About this Report
The Report has been prepared in accordance with the legislation of the Russian Federation, including:
- Federal Law No. 39-FZ “On the Securities Market” dated April 22,1996
- Federal Law No. 208-FZ “On Joint Stock Companies” dated December 26, 1995
- Bank of Russia Regulation No. 660-P “On General Meetings of Shareholders” dated 16 November 16, 2018;Bank of Russia
- Regulation No. 454-P “On Information Disclosures by Issuers of Issue-Grade Securities” dated December 30, 2014
- Code of Corporate Governance of the Bank of Russia, recommended for use by joint stock companies by Bank of Russia Letter No. 06-52/2463 dated April 10, 2014
In addition, the contents of the Report comply with the following documents:
- Requirements of the Moscow Stock Exchange on the preparation of annual reports by joint stock companies
- Provisions of ISO 26000 Standard
- Sustainable Development Goals adopted by the UN General Assembly in 2015, where relevant to the Bank’s activity
- Standards and requirements of legislation on the international capital markets, including the disclosure requirements of the UK financial regulator and the Listing Rules of the London Stock Exchange.
This report has been prepared in accordance with the Core option of the Global Reporting Initiative Standards (GRI). This is another step to increasing the Bank’s information transparency, and also to developing the practice of corporate social responsibility in the Group. In addition, the Report reflects the contribution that Sberbank has made to achieving the Sustainable Development Goals adopted by the United Nations in 2015 in the document “Transforming Our World: The 2030 Agenda for Sustainable Development”.
Operational data are presented for PJSC Sberbank unless otherwise specified in the text of the Report.
Information on sustainable development is consolidated by the major participants of the Group, which have a significant impact on their regions of presence, and Sberbank Corporate University.
The term “Group” as used in the sections “People: Nurturing New Skills in Effective Teams” and “Impact on Society” includes Sberbank Corporate University and the following:
|Cetelem Bank LLC|
|BPS-Sberbank OJSC (Belarus)|
|SB AO Sberbank (Kazakhstan)|
|Sberbank Europe AG|
|Sberbank (Switzerland) AG|
|JSC Sberbank (Ukraine)|
|Delovaya Sreda LLC|
|Sberbank Private Pension Fund JSC|
|PS Yandex.Money LLC|
|Sberbank-Automated Trading System CJSC|
|Sberbank Leasing JSC|
|Sberbank Life Insurance LLC|
|Sovremenniye tekhnologii LLC|
Information on the subsidiary banks/companies (listed in the table above) that are the parent organizations of a group of companies is presented at the group level.
When disclosing information with reporting boundaries that differ from the above, information will be given in the description of the indicator.
This Report received preliminary approval by the Supervisory Board of Sberbank (Minutes No. 11 of April 16, 2019).
The reliability of the data in the Report was confirmed by the Audit Committee of Sberbank.
The Report was approved by the Annual General Shareholder Meeting of Sberbank as of May 24, 2019 (Minutes No 32 as of May 29, 2019).
The information provided in this report or expressed in the oral communications of Sberbank management may contain forward-looking statements. Forward-looking statements can be made in respect to any facts, excluding facts attributed to prior periods, and include statements regarding the intentions, beliefs, and current expectations of Sberbank in relation to, among other things, the results of its activities, financial position, liquidity, prospects, growth, targets, strategy, and the industry, in which Sberbank conducts its activities.
By their nature, forward-looking statements involve risks and uncertainties as they relate to events and depend on circumstances that may either occur or not occur in the future. Sberbank cautions readers of this report that forward-looking statements are not a guarantee of future performance, and the actual results of the Bank’s activities, its financial position, liquidity, and developments in the industry, in which Sberbank conducts its activities, may differ significantly from those expressly stated or implied in such forward-looking statements provided in this report or expressed in the oral statements of Sberbank management. In addition, even if the actual results of the activities, financial position, liquidity, and events in the industry, in which Sberbank conducts its activities, correspond to the forward-looking statements provided in this report or expressed in oral statements, these results or events cannot be viewed as an indicator of future performance and events.
The information and opinions included in this report or expressed in the oral statements of Sberbank management are provided as of the date of this report and may be modified without notice.
than a bank
The ability to analyze client data and striving to understand our clients’ ultimate needs that go beyond the scope of banking operations, allows us to promptly offer relevant financial and non-financial services in a convenient format.
Our goal is to enhance life quality of our clients and prevent them from wasting one of the most valuable resources — time.
Technological transformation is crucial for building a data-driven company and development of innovative skills of employees is the key driver of our success.
(including DenizBank), RUB billion.
Operating income before loss allowance charge,
Return on equity (ROE)
(including DenizBank), %
Loans to corporate customers,
Loans to individuals,
Due to corporate customers,
Due to individuals,
- Promote and support a healthy lifestyle among employees (healthy eating, psychological support, sports initiatives).
- Ensure safe working conditions for employees.
- Provide access to medical services on favorable terms.
- Support public health by offering life insurance services.
- Support medical institutions.
- Create in-house training programs for employees, including female employees of the Bank on childcare leave.
- Training of external stakeholders (clients, partners).
- Implementation of charitable projects aimed at supporting education in the regions of presence.
- Creating equal working conditions and career opportunities.
- Ensuring a balance of jobs and human resources.
- Providing an equal system for performance evaluation and compensation.
- Supporting employment and decent working conditions in regions of presence.
- Support for business development, including in the micro- and small-business segments, by providing financial services.
- Sustainable economic growth of Sberbank as the national bank by implementing new technologies.
- Initiatives aimed at making financial services more accessible in the regions of presence (development of service channels and infrastructure, financial literacy projects).
- Fighting corruption, money laundering, and the financing of terrorism.
- Financing of socially important projects.
- Development of infrastructure in the regions of presence (agriculture, pharmaceuticals, minerals extraction, transportation, and other economic sectors).
- Development of and support for implementation of innovative technologies in the financial sector.
- Support for older clients by offering convenient and understandable access to financial services.
- Development of products for youth.
- Support for physically challenged individuals by creating an inclusive environment in the Bank’s offices and in the digital space.
- Supporting Russian small and medium enterprises in difficult economic conditions in the regions of presence.
- Assisting in the construction of transportation, production, and other facilities that are socially important for the development of the regions and the country.
- Reduction of energy and water consumption in the Bank’s offices through the use of resource- efficient equipment.
- Reduction in the amount of waste produced by implementing separate collection of paper and office equipment consumables.
- Implementation of an initiative on the responsible use of resources.
- Participation in the process of improving regulatory oversight in the financial sector.
- Partnerships with professional associations and government authorities in developing initiatives in economic and social development.
- Development of national and international business partnerships by organizing and participating in business events (forums, conferences).
Share of small and medium-sized businesses
in the procurement budget (PJSC Sberbank), %
(the Group), %
Total energy consumption
(the Group), GJ
- Sale of services through physical and digital channels
- Study of clients’ behavior to develop value propositions
- Collection, analysis and processing of negative feedback from clients. Operation of 24/7 support lines to receive and address client complaints
- Monitoring of client relationships through the Net Promoter Score (NPS) and Client Satisfaction Index (CSI)
- Payment of compensation to clients for errors committed by Sberbank
- Monitoring of client reviews on social networks
Shareholders and investors
Timely and relevant information disclosure on the Group’s activities in line with the world best practices and requirements of international listings.
- Holding General Shareholder Meetings to enable shareholders to implement their rights to participate in management of the Bank
- Providing shareholders and investors with an opportunity to engage with the Bank in offline and online formats
- Perception studies to assess strengths and weaknesses of Sberbank’s equity story standalone and as compared to its peers
- Meetings with investment funds and analysts to discuss the Banks’ operational and financial trends
- Discussion on the Bank’s operational and financial trends at meetings of the Committee for Minority Shareholder Relations
- Disclosure of information in accordance with legal requirements, international listing requirements and best practices
- Disclosure of information on ESG factors management in accordance with GRI standards
- Engagement surveys, assessment of the atmosphere in teams
- Assessment of employee satisfaction with the quality of internal services through the Voice of the Internal Client system
- Direct line to the President and other executives
- Communications with employees through the corporate portal, corporate TV, Bank email circulars
- Monthly Meetings of Leaders, the annual Forum of Leaders
- Training in the Sberbank Corporate University and Virtual School
- Organization of corporate volunteer events
- Cultural and sporting events involving employees
- The Sber#Up corporate accelerator, where employees can find support for the development of their own business for future inclusion in the Bank’s ecosystem
- Monitoring of the regulatory and legislative activity of the government and the Bank of Russia, formation of Sberbank’s position on upcoming regulatory changes
- Sending proposals on improving statutory regulation to the federal authorities and the Bank of Russia
- Participation in meetings of the federal authorities and the Bank of Russia on draft regulations
- Participation in public discussions of draft regulations
- Disclosure of information in accordance with legal requirements
- Socially significant projects in the Russian regions
- Charitable projects, partnership with non-profits
- Educational, cultural, and sporting events and environmental initiatives in the Russian regions
- Sponsorship support for the organization and conduct of business events
- Media activity: press releases, interviews with Sberbank speakers, press tours
- Daily monitoring of media in the regions where we have a presence and in the Internet, preparation of reports for senior management, including on negative publications in the media and client complaints to the government oversight authorities
- Regular disclosure of information on the impact of business on the economy, environment and social sphere in accordance with international standards
The improvement and development of corporate governance practices is an undisputed priority for Sberbank and is within the area of attention and control of the Supervisory Board.
Ordinary (voting) shares, %
Preferred (non-voting) shares, %
Balance of directors as of December 31, 2018
More than 110 issues were considered at the meetings:
with rights realization
More than 110 issues were considered at the meetings:
one year in advance
The first year of three-year strategy is completed
The net profit target for 2020 is accomplished by 33%.
- “The most innovative bank” among retail banks in Centrals and Eastern Europe -Global Finance
- Sberbank Online is in Appstore’s Top-5
- 37% sales in the Bank’s digital channels
- AI-transformation of all internal and external processes
Sberbank’s initiatives changed payment culture of Russians and set up financial service infrastructure country-wide:
- The share of non-cash payments in Russian retail turnover up to ~40%
- Sberbank’s system of instant payments is open for 5 partners
- 67 cities are connected to transport acquiring
- 7 projects «Non-cash City»
- DomClick e-housing platform
Sberbank expanded the list of Sustainable Development Goals that it pays
special attention to from 7 to 10 goals out of 17:
“Best social project” from Retail Finance Awards:
charity platform “Sberbank together” and Project “Safety Island”.
ROE > 20%
3X better than
for 2019 payout
Sberbank financial targets 2020
Address of the Chairman of the Supervisory Board
Dear shareholders and investors!
Global trends stimulate change. One decade on from the onset of the global financial crisis, it can be said with absolute certainty that global trends have fundamentally changed the face of the banking industry. Digitalization and rapid technological development have affected client behavior and are changing the existing business models of banks.
Today, the banking business is increasingly all about technology. Big data, machine learning and elements of artificial intelligence allow banks all over the world to earn billions of dollars every year. Sberbank has proactively worked in this area and as a result, is one of the most technologically advanced and efficient banks in the world.
One of the Strategy 2020 goals is to fulfill a number of plans that will allow Sberbank to compete with global technology companies in order to create the best customer experience. To achieve this, the bank is launching various digital initiatives, entering strategic alliances, participating in startups, and testing new market niches. With the aim of preserving its long-term competitiveness, Sberbank is expanding offerings of additional services that are synergistic with its financial products in such areas as shopping, home, leisure and health. Sberbank is developing its ecosystem, bringing both subsidiaries and partner companies into the process.
These trends also affect the work of the Supervisory Board. Over the last year, we have on numerous occasions, considered issues at Board meetings that will make it possible to accelerate the Bank’s digital transformation, and develop a data-focused culture. In parallel, we are also expanding our competencies in modern technologies to ensure the balance of professional judgment and a fresh perspective.
In 2018, we also succeeded in lending activity. On the corporate side, our loan portfolio increased by 12.9% to RUB 14.3 trillion. The retail loan portfolio grew by 25.0% to RUB 6.8 trillion. Sberbank’s mortgage portfolio expanded by a quarter and exceeded RUB 3.9 trillion.
We intend to continue working efficiently in the interests of our clients so that shareholders can count on attractive and stable long-term profits.
Our main focus regarding corporate governance has been on shareholder relations. We have fully implemented online services for Shareholder Personal Accounts. The result being that both individuals and legal entities can use an electronic voting system at shareholder meetings. The implementation of this service has allowed us to increase both the total quorum of the meeting and the percentage of shareholders voting electronically. We have also focused on the work of the Minority Shareholder Relations Committee. Over the last year the Committee Regulations have been updated, a new version of the site has been launched and a new Committee has been elected.
In 2018, the Supervisory Board first considered the implementation of the Bank’s CSR Policy together with further areas of its development, and we will continue this practice in the future. At present we are focusing on achieving 10 of the 17 UN Sustainable Development Goals. The implementation details of the Bank’s CSR policy are disclosed in the Annual Report. We intend to continue moving towards the implementation of the best banking CSR practices as well as disclosing additional data to enable investors and clients to assess our non-financial performance. Therefore, we will also strive to improve our ability to collect the necessary information.
