What is going to be changed in the banking system in the new year?
The banking system has always been dynamic in its development. The principles of regulation, control schemes are changing. These are the trends that will change the banking system in the new year.
Ecosystem development
The idea of creating ecosystems has been developing for several years. The initiator and encourager here was Sberbank, which successfully bought out and implemented systems that were far from banking. The idea was actively discussed at the economic forum in St. Petersburg. Bank representatives divided into two camps. Someone is sure that the introduction of ecosystems is the right way for the further prosperity of banks. Some representatives believe that banks vainly concentrate on non-banking services, since they will not give a significant rise.
The new year will be full of banks’ attempts to integrate non-banking services into their ecosystems. They will have 2-3 years for the experiment to understand whether it is worth doing this or is it better to abandon the idea.
Decline of the retail loan market
In 2020, experts will be able to relax and not worry about the growing tension in the retail lending market. The portfolio growth rate will not go beyond 10%, and the number of issues will remain the same. Market players will soon get used to the changed conditions of debt management. It will not be easy for everyone, it remains to hope that in 2021 regulators will not be forced to introduce emergency measures to unfreeze retail banking.
Large investments
The decrease in deposits rates and the simplification of broker services have created favorable conditions for the market for numerous investments. Today it is possible to become an investor within 10 minutes. You need to install the application, register and deposit your account. At the same time, it is absolutely not necessary to make large contributions. This subtle investment revolution is changing the playing field in the marketplace by connecting a massive customer base.
Small business support
Previously, small business lending was virtually inaccessible. This depended on the shadow accounting by companies and the bank’s inability to conduct a sufficiently competent examination of the company’s solvency.
In the new year, the Federal Tax Service is stimulating small businesses to maintain clean bookkeeping, which makes companies more understandable to banking organizations.
Also, lending to this segment has significant potential for growth.
Price competition among credit cards
The decrease in rates also affected credit cards. For January, rates reach 25-35%, which is too high for this segment.
Given that credit card users have little effect on the impact of rates, banks will not abandon this lucrative tool. From 2016 to 2019, the index (according to Frank RG) for mortgage loans decreased from 12% to 8.4%, for car loans — from 14.4% to 10.5%, for cash loans — from 18% to 11.8 %, and on credit cards — from 24.7% to only 21.8%. The competition in this segment continues to grow. To start a price war, one of the banks just needs to introduce reduced rates.
Refusal of cards
The Russian market liked the services that allow paying with the help of gadgets. The number of operations is constantly growing. There is a possibility that banks will offer customers cards not in physical form, but in virtual version.
Offensive against insurance
The regulator has long been planning to streamline the list of insurance products that come with loans. The debriefing start date is constantly being postponed.
Perhaps in the new year, the Central Bank will take measures to impose restrictions on banks working with such products. Last year, Vladimir Putin signed a law according to which the borrower can partially return the amount of the insurance premium, provided that the loan is repaid ahead of time.