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BANKING IN EGYPT

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On the occasion of winning the Best Investment Bank in Egypt for the fourth consecutive year, Global Banking & Finance Review spoke with Hassan Abdalla, CEO of Arab African International Bank about the banking sector in Egypt. 

Hassan Abdalla, CEO , Arab African International Bank

Hassan Abdalla, CEO, Arab African International Bank

In your view what is the current state of Egypt’s economy in terms of stability and potential for growth? 

Egypt is quite on track. The decisions taken by the Egyptian government lately aim to restore financial stability and investors’ confidence, while at the same time, increasing employment opportunities.

Aside from de-pegging Egypt’s Pound from the US Dollar, a number of measures have been taken by Egypt to rectify its large fiscal deficit. To name a few, introducing VAT & progressive taxes, slashing the public sector wage bill, and lifting of fuel subsidies were pre-requisites to approve the recent IMF loan. The move was applauded by Global Rating Agencies which have reaffirmed Egypt’s B-/B long and short-term sovereign credit ratings and revised the outlook from “negative” to “stable”. Hence, the structural reforms should aim to transform Egypt’s economy into a market-driven, private sector-led, competitive enterprise capable of generating high rates of inclusive and sustainable growth.

Egypt is a deep rich market with high resilience, and provides very lucrative returns compared to the risks entailed.

What impact are regulations and reforms having on the banking industry in Egypt? 

We are part of the global banking scene. Financial institutions across the world are facing many challenges, yet I am quite confident of the resilience of the Egyptian banking sector.

As we speak, the challenges facing the Egyptian banking sector are more or less similar to those facing banks worldwide.  We all have to adjust and revise our business models in a very challenging macroeconomic landscape. Topping the list is facing foreign exchange volatility, evolving international regulatory and compliance requirements including new risk management techniques and capital adequacy requirements in addition to tighter banking supervision.

Compliance cost, data reporting, and necessary IT infrastructure are becoming additional costly mandates. Basel III will add further capital and supervision requirements that will put pressures on banks’ profitability and trigger the risk – return trade offs.

Will banking remain a profitable industry? 

It is no longer business as usual.  Banks cannot sustain their profitability unless they undergo a fundamental revision of how they do business, revise policies, systems, structures, including development of human resources skills. It is quite challenging.

Zooming on specific challenges facing Egyptian banks, the main challenge will be adapting and coping with a very fluid and dynamic socio-economic landscape. Egypt offers a very rich landscape with a huge diversified economy, deep market and huge population of around 90 million inhabitants. This situation creates challenges as much as it creates opportunities. It all depends on your ability and agility to develop your business models to leverage opportunities. For example, Egypt has a young population whereby 60% are below the age of 30. This could be deciphered as a burden of unemployment but it also points the way that banks should shift their traditional operations towards micro-finance, entrepreneurship funding, along with small and medium enterprises. Financial inclusion has become a nation- wide mandate endorsed by the Central Bank of Egypt. Egyptian banks are faced with a new mandate, which requires new arrangements as it provides rising growth potential. In the same context, funding clean energy and energy efficiency is a new track that is becoming very relevant to the Egyptian context.

What opportunities do you see for foreign investments?

There are countless opportunities untapped for Egyptian and foreign businesses. Egypt is currently showing promising growth rates when compared other emerging markets. Investments in Egypt tend to provide relatively high return compared to risk. Egypt is characterized by a resilient economy that has been able to withstand and overcome internal and external shocks. Continuing with the structural reform program, Egypt is expected to witness an uptick in growth rates over the medium term due to the inherent advantages in the Egyptian economy; namely a large population, deep market and a highly diversified economy.

What advisory services does Arab African International Bank (AAIB) offer to help individuals and corporate investors achieve their investment objectives? 

AAIB is Egypt’s leading investment bank. Its distinction lies in being a front runner in providing outstanding investment banking and corporate finance services. We offer a plethora of financial advisory services, including distinct and tailor – made – not to mention solution – driven finance structures – customized to our clients’ needs across different sectors. These can vary from short to long-term loans. Our corporate portfolio services include advising on equity placements, mergers and acquisitions, feasibility studies, valuations, escrow arrangements, agency services and raising finance through syndicated loan market. We also lead the local debit capital market in terms of issuing corporate and securitization bonds. AAIB corporate services is backed by integrated services of its financial subsidiaries along with its regional branches.

