amongst the world’s leading finance institutions.
The first investment program was fulfilled in March, 2008. Totally TBC Bank has received USD 100 million investments during the last two months from Merrill Lynch.
“TBC is free to use the acquired funds as desired and will use them to serve achieving main corporate goals, especially satisfying the fast growing demand on both banking and financial services. Our new strategy is to finance the small and medium sized businesses. Today demand on loans has grown compared to previous years and USD 50 million is a very good source for TBC Bank to finance this sector,” Butskhrikidz declared.
Last week TBC announced its new service for Term Deposit owners. Now they have the possibility to convert their savings into any currency of their choice (USD, GEL, EUR).
Converting the deposit gives several advantages such as increased savings, converting half of the deposit into available currency and leaving the other half in the original currency, having a choice of increasing the term of the deposit.
Consequently, Term Deposit owners have a chance to participate in the TBC Bank raffle. By increasing their deposit up to GEL 2,000, they automatically take part in the raffle, and have a chance to win GEL 1 million.
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