In conclusion, and on behalf of the Supervisory Board, I would like to express my sincere gratitude to each and every Sberbank employee for their hard work and dedication, which has allowed the bank to achieve such impressive financial results. Ahead of us lies a major task — the transformation of the Bank which will in turn improve the quality of client service, ensure financial stability, and develop further along with our clients.
Address of the CEO and Chairman of the Executive Board
Dear Shareholders, Clients and Partners!
2018 was the first year of the implementation of our Strategy 2020. Its key objective was to reach a new level of competitiveness, which will make it possible to compete with global technology companies while remaining the best bank both for Russia’s population and business.
Furthermore, 2018 was a relatively good year for the Russian economy. GDP growth was 2.3%, with one of the growth drivers being an increase in domestic consumption against a background of rising salaries and growing consumer lending. The Russian economy has successfully come through a period of market disruptions associated with capital flight from developing markets and increasing geopolitical tensions. Inflation accelerated to 4.3%, which led to tighter monetary policy on the part of the Bank of Russia. Banking profits increased in comparison with 2017 and reached RUB 1.4 billion — with profitable banks earning a record RUB 1.9 trillion.
In 2018, the Sberbank Group under IFRS delivered record results in the amount of 831.7 billion rubles. Earnings per ordinary share* rose by 15.4%. We achieved a return on capital of more than 23%, and improved the operating expenses to revenues ratio to a level of 34.2%. Our loan portfolio rose in all segments increasing by 16.5%, while simultaneously improving in quality.
Financial results are just the tip of the iceberg of the coordinated work of the Sberbank Group team. Every day we challenge ourselves and the organization to create long-term value for you, our shareholders, clients and partners. Our strategy focuses on three priority areas, and I will briefly touch upon the progress of each of them.
Best customer experience
In 2018, we significantly increased the scale of our operations and grew our client base. The number of active retail clients reached 92.8 million and more than half of our new clients are young people aged 14 to 21 years old. The number of corporate clients increased to 2.28 million mainly due to the small and medium business segment. Every second entrepreneur who opened his business last year chose our bank as his financial partner.
The key condition for attracting new clients and maintaining strong and trusting relationships with existing ones was the introduction of personalized communication systems in online channels, development of offline channels, creation of the best offer in financial and other areas of our clients’ lives, based on an understanding of their needs.
The number of clients using digital channels reached 65 million people and 1.75 million companies. Sberbank’s digital solutions services are one among of the most widely used in the world. The Sberbank Online mobile app is among the five most popular fintech applications in terms of the number of downloads. In 2018, our clients were able to transfer money to other banks by using the recipient’s phone number, use the SberKids mobile app, the “postcards” service and many other useful and convenient features. Furthermore, our work to improve functionality and client experience does not remain go unnoticed by clients and experts: in assessing the functionality and customer experience, Sberbank took first place in the Usability Lab rating.
Along with the introduction of new technologies into digital channels, we are transforming customer experience in our branch network, which is still in demand among clients. In 2018, biometric services were launched, and we began testing non-financial product offerings. The “Sales Network” Unit became an independent management segment, and customer experience laboratory was created to improve the quality of client service.
We are continuing to evolve a unique innovation infrastructure for the development of financial services in the country, including acquiring in transport, payments by barcode and provision of public services. Our real estate platform DomClick, which has more than a million properties listed, became the leader by popular vote on Runet in 2018. Through DomClick we issued a quarter of all mortgages, and almost half of all mortgages issued in Moscow. Moreover an increasing number of people are turning to our platform for additional services.
In 2018, we restructured the corporate segment of our business, creating a single unit “Corporate and investment business”. For our corporate clients, we are developing an ecosystem based on Sberbank Business Online. We offer 30 non-banking services for the convenience of doing business and over 300 thousand / 300,000 entrepreneurs took advantage of them last year.
As part of the ecosystem development, in spring 2018, we entered the e-commerce market by creating a JV Yandex.Market, and later launched new platforms Beru.Ru and Bringly.ru, which are aimed at providing the best deals for clients from both Russian suppliers and international marketplaces.
The speed of our development and the ability to meet the most demanding requirements of our clients depends on the quality and scale of our technological transformation. Sberbank’s long-term viability rests on today’s investment in the new technology platform, artificial intelligence and cyber security.
Creating the new technological platform is one of the most ambitious technological projects not only in Russia, but also in the world. The platform is built with the assistance of the world’s leading experts and the most talented Sberbank specialists. The team implementing this project was significantly strengthened in 2018. In addition, we made a decision on the joint responsibility of business and technology departments for successful implementation. In 2018, the key technological properties of the platform were achieved: reliability, scalability, independent multi-team development, and the first product factories were prepared for replication. In 2018 and in early 2019, we transferred part of the functionality to the new platform.
Sberbank has been developing solutions based on artificial intelligence technologies for several years. With the help of software robots, we make decisions in lending, identification, and other areas of our daily activities. In 2018, we decided to combine all initiatives aimed at the development of artificial intelligence under the AI Transformation program. As a result of this program realization, which will take several years, artificial intelligence technologies will be used in each of our processes and in each product.
We are actively developing our cybersecurity competencies. And already today, Sberbank is a recognized leader in cybersecurity. In 2018, we protected the bank’s infrastructure and created a preventive response mechanism for possible threats. Additionally, we actively work with corporations, government and clients in the development of cyber literacy. In the summer of 2018, we organized the first International Congress on Cybersecurity in Russia, which brought together several thousand participants from more than 50 countries.
People with new skills
in effective teams
The radical changes that we have decided on to transform our company into a technological organization require complete dedication from our team. Sberbank’s potential directly depends on the potential of all team members and the quality of their interaction. A key factor in the development of a collaborative environment was our decision to accomplish an Agile transformation aimed at the Agile development of 100% of products and services both for external and internal clients.
The success of our transformation directly depends on the efficiency level of investment in human capital. Sberbank offers a variety of educational programs, including those in the Corporate University. In 2018, 34 thousand managers and 213 thousand specialists passed various training programs and courses.
In 2018, we launched a project named School 21, aimed at training engineers and IT industry specialists. We hope that the school will play a significant role in the technological development of our country, and our aim is that graduates will work within our ecosystem.
We are maintaining our focus on developing a corporate culture of proactive attitudes. An important element of this became was the launch of our corporate startup accelerator, where employees receive support to develop their own businesses, with the prospect of joining the bank’s ecosystem.
We are striving for a high level of responsibility and professionalism within the organization. We observe legal requirements in all jurisdictions of our footprint. The adherence to the principles and standards laid down in the Sberbank Code of Corporate Ethics is confirmed by the international certification of the bank’s compliance management system against international ISO quality standards.
I am eternally grateful to our employees, who contribute to the transformation of Sberbank. We are united by the joint desire for continuous development. We want to turn the bank bank/Bank into a high-technology company and make it the best in the world. And I believe that this is achievable.
We can change the country for the better and be proud that we are part of this ecosystem that is so important for the Russian people, in the name of Sberbank.
According to the assessment of the IMF, the rate of global economic growth slowed slightly. Growth was down in both advanced and developing economies.
(according to IMF data), % year-on-year
Many developed countries have begun to wind up their policy of quantitative easing and continue to reduce their budget deficits and public debt. The United States is the only developed country that the IMF is forecasting to increase its public debt to GDP ratio over the next 10 years. The decrease in growth in developing countries is largely due to the slower growth in China and economic difficulties in Turkey, Argentina, and Venezuela.
In the medium term, it is expected that growth rates will remain at a fairly high 3.4-3.7% per annum. However, the risks of slower growth remain significant. The largest economic risk in 2019 may be Brexit, slower growth in China, the US trade war with China, and capital flight from developing markets.
The performance of financial markets in 2018 was the worst in the past decade. The majority of stock markets ended the year lower: the S&P 500 by 5.2%, MSCI EAFE by 13.7%, and MSCI Emerging Markets by 14.5%.
The Russian economy showed unexpectedly rapid growth in 2018.
At the same time, inflation accelerated and exceeded the target level, while the ruble weakened. As a result, the Bank of Russia decided to tighten monetary policy at the end of the year.
GDP growth in 2018 rose to 2.3% from 1.6% a year earlier. Gross domestic product rose due to growth in the services sector, industry, and trade. Because of weak harvest, agriculture was a constraining factor. In terms of expenditure, domestic private demand was the main driver of growth due to the rapid increase in wages and consumer lending. Net exports also made a significant contribution due to import substitution. Investment provided additional support.
Annual inflation rose from 2.5% to 4.3% by the end of 2018. This rise happened largely in expectation of the increase in VAT from 18% to 20%, the weaker ruble in response to capital outflow, and increasing geopolitical tensions, as well as the poor harvest. This led the Bank of Russia to tighten its monetary policy in the second half of the year. By the end of 2018, the key interest rate was increased to 7.75%, which is the same level as at the end of 2017.
The average ruble exchange rate for 2018 depreciated to RUB 62.8 per US dollar, compared to RUB 58.3 per US dollar a year earlier. The weakening of the rouble is attributable primarily to capital flight from developing countries and the escalation of geopolitical tensions. Meanwhile, the Bank of Russia’s decision to suspend currency purchases on the domestic market starting from mid-August bolstered the foreign exchange rate.
The oil prices showed growth. The average price of the Urals brand in 2018 equaled $70 per barrel, compared to $53 per barrel in 2017.
In 2018 the number of active credit institutions holding a bank license contracted from 561 to 484.
Bank assets grew overall by 10.4% during 2018 with a 5.6% increase in Q4 2018. In 2017, assets increased by 6.4%.
Loan portfolio growth for the system tripled to 15.0% over the year. In comparison with 2017, corporate lending growth accelerated from 2.8% to 12.4%, while growth in retail lending increased from 12.7% to 22.4%.
There was some improvement in credit risks for the banking system. The share of overdue loans in total loan portfolio was down to 5.5% from 6.2% a year earlier. In retail segment, the level of ovderdues reduced even more significantly, from 7.0% to 5.1%. Corporate overdues ratio was down from 5.9% to 5.7%.
Loan provisions showed minor growth of 1.5%, compared to 8.7% growth in 2017. The ratio of provisions to the loan portfolio fell from 9.8% to 8.7%.
Investments in securities rose by 6.4% in comparison with 7.5% a year before.
Corporate deposits and accounts increased by 18.0% in 2018, after 12.1% growth a year ago. Total bank debt to the Bank of Russia grew by 29.3% following the fall of 26.0% in 2017.
Retail deposits rose by 9.5%, as compared to growth of 7.4% a year before. Growth gathered momentum in the final quarter of the year.
Net profit for the banking system amounted to RUB 1,345 billion in 2018, up by 70% from a year ago. One hundred credit institutions or 20.7% of total were loss-making for the year.
Sberbank maintained leading positions in all key segments of Russia’s financial market.
Sberbank’s share of the key segments
of the Russian financial market, %
|Loans to corporate clients||32.4||32.7|
|Loans to private clients||40.5||41.4|
The basic scenario for 2019 envisages the following: Urals crude oil will stabilize at USD 62 per barrel; GDP growth is forecast at 1.4%; the average RUB/USD exchange rate is set at RUB 68.5; inflation is forecast at 4.8% by the year-end; the Bank of Russia’s key interest rate is expected at 7.5% by the end of the year.
Nominal growth rates in 2019
|Corporate loans||Retail loans||Corporate deposits||Retail deposits|
|Sberbank||In line with the sector||Slightly better than the sector||Slightly better than the sector||In line with the sector|
Mission statement: “We instill confidence, provide reliability and make people’s lives better by helping them fulfill their aspirations and dreams”.
Corporate culture and motivated employees are the Bank’s competitive advantage.
critical thinking and problem solving, self-management, innovation and digital skills
management of results and responsibility, development of cooperation within the team
understanding client needs, proactive approach to relationships, high quality of services
complies or leaves
explain roles in the team, set goals and priorities, create an atmosphere of psychological safety, promote diversity
develop themselves and the team through continuous feedback
transparency of decisions, broad access to information, development of teamwork
life-long education, training sessions for employees
transfer of experience, education, an inclusive environment
equal importance of culture and results
Strategy 2020 Status
The main goal of the new Strategy 2020 is to reach a new level of competitiveness. We seek to compete with global technological companies while remaining the best bank both for the public and for business.
2018 is the first year of the implementation
of Strategy 2020, which confirmed the validity of the chosen course for building an ecosystem and turning the Bank into a technology company.
- +6.6 million active retail clients
- NPS at a high, stable level
- +29% to 18.9 million daily active users of digital channels (DAU)
- +16% to 58.5 million monthly active users of digital channels (MAU)
- 37% sales through the Bank’s digital channels
- 28 digital releases of Sberbank Online
- No. 1 by the number of active brokerage services clients
- +445,000 active corporate clients
- 2.2 million online transactions every day
- Sberbank Business Online — the best digital corporate banking in Russia and the Central and Eastern Europe region, Global Finance
- +22% to 861 thousand daily active users of Sberbank Business Online (DAU)
- +21% to 1.69 million monthly active users of Sberbank Business Online (MAU)
- +6 percentage points share om the business cards market
- New companies in the ecosystem – Dialog, Foodplex, Yandex.Market
- Entry into the e-commerce market through a JV Yandex.Market and launch of two new business models Beru! and Bringly
- The launch of new services in Sberbank Business Online: Document Constructor, Electronic Signature for trading, E-Archive, Market Pulse, Business Profile, B2B payments, OFD Platform
- Developed 100% of the priority components of the Technological Platform and started the full-scale replication phase for external customers.
