Consumer Finance in Russia
Euromonitor International's Consumer Finance in Russia report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 109 | Publication date: Jul 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Credit cards boom driven by leading banks
Personal credit cards showed very strong growth in 2008 due to an increasing number of credit cards in circulation driven by aggressive marketing and promotional campaigns of the leading players, such as Russky Standart, Home Credit Finance and City Bank. Since credit cards are mainly used to purchase expensive goods they tend to replace consumer lending which is mostly evident in durable goods retailing. Banks are also more interested to issue credit cards instead of giving more risky consumer credit.
Salary cards used more for purchase and get credit function
Debit salary cards given by the employers to their workers continue to be the most widespread financial cards in Russia taking a lion’s share of all debit cards in circulation. Though most of the cardholders still use their cards for ATM withdrawals, more and more these cards are used in the shops, especially in the large cities where merchant acceptance has been on the increase. Credit function is growing more and more popular among salary debit card holders with banks advertising this additional service targeting workers with mid and high salaries.
Social cards to drive market further
The distribution of social cards (categorised as other pre-paid) aimed to transfer social benefits to pensioners, students and other categories has contributed to the significant increase in the number of cards in circulation and boosted the development of the National Payment System. The distribution of regional social cards started from Moscow and St. Petersburg and recently they have been also introduced in the Urals, Volga region and Bashkortostan. To unify regional and Federal benefits in 2008 an all-Russian project was launched to develop the United Social Card.
Cash payments still prevail in internet shopping
Internet shopping is driving debit and credit transactions in Russia as more and more knowledgeable internet users make online purchases of airline tickets, make bookings and buy goods. At the same time, cash and virtual money take a much larger share of online payment transactions than financial cards. This is due to the continued difficulties in ensuring safe online payment systems, as well as the rather low number of financial cards with online payment facility in Russia. To facilitate virtual money transfers for financial cardholders, in 2008 Yandex Money introduced a new option which allows ATM transfers into and from the virtual money account.
Post of Russia installs point-of-sale terminals
Post of Russia, which has more than 40,000 offices in 79 regions of Russia, is increasing the number of point-of-sale terminals (accepting American Express, VISA, MasterCard, Union Card and Golden Crown) at its offices from 12,000 to 20,000 in 2008. This project is expected to last for the next three years and is supported by the government. In the remote and underdeveloped regions where there are no banks, the local population will now have an opportunity to use debit and credit cards. Businessmen and travellers visiting remote areas will have access to their financial card accounts at the post offices.
Table of contents
CONSUMER FINANCE IN RUSSIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Credit cards boom driven by leading banks
Salary cards used more for purchase and get credit function
Social cards to drive market further
Cash payments still prevail in internet shopping
Post of Russia installs point-of-sale terminals
KEY TRENDS AND DEVELOPMENTS
Social cards boom in the regions
Acquiring services on the increase
New legislation to increase merchant acceptance
Post of Russia to drive financial cards
More online payments linked with financial cards
MARKET INDICATORS
Table 1 Number of POS Terminals 2004-2008
Table 2 Number of ATMs 2004-2008
Table 3 Disposable Income 2003-2008
Table 4 Value Lost to Fraud 2003-2008
Table 5 Acquirer Fraud 2003-2008
Table 6 Card Expenditure by Location 2008
Table 7 Card Expenditure by Sector 2008
Table 8 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 9 Domestic versus Foreign Spend 2008
MARKET DATA
Table 10 Consumer Payments: Value 2003-2008
Table 11 Financial Cards: Number of Cards in Circulation 2003-2008
Table 12 Financial Cards Transactions: Value 2003-2008
Table 13 Financial Cards: Number of Transactions 2003-2008
Table 14 Financial Cards: Number of Accounts 2003-2008
Table 15 Financial Cards: Number of Cards by Issuer 2003-2007
Table 16 Financial Cards: Number of Cards by Operator 2003-2007
Table 17 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 18 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 19 Consumer Payments Forecast: Value 2008-2013
Table 20 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 21 Financial Cards Forecast: Value 2008-2013
Table 22 Financial Cards Forecast: Number of Transactions 2008-2013
Table 23 Financial Cards Forecast: Number of Accounts 2008-2013
DEFINITIONS
Summary 1 Research Sources
CONSUMER LENDING IN RUSSIA
EXECUTIVE SUMMARY
Robust performance dampened by financial crisis
Banks increase rates and enhance lending standards
Mortgage lending faces serious problems
State banks improve their position
Uncertain future awaits consumer lending market
KEY TRENDS AND DEVELOPMENTS
Official bank rate keeps increasing
Banks begin to tighten lending standards
Financial crisis leads to abrupt change in lifestyle
Increased access to durable credit in rural areas initiated by Post of Russia
