Wealth Management Unit of Sberbank boosts share of online sales 10 times

Aug 21, 2020

Over the year, the share of online sales of Sberbank’s Wealth Management Unit increased almost 10 times, to 19.4% as of the end of June 2020 from 2.8% in 1H19. In absolute figures, unit sales across remote service channels reached RUB4.3 bln in 6M.

Natalya Alymova, Senior Vice President and Head of Wealth Management Unit, Sberbank,

“Accelerated digitization of the Wealth Management Unit’s business was among the biggest positive outcomes of the challenging months of operations during the pandemic. Since April, we’ve moved the entire product range of Sberbank Asset Management and NPF of Sberbank’s personal pension plans (PPPs) online. Furthermore, we’ve made the loss settlement services available remotely for all types of insurance and allowed customers to file insurance claims and introduce changes to life insurance agreements online.

In January we set several goals for 2020, such as to introduce all welfare products and 75% of after-sales to Sberbank Online, as well as increase the share of online sales to 20%. It is already clear that we will beat the target. In June, online sales accounted for 49% of all PPPs, 10% of personal investment account agreements (PIAs), 65% of open-end mutual funds (OEMFs), and 25% of all capital management products. The proportion of online sales of high-risk credit and boxed insurance products increased from 5% in June 2019 to 16% in June 2020. In general, the share of unit’s online sales has grown almost 10 times, to nearly 20%.”

The digitization of the unit’s business is ongoing. For instance, we have modified our home and apartment insurance program into an online constructor letting customers choose the optimal insurance terms. We’ve marketed a new insurance policy covering your favorite things. A marketplace for MTPL has been launched in the bank’s mobile application. Soon, Sberbank life insurance products will also be added to the mobile banking solution.”

Today, online registration is available for all high-risk insurance products of Sberbank insurance and Sberbank life insurance. Through Sberbank Online you can also sign PPP agreements, invest in 18 OEMFs, discretionary management strategies, PIAs with a turn-key strategy and five ready-made investment portfolios tailored in accordance with customer risk profiles. In addition, the option of redeeming OEMF shares has been made available online. Today, after-sale services are available under life insurance contracts; for instance, you can claim insurance payouts or make changes to contracts.

Natalya Alymova, Senior Vice President and Head of Wealth Management Unit, Sberbank,

“The unit has met all its main KPIs for 1H, with its business line being the third largest inside Sberbank Group. The total assets under management, pension savings, and assets of Sberbank’s insurance business added 6% in April–June 2020 to near RUB1.6 trln. The unit’s 2Q operating income amounted to RUB29 bln, thus securing 5.6% of Sberbank Group’s aggregated IFRS operating income.”

The Wealth Management Unit of Sberbank develops investment, savings, high-risk insurance products and services, and the Sberbank Private Banking division. The unit oversees the business of five subsidiaries: Sberbank life insurance, Sberbank insurance, Sberbank Asset Management, NPF of Sberbank, and Sberbank Insurance Broker.