Established in 1964, AAIB has a strong regional presence with branches in Egypt, Dubai, Abu Dhabi and Beirut. With 90 branches in your network, what are your plans for expansion and development of your self-service channels

AAIB is the only private Commercial Bank with growing presence in the region. AAIB’s presence in the region is not only by having branches in Dubai, Abu Dhabi and Beirut. AAIB has strong business relations with many countries in the region. It has deep business relations with leading corporates in Saudi Arabia, Kuwait, Bahrain, Oman, and Qatar.

On the other hand, AAIB has made a significant investment in expanding its local branch network. It aims to reach a network of 100 branches by the end 2017 with more focus on geographic footprint in Upper Egypt & the Canal Area. Egypt has a large youth population, which constitutes a great opportunity for retail banking growth. With a total number of banks in Egypt of 40, number of branches for total banks

in Egypt are only 3,824 as of December 2015 (CBE). Banking density is 1 branch for each 23,600 persons which is very low compared to the rest of the world. AAIB Network Expansion Strategy is enhancing its geographical spread across Egypt and enhancing its self-service channels. AAIB is targeting to be the third bank among peers in terms of customer reach by the end of 2017. The planned network expansion is to reach almost 100 branches by the end of 2017. The additional branches that will be launched during 2017 are scattered among different untapped governorates and include branches in strategic areas such as vital Egyptian ports.

As for the self-service channels, AAIB is targeting to grow its ATMs network to reach 410 ATMs towards the end of 2017. The bank also has 2 Auto branches. Moreover, the bank is conducting studies to introduce unmanned branches/ banking units in shopping malls, universities and residential compounds to improve customer reach and enhance customer experience. AAIB is also focused on probing Mobile Banking in 2017.

Enhancement in offering the payroll service as well as an ongoing innovation of new products and market segments introducing unique products and service offerings. In addition, improved and accelerated delivery channels through migration to ATMs and mobile payment gateways; and intelligently rationalize the branch footprint locally & regionally to increase banking penetration and outreach.

AAIB is now also preparing branches to serve for special needs and is planning to have 5 fully equipped branches.

AAIB has evolved from being just a bank to a fully integrated financial group offering asset management, brokerage, leasing, and mortgage services. How does this benefit your clients and what plans do you have for future growth?

AAIB’s mission is to offer a continuously evolving array of services to the entire region, developing new business arms to that effect. The Bank’s growth was propelled in 2008 with the establishment of four subsidiaries; Arab African Investment Holding (AAIH), Arab African Investment Management (AAIM), Arab African International Securities (AAIS), Arab African International Mortgage Finance (AAIMF) and the newly established in 2014 Arab African International Leasing (AAIL). The establishment of which transformed AAIB from a Bank to a full- fledged financial group. Therefore, AAIB has realized the benefit of synergies and consolidated services to our clients through its financial arms, perfected by a related diversification within the financial services markets. Moreover, the bank is planning to launch “SANDAH” with KFW Bank aus Verantwortung, a green field microfinance company that will serve the untapped microfinance segment in Egypt.

AAIB recently signed a memorandum of understanding with the General Authority for the Suez Canal Economic Zone. Can you tell us more about this agreement and what it means for investors? 

AAIB is the first regional bank to conclude   a MOU with the General Authority for the Suez Canal Economic Zone(SCZone)on January 3, 2017. It aims at providing investors with bank’s unique financial and investment products and services, which will definitely help to boost the flow of investments into the region. Enacting the MOU, the bank will have the right to arrange and fund loans, offer its distinctive banking products, and provide investors with bank’s renowned financial advisory services. Besides holding projects and partnerships between the public and private sectors including navigation sector and its affiliated ports. That’s in addition to the participation in providing funding alternatives for all economic activities including the industrial activities.

SME’s represent a large portion of Egypt’s GDP. What are the biggest challenges facing SME’s right now in Egypt? 

The role of SMEs proved efficacious in the development of many economies around the world including the United States and China. That is because they are easily initiated and carry benefits to the citizens as well as the state.

The SMEs may be the best solution for Egypt’s current economic state as a long term objective. SMEs have the ability to provide a large number of jobs to subdue unemployment and substitute imports of finished goods. Egypt has a total of 6.4M enterprises, whereby only 400K are formal.

