In Belarus closed banks

Why they closed and where workers settle there?

In Belarus began to close Bank branches. This was noticed not only by clients who previously used their services, but fixed national Bank. According to the regulator, over the last 10 years the number of Bank branches decreased by almost 250. Banks explain this trend optimization of branch network due to lack of demand some. Tut.by found out why branches are closed, where to get a job the staff that worked there, and now it is possible to obtain the necessary banking services in rural areas.

National Bank: “Banks are commercial organizations, whose activity is directed on extraction of profit”

The national Bank confirm that in recent years the country recorded a decrease in the number of banks ‘ branches.

— As of 1 January 2020 in Belarus operated 17 branches and 3265 structural divisions of banks, including of banking services centers, settlement and cash centers, money changers and others, leading figures in the national Bank. Compared to 1 January 2010, the number of Bank branches decreased by 247, and structural units by 62.

More detailed statistics in the national Bank could not give, referring to the fact that they have no ready data to choose.

Such trends in the national Bank is largely attributed to the digital transformation, “which requires banks to adequately improve their business models, organizational structures and operating processes.”

— With the introduction of modern technologies and intensification of the market of non-credit financial institutions increase the availability of financial services to legal entities and individuals without the need of visiting the banks ‘ branches, — emphasized in the national Bank. — In turn, a sharp reduction in the number of Bank branches that are separate subdivisions, mainly due to centralization of banking activities.

The national Bank also reminded that the banks in Belarus are commercial organizations, whose activity is directed on extraction of profit.

— Each Bank has the right to determine the business model under which it operates, concluded in the national Bank.

Bank: “foreign Exchange business with population is not so attractive.”

Banks themselves, reducing the number of branches is called optimization. And it is justified by a number of factors. Because the Bank 10 years ago and the Bank today is drastically different credit and financial institutions. And they change largely depending on the needs of the client.

One of the main reasons optimization — increasing the share of customer payments via the remote banking services, explained in Belarusbank. For example, in January 2015 at the offices occurred 10.5 million transactions for receiving payments in SSIS, and in December 2019 — a total of 2 million operations. That is over 5 years, the number of payments in cash offices of the Bank fell 5 times. Through Internet and mobile banking in 2015, on the contrary, operations were done less than 900 thousand. And now they are about 8.5 million per year. The increase of almost 10 times. Today approximately 85% of our Bank uses online channels.

Last year the Bank optimized the 10% of the territorial network, that is, closed 10-th part of all Bank branches.

But, despite the high proportion of banking transactions online, we can see that the Belarusian society, there remains a need in offline outlets. That’s why our Bank is planning to develop in a combined manner, seriously increasing the amount of business in a virtual form, said Belarusbank.

Similar situation and in other banks. In Belinvestbank say that they have the number of active users of remote services, mobile apps and Internet banking, only for the last 2 years increased by 39%.

— The number of individuals that use remote channels is growing each month as the number of transactions in them. For 2019 remotely conducted more than 20 million payments and over 3.5 million translations, statistics in Belinvestbank. — However, we still have one of the most extensive networks of banks. Today we have 97 offices: 6 branches, main operations Department, 26 centers of banking services, and 64 remote jobs. In addition, the network of our Bank includes 511 216 ATMs and infokiosks.

The Bank Dabrabyt over the past 10 years has closed 34 of the banking centre. The organization noted that over the past few years they have actively closed and points of exchange of currencies.

The stability of the national currency, the effort of de-dollarization of the economy do the business: foreign exchange business with the population becomes less attractive and the volume, and yield. For two years we have closed 70 banks. And by the end of 2019, the amount committed in the offices of operations immediately fell in 2 times, — ascertain in Bank.

As they say in the Bank branch takes in the first place the so-called service operations, for example, payments for utilities, mobile phones, loans and so on.

The Bank said that sometimes they have received complaints from unhappy that their offices are closed.

Banking is a service sector, like any other. Therefore, such treatment is inevitable. There is always a segment of customers who are accustomed to a certain way in the light of different reasons: age, place of residence, just habits. We are trying to work such treatment of customers, to tell about other possibilities of receiving services, advantages of online service.

That customers migrate to the state in BPS-Sberbank. Therefore, some offices had to close. However, the Bank opens a new. On January 1, 2020, the Bank had 61 unit. But detached cash Bank recently is not closed.

— If it is possible to make digital and offline — almost half — 42% of our clients prefer to do without office visit, — tell in BPS-Sberbank. In 2019, the share of online deposits exceeds 60%. In 2020 potrebkreditovaniya left in the figure is even more thorough — more than 70% of these loans feature in mobile and online banking. 99% of legal entities serviced by the Bank, are also using e-banking services.

