OREANDA-NEWS. May 06, 2013. "Megabank" serves more than 467,000 customers-individuals, for the first quarter of this year the number has increased by 5,000 persons. The objectives and priorities of the work with this group of customers told the Deputy Chairman of the Board of "MEGABANK" Peter Lashin, who until recently has worked with the other categories of clients – legal entities.

- Peter Mikhailovich, please tell us how do you know this line of work?
- I cannot say that this direction is completely new for me. In 2008, I led the Lugansk CRB, and my tasks included the development of retail business in the region. The main difference is certainly in the scale. Now it is not only the local sale of certain retail banking products, but also development of retail in "MEGABANK" in general.

- Are the methods of work with physical persons different from interaction with clients representing corporate business?
- Of course, there are differences. Clients-individuals need better communication. After all, a retail customer is, first of all, a particular person with his problems, moods, desires. But, anyway, we have in the bank to all customers, whether retail customer or legal entity, the same approach, which is high quality and professional service.

- What are the main types of services "MEGABANK" offers to clients-natural persons?
- The whole range of banking services, the key of which are loans, deposits, card servicing. Through the work of bank’s VIP-center a customer can participate in the development of retail banking products on an individual basis.

- Does today the population trust to the banking institutions saving its money? Is the confidence restored to the banks after the crisis of 2008-2009?
- Today, unfortunately, remains unstable external environment – take for example the situation in Cyprus. All this, has an impact on the mood of the population and its desire to carry its savings to the banks. But despite all of this, "Megabank" managed to draw for the 1st quarter of this year about UAH 70 million of deposits from individuals. More than 15% of new clients trust their deposits to the bank. "MEGABANK" is one of the few Ukrainian banks, which in recent years has successfully attracted foreign funding into the economy of Ukraine; our shareholders are robust international financial institutions. I am confident that these factors provide us with a greater level of public confidence. In addition, we have never given our customers reason to doubt our stability: even during the crisis of 2008-2009 we complied fully with our obligations.

- What types of deposits does "MEGABANK" now offer to its clients-natural persons?
- Now for clients-individuals the bank offers ten types of deposits:: "2+2", "Giving the spring for a year", "For the future", pension deposit "Obereg", "Term with replenishment", "Accumulative", "Productive month", "Comfortable money", "Upon demand" and "Easter".

Recently, we have increased the interest on some deposits in national and foreign currency. In particular, the increased initial interest rate of the national currency on deposit "Giving the spring for a year": now it is 17.5%. Also interest rates on deposit "Productive month" have become more attractive – now they are 16.5%. But most importantly – conditions of placemen of facilities for seniors have improved: the interest on the deposit "Obereg" in national currency for placement of 6 months reached 17.7% per annum.

To sum up: today "MEGABANK" offers deposits for one month and at three, four months, six months and so on. Some proposals we have for those customers who have not exactly decided on the term of a deposit. This is a "Productive month" and "Giving the spring for a year." If you have opened a deposit on the program "Productive Month" and did not take the money in a month, the deposit is extended for another month, and the rate on it is increased by half a percent. Thus the deposit can be renewed up to six months. The principle of the deposit "Giving the spring for a year," is the same, but initially this deposit is opened for three months, and is valid for one year.

In this case, the maximum deposit rates offered today by "MEGABANK" to its customers in the local currency are up to 20% per annum and in U.S. dollars and Euros – up to 10%.

- What deposits are the most in demand today?
- So far, the trend of the past year persists: the most popular are short term deposits or deposits which initially have a short term of placement, but their extension is possible. We have such deposits as "Productive Month" and "Giving the spring for a year."

- Do you somehow encourage clients who are your regular depositors?
- Of course, we have lots of actions that are constantly in force – one after another. On March 1, a new campaign started, "Spring in 3D", the winners of which we give two tickets to a movie in 3D. Some participants will be able to get TVs up to 22 inches, and at the end of May, in the final of the action we give away the main prize – a modern TV with the effect of 3D.  To participate, you need to open a bank deposit of not less than UAH 3.5 thousand. Any information about the "Spring in 3D" is available on the website of "MEGABANK" or by contacting one of its branches.

- As far as the loan is concerned: what directions today are credited by "MEGABANK"?
- We give out loans for housing, cars, consumer loans, property which is subject to sale. We also set limits on overdrafts.