Although the government has taken steps to bolster the sector, little success has resulted. Compliance with the new norms requires working on the demand and supply side categorically.  Initiatives in financial literacy, KYC, and leveraging on bank’s infrastructure might precede lending to SME clients.  Commercial banks are yet to remain conservative with respect to lending to this segment.

Egypt’s SME sector remains underdeveloped with less than 8% of total firms have credit. The main challenges facing borrowers are collaterals, access to finance, and lack of entrepreneurial skills and managing accounts. Banks have to be equipped with the necessary infrastructure, training of manpower, delivery channels, business and operational model, credit and risk management.

The program recently launched by the Central Bank aims at increasing the SMEs lending share of total banks’ portfolio to 20% over the next 4 years.

In this context, we are constantly building the infrastructure necessary to substantiate this move. We are structuring a fully-fledged specialized SMEs unit inside our bank, considered the best new revenue streams.  We have also focused on investing in training emerging calibers from the corporate and retail lines of business to build a strong knowledge base in SME funding and through a joint training program with Frankfurt School of Finance & Management.

Can you tell us about some of the support services you offer SMEs and how does the support offered to SME clients differ from the needs of large corporations? 

As I mentioned before, the bank is planning to launch its SMEs company “SANDAH”.A green field microfinance company will serve the untapped microfinance segment in Egypt. Creating a completely new microfinance institution that requires an innovative, proactive approach to the challenges of risk assessment and efficiency of the low and middle-income segment. AAIB’s role would be enhancing access to credit vital to Egypt’s economic growth and job creation.

The support given to the SMEs differ from the needs of large companies in many ways. A crucial element in the development of the SME sector is access to finance, particularly to bank financing, given the relative importance of the banking sector in serving this segment.

Small businesses cannot usually afford to pay for the kind of accounting and book keeping services they need, nor can their new employees be effectively tested and trained in advance. Moreover, to compete in global markets, SMEs need to develop new business strategies and deploy new technologies.

SMEs provide tremendous growth potential but require a healthy ecosystem to evolve in scale.

Interviews

Supporting Growth in Africa

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Supporting Growth in Africa 2
Jules Ngankam Group Chief Executive Officer African Guarantee Fund

Jules Ngankam Group Chief Executive Officer African Guarantee Fund

Despite the internationally recognized importance of SMEs, African small businesses often have difficulties accessing financing for growth and innovation from the formal financial sector. SME financing is often considered by many financial sector players in Africa to be a risky activity as promoters quite more often than not, fail to come up with the collateral levels required to secure bank facilities. Enterprises (SMEs) are widely recognized as big drivers of economic growth, innovation, regional development and job creation. A strong and vibrant SME sector provides a strong foundation to increase standards of living and to reduce poverty. African Guarantee Fund is a non-bank financial institution whose objective is to promote economic development, increase employment and reduce poverty in Africa by providing financial institutions with guarantee products and capacity development assistance specifically intended to support SMEs in Africa. Jules Ngankam is Group Chief Executive Officer of African Guarantee Fund (AGF), and recently he spoke to Global Banking & Finance Review about today’s business challenges in Sub Saharan Africa, and the financial implications combatting the Coronavirus pandemic. Jules has over 15 years of experience in banking and financial services with leading financial institutions. He joined African Guarantee Fund in 201 3 as the Chief Financial Officer after which he served as Deputy CEO from April 2017 and was thereafter appointed Group Chief Executive Officer in September 2020.

  1. What conditions led to the creation of African Guarantee Fund?

The Small and Medium Enterprise (SME) sector contributes significantly to developing African economies, but it still has a huge unexploited capacity for growth. SMEs make up approximately 80% of Africa’s private sector firms, with 50% being small- scale and 30% being medium-sized. SMEs contribute over 50% of new jobs in Sub-Saharan Africa however, only approximately 20% to the GDP. This is compared to 40-60% of GDP in the EU and the US and even higher rates in growing Asian economies.

For the SME to really play their role of the engine of growth, among other barriers, access to finance remains the strongest obstacle. According to analysts the SME financing gap in the continent is estimated at USD 300 billion.