The Bank said that the branch nobody just closes. “Estimated first demand by the population in these or those operations, prospects of development in existing areas”.

But Alfa-Bank for the last 10 years has not closed any offices. Largely due to the fact that he is quite young, on the Belarusian market since 2009.

— The Bank’s development strategy has always been aimed at the fact that the client had not needed to go to the office, so he can perform everyday tasks online. To do this, we initially did extensive network of offices, and develop delivery of cards by courier and by mail, has developed a system of remote opening and funding accounts and deposits, repayment of loans using SSIS, as well as introducing the services of the translation map at the map.

In January 2015 we worked with 46 offices, today the Bank has open 55. If we closed some Department, in order to move it to more favorable terms of business.

However, the number of cash desks in the branches of the Bank still reduced. This is due to the increase in the share of non-cash payments, the development of mobile banking through which the customer can transfer money, pay bills or currency exchange. At the moment, to close their offices or the offices of Alfa-Bank plans.

Despite the fact that we are still far from complete rejection of cash, and part of the operations while it is impossible to do without a personal visit to the Bank, and digital technology in respect of settlement and other financial services to penetrate into our life more deeply. Therefore, the reduction in the number of Bank branches is justified.

— Today, even to become a customer of our Bank, you can not visit the office, note in Alfa-Bank. — Just download the mobile banking, log in via the Interbank system identification, for example, to decorate the card. In 3-5 days it will be delivered mail in a secure envelope. Without coming to the office you can arrange even credit: in the mobile Bank, it is sufficient to specify all of the information a video to pass the verification. The system will ask to see all documents. The Bank then instantly review the application, and if approved, the courier will deliver the card in a convenient place.

“For a couple of hours to rake all the money.” What is the situation with branches and ATMs in the regions?

Bank branches were closed not only in the capital and regional cities but also in district centers. The transition to the is happening everywhere and affects not only Minsk. However, for some people, especially for the elderly population in regions to banking services are still associated with the physical office.

The Association of Belarusian banks note that, despite the fact that the number of branches is reduced, people, apparently, it does not cause discomfort. To them for this reason have not received a single complaint.

The Chairman of the Association Alexander Kuchinsky says that the reduction of Bank branches is observed mainly in large cities. “Small banks remain, — says Alexander Kuchinsky. — At the same time in our Association a lot of hits from regions that reduced the number of ATMs. There are even cases where in the village a person is given 5 cards, put on a bus and sent to the city that it all took money. Another problem is often a day of wages for a couple of hours two or three ATMs in the town, rake all the money. And to get cash is simply impossible

But the issue ATM is relevant, especially for residents of small towns and rural areas.

The Chairman of the Association attributes this to the fact that they are still in demand. In addition, the Bank in a small town is not only the place where people come for some services, but even just to talk.

If you look at the statistics of the national Bank, as changed the number of ATMs across the country over the past 10 years, from 2015 some very strong fluctuations were not. In 2014 their number increased by 274 units in 2015 and by another 52. In 2016, the ATM was less than 28, and in 2017 — 18 more. In 2019, the number decreased by 155 units, and the beginning of this year increased by 45. This means that from 2015 up to the current ATMs in the country was only 68 units less.

— Of course, to install the ATM at the request of several people is impossible, because it is difficult, even from the point of view of its protection. This is disadvantageous from the point of view of the contents of ATMs, to increase their number probably does not make sense. But we understand that the social aspect is present here, so the issue must be addressed. Not all are ready to go on the clearing. A specific solution to this problem is the adoption of the law “On payment services” because it provides the possibility of cash withdrawals in shops. This is true for rural settlements, to small towns.

In banks say that the issues of optimization of the network in the regions are carefully.

— Our main goal is to satisfy customers ‘ needs in banking services, including in rural areas — say in the country. — Today, more than 50% of all Bank branches, including regional offices mobile, the share of rural areas. In addition, residents of rural areas now have the opportunity to use Bank services in opening of deposits, making loans, operations with payment cards in more than 1,000 post offices, and to fill and close the Deposit, to interest in all departments “Belpochta”. Since the beginning of last year thus opened more than 1,300 contributions and made about 5.5 million transactions on the cards.

The Bank Dabrabyt explain that to close a Bank branch or write is determined not on the basis of in the village, what scale it is.

