Svyaznoy CJSC is one of the largest credit organizations in Russia at the federal level. The history of a financial institution is small and rooted in 2010. At that time, the Svyaznoy group of companies signed an agreement with Promtorgbank on the formation of a single and large-scale financial institution. Svyaznoy Bank, whose problems were not worried at the first stages of existence, immediately after its appearance introduced an innovative product on the financial market - the card of Svyaznoy Bank, which significantly diversified the range of offers and attracted attention to the organization.
History
Svyaznoy Bank (Moscow) officially started operating in 2010, but the customer structure itself was inherited from a partner in the name of Promtorgbank AK, which was established in 1992. The organization belonged to the category of medium-sized enterprises that specialize in servicing industrial enterprises and commercial companies. The experience of partnerships with legal entities was new, but very useful. The history of the Svyaznoy group of companies goes back to 1995. The main specialization of enterprises to this day remains the same: the sale of electronics, the sale of communications and computer equipment. Svyaznoy Bank, whose branches are located throughout Russia, today offers its customers a wide range of financial services including credit cards. The client base of the institute totals about 3 thousand corporate clients from various sectors of the economy. The number of retail customers has already reached 1.5 million. Standard banking services by type of cash settlement operations, loans and deposits are supplemented by factoring and acquiring services.
Svyaznoy today
Svyaznoy Bank, whose problems have appeared relatively recently and have not yet had a significant impact on the activities of a financial institution, is included in the TOP-50 banks in Russia. All bank deposits are insured by the deposit insurance system. The highlight of the company's product line was the Svyaznoy card, which successfully combined the possibilities of credit and debit. If the balance of funds is recorded on the card, 10% per annum will be credited to it. For each operation, the cardholder receives bonuses. The credit limit for this type of product is 250 thousand rubles. Bank customers can use the services of the latter in one of the many offices. Over the entire albeit short history of existence, Svyaznoy Bank (St. Petersburg) has had no complaints from customers. The level of service has always remained at its best. The recent resentment is caused by the fact that the institute set limits on cash withdrawals, thereby mirroring the actions of its competitors who are deprived of a license and have already passed the liquidation procedure.
The first harbingers of trouble
According to both clients and financial market experts , Svyaznoy Bank began to experience problems at the moment when it was decided to limit the amount of cash that can be withdrawn from an ATM. In accordance with the innovation, restrictions apply to the ATMs of both the bank and partners. Clients can cash out in one day no more than 25 thousand rubles. Transferring funds from a bank card through a P2P transfer is available only for an amount not exceeding 5 thousand rubles per day. A certain restriction has been introduced on interbank transfers in electronic format, which cannot exceed the amount of 50 thousand rubles. The only direction that is not limited by limits is payment for purchases with services using the capabilities of the QBank service inclusively.
What are they talking about in the media?
There is widespread information that the bank "Svyaznoy" closes branches throughout the country. According to the management, such an approach to the restructuring of the bank will save the lion's share of its budget. According to the management, such actions will not affect the quality of customer service in the regions, since they practically do not visit offices and use alternative options for partnership and operations. Most clients of a financial institution are inclined to believe that in connection with such drastic measures taken by management, in the near future financial institution may face reorganization, as in the case of Trust Bank, or revocation of a license. At the moment, the “Svyaznoy” bank, the addresses of its branches has been significantly reduced recently, is operating as standard with some amendments, and the institution’s management officially declares that there can be no talk of revoking the license. Information leaked to the media at the end of 2014 about the upcoming reorganization at the request of the leadership itself not only remains unconfirmed, but is also officially refuted. The only thing that Svyaznoy Bank needs, the liquidity problems of which were taken by surprise, is an investor to normalize the work. Management says there are quite promising proposals.
Credit card limits - a precaution or something more serious?
Svyaznoy is actively reducing credit card limits. If earlier in 99% of contracts the loan provided to customers ranged from 10 thousand rubles to 150 thousand rubles, today it is limited to the current amount of debt. Management explains the reduction in limits with changes in funding costs. Correcting the price of credit conditions is extremely important in connection with the current cost of raising capital. Unused loans with a zero level of use are initially pruned.
What do customers say about lowering limits?
