Non-financial Services – A Win-Win Scenario

From a simple lender, implementation of non-financial services has transformed banks to a source of information, education, networking/access providers to markets. An updated list of NFSs goes even further and offers entrepreneurs registering business, taxpaying agencies, finding partners and targeting customers with the help of the bank.  While non-financial services help banks to differentiate themselves in their markets, it also contributes to consumer growth.

“Bank of Georgia is creating an environment where clients will receive banking and non-banking services very comfortably. For example, we can register our client as an entrepreneur, by using the function of the National Agency of Public Registry, at the same time, we can register customer at Revenue Service and open account, provide with internet banking, cards and POS terminal. All these are affordable in a branch of the Bank. This is indeed a unique service in Georgia,” said Zurab Masurashvili, Head of SME Banking Department at Bank of Georgia.

Zurab Masurashvili
Zurab Masurashvili, Head of SME Banking Department at Bank of Georgia, at Caucasus SME Banking Club Conference 2019

Masurashvili sees the importance of maintaining such approach during every step banks activity. In his words, nonfinancial services are not only trainings SME segment and added that more important is giving additional value to customer while selling your products.

“Bank of Georgia tries to allow its customers to spend more time on the development of their business, rather than at banking services,” said Masurashvili.

Consulting and informing customers while developing their business, products or services is additional value that the customers of Bank of Georgia are already indulging. For example, the Bank accumulates in-depth information and provides the best advices regarding agribusiness, like which products to use, which state grants are affordable and what are other opportunities.

“This is a win-win process for the Bank and for the customer. Adding additional values to our services contributes to attracting new customers,” said Masurashvili.

“The development of the small and medium business sector is directly linked to economic growth and job creation. Therefore, supporting this sector is one of the main priorities of TBC Bank,” said Tamuna Zhizhilashvili, Business Banking Tribe Lead at TBC Bank.

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Tamuna Zhizhilashvili
Tamuna Zhizhilashvili, Business Banking Tribe Lead at TBC Bank, at Caucasus SME Banking Club Conference 2019

The meaning of support of business for TBC Bank exceeds lending. Business Award organized by the Bank for SMEs is one of the projects that fully benefits to business clients. During the award winners are announced on the final ceremony in the following categories: Best Startup, Business for positive impact, Georgian Product, Woman entrepreneur, Touristic business, Best Business.

Within the scope of the Business Award, participating businesses are introduced to the public, and their representatives are given a platform and opportunity to meet and network with one another. As for 2018, TBC has created and published promotional videos on social media about 19 businesses.  There have been 76,253 unique visitors to the business award website, and more than 16 million impressions on Social Media and other media channels.

Like for SMEs, TBC Bank has initiated a special program for startups. In 2017 TBC Bank launched a program Startaper. The program is designed for young innovators and includes:  startup-oriented banking products, startup media and public relations support and trainings and master-classes.

Like at Georgian banks, the list of non-financial services at Ukrainian PrivatBank is also long. Just to name some, Ukrainian entrepreneurs are offered a free ecosystem for learning and support through business incubator.

Another recently launched innovative project is Tourist of Ukraine, which allows users to tell about their object and offer convenient payment options and booking and attract new customers.

Electronic document flow allows generating and sending reports to government agencies through Privat24 for Business safely and freeing of charge at any time.

“We subsidize entrepreneurs in getting cool tools for doing business. Partnership with Weblium is an opportunity for an entrepreneur to order turnkey website at a special price. A part of that cost is covered by our side,” said Julia Kislukhina, Head of KUB project at PrivatBank.

Julia Kislukhina
Julia Kislukhina, Head of KUB project at PrivatBank, at Caucasus SME Banking Club Conference 2019

SME is considered to be an important segment for PrivatBank which is quite well reflected in its credit portfolio.

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SME credit portfolio of PrivatBank amounted to 6.5 billion UAH in 2018. The figure is planned to reach 8 billion UAH in 2019.

Transformation of traditional banking services is also resounded at marketing and communication means of banks.

“Previously, PrivatBank has been more prone to PR activities. We used to be more prone to articles, press-releases in order to deliver information. Presently, the Bank is such large that it does not require direct advertisement anymore. However, we need to promote our products and introduce to customers,” said Kislukhina.

“We are observing the development of digital direction in promotion. In response, the Bank is more communicating via messengers, social networks which provide a good platform for questions and answers. We also actively are using YouTube and plan to become more active in this channel, meaning viral marketing. The Bank plans to make a series of funny, entertaining and creative video commercials regarding our services and products. So, in the future we will be more actively developing digital direction and also events.,” Kislukhina told.

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