- Switched to a new philosophy of working with data - from the information storage to the analytical and AI platform.
- Maintained the maximum level of reliability of all IT systems of the Bank - 99.99%.
- 9 innovative laboratories continue to increase expertise in advanced technological areas
- Created more than 70 developments of our innovative laboratories and transferred them to business.
- Maintain a high level of cyber security
- 83% of employees are proud to work in the bank
- 60% of HR processes digitalized
- 60% of the training is conducted remotely with gamified elements
- 157,000 employees were trained digital skills
- 100,000 employees upgraded soft skills
- 3,000 bank employees are active volunteers
The status of the implementation of the financial goals of Strategy 2020
The development of strategic priorities will allow us to introduce innovations, satisfy the majority of client needs and improve operational and financial results.
Best customer experience
of financial services
The majority of basic client transactions were conducted in the digital channels.
Average monthly client flow in Sberbank offices, million people
Monthly active users of digital channels (MAU): Sberbank Online (web version and mobile app), text message banking, million people
In 2018, Sberbank Online was one of the five most popular fintech apps in the world. according to theSensor Tower
Share of sales in the Bank’s digital channels, %
Monthly active audience of Sberbank Online web and mobile app along with text message banking reached 58.5 million users in 2018.
Growth in the number of monthly active users in Sberbank Online mobile app was the strongest in absolute terms over the past three previous years: +12.6 million.
In 2018, the Sberbank Online mobile app for iPhone and Android was updated once every three weeks. Over the course of the year, there were 28 releases for the iOS, Android, and WinPhone platforms.
Work was conducted on the basis of user suggestions, including reviews in app stores. As a result, transaction history was revised and the app gained features such as chat with an operator, calling the bank over the Internet, ordering debit cards and details on their issuance, payment of traffic tickets, and search in the app.
Among the popular new services are dialogues for communication and transferring money, through which it is possible not only to exchange messages but also to send each other “greeting cards” with money attached.
Other new capabilities include state pension services, useful personal recommendations, opportunity to give gifts from the “Beru” marketplace, notifications on card transactions, and the opening of brokerage accounts.
An important milestone in the development of the Sberbank Online app was a new capability of receiving a consumer loan in just a few minutes.
Sberbank ID was launched in 2018; this service is a unified account to access the online services of the Bank and its partners, including the services of the Group companies DomClick, Spasibo and Tax Refund
The service was used by more than one million people in 2018.
In 2018 the Sberbank Online mobile app gained the ability to manage text message notifications from the bank — the Mobile Bank service. Clients can now turn notifications on and off, and also change the telephone number at which they receive notifications, without visiting the office and without a self-service terminal.
Currently, 91% of active clients who have Sberbank cards are connected to Mobile Bank.
Monthly active users of digital channels (MAU): Sberbank Online (web version and mobile app), text message banking, million people
Key principles underlying decisions to locate bank branches in cities and in villagesDecisions on opening/moving/merging offices, as well as the format for physical points of service, are taken on the basis of the calculations of the model using elements of AI, Big Data on client needs, and geographic factors in specific locations
In 2018, the number of branches equaled 14,186 (as of January 1, 2019); in addition, 118 service points of the agents’ network were open in rural locations.
The slight reduction in the number of branches is due to the technical unification of branches to serve retail and corporate clients located at a single legal address. 61 urban offices servicing individuals were closed to help bring the network to its target state pursuant to the Unified Sales Model, which uses data on client behavior based on AI and Big Data, taking into account client needs for the placement of branches.
In 2018, Sberbank serviced 77% of the residents of Russia of working or pension age through all channels.
The total client flow decreased slightly: in 2017, our branches were visited by 79 million clients, and in 2018, by 77 million.
About 20 million clients come to the Bank’s offices for financial services per month, of which about 3.5 million request banking products such as deposits, loans, cards, and insurance every month. The number of clients who purchased banking products in the offices increased from 30.4 to 32.3 million. The rest of the visitors were interested only in transactional services — transfers, payments, etc.
clients in all channels
|Age groups||Russian population as at January 1, 2019, million||Sberbank active retail clients, million|
|65 years and older||21.1||16.2|
Creation of the model
for the rural network
A moratorium continues to be an effect on changes to the branch network in rural locations; at the same time, the necessary work is being conducted to ensure the functioning of existing offices.
The main objective in developing business in rural areas is to expand the accessibility of financial services and to modernize existing branches. Based on the results of the Cash Out pilot project to withdraw cash through trade and service merchants, 118 agents’ points were opened in 2018. The decision was made to expand the geographic range of the pilot project by another 3000 points.
The new format of a banking agent makes it possible, without substantial costs on the part of the Bank, to meet 95% of the needs of clients, who can deposit and withdraw cash from their bank cards, make payments, and a number of other transactions.
The second priority is the modernization of existing branches and bringing them up to current service standards. This will expand the list of services offered and improve the quality of servicing for the rural population. Work in 845 branches is planned by 2020.
|Number of self-service terminals||86.0||80.3||76.3||78.0|
|Including self-service terminals with the function of cash recirculation, thousand units||0||0.5||2.8||12.6|
Share of cashless turnover in retail operations of Sberbank, % Includes operations on cards, current accounts, and payments in cash.
By the end of 2018, an integrated project had been launched in seven Russian cities with the active participation of the local administrations, measures are underway to promote cashless transactions in the everyday life of citizens. The project covers public transport, retail trade, including markets and small traders, public utilities, education, meals, and government services. As part of the project, local authorities are issuing payment and identification cards, known as Resident’s Card.
Sberbank is actively working on expanding payments with banking cards in public transportation in Russian cities. By the end of 2018, clients were able to pay for their journey with a card in 67 Russian cities. The service is becoming more and more popular: In December 2018, 17 million trips were paid for with a bank card, which is 17 times more than in the previous year. Payments with a bank card already exceed 5% of the total passenger turnover. Standouts in this respect are the Moscow Region and Nizhny Novgorod, where more than 20% of trips on the Metro are paid for with bank cards.
in rural stores
In 2018, Sberbank began to allow cash withdrawals at the cash registers of rural stores. This project is aimed at improving the accessibility of financial services in places where there is a shortage of bank branches and self-service terminals. In addition to the rural stores launched earlier in the Altai, in the Chuvash Republic and in Kostroma, we are connecting another 80 new partners all over the country, with whom contracts were signed.
From September 1, Sberbank launched a new mobile app called SberKids for Bank clients and their children. This app helps parents monitor their children’s spending and teach the young generation how to handle their finances wisely. The product involves the launch of a virtual prepaid card.
Island of Safety, a social service for children, was the winner of the twelfth annual Retail Finance Awards in the category Best Social Project.
The concept behind this service is that every Sberbank office becomes a place, besides a police station, where any child can go if they are lost. Over the history of the project, 52 children were found, along with two pensioners and two physically challenged people.
Sberbank offers clients an insurance savings program for their children’s education: Ticket to the Future. This is the first project in the Bank’s mass-market product line aimed at satisfying parents’ need to ensure a decent education for their child.
The service packages Sberbank Premier, Sberbank First, and Sberbank Private Banking also include insurance against oncological illnesses for clients’ children. The insurance includes the organization of treatment and convalescence on a turn-key basis in the best clinics in Israel, Europe, and Russia.
For older people, Sberbank continues to build an ecosystem of products and services. On the Active Age portal, there were offers for this category of clients: a special tariff from SberMobile, a special offer on telemedicine, legal assistance with a discount. In addition to articles, announcements of events, interviews on the portal, a new section became available, where you can calculate your future pension.
In 2018, Sberbank increased the maximum age of clients for whom consumer credit is available from 65 to 70 years. And for people older than 70 years, a consumer loan “With surety” was introduced.
Every second new client coming to the bank in 2018 was in the youth segment (14-21 years old). Sberbank works closely with youth through social networks. In the VKontakte social network, the Bank is developing its SberCat channel, which has become the largest chatbot on the network, with an audience of 12.5 million in the 14-25 age range. For clients aged 21-25 who receive their salary through Sberbank, credit cards have been made available since May 2018.
Social solution to protect funds from excessive attachment
The Bank has fully automated protection against excessive attachment/seizure of social payments of salaries and pensions received on the account, pursuant to Federal Law No. 229-FZ “On Enforcement Proceedings”.
The social algorithm:
- identifies the payment when it is received on the account
- calculates the amount to be attached or seized under the enforcement document, taking into account statutory restrictions.
Detailed information on attachments made can be received through text message, in chat in Sberbank Online, and information can be clarified at the call center, where the main questions are answered by robot. To make clients more aware of issues involved in enforcement proceedings, the Bank maintains a special section on the website: http://www.sberbank.ru/ru/person/seizure with step-by-step instructions
Social payment accounts
In 2018, Sberbank Online gained the ability to complete transactions to receive social payments with a nominee account. A nominee account is opened for the Parent/Trustee/Guardian for the remittance of funds intended for the maintenance of the beneficiary (child/citizens who are not legally competent/have limited competency) in accordance with Article 37 of the Civil Code of RussiaThis makes life significantly easier for holders of nominee accounts, as they can now expend funds on these accounts without restriction, and the bank does not require the permission of the trust or guardianship authorities to do so.
All information on special services for people with disabilities is available in the Special Bank section of the website: https://www.sberbank.ru/ru/person/specialbank
- First place in the rating of the 20 largest Russian banks in terms of their adaptation to the needs of clients with physical handicaps (National Agency for Financial Information (NAFI) under the aegis of the Central Bank of Russia).
- The “Time for Innovation” prize for social innovation of the year was awarded for the sign-language interpretation service in Sberbank branches for people with hearing and speech disabilities; this service will be available in all Sberbank offices starting April 2019.
The Sberbank Together platform collected funds for the following projects:
- 3000 developmental exercises for children with special needs
- 6000 hours of work of caregivers for seriously ill children from orphanages
- the transportation of 85 children to a rehabilitation center
- the search for volunteer mentors trained by professional psychologists for 40 children from orphanages and other projects.
Every day, visually-challenged clients use the full functionality of the Sberbank Online mobile app on the iOS and Android platforms. At the 9500 ATMs with voice menus, visually challenged clients can withdraw cash and check their balance on their own. The Bank’s website is also adapted for clients with visual impairments.
Clients with hearing/speech disabilities can receive consultation in sign language with the help of a video sign-language interpreter on employees’ tablets. This service was available in 24 cities in 2018, and from April 2019 will be available in all Sberbank branches. If transactions are blocked by fraud monitoring in Sberbank Online, they can be confirmed by clients using video chat.
Clients in wheelchairs have access to 45% of Sberbank branches. Since 2018, approximately 500,000 clients with visual impairments can obtain financial services without a power of attorney and representatives, on their own, in Sberbank offices. To do so, the employee of the bank reads out to the client the terms for receiving financial services, and the client signs, with the entire process recorded on video.
Starting from 2018, clients with disabilities can arrange mortgage life insurance and receive a one percentage point discount on their mortgage rate. Previously, this type of insurance, and consequently the lower rate, was not available to such clients. Sberbank is the first bank in Russia to launch such a product. In addition, in 42 cities in the Russian Federation clients with disabilities have the ability to receive a debit card without leaving their home.
In the reporting period, all new branch employees, offsite specialists, and call-center operators learn the basics of communicating with disabled clients as part of the main training course.
As part of our efforts to develop convenient charity services, a new service — targeted donations to specific causes — was launched in July 2018 on the Sberbank Together platform.To raise awareness about charitable activity, the Bank has begun to bring in celebrities and to use new channels. For example, Sbercat has attracted more than 15,000 donations. All activities in 2018 led more than 400,000 visitors to the Sberbank Together platform, 30,000 of whom made donations worth a total of RUB 24 million.
The mission of Sberbank First is to create, multiply, and protect the capital of clients in the high-net-worth segment.
In 2018, Sberbank First received the Frank Private Banking Award in the category “Leader in the Number of HNWI Clients in Russia”
Sberbank First is actively developing the business community Club of the First, which brings together representatives of large and very large businesses, and also creates the conditions for the most open and effective exchange of experience and resources possible. The Club’s events take place in the format of regular forum meetings, cultural/educational events, lectures, and business breakfasts.
In 2018, Sberbank First launched its own cultural-educational project F1RST TALK for clients of the channel. This project consists of a cycle of public discussions on topics of current interest. These meetings in 2018 discussed the modern cinematographer in the digital era, artificial intelligence, feminism, education, age, and football. Speakers included Andrey Zvyagintsev and Alexander Rodnyansky, Natalia Sindeyeva, Tatiana Arno, Boris Barabanov, Andrei Sharonov, Nadezhda Angarskaya, Maria Syomushkina, Marina Loshak, Nobel Arustyamyan, and others.
On November 28 there was a live public F1RST TALK discussion with Sberbank CEO Herman Gref, where he answered clients’ questions about current trends in the economy and geopolitics, the Bank’s reaction to new challenges, and forecasts for the financial markets and investments.Recordings of discussions in the F1RST TALK project are available on the official Sberbank channel on youtube.ru and in Sberbank communities.