The acknowledged reticence of the banking system in financing SMEs, especially as regards to the investment needed for development for this class of businesses, is mainly explained by:

  • Low Banks’ long-term deposits; The inability of the SMEs to provide
  • acceptable guarantees and collateral; Inadequate equity for SMEs;
  • SMEs’ poor quality of management.

The African Guarantee Fund for Small and Medium- sized Enterprises (AGF) was established in 201 2 to address the mismatch in the supply and demand of SME financing in Africa.

The aim of AGF is to reduce the risks assumed by the financial sector by sharing these risks through the provision of financial guarantees that mitigate the inability of SMEs to provide acceptable collateral.Supporting Growth in Africa 3

AGF also offers capacity development to financial institutions to improve SMEs’ financial product offerings, by helping banks to better address working capital and long-term financing needs of SMEs; and increasing Banks’ capacity to appraise SMEs by providing technical assistance and strategy to further develop their business.

AGF is a truly public-private partnership involving donors, development institutions, financial institutions and private investors joining forces to support African SMEs.

  1. Can you tell us about the guarantees AGF offer to address the range of financing needs?

AGF offers four main types of guarantee products:

Loan Individual Guarantees

Loan Portfolio Guarantees

Bank Fund Raising Guarantees

Equity Guarantees

The Loan Individual Guarantee guarantees a single loan made by a bank to a single Borrower whose identity is known. The Loan Portfolio Guarantee guarantees a portfolio of loans made by a bank to a borrower segment for which the qualifying criteria have been defined but the individual borrowers are not known at the time of the guarantee agreement. The guaranteed party is not required to get approval of AGF prior the placement of each loan under the guarantee.

The Bank Fund Raising Guarantee guarantees bonds issued by a bank to investors for the purpose of raising long-term resources to finance SMEs.

The Equity Guarantee is issued to cover equity investments in SMEs.

  1. What is the scope to use guarantees?

The most important criteria of AGF’s guarantee is that the end beneficiary has to be an SME.

  1. How does African Guarantee Fund enable banks in Africa to execute their SME strategy?

In Africa, the main source of financing for SMEs is the banking sector. Despite Banks’ increasing interest to provide services to SMEs, they face multiple challenges mainly due to issues of assessing and managing risks. Furthermore, the resources of banks and financial institutions are mostly short-term, and it is therefore difficult for the banking system to easily use their current excess of liquidity to finance the needs of SMEs. Finally, the inability of SMEs to provide acceptable collateral to reduce the lending risks associated to them, the inadequacy of their capital structure and sometimes the poor quality of their management increase the reluctance of the banks to fully support their activities.

AGF products assist financial institutions to scale up their SME lending activities in situation where SMEs are unable to meet collateral requirements; Improves the solvency (regulatory capital) ratios of banks and thus enables them to have a better leverage on their capital; Addresses regulatory requirements of banks’ limited use of short-term resources to finance medium and long-term SME needs; Allows banks to mobilize medium and long-term resources at very competitive price.

  1. How is the AGF opening up financial opportunities and supporting the growth of SME customers?

The challenges SMEs face in Africa are within five key areas:

Access to finance

Infrastructure

Access to markets

Human resources

Legal environment and corruption

Amongst these challenges, the biggest one is that of accessing finance.

The SME financing gap is brought about by the following gaps:

Information gap: SMEs lack historical data to enable them to adequately assess their risks due to the fact that most of them do not practice proper book-keeping.

Tenor gap: Banks have short-term resources while the SMEs need more of long-term resources to grow.

Collateral gap: Banks have tough collateral requirements.

Product gap: Bank products are sometimes not adapted to SMEs’ business cycles.

Skills gap: SMEs are unable to attract or afford required talent.

Perception gap: This is the gap between the perceived risk and the real risk.

AGF’s guarantee products and capacity development assistance are designed to tackle the financing challenge by being the missing link between the lending institutions and the SMEs.

  1. What improvements have you brought about in the SME sector since you began operations?

Since AGF began operations, the company has delivered in:

Improving lives in Africa

AGF has supported more than 25,000 SMEs.

SMEs that benefited from AG F guarantees have generated an additional revenue of USO 4 Billion. Approximately 50% of supported SMEs are located in rural areas.

