VTB Bank (Armenia): Armenias shrinking loan market only partially affects plastic card segment

 

The Bank's specialists expect no significant changes in the segment due to downward trends of lending.  Therefore, the pressure from loan market on the plastic card segment will not be significant, though the tariffs and fees will not be raised either. 

 

VTB (Armenia) specialists say the card market of Armenia is rather developed from the viewpoint of infrastructures and software, but for objective reasons, the mass shifting of the bank customers to the 

virtual environment is not anticipated yet, though the population, and the residents of Yerevan first, keep up with the times. Banks on Armenia offer more and more technological products, including on the 

basis of mobile technologies. VTB Bank (Armenia) is not exception either. The Bank has been one of the leaders in the card market not only by the number of cards and the turnover of card accounts, but 

also by the introduced innovative products for long years already.  "Despite the current difficulties, we will not abandon our strategy and will keep dynamically developing our products and technologies. 

At the moment, we have several projects to develop the methods of payment and terminals, as well as increase the loyalty of customers and introduce accumulation systems.  We will make public the details 

of these projects within a year," the Bank told ArmInfo.

 

As for the efficiency of increasing the joint banking services in the card market to reduce the non-interest expenses, the Bank specialists said such synergy is quite possible given the small size of the 

market. "We have a successful experience in the given field: in 2014, we launched the so-called partner network of ATMs with ACBA-Credit Agricole Bank and are very satisfied with the result. VTB Bank 

(Armenia) has its own processing center, separately from VTB Group, which enables the bank to be more flexible when introducing new ideas and products," the Bank's specialists say.  In their words, VTB Bank (Armenia) is focusing on the technological development and global trends, which requires replacement of the traditional offices and branches into technological ones as much as it is possible. "The given field is developing throughout the banking system of Armenia. Very soon, we will see these changes. In 2012, we introduced payment terminals in our branch network and these terminals are very popular now. We are increasing their number constantly. This means that the market is ready for such kind of changes," the Bank specialists say.

 

By data of ArmInfo's Analytical Survey "Armenian Banks in Plastic Card Business," VTB Bank (Armenia) issued 500.000th card earlier this month. VTB Bank (Armenia) retains leadership in terms of active 

cards. As of October 1 2015, the number of active cards increased by 25.5%, of which 20.3% are Visa (including about 92,000 pension cards) - the Bank is the leader by this indicator.   

 

The Bank became a member of MasterCard almost 2 years ago and issued over 25 thsd MasterCards by October 2015, joining the Top Five.  The Bank was in the lead by the amount of plastic transactions - over 143 bln AMD for 9 months of 2015 (19% y-o-y growth).  As of 1 October 2015, the Bank had 267 own POS- terminals and 158 ATMs.  

 

To note, VTB Bank (Armenia) joined VTB Group in April 2004 and is 

fully owned by VTB Group, the second biggest bank in Russia. VTB Bank 

(Armenia) is one of the leaders of Armenia's banking sector. It has 

67 branches all over the country (the largest branch network in 

Armenia).