For Sberbank Private Banking clients, the Bank launched in 2018 the Aeroflot Visa Infinite Private banking cards, with conditions and a set of privileges unique to the market, loans on individual terms, and individual strategies for fiduciary management “Bond Strategy in USD” and “Shares in European Companies”.
Assets under Sberbank Private Banking management rose by 45% compared to 2017, the growth in clients’ investment portfolios was 89%, and the satisfaction index of Sberbank Private Banking clients reached a record 82%.
One of the key offerings in the Private Banking segment is expertise in managing private capital, and the Bank offers the opportunity to create and monitor a portfolio not only in rubles and US dollars, but also in euros. Investment Advisory services are also available to clients of the SIB Cyprus brokerage platform.
The Bank is expanding the geographic presence of Sberbank Private Banking, and has begun to serve this segment in Novosibirsk and Saint Petersburg.
Private Banking was awarded in the following categories in 2018:
Retail loan portfolio
(Sberbank Group, IFRS), RUB billion
|Retail loan portfolio||4,847||4,966||5,032||5,399||6,752|
|credit cards and overdrafts||539||587||587||572||658|
Residential mortgages, Sberbank
|Sberbank’s share on the residential mortgage lending market, %||53.0||55.0||54.6||55.6||56.3|
|Volume of residential mortgages issued by Sberbank, RUB billion||898||667||722||1092||1,563|
|Number of residential mortgages issued by Sberbank, thousand, %||589||439||475||632||829|
One of the factors that affected the growth of mortgage lending in 2018 was the increase in Sberbank’s pricing flexibility on assets of interest to clients. For example, in the first half of 2018 the lending terms were improved for young families, for borrowers purchasing housing from partner developers of the Bank, for families with a second or third child, for those refinancing a loan against real estate, and also for clients purchasing a garage or parking spot.
Another factor affecting the Bank’s mortgage lending is the optimization of internal processes. Starting from 2018 Sberbank is offering the opportunity to arrange for secure settlement services right in the developer’s office; this service is already in use by 250 developers. At the same time, an insurance policy can immediately be arranged for several years. Clients are also given the opportunity to perform non-mortgage deals in the network of mortgage lending centers. In addition, refinancing against a pledge of real estate can be completed with only one visit to the bank.
Sberbank started offering a new product for its client — mortgages for non-residential properties, including garages, storage units, and parking spaces. In the reporting period, many processes were automated, such as accreditation of real estate agencies, the registration of appraisal companies, and the loading of registers on pledge insurance from all accredited insurance companies.
In 2018 we launched lending with discounts on mortgages with the help of an escrow account. Clients are provided discounts of 1.6 or 0.8 percentage points depending on the choice of developer financed by the bank.
The client calling system was automated in the reporting period. Calling is now performed by the robot Alexandra, which has already called 15,000 clients with a reminder that they need to extend the mortgage insurance policy. This call is extremely important for the client, since the mortgage rate rises if they do not manage to extend the policy on time, which in turn leads to a rise in the monthly payment due. Automating the process of calling clients makes it possible to improve the efficiency of this process and reduce the Bank’s costs.
DomClick in figures
In 2018 DomClick took first place in the category “Services” in the Russian National Competition of Websites and Mobile Apps “Runet Rating 2018”. Among the 42 participants in the category, DomClick was the first to go through the stage of selection by popular voting, business representatives, and experts.
Thanks to DomClick, clients all over the country can access the service of an expert evaluation of the price and liquidity of a real estate property. Underlying the service are data on real sale-purchase transactions with Sberbank mortgages, current market offerings at the current moment and neural network algorithms (the number of orders for expert evaluation of prices and liquidity of real estate properties was more than 180,000 as of July 1, 2018).
In 2018 the Bank improved the “Real Estate Market” function of the DomClick application. Now the owner of a real estate property can post announcements to the website, and the client can select a new building or apartment on the secondary market and send it to the Bank for approval with a single click. New types of property have been added to the Market — houses and land plots.
In addition, from 2018 the capability of offering residential real estate for rent or renting it has appeared on the website of the DomClick service. Both owner and real estate agencies can place ads. To do so, DomClick offers secure free calling. To protect against fraud and spam, users’ telephone numbers are never disclosed until they decide to exchange contact information. By the end of 2018, about 53,000 rental ads had been placed on the DomClick platform.
Since 2018 the electronic portal of the DomClick service has made it possible to arrange an online mortgage, which was made possible thanks to the achievements of Rosreestr in applying digital technologies and integrating them in Sberbank’s services. Titles to online mortgages are stored, accounted, and confirmed by the depositaries of the Sberbank Group. The online mortgage substantially speeds up the registration of a pledge for housing loans without any additional actions on the part of the client, and is an important stage in the digitization of mortgages.
In 2018, thanks to the implementation of the DomClick technology in the office network of the Bank, developers, and real estate agencies, Sberbank mortgages have gone omnichannel.
The new “Personal Support Account” on the electronic portal of the DomClick service makes it possible to remotely support clients after the issue of the mortgage loan, and client requests are considered in real time.
&“Non-mortgage Builder” is now available to all participants in the transaction — the deal can now be drawn up by both the seller and the buyer, as well as their representatives. This opens up the opportunity for a systemic approach to the market for deals without a mortgage, including the possibility of the electronic registration of the transfer of title, the service of secure settlements between buyer and seller, and legal expertise in the deal builder. At the end of the year, 55 thousand clients took advantage of the listed services.The new function “Real Estate Deals Factory” automates communications between clients and partners until the time of conclusion of the deal with the help of chat and telephone calls. This technology reduces the amount of time for entering into the deal: At the end of 2018, 9% applications went through the Factory.
Consumer lending in 2014-2018
|Sberbank’s share of the residential mortgage lending market, %||32.5||33.2||33.2||31.8||32.7|
|Amount of consumer loans issued by Sberbank, RUB billion||915||519||797||968||1,570|
Support of the small
One of the Bank’s areas of activity is to support the owners of small farmholdings. For this purpose, Sberbank has developed a separate Lending Program, “Loans to individuals running small farmholdings”.
Under the terms of this program, owners of small farmholdings have the opportunity to use credit facilities from the Bank in an amount up to RUB 1.5 million. In order to simplify confirmation of the income of owners of small farmholdings, when lending to this category of borrowers, Sberbank looks at their income from the farmholding as their main income. At the same time, in order to increase the accessibility of credit resources, the Bank may additionally take other types of income into account for this category of borrowers.
In 2018 Sberbank entered the POS lending market with the new product Purchases on Credit. In order to develop this product line, the lending marketplace “Buy with Sberbank” was launched. This is a service to arrange a POS loan for goods on the websites of Sberbank partners; the application is completed, the request is considered, and the documents are signed online without the employees of the Bank or the partner being involved in the process. An advantage of the product is a technology that provides for a fast and completely paperless process of arranging the loan.
Partner dealer centers are Cetelem Bank’s main sales channels. According to Retail Banking Services Market Monitoring of the Frank RG research company, Cetelem Bank is the leader on the Russian car loans market for the fifth year in a row. The issue of car loans increased by 19.2% in 2018, whereas the car loans market grew by 15.3% overall, and the car loan portfolio rose by 15.1%. Integration with the Sberbank system allowed clients to submit applications for car loans through Sberbank Online.
Car loans, Sberbank
and Cetelem Bank
|Joint share of Sberbank and Cetelem Bank on the Russian car loan market, %||15.8||15.2||14.4||13.7||13.7|
|Joint position of Sberbank and Cetelem Bank on the Russian car loan market, %||1||1||1||1||1|
|Amount of car loans issued by Sberbank and Cetelem Bank, RUB billion||85||42||51||72||86|
|Number of car loans issued by Sberbank and Cetelem Bank, thousand units||150||80||81||109||121|
In 2018 Sberbank continued its strategy of periodically launching promotions aligned with key events and holidays, under which clients opened deposits “I Remember. I Help” for Victory Day, “Triumph” for the victory of the Russian national team in the opening match of the Football World Cup, “Onlike”, “Record”, and “Green Day” for Sberbank’s anniversary, and New Year’s deposits “Without a Passport” and “Big Plans”.
In October 2018 Sberbank offered individuals the opportunity to open an account to take part in purchasing procedures on electronic trading floors in accordance with Federal Law No. 44-FZ of April 5, 2013.
The portfolio funds due to individuals,
the Group, IFRS, RUB billion
|Portfolio funds due to individuals||9,328||12,044||12,450||12,278||13,495|
Payments and transfers
Conversion operationsIn 2018 we recorded an increase in demand for currency conversion operations. The total amount of such transactions, including conversion by cards, rose by 22% over the reporting period. Bank clients appreciated the opportunity to exchange currencies through remote channels at a more favorable exchange rate than in the offices. This led to an increase in the share of electronic conversion operations in terms of turnover by 21.7 percentage points and in numbers by 7.2 percentage points over the year.
In addition, in cities with a population of more than one million, Sberbank organized conversion centers where 15 types of foreign currency could be bought and sold. Since July 2018, the Bank has been using the technology of establishing optimal exchange rates on the basis of an analysis of data, taking into account geolocation and particular features of the regions.
In 2018, the program continued to develop the mobile app’s function of payments by barcode, allowing clients to make payments in a matter of seconds, without filling out details by hand. In the course of the year, the number of unique clients taking advantage of this capability exceeded 10 million. More than 50% of the payments in the mobile app are made with the help of scanning a receipt; on self-service terminals this indicator is up to 70%. 2018 saw the first application of barcode scanning technology to pay for goods through the Sberbank Online mobile app at partners’ points of sales.
In order to simplify the procedure for making payments to budget-funded organizations and make it more convenient, Sberbank revised the customer experience in one of the largest scale types of payments — payment of traffic tickets. Now, even before paying the fine, clients are provided with complete information on the place, time, and type of violation, and after payment clients can track the status of the settlement of the fine.
Sberbank offers mass-market personalized service on paying recurring bills. In 2018, the number of pre-prepared invoices for payment, or automatic payments, formed each month exceeded 10 million. Such pre-prepared invoices contain all data necessary to make a payment, including the amount updated by the service supplier. To pay such an invoice, it is enough just to confirm the payment. In 2018, seven years after the launch of the service, the number of working automatic payments exceeded 50 million. Every fifth regular payment at Sberbank is met with the assistance of this service.
Sberbank launched a service in 2018 allowing electronic payment of services at Moscow Municipal Services Centers, which made it possible to pay duties and make other payments directly when processing documents. Non-cash payment of public services through the service of Sberbank is accepted at 500 desks of the Moscow MFC. In the rest of the country, this service was available in 7 cities at the end of the year.
The Bank continues to develop the Ladoshki (Palms) project, which is based on biometric payment technology. The student approaches the terminal in the cafeteria, selects a dish and raises their palm to the sensor. The system identifies the student, and the cost of the meal is automatically debited from their account. Parents can find out what their child has purchased for lunch on their personal account page or by text. The student’s account can be topped up by linking a bank card to the child’s palm, through Sberbank Online, and also at self-service terminals. By the end of 2018 this project covered 250 schools.
Since 2018 Sberbank has been offering the capability of making transfers to external partners. The service of transfers outside of Sberbank now functions just as simply as within it: all clients need to know is the telephone number of the recipient tied to the card. This network of external transfers has already been joined by Tinkoff Bank, Sovcombank, Euroset, Svyaznoi, and WebMoney.
Sberbank is working actively to develop the BRIS utilities invoicing system, thanks to which more than 1.8 million receipts are created every month. This service allows utilities suppliers and management companies to quickly and efficiently calculate charges for the public.
In 2018 a system of end-to-end monitoring was launched that makes it possible to track the progress of each of millions of payments being made in real time.
Thus, thanks to the services launched and developed by Sberbank, the share of cashless payments is growing each year and reached 89% in 2018.
Acquiring and bank cards
According to the Nilson Report for 2017, Sberbank was No. 6 worldwide in the rating of global acquirers.
In order to support the development of the national payment system MIR, in September Sberbank joined the Privet, MIR (“Hello World”) program as an issuer and acquirer. Holders of Sberbank MIR cards gained the opportunity to participate in the program and receive cashback for purchases from program partners in addition to the Spasibo bonuses, and retail points served by Sberbank gained the ability to launch promo campaigns and pay cashbacks to holders of MIR cards through the mechanism of mutual settlements on acquiring with the Bank.
As per the agreement with the international payment system Japan Credit Bureau (JCB), in September Sberbank gained the ability to serve JCB cards in its acquiring network. When concluding agreements with new clients this function is connected automatically.
Sberbank on the Russian
|Number of active trade and service points, thousands||316||446||552||712||931||1,162|
|Number of terminals in the acquiring network, thousands||490||678||839||1,054||1,422||1,796|
From 2018, credit card holders can turn on the direct debit service. The service tracks the client’s debt, and automatically makes the necessary payment to ensure that no payments are overdue.
From the beginning of 2018 new client interfaces were launched for Sberbank Online and the text message service Mobile Bank, which simplified the payment of credit card debt. Clients can access information on amounts due for payment: in order not to miss a payment, to use the grace period, or to fully repay debt on the card.
Over 2018 Sberbank pursued a number of credit card marketing campaigns with offers of special conditions: increased bonuses in popular spending categories, waiver of commission for cash advances, reduction in the cost of annual service.
