Russia's VTB planning to open 600 branches in 2025, considering integration with Pochta Bank offices
MOSCOW. Dec 3 (Interfax) - VTB plans to accelerate the expansion of its regional network next year and open 600 new branches, and will consider the integration of Pochta Bank offices, VTB First Deputy Chairman Dmitry Pyanov said in an interview with Interfax ahead of VTB's Russia Calling! forum.
As part of its three-year development strategy, VTB aims to double the accessibility of its financial products and services for the population, increasing its potential reach to 100 million people by 2026. The number of VTB branches is expected to increase 40% to 1,800 locations, with courier delivery available to residents of 23,000 communities.
"In our best years before this strategy, VTB opened 50-80 branches annually. We have 345 projects planned for this year. Of course, there are easier formats, plus we have special tasks to open offices in the new territories," Pyanov said.
The bank plans to further accelerate its development and open nearly 600 branches in 2025.
"We determine the locations of new offices using an internal AI-based model that forecasts customer traffic and potential acquisition of new clients. It evaluates the geographic potential of new points based on thousands of parameters. For example, the model recently evaluated 10 to the power of 193 options for the location of a new branch in Moscow. Obviously, a final decision also requires input from the regional on-site manager. But we've developed a scientific approach to determine where and in what format to open branches, bearing in mind that we have branches of RNKB, Otkrytie, and soon Pochta Bank," Pyanov said.
VTB plans to complete the acquisition of Russian Post's stake in Pochta Bank by the end of this year. The strategic discussion about what the integration of Pochta Bank's sales points will look like is ongoing, Pyanov said.
"Pochta Bank has several types of offices. The first type are former Leto Bank offices, now called client centers. They are located in major cities, close to VTB's standard infrastructure, and require minimal modernization, making them suitable for regular retail clients. Then there are Pochta Bank-branded windows, type B windows, in post offices. This is a problematic area because they are understaffed. I sometimes visit Russian Post branches to pick up parcels, since Russian Post remains a unique channel for the legal export of imported goods to Russia, even from unfriendly jurisdictions. There are type B windows in my local post office. What's worth noting here? First, the staff shortage is evident given the high customer traffic at Russian Post. It's essentially impossible for one person to handle the flow [of customers]. Second, for some reason which has yet to be understood, there are significant technical downtimes. Third, if someone has a request regarding banking services, a queue forms quickly, creating a problematic model. What to do with type B windows is still unclear. These special formats at the post office are the subject of internal discussions," Pyanov said.