20 Million people were able to access clean energy thanks to SMEs supported by AGF guarantees.

Fostering Jobs Creation

130,000 Additional jobs created

Fighting Climate Change

Cutting 3.8 million tons of C02 equivalent Greenhouse Gas (GHG) 57,005 KW Cleaner generation capacity installed

101 Partner Financial Institutions and 291 SMEs Trained

Promoting Gender Equality

USD 522 million Loans granted to 6,000+ women-led SMEs

328 women-led SMEs Trained

Contributing to Africa’s Competitiveness USO 780 million loans granted to 3,400+ SMEs in the Energy, Infrastructure and Manufacturing Sectors

Contributing towards Food Security

USD 188 million loans granted to 2, 100+ SMEs in the Agriculture Sector.

Partnering for Poverty Reduction

USD 2.5 billion private capital made available in 40 Countries

  1. What are your plans to increase financing to agricultural and renewable energy SMEs in Africa?

In 2015, AGF with support from the Nordic Development Fund, launched the Green Guarantee Facility (GGF) to ease access to finance for SMEs to invest in climate and green growth-oriented economy.

The Green Guarantee Facility brings direct benefits in terms of climate change mitigation and adaptation as well as sustainable employment, poverty reduction, and gender- inclusive financing opportunities.

From the banking sector point of view, green finance is a new sector, of which SME lenders are not very familiar. Besides, SMEs are also not well versed with knowledge and skills to design and manage climate-friendly projects, let alone access to green funding. There exists significant knowledge and capacity gaps in green finance, which the GGF technical assistance addresses.

To-date, AGF in partnership with the Nordic Development Fund and the International Trade Centre has hosted five Green Finance Conferences and subsequent trainings in Zambia, Kenya,

Ghana, Cote d’Ivoire and Senegal.

  1. In November, Fitch Rating confirmed the African Guarantee Fund for Small and Medium- sized Enterprises Ltd’s (AGF) Insurer Financial Strength (IFS) Rating at ‘AA-” (Very Strong), what does this rating mean for the company?

The biggest asset of a guarantee fund is its credibility. The main criteria defining AGF’s credibility is its rating. The rating brings a very strong comfort to our partner financial institutions when assessing AGF’s capacity to assist them in improving their profitability, liquidity and solvency in order to meet the expectations of their shareholders and the requirements of the regulators.

AGF’s rating brings huge benefits to our partner financial institutions:

It provides a higher capital relief to banks as it reduces the required amount of loan provisions.

Allows banks to raise capital at a better cost;

Increases the asset quality of banks’ loan portfolio.

Improves the banks’ Risk Weighted Assets (RWA)

  1. Has AGF had to adapt operations as a result of COVID-19? What are some ways AGF is responding and assisting businesses and individuals during this critical time?

COVID-19 pandemic continues to affect African SMEs and has deteriorated their creditworthiness.

As a consequence, the reluctance of financial institutions to finance SMEs has increased.

It is crucial to provide external stimulus to financial institutions so that they can continue to support SMEs in this unprecedented crisis.

AGF launched a COVID- 19 product that aims to:

Reduce the uncertainties faced by financial institutions in Africa as a result of the global coronavirus pandemic.

Provide more comfort to financial institutions to restructure facilities that become non- performing because of COVID-19.

Provide commercial stimulus to the financial sector with the objective of mitigating the deterioration of SMEs ‘ perceived risk.

Provide technical assistance to financial institutions to enhance their risk assessment approaches to better analyze the impact of the pandemic and reduce the SMEs’ risk perception gap.

  1. In your opinion, what role should financial institutions take to support the social economic development in Africa?

Financial institutions need to increase their support to SMEs by increasing SME lending and designing products that are better adapted to SMEs’ needs.

  1. Are you launching any new products and where do you see AGF in 5 years?

We are constantly improving our product offering to better serve SMEs and achieve the Sustainable Development Goals (SDGs). Our new products mostly follow a thematic approach to close financing gaps in climate finance, women finance, agribusiness, etc.

In 5 years, we see AGF covering all countries in Africa, dealing with most of African banks and managing a guarantee portfolio of USO 5 billion.

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Interviews

seedtag’s Co-CEOs discuss their most recent acquisition success

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seedtag's Co-CEOs discuss their most recent acquisition success 4

By Albert Nieto, Co-CEO of seedtag & Jorge Poyatos, Co-CEO of seedtag

Q: What does the acquisition of Recognified mean for seedtag?

