These days, Nurbank is celebrating its 24th anniversary. Over the years, the bank has accumulated extensive experience in customer service and efficient financial management. Eldar Sarsenov, the head of Nurbank, talks about it.
In early August, Nurbank reported its performance for the first half of 2016. As of July 1st, the bank's assets amounted to 335.5 billion tenge, an increase of 12.3 billion compared to the start of 2016. The asset growth was mainly due to a 58% increase in the securities portfolio. The number of non-performing loans has decreased from 13.2% to 9.3% since the beginning of the year. The bank's profit for January to June 2016 amounted to 559.9 million tenge, four times higher than the same period last year.
Chairman of the Executive Board of Nurbank, Eldar Sarsenov, mentions that a few years ago, this financial institution mainly developed as a corporate client bank. Now, Nurbank is universal: it actively develops retail business, engaging in lending, deposit acceptance, and providing a range of banking services for private clients.
Another key direction of development is lending to small and medium-sized businesses and providing banking services for VIP clients. Today the bank has around 17,000 depositors. Traditionally, a large volume of payroll projects is in its portfolio, involving more than 1000 companies in Kazakhstan. Participants of payroll projects receive preferences on loans, deposits, and other services.
Today, the main goal of the bank is to decrease the share of corporate business to about half by increasing the share of retail business and SMEs. By the end of 2015, the structure of the loan portfolio in corporate business (CB) was 66%, in SMEs 19%, and in retail business (RB) 15%. The plans are to reduce the CB share in the loan portfolio to 63% by the end of 2016 by increasing the SME share to 21% and RB to 16%.
“However, we have a major task — to continuously improve the quality of service,” Sarsenov states. — “Over the years, we have significantly improved many of our offices, enhancing the comfort of staying in them. People are used to perceiving banks as a complex machine. But we are changing this stereotype, becoming closer and more understandable to the client. Even strategically placed payment terminals and ATMs create convenience for clients. We have a quality service: all customer inquiries are analyzed, after which decisions are made to improve work. We are also present on social media. I personally read customer comments and, if necessary, get involved in solving issues.”
In Nurbank, they say that 2015–2016 were tough years due to the financial crisis and a shortage of tenge liquidity. However, bankers managed to finish 2015 with decent indicators. For instance, net profit for the year increased by 6.3%, amounting to nearly 1.9 billion tenge. The international agency Standard & Poor’s also pleased by confirming Nurbank’s long-term and short-term credit ratings at the level of 'B/B'. To increase confidence in the tenge and the attractiveness of the national currency, the bank raised the deposit rates — to 14.9%. Additionally, Nurbank launched the 'Educational Savings' deposit with the highest rate in the market — 21.9%.
”Individuals are an important category of clients for us, and special, now the most favorable lending conditions have been developed for them at Nurbank. Considering today's realities, we've developed several types of lending with excellent conditions: unsecured and secured, consumer and educational loans. It is safe to say that today in Nurbank are some of the lowest lending rates on the market,” the interlocutor assures.
And Nurbank strives to work closely with SMEs. Entrepreneurs note the bankers’ agility and flexibility in decision-making, saying that Nurbank well understands the needs of local entrepreneurs and strives to help not only financially but also with consultations in the field of financial management.
The bank knows that Kazakhstan's businessmen sometimes complain about the excessively harsh conditions of the banking sector for lending and high interest rates. But bankers patiently explain that lending conditions and interest rates primarily depend on the purposes and terms of the loan, as well as on the funding rates of resources attracted by the bank. Meanwhile, strong competition among second-tier banks in the SME lending sector is felt in the market. Therefore, there is a trend towards easing, rather than tightening, lending conditions — financing conditions are simplified, and remuneration rates for loans are reduced.
Nurbank also pursues an active policy of lending to the SME segment.
“One of the competitive advantages of our bank is mobility, flexibility, and an individual approach to each specific client. Depending on the needs of our clients, the bank offers a universal product line for SME loans with favorable lending conditions using its own resources and within government SME lending programs”, say at Nurbank.
Today, banks receive significant support from state programs focused on the support and development of the SME segment. Nurbank actively participates in these programs. For clients wishing to receive long-term financing and reduce the interest rate, the bank offers loans using its own funds with further subsidization of the interest rate by the state under the 'Business Roadmap 2020' program. The interest rate on such loans will be at 9–12% per annum.
For entrepreneurs involved in the manufacturing industry, there is an opportunity to receive long-term financing for up to 10 years, with a preferential interest rate of 6% per annum.
The bank also actively finances SMEs for up to 36 months using the assets of the Unified National Pension Fund (ENPF). At the same time, entrepreneurs can receive interest rate subsidies without industry project restrictions.
All these programs allow entrepreneurs to receive the most accessible financing on favorable terms, without commissions related to lending.
The market is now actively moving towards online banking services. Nurbank also has something to offer clients in this direction. The share of remote banking services is constantly growing here. Overall, the main trend in the development of banking services now is remote work. And Nurbank also strives for this. Already, clients in internet banking and its mobile application for individuals, Nurbank24, can perform up to 90% of banking services, pay for mobile communication, taxes, fines, airline tickets, utilities, and much more.
“We are also transitioning to modern service options — accepting payments through 24-hour self-service payment terminals installed in all cities of Kazakhstan. Therefore, fewer people directly visit offices. I believe that everything is moving towards the fact that each person will only visit a bank office once — for identity verification. There, they will receive electronic keys to conduct all necessary operations via the internet or other remote possibilities in the future,” says Mr. Sarsenov.
He is generally proud that most employees have been working at Nurbank for more than 5–10 years. In the interviewee’s view, this indicates good working conditions, high corporate culture, and a strong corporate spirit in the bank.
“The philosophy of our business is to benefit society while developing and revealing the talents of each employee in the work process. First of all, we strive to teach every employee to be a partner to the client,” the banker says.
Today, Nurbank turns 24 years old. How does its leader see the bank in another 10 years?
“Briefly — reliable and technological. Reliable — because the bank should be a friend and partner for the client, capable of solving any financial issues. Technological — to save clients' time and be in touch with the client 24 hours a day, 7 days a week,” concludes Eldar Sarsenov.
Source: Forbes.kz