A process was launched to increase the credit card limit on the initiative of the Bank in real time for clients who had come close to their credit limit but had a good payment history.
|Number of active Sberbank credit cards, million||n/d||12.3||13.4||14.1||15.2|
|Sberbank’s share of the Russian credit market by outstanding balance, %||31.1||35.1||39.1||42.7||43.4|
From June 2018 the MIR Momentum card was launched, which can be obtained at any Sberbank office in a matter of 10 minutes. Now salaries, pensions, or other payments can be received even more quickly and conveniently in accordance with the requirements of Federal Law No. 161-FZ “On the National Payment System”.
According to the Nilson Report for 2017, Sberbank was No. 11 worldwide in the rating of issuers of debit cards.
Clients can order the most popular debit cards through Sberbank Online. Since June, the card Visa Infinite Aeroflot Private Banking has been available, with the maximum accrual of Aeroflot miles on the market. Since September, the entirely digital card Visa Digital has been available to clients. The card can be arranged instantly in the Sberbank Online mobile app, does not have a physical plastic form, and is immediately ready to pay for goods over the Internet or using a smart phone at ordinary stores. In November, Sberbank made the first step toward supporting e-sports, launching cards for gamers with the design of the popular game League of Legends, which was featured prominently at the world e-sports championship. In November a charity campaign was conducted to coincide with the tenth anniversary of the Give Life card, in which the bank tripled remittances to the fund of the same name.
|Number of active debit cards, million||n/d||81||90||102||109|
|Share of sales of debit cards in digital channels, %||-||-||1.3||4.7||21.0|
The Service Crown Award,
with the support of 4Service Group in the category “Best Loyalty Program (frequency of use, by popularity, most interesting)”
Runet Rating 2018:
Second place in the category “Finance and Business”,
second place in the category “Brand Application”
Runet Prize 2018″ in the category “Popular Vote: Game of Runet” for the project “Empire of Spasibo”
Clients are now offered various levels of privileges; depending on payment behavior and use of Sberbank products, clients will receive more privileges, including higher accrual of bonuses and transfer of bonuses into Rubles.
In September, in cooperation with MasterCard, we conducted the gamified campaign “Empire of Spasibo”, which upgraded the gaming to a new level. More than two million people took part in the campaign.
In 2018 SPASIBO bonuses could be converted into Aeroflot bonus miles and can be used to pay for subscriptions to Apple Music.
|Number of registered participants in the Spasibo from Sberbank loyalty program, million||10.9||18.3||24.7||31.6||37.3|
Leadership of Sberbank Depository on the Russian market:
- No. 1 in total assets in custody; annual growth from RUB 7.0 trillion to RUB 7.9 trillion
- No. 1 in number of programs of ADR/GDRs under service; 50 programs for the shares of 29 Russian issuers
- In the assessment of the international journal Global Custodian, qualifies as a Global Outperformer for its 2018 results
The following measures to develop the business were taken in 2018:
- Information interaction was organized with Rosreestr (the Federal Service for State Registration, Cadastre, and Cartography) in a unified system of interagency electronic communication, and electronic pledges began to be accepted for depository servicing.
- A project was launched to account for electronic pledges using the national blockchain platform Masterchain in conjunction with the FinTech Association.
- Support was provided for the issue of bonds with mortgage coverage in the amount of RUB 46 billion as part of the project DOM.RF Mortgage Securities Factory.
- We made available the simplified submission of instructions for the transfer of securities and payment of invoices for depository servicing with a single button, and the receipt of responses on the portfolio and income paid on securities to Individuals in Sberbank Online.
- We implemented the recalculation of income tax on foreign securities on deposit accounts for eight jurisdictions in accordance with double tax treaties.
- We optimized the process of settlements for foreign securities and the performance of corporate actions with securities in Euroclear.
- An infrastructure project has been carried out as part of the implementation of the model of international presence of the Global Markets Department of the Corporate Investment Business block. Sberbank Depository has provided a platform to conduct transactions on international markets.
- Several IT projects have been initiated: on developing agency depository services for foreign nominee holders, on implementing depository services through the Sberbank Business Online channel, and on implementing new electronic technologies for interacting with the NSD central depository.
Based on the results for 2018, Sberbank Life Insurance became the largest insurance company in Russia
On the insurance market
On the life insurance market
- For the Football World Cup, we launched a unit-linked life insurance product “Champions’ Course” — the investment basket consisted of the shares of World Cup sponsors.
- We continued to work with the Masterslavl Children’s Center to help develop financial literacy in children aged 5 to 14.
- The Telemedicine service became available to the mass-market segment and clients of premium channels. For clients of Sberbank Premier, the service of a second medical opinion, included in one of the insurance packages, contains recommendations on treatment for oncological illnesses with the help of the Watson for Oncology (artificial intelligence) system. Medical services are integrated with the DocDoc platform to ensure a single customer journey.
- In the channels Sberbank First and Private Banking, we re-launched the universal life insurance product with guaranteed income “Overdrive” as part of the main line.
- At the fourteenth ceremony for the Financial Elite of Russia Awards, Sberbank Life Insurance was declared insurance company of the year.
In sales on the online market for sales of personal property insurance
In premiums among the largest insurers in the non-life market +2 spots over the year
Among the largest insurers in Russia in number of policies
In personal property insurance
- The packaged product “Insurance of Bank Cards” was supplemented with the possibility of insuring against cyber risks, including DDOS attacks and ransomware; as part of the insurance product, clients are offered anti-virus software to protect their personal mobile devices.
- The range of insurable risks under insurance products for vacation homes, summer cottages, and apartments was expanded in 2018. The amount of civil liability coverage was also increased. Remote consultations on housing maintenance and home appliances have been added to the bulk package product, and in the premium segment this product includes maintenance services: dehumidification of premises, lock repair, sawing and removal of fallen trees, etc.
- Loan insurance products were optimized during 2018: the time needed to receive a mortgage loan was cut drastically, insurance was made available for wooden structures, and it is now possible to insure the risk of third-party civil liability when insuring loan collateral.
An important achievement was the launch of collateral protection insurance on the website DomClick.
In rated among management companies by the Moscow Exchange in the number of individual investment accounts (IIA) opened
On the open mutual investment fund (MIF): 20% according to investfunds on 12.31.2018
Management company in Russia from 2014 to 2018
Based on the results of the authoritative international ranking of the Extel Survey from WeConvene
- In the mutual investment segment, based on the results for 2018 the company had RUB 62.6 billion under management from 21 open mutual investment funds. The assets of the company’s five closed MIF equal RUB 16 billion. Attraction of the funds of retail clients increased by 30% compared to the previous year.
- The number of individual investment brokerage accounts has doubled during the year. As a result, according to this indicator, the Bank ranks 1st on the Moscow Stock Exchange with a share of 23.7%.
- Two funds of Sberbank Asset Management were among the market leaders according to various indicators:
- the “Natural Resources” fund was one of the top three highest yielding funds, demonstrating a growth in share value of 35.9%. This fund invests in the shares of companies engaged in the production and refining of natural resources;
- the “Global Internet” fund (invests in the shares of Russian and global Internet companies) and the “Natural Resources” fund were also among the three leaders in attracting private investors, who invested RUB 6 billion in them over the course of the year.
- For client convenience, online sales are expanding. They doubled during the year, reaching RUB 1.8 billion.
- The first Russian exchange-traded fund (ETF) was launched on the MOEX total return index “gross”. ETF funds are a major trend on the global fiduciary management market. They are of interest to both corporate and private investors due to their cost savings compared to active management, transparency and investment simplicity.
- A new strategy in the “Capital Protection” line based on Sberbank’s investment-grade bonds was introduced in the Sberbank Premier and Sberbank First packages. There was high demand among clients for products with capital protection — they invested RUB 12.4 billion in them in 2018. A new fiduciary management strategy, “Optimal Global Portfolio”, was also launched, which invests in a diversified selection of ETFs while keeping a close eye on trends on the American market (S&P500), the Emerging Market Bond Index (EMBI), and gold and oil indices. Due to the growing popularity of individual investment accounts among clients, a new strategy of investing in Russian shares was announced.
- The line of closed funds investing in real estate was expanded. Three issues of combined CMIF (Sberbank — Rental business 3) were completed for qualified investors. Plans call for the purchase of a shopping mall in Moscow using these products.
In regional presence on the Russian market among insurance brokers more than 150 employees in 62 cities
Leader in operating income around a 25% market share
The operating income of Sberbank Insurance Broker tripled during 2017-2018, equaling around RUB 2 billion.
- In 2018 a unique product for the Russian insurance market, “Protect Your Health” voluntary health insurance, was launched for small and medium-sized businesses, and for medium-sized businesses — “Risk-Audit”.
- The Bank expanded onto international insurance markets.
- The claims settlement period under the insurance policies of Sberbank clients was reduced noticeably in 2018, as was the share of refusals to pay claims by insurance companies. In particular, Sberbank Insurance Broker assisted with the settlement of a number of the largest insured events on the Russian insurance market, with a total aggregate amount of claims of more than RUB 4 billion.
Position of Sberbank PPF based on the results for Q1-3 of 2018
growth relative to September 30, 2017
By assets, total pension savings, the number of insured persons, the amount of private pension coverage
In this area:
- All agreements on private pension coverage and the liabilities and assets of Private Pension Fund VNIIEF-GARANT were transferred to Sberbank PPF. The liquidation of Private Pension Fund VNIIEF-GARANT has begun;
- The mobile app of Sberbank PPF for iOS and Android was launched. The personal account of the app can be accessed through the Unified Public Service Portal (UPSP) and Sberbank Online. Clients can receive information on pension savings in Sberbank Online;
- Sale of individual pension plans has started at the Bank’s offices throughout Russia, including through Sberbank Premier;
- Sale of mandatory pension insurance (transfer of funded pensions) at the Bank’s offices with the submission of applications through the UPSP is being tested;
- Sale of the corporate pension program to large and medium-sized businesses and companies of the regional public sector has been launched. A contract can be concluded in five days;
- After-sales servicing of large-scale pension products has been delegated to the Bank’s regional network. All client applications now go from a Bank’s office to the Fund and are opened in the Fund’s systems within one day, i.e. almost immediately after the client submitted them. Clients can also see the progress and status of their applications in their PPF personal account;
- As part of the expansion of the “60+” ecosystem, two services for senior citizens (“Leisure Time” and “My Family”) are being tested in the mobile and web-based applications of the PPF. The Strategy for creating a network of assisted living facilities for elderly care and the Financial Model have already been prepared;
- A Data Laboratory for Big Data analysis, improvements to product sales models and the preparation of personalized offers for clients has been created.
In order to facilitate the first steps of our clients in the business world, Sberbank focused in 2018 on developing its banking and non-banking services and implementing remote services for easy business startups.
Client satisfaction and loyalty index of corporate clients
Client satisfaction and loyalty index of corporate clients (TRIM-index) for 2018:The index for the large and medium businesses increased over the year from 74 to 75, which is higher than the level of our competitors (71), and stayed at the 2017 level for the small and medium businesses and CIB segment at 64 and 83, respectively.
Substantial growth of the client base in the small and microbusiness segment is largely due to the introduction of Agile principles, which make it possible to accelerate the launch of new products on the market, which is critically important given the exponential development of technologies and an unpredictable external environment.
The number of new Russian companies choosing to open settlement accounts in Sberbank grew. Every second newly registered company chose Sberbank to open an account.
There was a twofold increase in the active users of the Sberbank Business Online mobile app in 2018.
To create a qualitatively new level of client service the Bank is constantly expanding the range of digital solutions. The OFD Platform which provides technological tools for business developments was added to the Corporate Solutions Center (CSC) in 2018.
The number of FX conversion transactions processed by robot process automation algorithms increased from 50% to 90%. The number of back-to-back buy and sell transactions processed internally in Sberbank bypassing the exchange increased from 40% to 55%.
Complex transactions are performed by cross-product teams in the Bank. Thanks to the implementation of new unconventional solutions, every second structured transaction on the market is financed by Sberbank.
Clients have noted a positive trend in the reliability and quality of processes, transaction speed, and quality of remote support for payments and technical support in Sberbank Business Online.
Merger of the CB and CIB blocks
In late August 2018, a decision was made to merge the Corporate Business and CIB blocks. Sberbank did this to create synergies for its two businesses working on the corporate market through improved customer experience and a pooling of the expertise accumulated at the Bank. As a result of the merger, hi-tech products were made available to all segments of corporate clients.
In 2018 the Bank offered small and micro business clients a new line of cash and settlement packages: Successful Season, Good Revenue, Active Settlements and Big Opportunities.
The new service packages are well tailored to fit various needs of businesses and enable cost optimization on highly frequent transactions:
Sberbank Business Online was recognized as the best digital bank:
“WORLD’S BEST DIGITAL BANK AWARDS 2018” by GLOBAL FINANCE:
Best digital corporate banking in Russia and the Central and Eastern European region
RED DOT AWARDS 2018 / COMMUNICATION DESIGN 2018:
Sberbank Business Online for Windows 10 was the winner in the category “Interface & User Experience Design”
Any Russian citizen who is a user of Sberbank Online and has a foreign passport and a smartphone can become an individual entrepreneur or open a single-member LLC without even visiting the Bank or the FTS.