The acquisition of Recognified is a highly strategic move for seedtag as Recognified is the contextual advertising leader in Germany. It has greatly impacted our business, specifically in three different ways. Firstly, it has consolidated our European leadership which has allowed us to expand our contextual solutions to Germany, the second-largest European market in advertising spend. Secondly, it has reinforced our contextual AI (Artificial Intelligence) technology, strengthening our computer vision capabilities. Last but not least, it now means we can push our ambitions even further to consolidate more companies under seedtag’s umbrella, embedding us as a global leader in contextual advertising.

Q: How will this expand seedtag’s services and technologies?

In terms of services, seedtag offers several contextual solutions, which are completely integrated into the content. We are currently expanding our options so that our clients can move from delivering contextual advertisements in-image and in-video, and also in-article and in-screen. The key is to allow our proprietary contextual AI to optimise among a different set of placements, depending on which is going to be a more effective way of respectfully catching the attention of users.

In terms of technology, our contextual AI has incorporated the strong computer vision capabilities of the technology built by Recognified. The combination of computer vision and Natural Language Processing algorithms allows our technology to be extremely precise when categorizing online content and determining its brand safety, which is absolutely critical for our clients.

Q: What is contextual advertising and why it’s so important in modern marketing?

Contextual advertising is a form of targeted advertising in which the content of an advertisement is in direct correlation to the content of the website page the user is viewing. We have applied AI to our digital advertising to develop our most advanced contextual analysis technology. Today, our algorithm has been learning for more than seven years, enabling us to offer the most powerful contextual AI on the market. Furthermore, we offer advertisers an effective alternative to the use of cookies by targeting users based on their real-time interests.

More and more players are positioning themselves in this sector to meet the demand of internet users, authorities and advertisers, so contextual advertising represents a growing share of the market worldwide.

Q: What’s the next step for seedtag? Will seedtag continue its international expansion?

Seedtag has a lot of growth opportunities ahead. Contextual advertising will keep developing in the coming years and we must be sure that we can offer the best product and service to our clients to capitalise on this growth. Organic growth is our number one priority.

Today we are leaders in Europe and Latin America, but our ambition has been to be global since day one. We will definitely continue to analyze both organic and inorganic opportunities to continue our international expansion, mainly to the United States.

Q: How do you see the advertising market, regardless of your technology, in 5 to 10 years?

It’s not easy to predict how such an innovative sector like advertising and the technology around it will look like in 10 years. However, there are some clear trends that we believe we will see over the next few years.

Media consumption across the globe is increasing across many digital platforms and this will only keep growing. The more time we spend online, the bigger the share of investment for digital advertising there will be.

Relevancy and attention will become the true currency in advertising. Only the brands and solutions that will be able to respectfully catch the attention of users and be relevant to them will survive in the long run.

We also foresee an increase in market duplicity. On the one hand, we will have the ‘walled garden’ platforms led by Google, Facebook, and sooner than later Amazon as key players. Alternatively, we will have an open internet that will be very relevant in terms of time spent but will have higher challenges in terms of addressability. Seedtag is moving towards being one of the key players in the open internet to help brands win the attention battle in a privacy-first world.

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Interviews

Bank CenterCredit – the best bank for business in Kazakhstan

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Bank CenterCredit is recognized as the best bank in Kazakhstan for work with small and medium-sized businesses according to the results of research by the international rating publication GLOBAL BANKING & FINANCE REVIEW. To answer how the financial institution managed to earn this award and establish itself as the best in the market for SMEs, we interviewed the Chairman of the Bank`s Management Board, Galim Khussainov.

Galim Khussainov, Chairman of the Management Board, Bank CenterCredit

Galim Khussainov, Chairman of the Management Board, Bank CenterCredit

Galim Abilzhanovich, the title of the best bank for SMEs speaks of a serious tilt of the Bank towards entrepreneurship, is BCC a bank for business?

Not really. Bank CenterCredit is a universal financial institution, and a significant part of its portfolio is devoted to retail. But we have traditionally strong and reliable relations with business. If a businessman comes to our service, we always have something to offer him. Starting from the opening of an account, we carefully guide the entrepreneur throughout his time at the BCC. The accumulated experience and rich product line allow us to make his business and cooperation with the Bank comfortable and profitable as we are always ready to support you with practically zero service cost, inexpensive loans and high deposit rates. Also, I would not divide our bank like a pie, as many banking divisions are investing in the success of our SME clients, which cannot be listed in the interview.

