OREANDA-NEWS. February 28, 2008. By 2010 the banking retail market in Russia may include a new large player. By 2010 Bank Electronika’s clients are expected to reach 3.2 percent of the total number. Moreover, the bank will unite under the umbrella brand Electronika several sub-brands engaged in extending credit to small and medium-sized businesses, large corporate clients, and individual depositors. In the opinion of market observers, to realize these goals will require investments of considerably larger resources than the approximately $52 million the bank has announced.

The strategy of Bank Electronika in the period 2008-2010 looks very ambitious. According to the institution’s business plan, by 2010 it will hold 3.4 percent of the market for corporate crediting in the regions – that is, .5 billion rubles – and 3.2 percent of the retail segment, calculated   by number of clients (630,000 people). As part of its retail strategy, Bank Electronika is positioning itself as a regional bank for clients with average and lower incomes. By 2010, the strategy provides, the bank will open 150 retail offices in cities with populations exceeding 200,000. The corporate segment of the bank will grow under the sub-brand Electronika B2B, and retail – under the shingle Electronika.

Interfax-CEA, in its ranking of banks by asset size as of the end of 2007, awarded Bank Electronika 113-th place. Assets of the bank were 16.4 billion rubles, credit extended to individuals – 213.6 million rubles.

Market participants have taken note that the bank’s plan on whole is very impressive. “A three percent to five percent position in the market is the level of the first ten – and they have far greater opportunities than those open to Bank Electronika,” stated Dmitry Yurtsvaig, director of marketing at Russ-Bank. “In my opinion, conquering such a segment of the market by 2010 is possible only with aggressive growth and a correspondingly very large investment in retail of the bank,” observed Alexei Aksenov, head of retail business at Swedbank.

One banker suggested that the announced investment in retail of 1.3 billion rubles might be only a part of the planned infusion. Experts estimate that at one time Alfa-Bank invested roughly that sum (around $50 million to $52 million) in its retail division, Alfa-Bank Express,” noted one financial expert.

“Estimations in the market are higher now; nonetheless, the total volume of investments looks substantial,” Alexei Aksenov said.