— Closing points is based on analysis of many factors: the size of the customer base, the availability of alternative options for obtaining the services and performing its obligations under the contracts, the availability of self-service devices, the number of points in a particular city, proximity to other points, the appropriateness of the placement, given the competitive environment, customer flow and forecast development of business and others. More often optimization of number of points occur in the cities where the Bank has more than one office, — explained in the organization.

The primary reason why close banks, is the lack of prospects for further development, expansion, and ineffective points, to explain Bank Dabrabyt.

But until the decision on the closure are being studied all the options: what are the reasons for such work, as you can influence one or another reason and that eventually it will, is it possible to break the tendency of inefficient development in a positive direction, — transfer to the Bank.

Quite often banking outlets in regional and other cities are not closed, but simply moved to a new address.

— The change of location is influenced by changes in urban traffic. Banks move to places with higher clientparams, — explained in BPS-Sberbank.

What about employees of closed branches?

One of the consequences of digitalization in the banking sector — the reduction in the number of jobs. However, banks say that their employees are still in demand and excess staff in this area is not observed.

In Belinvestbank note that professionals from the banking sector are willing to take in other financial institutions: leasing or insurance companies, currency and stock exchange and other banks.

— The employer is more willing to employ a specialist who came from the banking sector. A candidate already possesses specialized knowledge that allows him to more quickly dive into the work processes — say in the Bank. But we try to offer employees employment in other divisions, because they are highly skilled professionals.

The fact that now there is a need for Bank employees, confirms the abundance of vacancies on the websites of the banks.

More often than not, the market there are jobs for cashiers. Very popular business intelligence — credit, financial and economists with knowledge of related IT disciplines, for example economists-Cybernetics, economists and programmers — do list in a Bank. — And then the serious competition we are an IT company.

The need for banking employees there, said Alfa-Bank.

— Our Bank is now more like a tech company, which does not need as many cashiers as the developers, analysts and product managers to share in the Bank.

But the Bank Dabrabyt require cash employees.

In recent years a lot of flickers in the Network is of opinion that such a profession is slowly becoming obsolete with great care in digital channels. There is a tendency for the opening of “desolate” offices. However, major players in the financial markets of the leading countries returned to the idea that a physical separation in the classic sense must exist — say in the Bank Dabrabyt. — There are a number of transactions, which the customers more comfortable and easier to communicate face-to-face with Bank employees. In addition, many customers prefer to solve problems in the units.

The Bank say that when deciding to close a branch, we consider all options for employment of workers within the organization: the ability to move to another point of transfer to the division of the parent Bank for the development of services, improve service quality. By the way, as told in the Bank, experience with real clients “on the network” is an essential condition for a successful career.

— Unfortunately, sometimes implemented and a necessary measure — reduction in accordance with the labor legislation, the Bank said.

With the closure of offices in the country are also trying not to give away a valuable resource to others, and leave them in your organization.

BSEU: “Now the demand for Finance with information technology”

The fact that banks still need footage and the demand for them falls, and confirmed at the Belarusian state economic University. They point out that the control numbers of enrolment of students for training in the specialty “Finance and credit” is not changed for about ten years.

The target set is set on a specialty then received are divided into specializations. Their only 9: Finance, banking, taxes and taxation, insurance, Finance and credit in foreign economic activity, stock market, Finance and control in customs activities, financial management and accounting, analysis and audit, lists the Dean of the faculty of Finance and banking Natalia Lesnevskaya. — Specialization “banking” is popular among students. For the budget form a set of closed third — early closing the first or the second, and the paid form of training the set is closed in the latter. This is due to the fact that “banking” is a narrow specialization, and students studying on a paid basis, often expect to receive universal education.

The only one where I went to the outflow of students, according to Dean, it’s on the second higher education. Therefore, a set of specialization “banking business” has closed.

— Obtaining second higher education with specialization “banking” is not so popular among students. More popular in the University now of specialization, where Finance related with information technologies, — said Natalia Lesnevskaya.

Dean says that with the distribution of young professionals they have no problems. Banks come for graduates and offer them jobs.

Graduates FFBS BSEU popular among banks. About 60% of the graduates of our faculty are distributed in the banking sector, — says Natalya Lesnevskaya. Banks come to the University on the flow of trained bankers, and individually, starting from the second year, working with them. Students are 2-3 practices in the Bank, then take them to work. That is, we don’t have to ask to our graduates somewhere took. Often with 2-3-year guys are already working in call centers, get acquainted thus with products offered by banks. And after the release they do not even go into the retail business, and in departments where work with legal entities and individuals.

According to the Dean of the faculty, students rarely redistributed. That is, for two years working out the vast majority remains in the banking sector.