What do clients look for when choosing a particular financial institution?

Every year people are becoming more financially literate. You can get information about the bank by opening just a few websites. It is enough to have the Internet and some free time. All key indicators are available in open sources. It is also easy to compare service and product line fees. Well, no one has disregarded the opinion of colleagues and friends who already have experience of cooperation with one or another financial institution, often their opinion is key, because these people have already experienced the quality of services of our bank. There is also advertising and marketing, and potential customers should see high-quality and conscientious bank advertising, where certain services and products are presented interestingly. Another important factor is the amount of time that the bank has been on the market, the ratings of independent agencies and the compliance with the Regulator’s standards. Our Bank is already 32 years old, we have successfully survived several global financial crises, and we continue to work successfully despite the slowdown in business activity associated with the Covid-19 pandemic. This is thanks to a balanced approach, a somewhat conservative policy in terms of risks, as well as with the appropriate indicators, including the NPL.

Based on your words, it becomes clear why Bank CenterCredit was recognized as the best bank for SMEs in 2020. What else, besides the above, was offered to business clients last year?

First of all, we continued to work in the same way that has worked previously, while trying to improve and speed up the existing processes as much as possible. Plus, under strict quarantine conditions, we considered all incoming applications from financially impacted applicants and provided deferrals for payments to everyone whose business was affected by the pandemic. During this time, Bank CenterCredit also continued to actively lend to SMEs, which helped a lot of organizations to survive. Despite the decline in business activity, we continued to develop new services and products with an pivot to online service. Thanks to the effective Internet banking and the multifunctional mobile application StarBusiness, customers performed transactions without visiting the Bank’s branches. In terms of new products, it has been a record-breaking year. If I may, I will tell you about them in the order they are listed:

Let’s start with the “Number”:

Online opening of a current account for business clients – now there is no need to visit a Bank branch to open an account.

Online opening of deposits is also a very useful service, both in isolation and in everyday life.

Online issuance of guarantees within the limits through the Internet banking system is an indispensable tool for entrepreneurs participating in tenders.

Online opening of a blank limit for issuing tender guarantees through the Internet banking system is also a very useful and relevant product, when it is possible to make payments even without funds on the account.

“Growing Business” loan for legal entities and individual entrepreneurs is a very convenient and profitable loan product for small business.

The program of portfolio subsidies and guarantees – for lending to small entities, including micro-entrepreneurship within the framework of the State Program for Support and Development of Business “Business Road Map – 2025”.

We are also long-term partners with foreign financial institutions such as the Asian Development Bank and the European Bank for Reconstruction and Development.

Within the framework of cooperation with the EBRD, in 2020 tranches were carried out under the SME support program, as well as another large-scale project – “Women in Business”. This one-of-a-kind program was created specifically to support women entrepreneurs.

An agreement on unfunded risk participation was signed between BCC and the EBRD, and not so long ago the financing of the first project in this direction was carried out.

Given the difficult situation in the economy sector, does the Kazakh government somehow help domestic business?

Of course, the state provides all-round support to entrepreneurs, and we, for our part, fully support the anti-crisis measures of the country’s government, putting the needs of the SME sector at the forefront. From the very beginning, Bank CenterCredit actively participates in almost all government programs implemented by DAMU Entrepreneurship Development Fund JSC, regularly receiving awards from this organization. Indeed, in cooperation with this fund, a huge number of projects in various sectors of the economy have been financed. At the moment we can offer business people loans at a minimum rate of 6% per annum. The loan is issued for investment purposes – up to 20 million tenge, and for replenishment of working capital – up to 5 million tenge. A highly demanded product.

What plans does the Bank set for itself for 2021?

We will move in accordance with the strategy approved by the Board, which, as we see, is bearing its fruit. We very much hope that the epidemic will decline and economic activity will increase significantly. Businesses will start operating at full capacity, people will start traveling, and we need to be prepared to offer them the most convenient services and products for every situation. We are planning an even more serious pivot towards online services, because digital products are truly products of the future.

Nonetheless, we will not forget about those clients who are more accustomed to classical banking services in the offices of the BCC. Now we have branches in absolutely all regions of the country, but the targeted opening of new and modernization of existing branches will continue. It is important for us to be closer to people. Our task is not only to follow trends, but also to create them.