In addition to the Easy Start service package introduced in 2017 for new entrepreneurs, Sberbank’s current line of service packages represents a fully-fledged product line covering most of business needs in the small and microbusiness segment.
In 2018 more than one million clients, or 50% of the active client base, chose servicing under a service package. This number was even higher among new clients opening accounts in Sberbank — approximately 80% chose packaged solutions.
In March the Bank began offering small businesses automated submission of loan and lease applications in Sberbank Business Online. This service was well received by small businesses, brought new clients to the Bank, and reduced labor inputs. In the period of less than one year that the service has been offered, clients made 136 thousand applications and 18,000 loans worth RUB 37 billion have been issued.
The Bank introduced a business registration service and remote opening of accounts for small and micro businesses in accordance with Resolution No. 1104 of the Russian Government dated 29 October 2016. Resolution on the performance in 2016-2018 of an experiment to provide electronic document services for state registration of legal entities and individual entrepreneurs and the opening of accounts for them in credit institutions using a specialized secure computer system for the centralized creation and storage of enhanced encrypted and certified digital signatures and their remote use by the owners of the digital certificates of the e-signature verification key E-signatures are stored in the memory of a smartphone. The pilot was launched in Moscow in November, and by the end of the year 397 business registrations had been performed and 298 accounts opened using the service.
Sberbank is actively involved in state programs of financial support for small and medium businesses, which has made it possible to increase the accessibility of financing for entrepreneurs. Over a third of growth of the loan portfolio of small and medium businesses in 2018 was due to participation in preferential lending programs, primarily the programs of the Ministry of Agriculture of Russia and the Ministry of Economic Development of Russia.
Sberbank has revamped its small business website and made it more convenient for new companies and for existing clients of the Bank. The help center with video instructions, recommendations for clients on the rules of financial conduct set forth by federal legislation, the new sections “How to avoid having your account blocked”, “Advice for beginning business” and a test for entrepreneurs on the compliance of their business with Federal Law No. 115-FZ “On Combating the Legalization (Laundering) of the Proceeds of Crime and Terrorist Financing” are easy to find on the website.
The experiment on the taxation of self-employed Russians will be conducted in Moscow, Moscow and Kaluga Oblasts, and the Republic of Tatarstan from January 1, 2019 to December 31, 2028. The experimental tax rate is 4% if the self-employed person provides services to individuals, and 6% if the self-employed person provides services to legal entities. “My Own Business”.
Since March 2019, Sberbank will offer a new service for the self-employed “My Own Business”. Using Sberbank Online application retail clients can register as a self-employed and then make transfers to cards, generate checks and make automatic tax payments in accordance with Russian legislation.
In the future this service will allow the self-employed to seamlessly transition from the status of a self-employed person to an individual entrepreneur once they meet certain criteria.
In 2018, the “Business Class” program for entrepreneurs, developed by Sberbank together with Google, was given an Effie Award.The program triumphed in one of the most competitive nominations — “Business Products and Services”.
Two microteaching courses (“120 seconds for entrepreneurs” and “120 seconds. Woman”) were developed under the “Knowledge platform and business services” project. The Eksmo Publishing House published the book “Business Hacks” based on the courses. More than 1,200 people have signed up for the courses. In 2018, 292.4 thousand people registered on the platform, with 185.7 thousand attending training sessions. The platform boasts more than 650 courses and videos from 200 partner suppliers.
The Bank is expanding the “Regional School” project. During 2018, 55 partnership agreements on educational programs were concluded with dozens of Russian regions. As part of the federal program “Small Business and Support for Individual Business Initiatives”, classroom educational programs for businessmen were held in 38 regions and attended by more than 3,500 entrepreneurs.
Two cycles of “School of Speakers” and “School of Facilitators” were conducted to prepare businessmen for work as speakers and mentors. Training in modern methods of teamwork using the model “Leaders Teach Leaders” was provided under the program “Agile Management Techniques” for the directors of the executive authorities and business support funds. Forty-five people from 30 regions took part in the training.
In late 2018 an RPA*-algorithm was introduced
RPA robotic process automation — a business process automation technology that uses software robots or artificial intelligence.for the “Overdraft in One Day” product. In November-December, 13% of all transactions used robotic process automation, the share of successful applications using RPA equaled 97%, and the time-to-decision was halved to 4.5 hours.
The jury of the prestigious international Global Finance award recognized Sberbank Business Online as the best Internet bank for business in Russia and the best corporate bank in Central and Eastern Europe. Sberbank was also named the most innovative bank and the developer of the best banking website and the provider of the best financial services.
The milestone event for Sberbank in 2018 was the launch of the “Seven Minute Loan” service, which is an online loan for large business that has no equals in the country. In the “Seven Minute Loan” solution a decision on lending to a large corporate borrower is made in seven minutes, without a request for documents from the client. A loan can be received by clients who have current or outstanding loans with Sberbank, and also by clients that previously had not borrowed in Sberbank but had transactional track record on Sberbank accounts. The credit risk assessment is based on a set of models that use big data, including non-structural data, and the loan issue process involves the formation of individual transaction parameters (cost, interest rate, term, repayment schedule) for each borrower. This product was made available to clients in four regional banks at the end of the year, and will be made available throughout the country in 2019.
96% of corporate clients use electronic document management during the lending process. The share of hard copy document turnover fell from 37% to 10%, saving time for clients and having a positive effect on the environment.
The first infrastructural seed fund in Russia was created, with a potential to fund more than 120 projects to a total amount of RUB 12.3 billion.
Thanks to investments in the Fund, project ideas successfully pass through the preparation phase and are transformed into market-ready infrastructure projects. The result of the Fund’s work for the regions is a ready-for-implementation project developed without state-budget funding. Private investors, in turn, receive a well-structured project with investment appeal.
Sberbank piloted lending to largest clients based on machine learning in 2018: alternative ML-based cash flow models were built for 12 companies from retail and telecommunication sectors. The pilot will be expanded to 200 large and medium-sized companies in 2019. Through automation, the period of work with the CF model during a transaction can be reduced from several days to four hours.
The Banker magazine has named Sberbank the best transaction bank in Central and Eastern Europe for corporate clients. Sberbank won a Transaction Banking Award for the launch of new hi-tech products and services.
Sberbank has created a series of online business processes covering 90% of the most popular Bank services for legal entities:
- Clients can remotely register enterprises and open new accounts online, saving their time
- The Bank’s payment system operates in the 23/7 mode and is available to the users regardless of their location
- The Bank issued business cards for purchases with a 365 days interest-free grace period from partner companies and with various benefits
- Sberbank offers clients high-tech cash flow management methods
- Clients choose modern methods of trading and financing in real time
Sberbank is the first in Russia to implement a special Internet acquiring program for the largest property developers. A buyer can pay for an apartment, the down payment on a Sberbank mortgage loan, for a parking space and for utilities on the developer’s website, and the buyer earns bonuses from the SPASIBO loyalty program for doing so.
An online encashment service has been established for our large clients: the deposit of revenue on the client’s account is performed in 1-3 minutes after its acceptance by the cash-in-transit provider at the client’s point of sale, and not the next day. This allows the company to make more effective use of its working capital.
A new partner non-banking service, “Customs Broker”, has been introduced for corporate clients engaged in foreign trade. The service includes customs logistics services, customs clearance of freight, and certification of goods. A reliable partner organizes the “turn-key” delivery and registration of goods under foreign trade contracts with Bank clients. This service expands the foreign trade ecosystem and gives us an advantage over our competitor banks.
with an interest-free grace period
Access to business cards in Sberbank Online and Sberbank Business Online
Bankofpartners.com is an online platform of import and export solutions and services. It is a unique platform that helps Russian companies access foreign markets and find success on the international arena..
During its first year of work, Sberbank’s online platform for international business has gained not only popularity, but also acclaim and influence among Russian foreign trade participants. In many ways this was due to the diversity and reliability of its services: after registering, a user can search for business partners, services or goods; study the market and competitors; add a request for a specific good or service; receive a free online consultation on banking, logistics, customs, HR, and legal issues that relate to foreign trade activity; receive analysis on the export of goods to various countries; and also check the reliability of a potential business partner in 47 countries.
Sberbank’s new online bank is distinguished by its extensive arsenal of corporate online banking tools, including, among other things, customs payments and foreign trade activity.
The Corporate Block’s project Bank of Business Partners won both Russian and international awards in categories for supporting small and medium-sized business, as well as developing international cooperation and innovation: Best Social Project, Best for Russia, Digital Communications Awards, CX Awards, Tagline, Time for Innovation, Digital Summits.
As a result, over the year the Bank has doubled the number of its brokerage accounts and now ranks first on the Moscow Exchange in this indicator.
The Bank offers structured products to clients, helping them to invest in a wide variety of assets with capital protection. During 2018 the amount of internal structured products (Sberbank Investment-Grade Bonds) sold increased from zero to RUB 27 billion.
The number of foreign currency transactions hedged algorithmically over the course of the year increased from 50% to 87%. The number of back-to-back purchase and sale transactions performed at Sberbank without the participation of an exchange increased from 40% to 55%. This was achieved through the use of machine learning during the forecasting of client cash flows on the Sberbank Markets platform and offering the client a better price.
The Bank started to identify unusual trading transactions with the assistance of an artificial neural network. The network learns without human interference and is capable of detecting anomalies based on the structure of the data itself and not based on the rules downloaded into it. More than 60,000 transactions are processed daily. This helps to mitigate operating risks for the client and the Bank.
In addition to everything else, Sberbank also held the first ICO in Russia in 2018 ICO, Initial Coin Offering is the issue of coupons or tokens in the form of a cryptocurrency to pay for the future services of a platform. in the “regulatory sandbox” A regulatory sandbox is a legal framework that allows companies developing new financial products to perform small-scale testing of the products on implementation without the risk of a violation of effective legislation. of the Bank of Russia and the first off-exchange REPO in Russia using blockchain technology.
The Sberbank Markets platform has received four international awards:
During the development of the Unified Front-End System, the functionality of remote bank servicing of trade finance operations (letters of credit, documentary collection) through Sberbank Business Online was implemented, allowing clients to send requests/queries/letters to the Bank in electronic form, to track their status online, and to see the register of their transactions. This service makes it possible to reduce the time required to service clients under letters of credit and documentary collection and improve client satisfaction.
The first transactions with a new product for the Russian market, discounting of export letters of credit, were performed.
Support for Russian exporters has been expanded through the implementation of the state support program for exporters (subsidized by the Russian Export Center).
The Bank offers its clients an ecosystem of business services through its online bank Sberbank Business Online.
Thanks to Sberbank’s extensive line of integrated services, our clients can use the online bank as a “one-stop shop” to resolve all their business issues. Sberbank Business Online provides entrepreneurs with services to cover all their needs — from the opening of accounts to self-development and settlement of legal issues. Many services are available to clients only when they are needed (for example, if risks have been identified, clients are given the chance to protect a transaction).
Today Sberbank Business Online provides 30 non-banking services. More than 300,000 clients have taken advantage of our paid services. Sberbank’s range of non-banking services makes it possible to switch in full to electronic document management, to keep accounts and issue reports to the state authorities, to promote one’s business and create websites, to purchase the equipment necessary to begin trading and perform warehouse inventory management, to perform checks on contractors, etc.
Our most popular platform services include E-Invoicing electronic document management (more than 60,000 companies use this paid service) and checking of contractors (more than 20,000 clients take advantage of the paid features of this service).
Our ecosystem services have already won international acclaim: the checking of contractors service received a Financial Innovation Award in the nomination “Innovation in supporting business or enterprise”, and the Business Profile service received high marks from the jury of the Banking Technology Awards in the nomination “Best corporate payment initiative”.
Twenty-four partners, including market leaders in their respective sectors such as Yandex.Money, Evotor, Operator of Fiscal Data, Moi sklad [My Warehouse] and Moe delo [My Business], have chosen Sberbank’s Fintech API technology. Some of the largest Russian e-commerce companies, including Ozon.Travel, have joined the B2B-payment platform for convenient corporate settlements.
Development of the Intelligent Management SystemSberbank is actively developing its Intelligent Management System (IMS), a computer program that continuously analyzes various aspects of business and promptly notifies the manager where a problem arose and which actions it recommends be taken. Use of the IMS will improve the quality of client servicing, increase productivity, and reduce the Bank’s costs.
The foundation of the system is automatic analysis of large data sets in various bank systems and evaluation of the actions of employees when performing business processes. When a deviation from normal work practices is noted in the actions of an employee, the IMS forms a recommendation on corrections and delivers it to the employee or his or her manager, thereby nudging employees to develop the knowledge and skills required for effective work and increased client satisfaction.
In 2018 four thousand users were connected to the system, 140,000 tasks were issued, algorithms for persistent deviations were introduced.
The Bank, together with clients and industry associations, has created a knowledge base of industry-wide business schemes for cargo transportation, tourism, collection and primary processing of non-ferrous and ferrous metals, leasing, wholesale trade, grain trading, and building construction for use by various departments of the bank in their analytical work. The knowledge base allows you to improve customer experience.
All calls from corporate clients are centralized, with the establishment of a 24/7 support for all operational issues (cash and settlement transactions, payments, etc.), and the allocation of a priority support hotline. Consulting with the help of the robot “Anna” and a chatbot has been launched. Personalized communications have been implemented for 50% of incoming calls.