After Svyaznoy Bank (St. Petersburg) began to cut its limits, customers reacted to the situation with a large number of negative reviews. Despite the fact that the bank says about cutting off only 5% of loans, the wave of indignation has risen very large, since the decision was made unilaterally. Whether the bank will return the limits to the previous levels will depend only on what the further economic situation in the country will be. A sufficiently large number of banks ran into problems. They suspended their activities, expecting a change in the situation, since a sharp outflow of capital may become decisive in the future fate of the institutions.
Massive employee reductions
The Svyaznoy bank, whose office addresses were sharply reduced, was not limited to closing branches. In total, from January to March 2015, the staff of the financial institution decreased by 27%. By the first of April 2015, the number of bank employees corresponds to 1406 specialists. In January of this year, this figure corresponded to 1,921 thousand people. In general, over the current year, the number of specialists at Svyaznoy Bank decreased by 36%. Significantly reduced the amount of wages paid. In the first quarter of 2015, employees of a financial institution were accrued 25.2 million rubles. This is about 27% lower than in the same period last year. At the same time, an increase in social payments was noted, which rose to 123.5 million rubles from 4.1 million rubles. Since the end of 2014, the credit institution has been experiencing certain financial difficulties. From April 16, the Bank was issued a ban by the Central Bank on accepting new deposits, as on April 1, the financial institution had moved away from capital adequacy standards in accordance with the standards of the regulator.
Bank refusal to restructure debt
Until the offices began to close, Svyaznoy Bank touted the majority of customers from all sides. There are people who actively wrote about their loyal and respectful attitude towards clients, which is not available in other large financial institutions. The emphasis was on the honesty of the organization and on the variety of products, on a flexible partnership scheme. With the onset of difficulties, according to customer reviews, the relationship has changed significantly. So, one of the clients in connection with the loss of work filed an application for debt restructuring. According to her, representatives of the bank did not give an answer to any of the many appeals. As a result, the woman talks about the constant threats of collectors on the phone and about annoying calls to all her friends. She plans to appeal to the prosecutor with a lawsuit against the bank. A similar situation is described by many other people who have decided to act in a similar way.
What do investors say?
The “Svyaznoy” bank, which deposits were previously accepted with great intensity, today does not work in this direction due to the order of the Central Bank. In connection with this fact, the opinions of customers were divided. There are two categories of people. Some are trying to intensively withdraw funds from the bank, thereby causing a strong outflow of funds and exacerbating the situation. The second group of clients, having excellent, according to them, relations with a financial organization, is not going to take any measures. People hope that the “Svyaznoy” bank, whose license is still in effect, will successfully survive temporary difficulties and will soon restore activity under the regulations. The emphasis is on the fact that even after the liquidation of a financial institution, funds can be returned through a deposit insurance agency. Experts recommend acting to those individuals whose deposit amount exceeds 1.4 million rubles, including in dollar terms.
Svyaznoy joined the ranks of problem organizations
The end of 2014 was especially difficult for every financial institution in the country. Banking crises occurred throughout Russia. Despite the wide network of offices and the scale of work, Svyaznoy got into the ranks of troubled banking structures. In November 2014, a financial institution tacked to the brink of bankruptcy. Repeatedly from that period, restrictions on limits on bank cards were introduced or removed. Initially, the limits that apply today were planned to be introduced only for the period of the New Year holidays. The panic on the part of clients who keep their savings in a financial institution is primarily due to the fact that more than 100 banks have already been closed since the crisis.
Bank's prospects for 2015
Now it’s very problematic to talk about whether the Svyaznoy bank is being closed or not, but the fact that there are liquidity problems in connection with the measures taken by the management is obvious. The external economic situation suggests that in the near future the situation will not change. Despite the increase in the amount of the insurance deposit to 1.4 million rubles, the outflow of funds from the financial institution continues, which may lead to bankruptcy. Recall that the “Svyaznoy” bank stopped accepting deposits as prescribed by the CBR, which reduced the sources of replenishment of the organization’s budget. There is information about the institute's debt to the tax authorities in the amount of 1.2 billion rubles, upon payment of which settlement with creditors will become impossible, since the debt exceeds the amount by 2.5 times. The bank's management is actively working to stabilize the institution, which gives hope for the restoration of normal operation of the "Messenger". It is too early to make forecasts, it remains only to observe the development of the situation.