Retail Deposits

Retail deposits remain one of bank’s key funding sources. It undertook a large-scale marketing campaign in 2019 to attract private deposits and launched, in the beginning of that year, an accumulation account product which helped expand its portfolio of demand deposits.

In February, the deposit range was supplemented with a MEGA Online special deposit that provides an option to choose any number of months between 3 and 36 as the deposit term and may only be opened via MKB Online. A new term of 18 months was offered for All-Inclusive and Grand deposits.

In December, a New Year’s Dreams combined deposit with IIA (individual investment account) was added to the product range as part of the promotional New Year offer.

The retail deposit portfolio reached RUB 486 bln in 2019, which is 30% or RUB 111 bln higher than the previous year. The customer retention rate reached 85% in 2019. Remote service channels — online banking and mobile banking — play an important role in depositor retention.

Retail deposits (RUB bln)

Letters of Credit

Special attention was paid in 2019 to encouraging individuals to use letters of credit in real property transactions as a risk mitigation tool. In March 2019, an agency agreement was made with one of the largest developers, PIK Group, to increase the amount of raised funds for letters of credit from RUB 0.7 bln to RUB 2.5 bln per month.

Additional steps included agency agreements with other developers and individuals,

which doubled the balances
to RUB 3.2  bln,
in total, as compared to the beginning of the year.