The claims service has been authorized to unblock personal accounts in Sberbank Business Online upon receiving a call from the client.
Sberbank implemented a procedure for the rehabilitation of clients who had previously faced a refusal to conduct a transaction or enter into a bank account agreement, subject to the elimination of the reasons for the refusal.
A service providing compensation for poor quality services has been launched. Now small and microbusiness clients receive individualized service conditions for a period of one month if they have encountered problems with servicing due to the actions of Bank employees or IT malfunctions (including with remote services, their settlement account, bank cards, settlement transactions and self-encashment services, as well as poor quality service at a Bank branch).
We process around 350,000 free-form letters a month in the Business Mail service. Artificial intelligence has learned to automatically classify letters, and this has cut the time required to deliver them to the appropriate Bank employee to 15 minutes.
Artificial intelligence helps the Bank to establish a pre-qualified credit limit for small business clients based on the client’s current operating needs.In 2018, 33,000 loans worth RUB 46 billion were issued using pre-qualification technology.
One of the brightest new stars in Sberbank’s list of non-financial services is the “Market Pulse” service, which uses artificial intelligence and big data technologies. “Market Pulse” collects real-time data from trading floors and uses complex machine algorithms to form a set of recommendations on trades that are most suitable for the user. The service also analyzes the news background and important legal events involving the company and its surroundings, processes this data set and provides the user with only the important information.
Preferential lending to the agricultural sector
Under the program approved by Russian Government Resolution No. 1528 dated December 26, 2016, the Bank has been providing preferential short-term and investment loans to companies in the agricultural sector to develop the horticulture and animal husbandry sub-sectors and the refining of products in these agricultural sectors.
The interest rate on the loans ranges from 1% to 5% per annum. The Bank is compensated for the income not received under these loans in the form of subsidies from the Russian Ministry of Agriculture.
The effective term of short-term loans is up to one year, and varies from 2-15 years in the case of investment loans, depending on the sub-sector being financed. To receive a loan on preferential terms, the borrower must meet the Program requirements, while the conclusion of a loan transaction must be approved by the Ministry of Agriculture of Russia.
Loan agreements worth RUB 359 billion were concluded under the Program in 2018, RUB 233.5 billion of which has already been distributed.
Support for small and medium-sized businesses in priority sectors
On February 12, 2018, Sberbank and the Ministry of Economic Development of Russia signed an Agreement on providing subsidies from the federal budget to Sberbank of Russia as compensation for the income not received under the loans issued at a preferential rate to small and medium-sized businesses in priority sectors in 2018.
The Program is a state financial support mechanism for small and medium-sized businesses and is being implemented by the Ministry of Economic Development of Russia. The interest rate for borrowers under the Program is 6.5%. There are no additional commission fees and duties. Sberbank issued loans on preferential terms worth a total of RUB 42.6 billion and received RUB 314.7 million in subsidies under this Program during 2018.
Support for entrepreneurs when purchasing equipment in certain industries
On April 24, 2018, Sberbank and the Ministry of Industry and Trade of the Russian Federation signed an Agreement on providing subsidies from the federal budget to Sberbank as compensation under loans issued for the purchase of agricultural, road construction and utilities equipment, as well as equipment for the food and food processing industries.
The Program stipulates the provision of loans in 2018 at a rate of 5.5% to 6% for the purchase of equipment. The loans are issued for a term of up to five years, with no limit on the amount. The Bank issued loans on preferential terms under this Program in 2018 worth RUB 1.6 billion and received RUB 7 million in subsidies.
Preferential lending program for small and medium-sized businesses
The Program to promote lending to small and medium-sized businesses is a state support tool for lending to small and medium-sized businesses that stipulates a limit on the interest rate on bank loans to a level of no more than 9.6% per annum for medium-sized businesses and no more than 10.6% per annum for small businesses.
Sberbank has been implementing the Program since 2016. Loans totaling RUB 9.3 billion were issued during 2018 under this Program.
In April 2018 Sberbank performed the first transaction in Russia based on project financing with escrow with the Brusnika Group of companies in Tyumen.
Sberbank has created the necessary infrastructure and launched the basic products for developers: escrow accounts for individuals and legal entities; project financing with escrow; banking support.
Based on the results for 2018, there were a total of 54 approved transactions for lending to housing construction projects with escrow, and 394 escrow accounts were opened.
Under the procedures permitted by law, some of the developers used banking support services: 6,300 settlement accounts were opened for developers, on which 12,700 payments are performed on a daily basis.
The goal of the financing of the production facilities being created and modernized was to switch to the output of light petroleum products with high added value, to relieve the pressure on domestic prices on the motor fuel market, and to reduce the share of primary commodity exports.
The decisions on investments were adopted by the shareholders of the refineries and Sberbank based on the tax arrangements then in effect and the modernization agreements concluded by the Bank’s borrowers with FAS of Russia, the Federal Service for Environmental, Technological and Nuclear Oversight of Russia (Rostechnadzor), and the Federal Agency on Technical Regulation and Metrology (Rosstandart). The projects met the requirements imposed on project finance, and their implementation facilitated an increase in the investment appeal of the Russian regions and the creation of a large number of new jobs.
Due to the change in the macroeconomic situation and the “big tax maneuver”, in 2014-2015 independent oil refineries were faced with reduced profitability and increased payback periods for the modernization projects financed by Sberbank. Sberbank encountered the need to restructure the issued loans. The new amendments to tax legislation adopted in 2018 also had an impact on the business of independent oil refineries, which necessitated another restructuring of the loans (and, in some cases, a reconsideration of the modernization program and the provision of new financing). As the largest creditor in the Russian economy, Sberbank continues to support independent refining and is prepared to proactively participate in the stabilization of the situation in this industry. Among other things, the final version of the tax maneuver includes a proposal by Sberbank to provide reverse excise (i.e., a return of funds from the budget on certain types of petroleum products) to petroleum refineries that invest more than RUB 60 billion in modernization during the period from 2015 to 2024.
The development of digital technologies and the resulting changes in consumer behavioural preferences have led to the formation of ecosystems. Sberbank is creating its own digital ecosystem based on the banking platform. It enables to instantly connect partners, launch new products and personalization algorithms.
Sberbank’s ecosystem focuses on such areas of people’s lives as home, health, e-commerce, lifestyle, and also separately builds an ecosystem for entrepreneurs, based on the business development needs. The offer of additional services in these areas is aimed at improving the quality and depth of client relationships and maintaining Sberbank’s competitiveness in the long term.
In 2018, we made a big leap in the development of the ecosystem: we advanced in the development of the platform, entered new markets and launched several large projects. We continue to work on synergies between ecosystem companies, both to optimize internal processes and to create new services. In particular, Sberbank began offering comprehensive service packages from different ecosystem companies, taking into account the clients’ personal experience and accumulated knowledge about them.
Sberbank Ecosystem at the end of 2018:
A service for comparing prices and selecting goods visited by three million people a day. Includes more than 24,000 online stores carrying more than 160,000 products. The service provides direct traffic to sellers’ websites. The Supercheck application was launched in March 2019 for purchases in online stores without going through checkout.
Internal e-commerce market platform, the beta version of which was launched in May 2018 and the full-service version in November. Fifteen different categories of goods from more than 1,000 partners can already be purchased in the marketplace and further expansion is planned. This service is used by 370,000 people a day. The first regional warehouse was opened in November in Rostov-on-Don, and strives to ensure next-day delivery. Plans include the development of a network of parcel pickup terminals (for package delivery) at Sberbank branches.
A cross-border trade platform, the beta version of which was introduced in November 2018. The full launch of the service is scheduled for Q2 2019. The focus of the Bringly business model is to develop supervised logistics for secure deliveries of name brand international products. More than five million products can already be ordered from foreign online stores using this service. Today 20,000 suppliers are represented on the platform. Contracts were concluded in 2018 with trading platforms from India, South Korea and Turkey. A warehouse was opened in Riga to deliver the most popular products.
A marketplace of medical services where visitors can make a doctor’s appointment, hold a telemedicine session, receive a second opinion, schedule a checkup, etc. DocDoc.ru holds 53% of the market of online doctor’s appointments, according to the research data of RBK. DocDoc’s share on the Moscow market is 70%, and in Saint Petersburg — 40%.
DocDoc works with 49,000 doctors from more than 3,000 clinics. Since its launch, DocDoc’s database has accumulated more than 240,000 doctor reviews from patients. In 2018, 646,000 doctor appointments were scheduled using DocDoc, and the client base increased by 3.8 million clients.
The marketplace is gearing up for the launch of B2C marketing. Telemedicine and a second medical opinion are included in the financial and insurance packages for Sberbank’s retail clients. The VHI package for Bank employees also includes consultation with a psychologist. A project for the “Smart Watch” wearable gadget has also been introduced.
Since 2018 a mobile communications operator has worked under the SberMobile brand.
The operator provides services in IP telephony, push notifications, IvR in acquiring, and IoT/M2M. SberMobile is the only MVNO in Russia that provides Wi-Fi calling and seamless transition from Wi-Fi to GSM.
SberMobile was the first MVNO that was able to customize smartphones from leading manufacturers — Apple, Samsung and Huawei, and was also able to roll out its own Push platform for users of the Sberbank Online mobile app. The integration of IP-calls in Sberbank Business Online is under development.
In 2018, the service was expanded to 13 regions. In early 2019, the number of regions of presence increased to 32.
An integrated digital solution for the restaurant business.
The company bundles services on table reservation and restaurant reviews, paying checks in restaurants, and optimizing restaurants’ business processes. A service was launched in 2018 to personalize restaurant recommendations for guests.
The service is in the process of a wide-scale rollout: more than 200 restaurants have already been connected.
A technological platform that serves as the basis for two business models: B2B (Checkout) and B2С (Wallet).
Yandex.Checkout is an online payment service for legal entities and the leader in the share of online stores served by payment aggregators in the rating of Payment Service Provider. Technological refinements were made to the site in 2018 to simplify navigation, improve user conversion, and increase the flexibility of interfaces for business.
Yandex.Wallet is a virtual account for online purchases. In 2018 a loyalty program with a cashback service was launched, as well as investment robo-advising.
One of the world leaders in the field of computer vision and machine learning.
It takes 1st to 5th places according to the results of an independent evaluation in all categories of NIST Nist, National Institute of Standards and Technology Department of Commerce USA. FRVT tests, United States, and is third in the Leaderboard. It four times more efficiently consumes memory and 26 times faster compares faces compared to the world leader.
The facial recognition function is employed in various scenarios: payment by face, access to facilities, unlocking automobiles.
Facial identification has been implemented in the entry-pass system of the Bank and its branches.
The company targets Internet advertising for entrepreneurs on the basis of online and offline data in mobile apps, banners, and video.
Coverage through the Segmento platform is more than 290 million users with identification by cookies files, which is comparable to the figures for Yandex and Mytarget. The company’s clients include leading international and Russian brands.
The company realizes synergies with major Russian retail chains and mobile operators possessing big data, which increases the effectiveness of advertising campaigns, and expands the types of data involved in the targeting process. The company uses the behavior of visitors to the Sberbank and DomClick websites in segmenting.
A marketplace for cloud IT infrastructure. SberCloud serves 25 companies, including companies of the Sberbank Group.
In 2018 Sberbank took the strategic decision to focus on the development of standard cloud solutions based on its own technologies. In February 2019 the Virtual DPC product was launched, including computational resources, data storage systems, virtual networks, backup tools, and more.
97% of all the risks from more than 1,000 uncovered cases of fraud were averted. The total amount of damage prevented equaled RUB 1.8 billion.
For example, we stopped 423 attempts to use stolen (lost) or forged passports, five attempts at fraud using forged payment documents, and prevented 99 cases of theft from the deposits of Sberbank clients using forged powers of attorney for a total amount of RUB 117 million.
In the corporate lending sector, we conducted 198 checks of the authenticity of information and forged documents. In 115 cases we identified instances of fraud and were able to prevent RUB 3 billion in damages.
Reviews of 23.7 thousand loan applications of individuals using “Credit Factory” technology were also performed and transferred for additional review to the economic security divisions. Instances of fraud were discovered in 863 cases. RUB 1.5 billion in potential damage was prevented.
As part of Sberbank’s work on the criminal prosecution of those who commit crimes against the Bank and its clients, with the help of employees from Sberbank’s economic security divisions law enforcement agencies were able to detain 363 suspects at the scene of the crime. In all, 1,400 statements were sent to law enforcement agencies, 671 criminal cases were instigated, and 228 people were prosecuted.
During their work with problem assets, the economic security divisions found 131 cases where there was evidence of possible collusion between the grantees and the Bank’s debtors. By supporting the criminal prosecution of debtors and the beneficiaries of problem assets, Sberbank was able to recover RUB 222 million.
The Bank considered 309 draft internal regulations in its effort to improve its regulatory framework and ensure compliance with the Bank’s economic security requirements.
Sberbank drafted a new standard to protect client information and prevent fraud when performing operations at self-service terminals. This standard includes protection from skimming (reading of information from the magnetic strip using special devices), black box attacks (connecting an outside device to a cash machine) and transaction reversal fraud (fraud when withdrawing cash from an automated teller machine through the manipulation of a card account).
