whether such market participants the chance to get out of the crisis unscathed, “RG” spoke with the Chairman of the Board of Directors inkahran Evgeny Pavlov.
Banks record significant growth in contactless payments, including the introduction of commerce. It is clear that this is due to the forced self-isolation and fear of the use of cash. But to return to cash payments after the end of a pandemic?
Evgeny Pavlov: Cash will not disappear in the near future. Yes, the last few years we are witnessing a rapid digitalization and the growth of cashless payments, the current situation will change further bancontact share in the total volume of payments, but retail cash will be needed for a long time. “Alive” money naspo trust.
How the current situation affects the market of collection?
Evgeny Pavlov: the Turnover of cash today, for obvious reasons, declined. We note a significant decline in applications from retail outlets for collection. However, even before the pandemic the collector market has faced serious challenges. Samonoske, ATM machines-recycling machines – competition with related services increases.
What is your solution?
Evgeny Pavlov: it is Obvious that the collector market is going through a transformation. And almost Darwinian – those will survive who can adapt, to reorient the model to diversify risks. The first thing you need to note: now the main client of the collection service are banks, according to our data, about 60% of the proceeds to the collectors brings this client group, and about 40% of direct relationships with retailers.
Second global change: the growing awareness of banks that own collection is too expensive. This business can be a side. Equipment machines, cash counting and much more significant require not only operational, but also infrastructure costs. And if this business line operates only as an accompaniment to the main banking activities cannot be scaled, it fades away, unable to withstand growing operating expenses.
On the market in the medium term, there will be only professional players, which due to economies of scale and provided the competent diversification of the client portfolio will be able to maintain the profitability and success of the business. Inkahran is an active participant in these processes,we engage in a dialogue with a number of banks on the transfer to us their collection capacity.
Your market Outlook?
Evgeny Pavlov: In March the market fell to a very sensitive value.The fall had on the last days of March, when it was first announced restrictive measures first in Moscow and then throughout the country. During this period, we recorded a decrease in the number of applications for encashment of up to 50%. It was associated with the shutdown of outlets, and a decline in its turnover.
This situation is certainly extraordinary. However, it has identified for us the key parameters of conditional epidemiological patterns of functioning – needs to be updated grocery retailers and the lowest possible point, from which you will begin to rebound.
Now we are seeing a gradual increase in the number of applications for cash collection. Of course, this is only the first signs of a revival of activity, the economy transformirovalsya, finds new forms of interaction with the consumer.
Appear and actively develop new niches.For example, against self-isolation are gaining popularity, the delivery of cash from the Deposit at the place of residence of the depositor, and from the settlement account at the place of registration of the legal entity. Service prepares the Bank as additional service for its customers located on the isolation. It is obvious that the remote service operations with cash is a product that requires special technologies, which we are sharing with partner banks.
going Back to retail, I note that,estimating a new point queries, we changed the control scheme routes: the logistics more efficient for us, the cheaper for the customer. Dynamic routes – is a mechanism that allows to significantly optimize transportation costs and reduce the risk and the percentage of “resetdb”. Such control mechanisms not previously existed in the market, but were not common. The crisis contributed to the fact that we took a fresh look at the economy of our work.
As with all companies, we certainly have reviewed sanitary norms. Enhanced control over the health of employees, knowing that in the current situation, our responsibility to clients not only financial but moral.