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UK economy shows signs of stabilisation after new lockdown hit 7 UK economy shows signs of stabilisation after new lockdown hit 8
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UK economy shows signs of stabilisation after new lockdown hit

By William Schomberg and David Milliken LONDON (Reuters) – Britain’s economy has stabilised after a new COVID-19 lockdown last month...

Dollar extends decline as risk appetite favors equities 9 Dollar extends decline as risk appetite favors equities 10
Trading8 hours ago

Dollar extends decline as risk appetite favors equities

By Stephen Culp NEW YORK (Reuters) – The dollar lost ground on Friday, extending Thursday’s decline as improved risk appetite...

Bitcoin hits $1 trillion market cap, soars to another record high 11 Bitcoin hits $1 trillion market cap, soars to another record high 12
Trading8 hours ago

Bitcoin hits $1 trillion market cap, soars to another record high

By Gertrude Chavez-Dreyfuss and Tom Wilson NEW YORK/LONDON (Reuters) – Bitcoin touched a market capitalization of $1 trillion as it...

Shares rise as cyclical stocks provide support; yields climb 13 Shares rise as cyclical stocks provide support; yields climb 14
Investing8 hours ago

Shares rise as cyclical stocks provide support; yields climb

By Saqib Iqbal Ahmed NEW YORK (Reuters) – A gauge of global equity markets snapped a 3-day losing streak to...

Battling Covid collateral damage, Renault says 2021 will be volatile 15 Battling Covid collateral damage, Renault says 2021 will be volatile 16
Business9 hours ago

Battling Covid collateral damage, Renault says 2021 will be volatile

By Gilles Guillaume PARIS (Reuters) – Renault said on Friday it is still fighting the lingering effects of the COVID-19...

Portable Oxygen Concentrators Market to Register 7.8% CAGR Through 2026; Sales to Surge as Oxygen Therapy Becomes Crucial in Covid-19 Treatments 17 Portable Oxygen Concentrators Market to Register 7.8% CAGR Through 2026; Sales to Surge as Oxygen Therapy Becomes Crucial in Covid-19 Treatments 18
Research Reports11 hours ago

Portable Oxygen Concentrators Market to Register 7.8% CAGR Through 2026; Sales to Surge as Oxygen Therapy Becomes Crucial in Covid-19 Treatments

Portable oxygen concentrator manufacturers are largely concerned with the maintenance of inventories throughout the coronavirus crisis, with optimization of supply...

Cancer Supportive Care Products Market to Reach US$ 32 Bn by 2030; Sales Limited by Complications for Cancer Patients Through Covid-19 Infections 19 Cancer Supportive Care Products Market to Reach US$ 32 Bn by 2030; Sales Limited by Complications for Cancer Patients Through Covid-19 Infections 20
Research Reports11 hours ago

Cancer Supportive Care Products Market to Reach US$ 32 Bn by 2030; Sales Limited by Complications for Cancer Patients Through Covid-19 Infections

The cancer supportive care products market is anticipated to reach a valuation of US$ 32 billion by 2030. The industry is expected...

Bronchoscopes Sales to Rise 1.5x Between 2018 and 2028; Potential Covid-19 Diagnostic Applications to Generate Lucrative Growth Opportunities 21 Bronchoscopes Sales to Rise 1.5x Between 2018 and 2028; Potential Covid-19 Diagnostic Applications to Generate Lucrative Growth Opportunities 22
Research Reports11 hours ago

Bronchoscopes Sales to Rise 1.5x Between 2018 and 2028; Potential Covid-19 Diagnostic Applications to Generate Lucrative Growth Opportunities

Bronchoscope manufacturers remain focused on development initiatives to improve product functionality and accuracy for higher adoption amid healthcare facilities. The bronchoscopes...

US$ 1.1 Bn Hypoparathyroidism Treatment Market Still in Infancy 23 US$ 1.1 Bn Hypoparathyroidism Treatment Market Still in Infancy 24
Research Reports11 hours ago

US$ 1.1 Bn Hypoparathyroidism Treatment Market Still in Infancy

Mushrooming incidences of thyroid cancer have amplified the number of thoracic surgeries, thus stimulating growth of hypoparathyroidism treatment market. Future...

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