At critical infrastructure facilities — in cash collection centers, data processing centers, office buildings, storage sites of material values — round-the-clock monitoring is conducted. In the premises where client information is processed, an access control system is used. In 2018, security officers, in cooperation with law enforcement agencies and security organizations, prevented 25 robbery attacks against bank branches. The prevented damage amounted to RUB 149 million. Twelve intruders were detained. Criminal cases are initiated on the fact of illegal actions.
The most important phase of this work was the creation of the Personal Data Processing Management System. During this phase, the Bank appointed a Data Protection Officer, created the Center for the Processing and Protection of Personal Data, and the Organizational Model for work with personal data. The Model ensures control over personal data processing procedures at each stage of the life cycle and management of requirements on the processing and protection of personal data.
Personal data processing and protection is organized through a single integrated personal data processing and protection process created at the Bank. The process is built on the principle of simultaneous compliance with both Russian and European legislation.
Sberbank performed an audit and assessment of the compliance of its business processes, automated systems and internal documents with the requirements of Russian and European legislation. Measures were taken to meet the requirements of the GDPR based on the results, in particular:
A procedure for the constant assessment of compliance with the requirements on processing and protection of personal data was organized for all planned personal data processing technologies and processes.
To align the requirements of Russian legislation with the new provisions of the modernized European Convention for the Protection of Individuals with Regard to Automatic Processing of Personal Data (the Protocol Amending the Convention for the Protection of Individuals with Regard to Automatic Processing of Personal Data was signed in Strasburg on October 10, 2018), proposals have been drafted on amending the Federal Law “On Personal Data”, among other things by adding provisions on anonymous data, the depersonalization of data, etc., to the Law.
In 2018 Sberbank was the first bank in Russia to introduce a product to insure bank cards from cyber incidents.This product provides bank cards with insurance protection against the withdrawal of cash through unauthorized contactless payments from clients’ smartphones or as a result of the introduction of malware to their smartphones. The solution includes the free installation of a security solution from Kaspersky Labs on smartphones. Thus, the converged solution protects the smartphone, where the information on bank cards is stored, and reduces the likelihood of falling victim to cyberattacks to a minimum. Even if the fraudsters are able to withdraw cash from the card using mobile data, the client will receive insurance indemnity up to a set limit. Another new product for insurance protection of corporate clients against the actions of cyberfraudsters was also launched. This product is available for all types of business, regardless of their size.
Ninety-six DDoS attacks were averted,
DDoS — Distributed Denial of Serviceand more than eight million computer viruses attempting to infiltrate Sberbank’s systems were neutralized.
To resolve the pressing task of allowing clients to use banking services without being physically present at the Bank, Sberbank joined the Central Bank’s biometric client identification project at the end of 2018. Under this initiative, Sberbank is an agent of the Unified Biometric System and began collecting biometric data for the Unified Identification and Authentication System. The remote biometric identification system, which makes it possible to recognize a person based on their unique characteristics (for example, their face or voice), is a reliable and convenient way to identify clients.
To use this function, users must register in the Unified Identification and Authentication System and “give” their biometric parameters (face and voice templates) at the authorized bank. The implementation of state-of-the-art technologies will make the interaction between citizens and state agencies and banks more seamless, quick and reliable.
Sberbank will continue to strengthen the protection of its systems in 2019, including through the use of leading global practices to prevent cyber fraud. Work will also continue to use artificial intelligence in modern cross-channel fraud identification systems, to provide clients with secure services regardless of the service channel.
Sberbank was officially included in the list of founding partners of the WEF Center for Cybersecurity, or C4C.
Considering the global rise in cybercrime, it is already impossible to work in isolation to combat this problem. This is where modern information exchange on new threats and prevention methods (not only in Russia, but worldwide) comes to the forefront. With this fact in mind, Sberbank and the World Economic Forum (WEF) signed a partnership agreement in 2018 on information and technological cooperation in the fight with international cybercrime.
Together with Sberbank, which is the first founding partner and the only Russian company among the participants of the Center for Cybersecurity (C4C), world business leaders, key players on the international cybersecurity market, and representatives of law enforcement agencies will take part in the Center’s work. The main goal behind the creation of the Center is a collaboration of international efforts in the fight with cybercrime through the accurate and rapid exchange of information, the prompt adoption of collective decisions, and the development of strategies and tactics to protect society from cyberthreats.
Sberbank and the WEF will set up the automated exchange of data on modern cyberthreats based on specialized platform solutions
In 2017 Sberbank created its own cybersecurity Security Operations Center (SOC), and involved leading experts from more than 11 countries in its work. In 2018 this project was recognized as one of the best in the world and given an award at the international competition IPMA International Project Excellence Award 2018.The SOC is now providing 24/7 cybersecurity for the Bank’s IT platforms on par with world leaders in this area. It can be used to continuously track and assess the situation in real time, to forecast crises and immediately respond to all modern cyberthreats. The Center’s capability to collect and visualize data makes it possible to simultaneously monitor all the Bank’s business systems and security features.
In the summer of 2018 we organized the first International Cybersecurity Congress (ICC) in Russia. The Congress brought together more than 2,200 participants and around 700 organizations from more than 50 countries. Russian President Vladimir Putin took part in the work of the Congress, which testifies to the fact that the pressing nature of the topic of cybersecurity is understood at the highest levels.
In November 2018 the wholly-owned Sberbank subsidiary BI.ZONE held an international conference on practical cybersecurity called OFFZONE 2018. The conference considered issues concerning possible attacks on the IT systems in use in the banking industry, the strengths and weaknesses of popular services, the research provided on the security of biometric authentication technology, and analyzed the modern approaches of perpetrators to phishing and attacks on banks.
In late 2018 BI.ZONE and the Association of Banks of Russia summed up the results of the pilot project of an information exchange platform on cyberthreats. Over the five months of the platform’s work, at least RUB 3 billion in damage was prevented and more than 13,000 compromised devices were identified.
The international community has already expressed intense interest in this platform and the capabilities of information exchange in the area of cybersecurity. A decision was adopted on the basis of the results of the project to launch the next version of the platform into commercial operation.
In the coming years, Sberbank will continue to ramp up international cooperation on cybersecurity issues, to ensure the highest possible level of protection of its clients’ information and funds. For example, as early as the summer of 2019 Sberbank will hold Global Cyber Week 2019. This event will combine the technical conference OFFZONE with the International Cybersecurity Congress (ICC). During the week the OFFZONE 2019 conference on practical cybersecurity will be held (on June 17-18), which will include a practical cybersecurity competition. Participants will try to solve experimental problems in this area, attack the services of adversaries and protect their own infrastructure. The week will continue with the International Cybersecurity Congress (on June 20-21), which will hold a global dialogue between the representatives of the state authorities, world business leaders, and key experts on the most urgent and pressing issues in ensuring cybersecurity in the era of globalization and digitalization.
Sberbank goes forward with the development its technology platform. In 2018, we reached a fundamentally new level of platform readiness: completed the development of all key technological components and started major migration of business functionality.
We drastically improved the quality of interaction between IT and business in order to also ensure effective joint creation of the Platform. For this, more than 8,000 engineers were transferred from the subsidiary of Sberbank-Technologies JSC to Sberbank PJSC to joint Agile teams.
Infrastructure and reliability
Sberbank has always paid great attention to the reliability of its data processing and storage centers, and now it attaches particular importance to this. One of the achievements that we are proud of is the recently obtained Uptime Institute TIER III certificate, which confirms compliance with international safety and reliability standards.
A key focus for Sberbank remains ensuring high reliability of critical systems. In October 2018, we successfully completed the strategic program “Reliability of Critical Automated Systems of the Bank (99.99)” — the availability of bank services at the level of 99.99 was ensured. The total downtime in 2018 due to incidents was reduced to 8 hours against 58.8 hours in 2013 (the year the program was launched).
Based on international experience, we have added a new area that complements our technological transformation — the cloud IT architecture. The development of cloud services will radically change the technological landscape of Sberbank, will give a new level of scalability and speed of introduction of new products and services, will dramatically increase the utilization of resources.
The Bank implements the AI-first concept, embedding artificial intelligence in all its processes. Thanks to the use of AI, the time for issuing loans to corporate clients in 2018 was reduced to 7 minutes. Due to the processes robotization and the reduction of manual labor in 2018, the efficiency of the back office was increased by 25% — routine operations in 53 Bank processes are performed by robots instead of employees. Reading robots extract data from electronic documents and verify signatures on the basis of AI.
At the end of 2017, innovative laboratories were created in Sberbank in currently important technological areas. In less than a year, an innovative team with unique competencies and expertise was formed, an infrastructure was created for the development of technological innovations, and a number of outstanding initiatives were implemented.
Key advances in technology
platform development in 2018
The platform is being created through three strategic programs:
The UFS program creates a single service logic in all channels, based on the omnichannel principle, and significantly improves customer experience. A unified frontal system allows not only to increase comfort for customers, but also to increase employee efficiency.
The teams carry out an independent parallel development of the UFS, providing large-scale production of business functionality and replication as soon as they are ready (on demand). The key technological conditions for the development of the UFS are high performance, reliability and security of customer service.
In 2018, the architecture, development and functionality output in the industrial environment were improved, the possibility of multi-versioning was introduced, thanks to which technological services and client functionality can be developed independently and iteratively in their own release cycles. The stage of mass replication of the system for all customers in three remote banking services channels has begun.
Support Platform (BDSP)
The BDSP program combines the processes of the Bank’s middle and back office, creating technological components and product factories to provide services to clients.
In 2018, we made significant progress in developing the platform. Reliability and performance were ensured, 100% contracts of priority components required to start the replication of product factories to external customers were confirmed.
Mechanisms for switching the platform to work in Stand-In mode, as well as Stand-In applied factories were implemented, allowing to continue to work without interrupting customer service in case of incidents.
Frontal systems of all 14 thousand offices of the Bank began working with a single client profile. The list of products connected to the platform in a test mode was significantly expanded, including transfers to individuals, acquiring services, payroll projects, deposits and conversion operations of legal entities,. A large-scale replication of business functionality has been launched.
Data Factory consolidates the information asset of the Bank and allows to make decisions based on high-quality data.
In 2018, we finished the creation of infrastructure elements, loaded data from key internal and external sources. The 2018 Bank management reporting was based on the database and tools of the Data Factory.
The next step was the transition from creating a data storage to developing an analytical and AI platform, providing new opportunities in near-real time data processing, self-service and analytics.
We have already made progress in the implementation of the new architecture. A new approach to data quality management was launched. A mechanism for elastic resource allocation in less than 20 minutes was implemented. MVP DevOps for AI, which allows AI-models to be put into commercial operation in less than one day was, developed.
We continue to increase our technologies and competencies to consolidate, process and provide complete and relevant data across the Sberbank Group.
Infrastructure and reliability
Skolkovo data center in 2018 was certified against a third level of reliability (Tier 3).
The Dynamic Cloud Infrastructure Initiative was launched. The goal of the initiative is to create a world-class dynamic cloud infrastructure with the best customer experience, competitive price and required reliability, as well as a significant increase in the utilization of the Bank’s infrastructure.
In late 2018, together with the Digital Platform tribe, the e-commerce approach (payment for the resources actually consumed) was successfully piloted when ordering infrastructure products. The replication of this approach to other divisions of the Bank has begun. The service of a dynamic infrastructure can be used not only through the interface, but also from the program code, which allows for the automatic scaling of the infrastructure depending on the required power.
The possibility of providing public cloud resources (SberCloud) on a commercial basis, for subsidiaries of the Bank, and in the long term — to an open market.
For a number of critical AS in the program the following results were achieved:
- The availability of bank services at 99.99 level is ensured. The total downtime because of incidents in 29 critical AS was reduced to 8 hours. This greatly exceeds the allowable rate of 17.15 hours.
- Stand-in mode for critical AS is realized, which makes it possible to preserve the efficiency of client services in the event of a failure or maintenance of technological work.
- Services are provided in continuous availability of customer services mode.
- Linear scaling technology of the systems was realized, allowing to increase system performance without revising architectural solutions.
- Since the launch of the program, a fivefold increase in client operations has been maintained and a further performance margin has been ensured.
Upon completion of the Program, the mission of ensuring reliability has become a key part of our regular activities.
In order to achieve large-scale AI transformation, the Bank needs to prepare its infrastructure, data, models and processes and employ the right specialists. To this end the Bank is creating unified open platforms to provide services to all internal business clients: NLP (chatbot), Speech Analytics platform, Computer Vision and AutoML.
We are investing in R&D, joint accelerators, the delivery of training courses jointly with leading Russian universities, open conferences such as Sberbank Data Science Journey, Classic AI. An AI Academy program has been launched.
At present the Bank is already using AI in several products to improve customer experience.
More personalized communications with clients have become possible due to the use of chat and voice bots, which are being used in communications with retail and corporate clients and also during the recovery of overdue debt.
“Smart Products” are changing the lending process: corporate clients can obtain a loan within seven minutes, while private clients need to spend only a few minutes completing online loan applications.
The Bank starts using biometrics to increase speed and enhance security if a client submits a request to the contact center, accesses mobile applications or uses self-service devices.
The use of AI in asset and liability management helps the Bank to model the structure of the balance sheet taking many factors into account, including macroeconomic ones, and to make optimal decisions in financial planning and setting product rates.