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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


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© 2008 MDM Bank
Phone numbers: +7 (495) 777-95-00, 797-95-00, 795-25-00.