• Retail Banking Promotion

    Retail Banking Promotion by Andrey Palagin
    B&N BANK is one of Russia’s largest commercial bank organized as an open joint stock company under the laws of the Russian Federation. Bank demonstrates positive financial results, high current level of liquidity and capitalization, steady market positions and stable mutual relations with circle of corporate clients.

    Deposits capture campaign (bn RUB)
    In its business bank pays a special attention to the satisfaction of customers. Its team highly appreciates transparency and confidentiality in its relations. By launching and developing new products B&N BANK makes cooperation more effective and comfortable.

    During 2006-2010 Bank achieved impressive success in the individuals service sector, taking advantage of the great market potential and achievements in development of regional branch network. By the beginning of 2010 the number of active accounts of the bank’s private customers reached 500 thousand, and the volume of retail liabilities has exceeded 44 billion rubles.

    The success of the bank was ensured by an active policy on the market of private contributions, standardization of the product line and all the processes of conducting the deposits. 85.2 million rubles had been planned in 2009 to promot time deposits and actually spent only 68.5 million. It became possible to increase the Bank’s retail passive portfolio of more than 14.5 billion rubles.
    B&NBANK’s achievements at the retail market were noted and acknowledged by independent experts, and the Bank’s rankings was getting higher throughout the year. Business weekly, «The Money» placed B&NBANK on the 21st position among the thirty «top retail» banks and 27th position in «Top Credit Banks» rating. «D-Shtrikh» magazine, in its issue for January 2008, placed B&NBANK at the top of «The Best Credit Cards» chart (comparison of cards with the grace credit period and credit limit up to RUB 150,000).

    By way of example, in 2007, introduced to the market were: Dokhodnaya (Profit-Making) Banking Card combining the advantages of an ordinary payment card and time deposit profitability, a mortgage credit lending program for acquisition of cottages, country houses and townhouses; since 2007 13 regional branches have launched the Personal Credit Consultant service, etc.

    In marketing the «Dokhodnaya» Card B&NBANK marketing units undertook a large-scale research of regional markets of debit payment cards, determined competitive price parameters and elaborated promotional programs. The research demonstrated that the Bank had developed a product unique for mid-2007 unmatched by its characteristics. In 2007, B&NBANK’s Marketing Department conducted a consistent efforts for monitoring and adjustment products of price parameters offered by the Bank. Actively expanding regional business the Bank devotes a great deal of attention to monitoring the situation on local financial markets in order to ensure optimal parameters of products and services offered through the Bank’s branch network.

    The Bank conducted research concerning tariffs for and structure of services related to issue and servicing of plastic cards, lease of deposit boxes, remittance of private clients’ cash, credits for new business development and under bonus programs for present borrowers, twice made the study of competitive environment and prospects of leasing services in Russia.

    A landmark of 2007 was the program «Exchange your regular for our golden». Within the framework of the action each individual who had come of age of 18 and produced a valid banking card of any bank had an opportunity to get a Gold category «Dokhodnaya» Card without withholding of any obligatory minimal initial contribution. The action was supported by press advertising campaign, a promotional action on Radio Maximum with draw of cards, and a promotional mail campaign.

    As a result of the action 24,698 cards were opened, the sales (of trade and service enterprises) on Dokhodnaya Cards grew on the average 8 times, the balances of Dokhodnaya Card accounts increased by almost RUB 580 million.

    A more remarkable event of 2007 was a promotional lottery for «Super Summer» depositors within the framework of which all clients who had opened and not terminated the «Super Summer» deposit before August 31, 2007 became lottery players (jackpot – five seven day tours for two). The action attracted over RUB 5 billion in deposits.

    During the first half of 2008 priority promotion was set to a consumer crediting and credit cards. To increase customer interest to these products “Too much needs” advertising campaign had been developed and “Credit Card B&NBANK – money always at your hand.” Major marketing communications channel was printed media (press) and radio. Total cost of advertising campaign was 21 million rubles, which gained 1.9 billion rubles to bank’s loan portfolio.

    In mid-2008 due to unfavorable market conditions of macroeconomy and instability in the financial markets B&NBANK had made adjustments in the promotion strategy, reallocating resources to attract new corporate customers and increased activity in retail deposits.

    B&NBANK had developed and introduced the new range of deposits “Profitable +”, promotion campaign named “Income on your terms” had been organized. It included stimulating lottery which was conducted on a quarterly basis in order to win any additional increase in investor contributions twice. Bank’s costs of promotion – 12 million rubles allowed to attract deposits of about 6 billion rubles in total.

    In 2009 B&NBANK had introduced new time deposits “What? Where? When?” and “Pension deposit”, and the bank changed the profitability of the previously introduced deposits “Dokhodniy”, “Dokhodniy VIP”.

    B&N Bank: Federal marketing campaigns, B2C products promotion

    Sales support and promotion of “What? Where? When? ” lasted ten months, during that time the number of depositors grew up by more than 25%.

    In 2009 for whole the year of time deposits promotion the Bank had set 85.2 million rubles budget. And actually it had spent 68.5 million. This had gained to passive retail portfolio of the Bank more than 14.5 billion rubles. In 2009 total advertising budget exceeded 229.5 million rubles.

    In addition in the second half of 2009 and 2010 B&NBANK promoted brokerage service, “universal” debit card and new line of consumer crediting products.

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