Management Strategy

The positive developments at Oschadbank in 2003-2006, the raising of additional authorized capital, and the noticeable support from the State as the Bank’s sole shareholder provide a solid basis for an effective action program aimed at restoring and maintaining both its positions as a stable, transparent and competitive banking institution closely cooperating with state-run companies and its leadership in retail banking.

Under the Bank Development Program 2006 – 2010 approved by the Supervisory Council, all undistributed income will be re-invested to increase the Bank’s capital.

The key strategic business areas of the Bank are described below:

• maintaining key positions on the retail banking market, enhancing lending to households and extending borrowings from individuals;
• maintaining active positions on the corporate banking market;
• ensuring leadership in payment and cash transactions;
• enhancing the Bank’s internal performance by improving business procedures, branch network optimization and bank technologies.

 In retail business the target segment for Oschadbank is middle-income clients.  The Bank will provide simple products for savings, consumer and housing loans, deposits operations and payment transactions. In corporate business, Oschadbank aims to increase its loan portfolio with a range of loan products for small and medium size businesses.

The Bank plans to gain market leadership in payment and cash handling services by increasing efficiency through implementing innovative technologies, increasing share of automated business processes, unifying internal data-processing procedures and implementing tariff incentives.

• Plastic cards: complete replacement of magnetic stripe cards into microprocessor-based cards and increase its market share in International plastic cards;
• Express money: unification of express transfer systems with payment systems and major banks with a wide range of affiliates;
• Household payments: launch mobile payment options such as Internet banking, ATM network and PC banking.

 Additionally, Oschadbank is highly committed to maintain its positions as the major operator on the government securities market and will continue to be an active player on the inter-bank lending market.

Informational technologies (IT) is an integral part of banking business. Within the framework of centralization and improvement of the Bank’s managerial processes, there will be introduced a modern system for support of managerial decisions. In the area of customers’ services, IT will enable provision of real-time services, access to accounts from any Bank branch or through any channel and provisions of a complete updated range of products and services.