Bank in MM

From banking ratings to human values

Translation from source language

"Segodnya" newspaper, #91, page 6 

Nataliya Zubrytska, Chairwoman of the Management Board of PRAVEX-BANK: My task is to offer people the bank to which they can trust their savings.



— What banking services are the most called-for by the Ukrainians today?

Today's researches show plainly that even some big Ukrainian banks, incurred losses among banking services consumers already during the first months of crisis. On the contrary, we enlarged our clients database. What does it mean? It means that people confide in PRAVEX-BANK.

We should not forget that the banks are blood-vascular system of all economy. These are not only credits and deposits but also other types of banking operations. By the way, the latter make up to 40 % of our bank income.  The population performs necessary payments via banks on a daily basis. These include payments for utility bills, telephone, child's kindergarten, academic fees of son doing his studies at the Institute, money transfers to old parents, parents and some savings… Such payments must be performed quickly, correctly and preserving confidentiality. Our clients are sure that payments, which they make via our bank, were performed, are performed and will be performed as watch mechanism: in time. This is ordinary life, but it is very important that this system work without failure! And I am perfectly sure that our bank is and will be the bank where the clients will be able today, and tomorrow, and in future perform all types of banking operations in all security.

— The bank has its own system of money transfers. Could you speak about it more in detail, please.

Today the bank is the direct agent of Western Union, MоnеyGram and UNIStream system. But instant money transfers system, "PRAVEX-TELEGRAPH" occupies special place among them: more than 13 000 persons uses it daily. And understanding this vital need of the population in such service, we constantly improve it: we enlarge rate schedule, and we decrease fees. Money turnovers on money transfers services increased in Мarch by 20 % as compared with the similar period of the last year. And this is the best indicator of the fact that our clients feel real support of the bank during such hard time.

— How do you think, has bank clients' behaviour changed  in recent time?

I will tell you one thing: many people lost confidence. For what was the main argument when people applied for credits to purchase apartments? People had no doubts that they will be able to repay credit. You see, they were certain about this fact. While today we assist at the situation when many have lost this confidence: they lost their job, they receive now no salary.  What credits can we speak about? And this is no question of confidence or non-confidence in banking system. And today people are worried about other questions: what shall they do in order to preserve money which they possess? And where to keep savings which are intended to provide for their families. And I can tell you that I am glad to observe today's behavior of banking services consumers: the number of clients who bring us their savings is growing every day. That means that people are positive about our bank. Our team and I, we are united to reach one goal — to be such a banking institution which will preserve our clients' deposits. People have the right to such a bank.

— What is the reason of your bank clients being so confident? What is the guarantee of their funds safety?

The bank has as of today a sound liquidity. This means, that the Bank is provided with funds completely. We are doing this with the express purpose: we are paying up to the last kopeck to every client all interests under every deposit. What does this mean? This means that "PRAVEX-BANK" has a solid safety factor.  That is why today we can allow ourselves even to grant bonuses to the clients. Thus, up to August 2009, "PRAVEX-BANK" offers all its clients to become members of Frequent Clients Club. And this guarantees them additionally 1% to deposit rate* under every new deposit.

Besides that, there is such thing as brand: intangible asset which plays decisive role when the client chooses the bank. People trust in brand or not. Brand is the strategy, tactics and ideology of work in the market which were adopted by the bank. "PRAVEX-BANK" brand promises its clients necessary bank products, branches and ATMs available throughout Ukraine and good service. People believe such promise  because every day we redeem this promise. And such attitude of our clients shows potential and attractiveness of our bank. All the more that our brand is now significantly strengthened by solid reputation of new shareholders, INTESA SANPAOLO  S.p.A.

— Would you tell us what changes occurred with the arrival of new owner? Why does the big successful Ukrainian bank need foreign investor?

When Ukrainian banking sector became open to foreign investors, in order to allow our bank to face concurrence, we had to assure in time attraction of big foreign investor. In first turn, this was done in the interests of our clients. Financial structure of world level always has better possibility of capitalization, and if a bank is well capitalized, its stability is much higher.  Being part of world group, we have more possibilities: first — to increase authorized fund, and second — to attract cheaper funds for crediting of Ukrainian citizens. Thus, possibilities of our clients also grow.