Rapid increase of mortgage lending before the financial crisis
MARKET DATA
Table 24 Consumer Lending By Sector: Outstanding Balance: Value 2003-2008
Table 25 Consumer Lending By Sector: Outstanding Balance: % Value Growth 2003-2008
Table 26 Consumer Lending By Sector: Gross Lending: Value 2003-2008
Table 27 Consumer Lending By Sector: Gross Lending: % Value Growth 2003-2008
Table 28 Consumer Lending: Non-performing vs Other Loans 2003-2008
Table 29 Mortgages/Housing: Non-performing vs Other Loans 2003-2008
Table 30 Consumer Credit: Non-performing vs Other Loans 2003-2008
Table 31 Forecast Consumer Lending By Sector: Outstanding Balance: Value 2008-2013
Table 32 Forecast Consumer Lending By Sector: Outstanding Balance: % Value Growth 2008-2013
Table 33 Forecast Consumer Lending By Sector: Gross Lending: Value 2008-2013
Table 34 Forecast Consumer Lending By Sector: Gross Lending: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - RUSSIA
GOLDEN CROWN - CONSUMER FINANCE - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Golden Crown: Key Facts
Summary 4 Golden Crown: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Golden Crown: Competitive Position 2007
RUSSKY STANDART BANK ZAO - CONSUMER FINANCE - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Russky Standart Bank ZAO: Key Facts
Summary 7 Russky Standart Bank ZAO: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 Russky Standart ZAO: Competitive Position 2007
SBERBANK (RUSSIAN SAVINGS BANK) - CONSUMER FINANCE - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Sberbank (Russian Savings Bank): Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 Sberbank (Russian Savings Bank): Competitive Position 2007
UNION CARD - CONSUMER FINANCE - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Union Card: Key Facts
Summary 12 Union Card: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 13 Union Card: Competitive Position 2007
UNITED CARD SERVICES (UCS) - CONSUMER FINANCE - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 UCS (United Card Service): Key Facts
Summary 15 UCS (United Card Service): Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 16 UCS (United Card Service): Competitive Position 2007
ATM TRANSACTIONS IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 ATM Cards Sector Performance: 2003-2008
Table 36 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 37 ATM Cards Sector Performance: % Growth 2003-2008
Table 38 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 39 ATM Cards Forecast Sector Performance: 2008-2013
Table 40 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Debit Cards Sector Performance: 2003-2008
Table 44 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Debit Cards Sector Performance: % Growth 2003-2008
Table 46 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Debit Cards: Number of Cards by Issuer 2003-2007
Table 48 Debit Cards: Number of Cards by Operator 2003-2007
Table 49 Debit Cards Transactions by Acquirer 2003-2007
Table 50 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 51 Debit Cards Forecast Sector Performance: 2008-2013
Table 52 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 53 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 54 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Credit Cards Sector Performance: 2003-2008
Table 56 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 57 Credit Cards Sector Performance: % Growth 2003-2008
Table 58 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 59 Personal Credit Cards Sector Performance: 2003-2008
Table 60 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 61 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 62 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 63 Commercial Credit Cards Sector Performance: 2003-2008
Table 64 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 65 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 66 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 67 Credit Cards: Number of Cards by Issuer 2003-2007
Table 68 Credit Cards: Number of Cards by Operator 2003-2007
Table 69 Credit Cards Transactions by Acquirer 2003-2007
Table 70 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 71 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 72 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 73 Credit Cards Forecast Sector Performance: 2008-2013
Table 74 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 75 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 76 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 77 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 78 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 79 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 80 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 81 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 82 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 83 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 84 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN RUSSIA
HEADLINES
TRENDS
PROSPECTS
STORE CARD TRANSACTIONS IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Store Cards Sector Performance: 2003-2008
Table 86 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 87 Store Cards Sector Performance: % Growth 2003-2008
Table 88 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 89 Store Cards: Number of Cards by Issuer 2003-2007
Table 90 Store Cards Forecast Sector Performance: 2008-2013
Table 91 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 92 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 93 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013