Annual report 2010

Strategy

Bank Vozrozhdenie’s business development focuses on key areas of corporate and retail demand to ensure long-term growth of shareholder value.

The Bank’s main priority is to offer a full range of banking services to both companies at all stages of their development and individuals at any point in their life. Bank Vozrozhdenie aims to constantly improve customer service, establish long-term client relationships and promote its brand. Our client policy aims to achieve a high level of client loyalty through brand positioning, an optimal product offering and high standards of service.

Key aims in the development of our client base are to increase the number of sales of different products to new and existing clients and proactively use the potential in the Bank’s corporate client base to attract retail clients from their long-term employees with stable incomes. Special offerings may be produced for this segment. With an extensive line of modern banking services, the Bank focuses on proactive development of cross-selling and increasing non-interest income as a share of its revenue structure.

Bank Vozrozhdenie focuses on sustainable growth by developing our business and increasing our clients’ prosperity. Their funds remain the principal source for funding the Bank’s operations.

Bank Vozrozhdenie operates in three key segments: retail, corporate and financial markets.

To support long-term growth across all business segments, Bank Vozrozhdenie plans to create an efficient infrastructure to meet key business goals. To increase the quality of service offered to clients, the Bank focuses on balanced development of its sales network through its offices and self-service facilities. We adhere to a strategy of gradual regional expansion, and plan to focus on regions where the Bank already has active branch offices. The number of sales points will be increased to meet market demand in each specific region and within the limits set by the Bank’s business model. Further development of the Bank’s sales infrastructure will focus for the most part on Moscow Region and neighboring areas, and on the Southern and North-West areas of the country.

The Bank sees IT as a major factor in maintaining its competitive advantages and increasing the quality of service offered to clients, as well as in improving management by using the latest information and communications technologies. In 2011, the Bank’s IT activities will focus predominantly on boosting the quality of our IT service offering, and also on developing and introducing internet and mobile banking.

The Bank’s marketing strategy is intertwined with its key business goals. It aims to strengthen the Bank’s competitiveness and increase customer loyalty and satisfaction by developing sales channels (including the branch network), by offering products that match client requirements more exactly than those of competitors, by ensuring high standards of customer service and by developing the Bank’s brand.

We consider customer satisfaction and loyalty to be an objective measurement of the effectiveness of our marketing strategy. The Bank aims to be among the market leaders on these indicators among both corporate and individual clients.

The Bank’s brand is an important asset. Our goal for the next five years is to establish ourselves among Russia’s five leading banking brands in all key regions where the Bank is present. We will develop the Bank’s brand based on the understanding that our most valuable asset is our client relationships. We work in genuine partnership with our customers, and our relationships are built on being responsive, humane and reliable. We are the Bank that can be relied on in both good and more difficult times. It is these relationships with our clients that differentiate us from other banks today and will continue to do so in future.

The Bank aims to promote its brand as a whole, rather than individual products, using all possible means of communication: television, radio, outdoor advertising, print media, the internet and targeted communications.

In 2011, the Bank plans to make broad use of direct, targeted communications based on detailed client segmentation using special software to analyze its database.

A particular emphasis is placed on quality of service.

Service-quality issues include measures in four areas:

Our public relations program is a priority area in our brand-development strategy. The Bank attaches great importance to providing timely, reliable and complete information to partners, customers and shareholders about the day-to-day life of the Bank, its goals and results. Transparency and openness of information form part of the Bank’s development strategy.

Bank Vozrozhdenie’s strategy includes ongoing corporate governance development in accordance with best international practice and the interests of shareholders. The bank intends to improve the efficiency of the Board of Directors, including by establishing new committees on strategy and corporate governance, launching self-assessment procedures, and also by optimizing interaction with the Bank’s executive management. We also intend to increase the role of the Board of Directors in our risk-management function by creating a risk committee, and improving the way in which we provide information to Board members in this area. We see further improvements to procedures aimed at avoiding conflicts of interests between all stakeholders at the Bank as an important aim.

The Bank’s risk management strategy targets further improvements to the risk-management system appropriate to the Bank’s business goals and the quantity and extent of assumed risks. It is based on meeting the Bank’s strategic goals as set out by the Board of Directors. High-quality risk management is a competitive advantage that improves the Bank’s capitalization.

Bank Vozrozhdenie’s HR policy targets the realization of each employee’s potential. The Bank’s priorities in this area include motivating employees to achieve key business goals, creating an effective internal-communications function, and developing employees’ professional potential.

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© 2011 Bank «Vozrozhdenie»