Consumer Credit in Russia

PROSPECTS

Tighter rules on credit take in debt load and interest rate limits

In 2019, consumer credit gross lending is seeing a small dip in current value terms, after three years of dynamic growth. Meanwhile, outstanding balance continues to see strong, if slower, current value growth, compared with 2018.

Government support pushes auto lending

Auto lending is seeing the strongest growth in gross lending and outstanding balance terms in 2019. The development and growth of auto lending is mainly due to prolonged governmental support, including a subsidised programme.

Low interest rates and strong competition stimulate durables lending

While auto lending is expected to post the fastest growth in gross lending over the forecast period, durables and home lending are also projected to see strong increases. This is partly due to growth being driven from relatively low bases.

COMPETITIVE LANDSCAPE

Sberbank offers goods on credit via online marketplace

Sberbank remains the main lender in Russia. In June 2019, it launched an online platform “Pokupay so Sberbankom” (“Buy with Sberbank”) for durables lending via the domestic marketplace beru.

Quality and convenience are watchwords for lenders

In 2019, Russian banks, especially the main players, continue to lower interest rates on loans. They are also developing better quality and more sophisticated credit products that cater to the needs of different consumer groups.

Durables lenders look to online solutions and retail infrastructure

Home Credit & Finance Bank remains a strong player in durables lending. The bank’s main competitive advantages include a long-standing presence in durables lending and lending agreements with the largest retail chains.

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