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Results of the first all-Ukrainian market research on Private Banking became public

On February 9, 2012, a public discussion took place on the subject of "Private Banking: PB market research results (2008-2010) and prospects of its development in Ukraine". It was organized by the consulting company KPMG in Ukraine and the Private Banking Club sponsored by the Forum for Leading International Financial Institutions. In the public discussion, the participants of the research discussed the results of the first all-Ukrainian market research on Private Banking in Ukraine carried out by the consulting company KPMG in Ukraine.

The summary of the research:

The First all-Ukrainian market research on Private Banking for the period of 2008-2010 was carried out by KPMG in Ukraine upon an initiative of the Private Banking Club sponsored by the Forum for Leading International Financial Institutions in September-November of 2011.

Based on the results of KPMG research, the economic downturn did not affect the Ukrainian business of Private Banking significantly. As noted by Tetiana Zamorska, Director of KPMG Tax and Legal Consulting Department, the leader of the team of the financial sector service, "each and all the participants of the research are upbeat about the future development of the Private Banking direction and regard it as very prospective for the Ukrainian banks."

According to KPMG research data on Private Banking, the majority of Private Banking customers (44%) are business owners followed by top managers/senior executives (32%).

The top five leaders of the Private Banking market in 2008-2010 included UkrSibbank, Privatbank, Alfa-bank, OTP, and Raiffeisen Bank Aval, according to the research participants.

"It is impossible to build a civilized and efficient market without uniting efforts of its financial operators (banks, asset management companies, consulting companies). Carrying out the research at this stage is a unique experience and practical result of cooperation by the members of the PB Club who are professionals in this service market. The leadership always bears a great responsibility. We set the fashion, form the traditions, and lay the foundation of the future success. I hope that carrying out such researches will make our market more transparent and comprehensible involving the new participants and staying the permanent element of practical activity of the PB professionals community", - said Oleksii Aleksandrov, the Chairman of the Private Banking Club under the Forum for Leading International Financial Institutions, the Assistant Chairman of the Management Board, Head of Private Banking Department at UkrSibbank BNP Paribas Group.

"Today only a small number of banks are ready to offer so-called "classic" services of Private Banking to their customers. The main services provided to Private Banking customers include standard banking transactions such as opening deposit accounts and servicing current accounts, currency exchange transactions and the elite bank cards service transactions. It is explained by the fact the Private Banking direction in Ukraine is developing exclusively based on retail banking business. Therefore, currently Private Banking services in Ukraine come down to combination of generally available means such as deposits with personal service”, - Tetiana Zamorska said.

According to Elena Kolosvetova, Head of Private Banking Department in the OTP Bank, the development of Private Banking services in Ukraine is limited by Ukrainian legislation. Investment solutions are currently limited to the national currency, while the largest share of customers’ assets is assets in foreign currency. Therefore, the lobbying initiatives regarding liberalization of foreign exchange legislation will be one of the main objectives for Private Banking Club in 2012. The possibility of acquiring securities of Ukrainian issuers that are listing on foreign exchanges will expand the range of investment solutions for Private Banking clients.

"While carrying out the research, it was noted that currently there is no professional training for Private Banking experts in Ukraine. Therefore, there is a lack of dedicated financial knowledge along with reluctance of the banks to invest in costly training of their account managers. That is why it is an important task of the Club in 2012 to improve quality of Private Banking including joint development of more efficient methods of staff professional training" - noted Maksym Shakhalov, Adviser of Head of the Management Board, Delta Bank.

Results of the Private Banking Market Survey (Report)  Download [796.14KB]

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