MDM Bank
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Retail   About the Bank

Retail banking is a strategic priority and growth area for MDM. It has developed significantly in 2001 and is set for further growth in 2002. The Bank is a leading innovator in banking card services, and is a principal member of the VISA International and Europay International systems.

In 2000 MDM mainly developed its retail services through opening new branches and broadening its product range, particularly its range of cards.

In the first half of 2001 the focus was primarily on acquiring banks with established retail businesses. The acquisition in early 2001 of Petrovsky Narodny Bank of St. Petersburg, which has almost 3 million private accounts and more than 30 branches and offices, will help MDM create the most extensive private bank branch network and private customer base in North West Russia. The introduction of payroll services to many of the Bank's leading corporate customers will also enable MDM to expand its retail customer base.

MDM has seven ATMs in its Moscow offices and six in regional branches. Petrovsky has 49. Expobank has ten ATMs in its branches across the capital city. [MDM and its subsidiaries Petrovsky and Expobank had 72 ATMs in service at 31 December 2001.] Retail customers can use ATMs to check account balances and make withdrawals. Over the Internet customers can obtain account information, request statements, and order banking cards. Account balances can also be obtained by telephone. In Moscow customers can also enroll in banking card products by telephone.

The main products and services provided to retail customers include:

  • Maintaining of current and deposit accounts
  • Settlements;
  • Issuing and servicing of bank cards;
  • Sales of travellers cheques;
  • Provision of safe-deposit boxes;
  • Money transfers.

At the end of September 2001 MDM Bank, on a consolidated basis, had issued more than 240,000 banking cards. MDM itself has issued over 92,000 cards. Petrovsky Narodny Bank has issued over 135,000 cards, and Expobank over 13,000. The Bank is a principal member of the VISA International and Europay International systems. MDM Bank has the largest affinity card programme in Russia in conjunction with the supermarket chain Sedmoi Continent. The Bank offers customers the opportunity to pay in cash to debit card accounts on a 24-hour basis at its retail offices in Moscow, a unique service in Russia.

In 2001 MDM achieved a more than fivefold increase in retail deposits (from a very low base) during the first half of 2001, and is on track for growth of approximately 700% during the year as a whole, reflecting both organic growth and acquisitions.

MDM aims to approximately double its retail business during 2002, and become one of the leading players in this sector after Sberbank, by further expanding its Bank's network and effectively marketing an attractive array of retail products.

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