Small Business Banking
The small business segment is a key growing area for NOMOS. The Group has over five years’ experience in working with small businesses, generally defined as businesses with annual revenue of up to RUB 200 million. NOMOS management believes that it has a strong competitive advantage in the small business banking segment. NOMOS frequently participates in programmes targeted at supporting small businesses in Russia.
Small Business Banking Strategy
Nomos has set the following general strategic priorities with regard to small business banking:
- To be one of the largest lenders to small businesses in Russia
- Move towards a relationship model focusing on leading customer service standards
- Increase focus on the micro segment leveraging the retail credit conveyor technology
Small Business Operating Model
Nomos’ unique small business banking operating model serves to build the relatively under serviced small business segment using dedicated multi-segment teams.
- Tailored sales approach to target selected customer segments
- Distribution system focused on quality service for customers
- Dedicated team leveraging the capabilities of the retail network
- Product management, development of high-margin banking products
- Sophisticated risk management system
- Strong focus on people management
- Standardization and automation of processes
- Active cooperation with the vehicles of government support of small business in Russia (Russian Bank of Development, Funds of Small Business lending support in 21 regions)
The small business segment is a relatively new but rapidly expanding business for Nomos. Approximately 64,000 small business customers are currently serviced in an efficient and dedicated manner.
Number of clients, in thousands
Small Business Banking Products and Services
The types of products and services typically offered by NOMOS to its small business clients vary depending on the scale of operations of such clients. In general, NOMOS divides its small business clients into three categories depending on their annual revenue: «micro» businesses, «small» and «medium».
|
Segment |
Turnover, (RUB in millions) |
Products |
|
Medium |
900—200 |
• Medium sized loans and overdraft facilities mostly provided to legal entitles with long established business operations |
|
• Cash and settlement | ||
|
• Bank guarantees | ||
|
• Leasing | ||
|
• Factoring | ||
|
• Foreign trade | ||
|
• Payroll services | ||
|
Small |
18—90 |
• Small loans and overdraft facilities equally provided to individual entrepreneurs and legal entities |
|
• Cash and settlement | ||
|
• Bank guarantees | ||
|
• Payroll services | ||
|
Micro |
2—18 |
• Micro loans and overdraft facility mostly provided to individual entrepreneurs |
|
• High rate of client retention after providing the first loan | ||
|
• Cash and settlement |
Small Business Banking Lending Activity, RUB in billions
Source: IFRS results
Small Business Banking deposits, RUB in billions, breakdown in %
Source: IFRS results
Small Business Banking revenues
Source: Q1 2011 IFRS results, Q1 2011 — annualized
