Gulnara Musatayevа commented on the market situation and how the bank intends to transform its products
It has been six months since Gulnara Musatayevа took the position of head of Nurbank. Despite the challenges in the financial market, she intends to transform the bank's activities, notably strengthening its positions in the retail and SME sectors. Some of the options the bank is launching this year include implementing money transfer services from card to card via phone number, including internationally, and introducing a marketplace for goods and services in the banking app. In an interview with the business information center Kapital.kz, Gulnara Musatayevа discussed the bank's plans and projects, her experience at the National Bank and the AFN, and the initiatives being discussed in the financial market.
— Gulnara, what new tasks are ahead for the bank?
— We are actively working on developing a new strategy for 2025. Several strategic sessions have been conducted, and there is an understanding of the upcoming changes, primarily concerning customer service.
I often hear futurists predict that fintech players will take the place of banks. However, I believe there will remain a category of customers who value personal interaction with bank managers and private service. It is during conversations that they can receive advice, consultations, and clarification on any information.
Nevertheless, we are also dynamically developing digital channels. In 2021, the bank introduced a new version of online banking for individuals. Through this platform, we will offer not only online loans but also sell products through a marketplace where you can use any bank's card. This year, we are launching online lending.
We plan to diversify the loan portfolio, intending to increase the share of the retail business. Particular attention will also be paid to further developing microcredit for individual entrepreneurs, with a 3.7% increase in loans issued in 2021 compared to 2020. Providing microcredits is excellent support for small business entities, as this segment is more flexible and largely determines the country's economic growth pace, being a major job provider. Currently, the corporate block's share in our loan portfolio is 56%, SMEs have 28%, and retail has 16%. We are enhancing our work in transactional business, implementing phone number-based transfers between individuals internationally.
— Let's turn back time... In the mid-90s, you worked at the National Bank, and in the early 2000s — at the AFN. Tell us about this experience.
— It was invaluable experience. At the National Bank and the AFN, my work was directly related to developing regulatory acts in currency regulation and accounting fields. I also participated in drafting the Laws "On Currency Regulation", "On Payments and Money Transfers", and the Chart of Accounts for BВU. The last document was based on France's experience and adapted to Kazakhstan's conditions.
An especially interesting task was working on the bill "On the Protection of Consumer Rights in Financial Services". I not only participated in drafting this document but also defended its provisions in the Majilis and various committees. One of the initiatives that encountered the greatest opposition from banks was the provision prohibiting unilateral changes to the reward rate for retail loans for three years. We achieved that banks and other financial institutions cannot unilaterally increase interest rates on loans during the entire contract term.
— Yes, this measure was necessary for the market. Let's move to personal matters; every profession demands dedication. Where do you recharge, what inspires you?
— Currently, I am inspired by projects that we manage to successfully implement at the bank. Let me tell you about one. In 2014, together with Caspian University, we launched a social program called "Ticket to Life", which was initiated by the bank's shareholder Eldar Rashitovich. Within this program, the bank helps children left without parents get a higher education and employment. We cover tuition fees, accommodation, meals, travel, provide monthly scholarships, and more.
Before being admitted to Caspian University, applicants undergo a sort of competition, after which we select those who scored the highest points on the UNT. They can take any program offered by the university. Since the project's inception in 2014, 127 participants have taken part. This year, 24 students are studying in 13 specialties.
In the current year, we signed a memorandum with De Montfort University Kazakhstan, allowing us to attract students from this institution for internships and employment. Thus, we participate in developing a new generation of professionals.
— If you had a time machine and could turn back time, what would you change in the banking sector?
— I assume Kazakhstan could have implemented the Law on Bankruptcy of Individuals, which is now under development, back in the 2000s when consumer protection regulations were introduced in financial services. Russia enacted its Law on Bankruptcy of Individuals in 2015. Apart from citizens themselves, creditors such as banks or tax authorities can also file for bankruptcy.
It is important not to view this initiative as a means of leniency for borrowers. It is assumed that in Kazakhstan, after a borrower is declared bankrupt, they won't be able to obtain loans from banks or MFIs and won't be allowed to leave the country for a certain period. These criteria are mentioned in one version of the Law on "Restoration of Payment Solvency and Bankruptcy of Citizens RK". I believe the law should include a provision preventing the recognition of a borrower as bankrupt if they only own one property. After all, they have an asset they can sell to purchase real estate at a reduced price.
— In February, due to the situation around Ukraine, the rate fell to 452 tenge per dollar. Did you observe any panic among your depositors, or an outflow of deposits? Were there calls from corporate currency borrowers?
— During that period, our depositors did not panic, and there was no significant outflow of deposits. However, there were calls from currency borrowers. Given that the dollar rate abruptly increased on February 24, it became more challenging for some companies to meet their foreign currency loan payments. Understanding our clients' difficult positions, we are restructuring payment schedules without increasing the next payment amounts.
— What are your plans? Are you considering attracting additional funds through bond placements?
— Currently, we do not have the need for recapitalization. In 2020, we placed bonds totaling 47 billion tenge and issued shares for over 20 billion tenge.
We partner with many individuals and enterprises and strive to offer our clients and partners exceptional banking services, products, and support.
Our growth and development are based on long-term vision, strategy, and goals, rather than short-term interests. Furthermore, our success is supported by long-term relationships of trust with clients, partners, and shareholders. Despite global economic challenges in recent years, we have managed to maintain effective operations and achieve excellent results.
According to first-quarter 2022 data, Nurbank retained its market positions in the rankings of leading banking market players based on key financial indicators such as assets, liabilities, loans, deposits, profits, and equity capital.
At the end of the first quarter of the current year, the return on equity was 7.1%. Following the strategy of a modern commercial bank, we increased the share of retail loans and SME loans. Additionally, we achieved significant progress in international transfers to neighboring countries. In other words, we have sufficient resources for the bank's quality work.
We continue to diversify the business, improve digital channels, and enhance customer service quality.
In 2022, the bank celebrates its 30th anniversary, and we aim to meet our clients' trust and expectations by continuing dynamic development, balanced growth, and introducing new services and technologies.
Source: kapital.kz