- And what kind of loans today are most in demand?
- Consumer ones. During the 1st quarter of 2013 around 300 of our clients- individuals received consumer loans in the amount of UAH 5.9 million. These loans are disbursed in cash. In total we have processed applications for over UAH 27 mln. for 1 397 customers.

Consumer cash loans are a very popular type of loan due to the speed of decision taken on them: the application is processed within two hours. The peculiarity of this product is not only the opportunity to spend the loan money to personal use (purchase of furniture, telephone, computer, medical treatment, education, etc.), but also the ease of processing. After all, everything the borrower needs to get a loan of up to UAH 20 thousand – it is a passport and an identification number. If a person wants to take up to UAH 50 thousand, he should only provide a passport, identification number and an income statement.

The maximum amount of consumer loan is UAH 150 thousand. The money is issued for a period of up to 4 years at an interest rate of 15% per annum. All that is required from the borrower for that amount – it is a passport, code, income statement and a guarantee of individual. One can get a personal loan in one of the 75 offices of "MEGABANK" providing this service and located throughout Ukraine.

- Is the bank developing some new directions in lending?
- In April a new banking product has started – the target consumer loan, including the introduction of elements of energy conservation and energy efficiency, as well as the establishment of systems of heating, air conditioning and ventilation systems for households. Funds for this program are allocated within the framework of cooperation of "MEGABANK" and the Fund for South-Eastern Europe "GGF Southeast Europe" (GGF, "Green for Growth Fund").

Amount of the loan under the program is limited to UAH 3 mln., the loan is granted for a maximum of 5 years.  But these features are characteristic for most business projects. For home owners the amounts and timing will be smaller – we are planning to lend to individuals for a year or two. In this case, the period for which the loan is issued may be longer, if expensive equipment is purchased. The advantage of our lending, in particular, is that, if necessary, the borrower can get free advice from GGF technical experts: the consultants are ready to come at any time, and to analyze the project.

- Regarding the card service: how many plastic cards has "MEGABANK" issued in the first quarter of this year?
- The issue of plastic cards in the first quarter was 9.5 thousand cards, two thirds of which were issued under the payroll projects.

- What payment systems does "MEGABANK" work with?
- Today "MEGABANK" works with three payment systems – the National System of Mass Electronic Payments (NSMEP) and international payment systems "Master Card" and "Visa International".

- What types of cards are the most popular today?
- It so happened that the first payment system, which we started to work with is NSMEP, so 80% of our customers use the NSMEP plastic cards. Pro of this card is that it has a maximum degree of protection, as it has a chip, rather than a magnetic stripe. This card is designed for 5 years. Among its weaknesses is that this card cannot be accepted in the sales and service network, since there is too few of terminal equipment that supports and maintains the operation of NSMEP payment card. Therefore, in recent years more and more customers prefer cards of international payment systems, despite the fact that the degree of protection is not so high. But, nevertheless, this card can be used both in Ukraine and abroad, received in the sales and service network all over the world. On it you can get the money at any ATM within the state and beyond. This card gives the greatest degree of freedom.

In addition, at the beginning of this year, "MEGABANK" has signed a contract with the "MasterCard", and now we are issuing card "MasterCard Debit" under the payroll projects and social welfare payments. Pro of this card for our customers is the fact that there is a possibility to withdraw money at any ATM in Ukraine without any commission. That is, to the services of the client – more than 36 thousand units of ATM fleet of the country. This payment card can be used both in Ukraine and abroad.

- Does "MEGABANK" have credit cards?
- We have an overdraft. This service is very beneficial to our clients; despite the fact that there is no grace period (the time during which no fee is taken for use of funds). According to our overdraft commission of 3.3% is charged, but it is charged only on the amount withdrawn and the number of days for which the customer uses the money.

- Now there is a lot of talk about fraud with bank cards when money is withdrawn from them. Were there any cases with cards of "MEGABANK"?
- From year to year the number of fraudulent transactions is growing – the dynamics in this case, unfortunately, is not comforting. And Ukraine is no exception. As for our bank, remember that 80% of our customers use NSMEP cards, which, as I have said, have a maximum degree of protection. During the 13 years of our work with the NSMEP system there has been no fraudulent transactions with these cards. As far as the cards of international payment systems are concerned, in our bank no fraud has been recorded with them.