Regional Expansion and Network
All our businesses make use of our regional network to varying
degrees. For Corporate, Small Business, and Retail Banking, our network
is a vital distribution channel, while for others (IBFM, Private Banking, and
Asset Management) the network offers another opportunity to gain competitive
advantage and boost growth rates.
Our strategy adopted in 2006 emphasizes strong expansion throughout
the Russian regions. This will bring our points of sale closer to our
target customers and make our products and services vastly more accessible. We
are currently optimizing our sales infrastructure to increase effectiveness and
are developing our distribution network based on three key principles:
- Improve network quality
- Improve overall performance
- Expand the Bank’s presence via new points of sale.
MDM Bank has a comprehensive plan for opening new points of sale (both
branches and cash-and-credit offices) in previously uncovered regions. In
regions where we already have a presence, we are opening additional offices and
mini-offices to expand capacity. Branches will become ‘universal’ points of
sale, offering a complete spectrum of products and services, while the majority
of additional offices and mini-offices primarily serve individuals and small
businesses.
In 2007, we plan to open over 45 points of sale (branches, additional
offices, mini-offices) outside Moscow and the Moscow Region. In 2H 2006,
we opened more than 25 new points of sale.
By significantly increasing the number of regional offices, we plan to boost
operating income and to significantly expand the number of clients throughout
the country. In addition, we aim to reduce operating costs by eliminating
duplication of management functions between the head office in Moscow and
regional operations.
25.10.2007 18:53