We have big plans. The bank is now in the process of reorganization which is aimed at improving service quality. We adapt organizational structure to world standards. We analyze all procedures, paying attention to such aspects whether a service is being correctly provided to the client at the highest quick and safe level.  At this, we aspire to make all our products simple. We conduct at the same time several processes oriented at the increase of our specialists' professional level. This year, the Bank increased the budget for training and educational programs. Development budget of INTESA SANPAOLO Group is one of the highest in the world and this is a significant factor.

— How is the bank developing now? What new aspects did Italian shareholders introduce?

INTESA SANPAOLO is the Italian leader in retail and corporate banking as well as in wealth management. Only in Italy, the Group network provides services to 11.3 m clients and almost 8.5 m — in other 13 countries. Experienced European bankers highly appreciated the potential of Ukrainian market and the bargain to purchase 100 % of shares of "PRAVEX-BANK" by the Group became the second biggest one as for cost in domestic financial sector. The support of our bank shareholders is very significant. We got access to world experience and strengthened our team with true professionals. Today's policy adopted within the bank is as follows: business is driven by the Ukrainians — we know what kind of products and services our citizens need. As for the methods how to protect our bank clients and how to conduct correct risk policy — that is the competence of highly qualified foreign specialists. "World bank with local approach" is the strategy of our shareholders. High level of mutual understanding with Italian colleagues helps us to build a successful and efficient business. I am a member of the team. But one man, even a high professional, does not make a team. The main rule of team work is to know, to appreciate and to put into practice qualities of all the members of the team in order to achieve the common goal and at the same time to secure others from their shortcomings. My task as the leader is to design the strategy, to bring it to people, to unite them with common purpose and to coordinate its realization. Today, "PRAVEX-BANK" is a professional team which is ready to face any scenario of market development. And we enjoy full support of our Parent company.

— What kind of advice can you give to your clients?

I really sincerely recommend today — especially today — to reconsider the attitude to the money, to deal with this issue in a more attentive way. Money shouldn't be kept at home. Nowadays the principal task for everyone is to at least retain the money that we have earned before, the money that we have managed to save up. People should understand it well, that when we simply treasure up money, we lose it. Even if you retain your savings, then, at least, the money will depreciate for the inflation rate. How can we resist this? It is very simple: to make your money work for you. In the nearest future we will introduce several deposit products to the market. For now I can only say that these products will be very simple and clear ones and it will be very convenient for the people to work with them. In other words, it will be even easier to gain additional income from your own savings.

— Does it mean that Ukrainians have rejected the policy of consumption in favor of the policy of savings?

In fact, there are some changes. Since everyone has suffered: simple people, companies — everything is in a very complicated situation now. A lot of people cannot accept the fact that conditions have changed. And this is not wise. Today, as never before, it is a good period for us to reconsider everything: how we have been living? Have we managed our time properly? Have we set the right priorities? Have we earned in the right place, and have we spent the money wisely? Maybe, we should think now about own development, improve our education, cultural level and professional experience? Everyone should pay attention to the matters for which he/she had no time before, when the economy was in the stage of active development.

— Is it possible to obtain a loan in your bank today?

There is an interesting English saying that it is not the salary that makes us rich, but it is our habit to spend it. Certainly, when the markets are developing, a lot of new opportunities and interesting goods appear, it is always pleasant to spend money. And we think that this would last forever. But it never happens this way. The current situation is a natural phenomenon, a stage of evolution. And we have to perceive this economic situation as part of life. It is like day and night: during the day we carry out active mode of life, while the night is the time to slow down and have a rest. Yes, we do grant loans now, the bank issues some types of loans.

— And is it possible to obtain a loan in foreign currencies?

In respect of The National Bank's indication banks cannot grant loans in foreign currency. Therefore financial institutions grant loans exclusively in hryvnia. It would be great the day when people will use foreign currencies only in trips abroad, and the national currency in all other cases. Certainly, we still have a long way before us to reach this goal, and I believe in that as an optimist and a patriot.