The FINANCIAL — “Russians and Georgians know few truths about each other. Information currently broadcast both in Russia and in Georgia is usually subjective and does not depict whole situations fairly,” Viacheslav Gritsaenko, Vice-President of VTB 24, told The FINANCIAL.
It is Gritsaenko’s first visit to Georgia, having arrived in Georgia. Purpose of the visit is participation in a seminar arranged by VTB 24. The main topic of discussion is development of bank’s chain.
“This is my first visit to Georgia, and my arrival and our equal cooperation regarding the development of the banking sector means that we are positively estimating this bilateral partnership,” said Gritsaenko.
In Gritsaenko’s words, there is a big information gap between Russians and Georgians that needs to be filled. “The historical links between our countries and the experience of our cooperation can be used for the further development of these relations. It is harder for business to enter an unknown market where a history of cooperation does not exist at all,” he added.
VTB 24 is the second largest retail bank in the Russian Federation. However the Bank’s current market share in Georgia is just 4%.
“We have not managed to gain the same results in Georgia because we are still in the start-up stage on CIS and Georgian markets. Continuing from the end of 2012 VTB Georgia has been implementing a sales model of retail services which is already well-approved on the Russian market. By creating this platform we will continue to increase our market share.”
VTB Georgia plans to increase its chain network. “We will add new branches in 2013 that will encourage further growth of our business here,” said Gritsaenko.
“We have always positively estimated the Caucasian market. However after the collapse of the Soviet Union it took time to restore the connection between societies and see readiness to do business together. Today the Russian market is also actively developing so it helps us to think about share enlargement outside of our borders too. Previously we have been focused on solving problems on a domestic level. After completing the development of our business on a local level we saw that it was the right time to focus on CIS markets and Georgia as well,” he explained.
“VTB 24 started working seven years ago. Presently our market share is 11.75% in the credit line and more than 7% on the deposits market. These figures show that entering any new market is possible and by providing popular products you can successfully compete with the market leaders. Having a big market share from the very beginning is less important for us, what’s more significant is achieving dynamic development,” Gritsaenko said.
Gritsaenko underlined the stability, experience and flexibility of its products as the main advantages of VTB Georgia.
“Online banking is the main challenge for modern companies so we consider it to be a very important part of our strategy. We plan to update internet banking.
Several months ago President Saakashvili stated that Russians plan to purchase Georgian banks. He named Sberbank and KaztransBank as potential investors. This information caused a certain amount of panic at the thought of the interests of state banks being connected to political risks.
Gritsaenko said that banks do not have time for politics. “Efficiency, healthy mentality and correct calculations are what determine the success of banks as well as any other business.
Yes, we are a state bank, and the basis for our development is our efficiency. The fact that over seven years we have increased our efficiency and profit means that we are focused on efficiency. Politicisation and efficacy are factors that can often interfere with each other. In this situation, we are focused exclusively on business in any territory, including Georgia, Russia or any CIS countries.
“I would tell you from our bank’s example that increased capital at VTB Georgia will result in enhanced activities and resources faster. At the same time it will mean that in the event of any crisis situation our customers will be guaranteed to get their resources back. The Russian market has been open to many international banks that have later showed failure to succeed. So, no matter which country’s capital will be behind Georgian banks the most important thing is market activity, increased demand for offered products and flexibility of products which the banks offer,” Gritsaenko said.
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