Efficiency, further modernization and resilience are the three pillars of Oschadbank's new strategic program until 2028 (2/2)

This adds to the optimism. The new strategic program focuses on three strategic areas: efficiency, further modernization, and resilience. Why were these areas of the bank's development chosen as key?

Volodymyr Lavrenchuk: In the documents of the economic recovery of Ukraine, the emphasis is on the modernization of the economy, and not on the reconstruction of outdated industries. New productions have a significant component of the latest digital technologies, work with data arrays, and artificial intelligence. To interact, you need to be in the same information and technological space. Here, you have to move quickly, because those who lag behind will lag behind forever.

Also, as a result of the war, new demographic and logistical problems require more and more automation and rapid response. Oschadbank must come out of the war stronger, for example, with a modernized operating system protected from cyberattacks. Bank branches should be freed from routine work in the interests of better customer service. This is what customers expect, and this is how banks win in the competition.

Roza Tapanova: I want to emphasize that these three whales of the strategic program are organically connected. Without continuing the modernization that began in Oshchad in 2014 and maintaining resilience, it is futile to hope for an increase in efficiency.

Elizabeth Nelson: Banks everywhere are challenged to constantly maximize efficiency, boost revenues, reduce costs while ensuring robust risk and compliance cultures. This is in the context of increasingly complex and challenging environments with reliance on internet, technology and growing awareness of EGS matters and sustainability.  Technology developments and innovations provide opportunities for significant operational automation and efficiencies, as well as effective use of data and AI allows better product development and client services.  However, along with opportunity, are the threats such as cybersecurity, the need to protect client and employee data and privacy.  This means the need for strong controls, the need for new tools and stronger resilience.  Oschadbank is not an exception.

Sergii Naumov: Why was the direction of "efficiency" chosen? Because the state expects us to constantly improve our performance - the budget now needs our taxes and dividends more than ever. Why "further modernization"? Because the world around us is actively changing, and we must respond to modern trends so as not to be left on the sidelines. Why "resilience"? Because there is a big war going on, and the world in general is becoming more and more dangerous. But our clients must be confident in their bank.

We decided on the main directions. And if you look deeper, what key changes should Oschadbank implement?

Roza Tapanova: I would divide the answer to this question into three parts - according to the main business directions. As for corporate business, I always had a vision that it was powerful and professional in Oschad. And we plan to be a leader among all banks in terms of corporate. To do this, we need to expand our expertise to other areas, not just those in which we have already achieved excellence. It is necessary to preserve and increase our human capital.

If we are talking about the direction of MSMEs, then if we were not strong in this direction, we would not have been able to triple our credit portfolio during a full-scale war. But we should focus not only on competing with other banks for existing customers, but also on growing customers ourselves. The same can be said about the retail business, where the demographic crisis forces us to look for customers who were not previously covered by financial services.

We were the first to launch eOselya, we showed others how such programs can work, we created a trend. But new retail products are also needed. All these tasks are very difficult, but we are obliged to promote the Bank in this direction.

Volodymyr Lavrenchuk: Among the key changes, I would highlight those aimed at automating operational processes, digitization and improving the customer experience. Difficult work is ahead.

Elizabeth Nelson:  There are 29 strategic initiatives grouped around 9 strategy programs.  The 9 programs cover client engagement and experience, digitizing distribution channels and developing efficiencies, strong focus on business growth, etc. One example - the Bank has increased its client base through implementing of government programs and needs to move these clients to seeing Oschad as their main bank by improving client experience, increasing product penetration, etc.

Sergii Naumov: For me, issues of improving customer orientation and quality of service are very important. We have room to grow in this direction. Oschad will continue to implement initiatives to optimize products and processes through customer feedback. Also, projects aimed at quality control of the service and the application of the best global practices in this area are undergoing further development.

The key indicator of the effectiveness of these efforts will be the NPS indicator. Technical improvements also play an important role in the planned reforms: digitization of distribution channels, transformation of the Bank for efficient use of data and analytics, optimization and automation of processes.

What key challenges do you see in implementing the new strategic program?

Volodymyr Lavrenchuk: The success of implementing strategic programs lies in the consolidation of the efforts of various departments involved in the projects. This will often happen contrary to daily current affairs. Finding a balance and also having positive energy, because creativity is never sad, is the most important factor for success.

Sergii Naumov: The previous comment is absolutely correct. We can overcome the planned path of change only together, and therefore it is very important that all employees of Oschadbank familiarize themselves with the content of the program and become ambassadors for its implementation. That is why, we have developed a broad internal communications campaign on this issue. It is also necessary to develop a corporate culture that is conducive to innovation.

Elizabeth Nelson: The key challenges are the uncertainty created by the war, increasing regulatory standards and the capacity of the team to maintain current delivery while implementing the strategic initiatives. 

Roza Tapanova: Among other challenges, I would note the need to build a sustainable model for a gradual transition in lending from preferential state programs in the segment of micro, small and medium businesses to own products. And I see the biggest challenge is that we do not stop in our changes and do not rest on our laurels.

There are many challenges, but I am sure that the Oschadbank team will be able to answer them to the best of their ability. This is proven by the difficult period of operation during the full-scale invasion. We have proven that we can get results, because we know how to take risks and be a guide for the work of others. In particular, in implementing ESG principles and supporting our clients in this.

Really fascinating thought. If we have already mentioned ESG, why does the strategic program pay so much attention to ESG factors?

Sergii Naumov: The gradual introduction of ESG practices (consideration of environmental factors, social responsibility and corporate governance) is an important trend in the business environment of developed countries. The financial sector bears a special responsibility in this area, because we have the opportunity to support and stimulate the development of businesses that act responsibly, and to help rebuild Ukraine on the bases of the modern civilized world.

Roza Tapanova: Banks all over the world now understand: if you want to get an affordable financial resource, you have to meet these requirements. And you can provide this resource only to businesses that, in turn, comply with ESG practices. Only by complying with these requirements can companies enter another market. Oschadbank, taking care of the interests of its clients, understands that only by promoting and adhering to the principles of sustainable development, it is possible to ensure successful integration into the European business environment.

Volodymyr Lavrenchuk: Fortunately, Ukrainian society has reached a level of awareness that our future is uncertain if we do not take care of the environment, the communities where we operate, and responsible governance. Also, our movement towards the EU requires that such business norms should be an important factor in cooperation or non-cooperation with clients. You should be responsible for yourself and for the partners you deal with. Such is the law. The right law. And we, as an influential institution in this area, must organize ourselves in such a way as to change ourselves and the world around us for the better.

Elizabeth Nelson: Oschadbank as one of the leading banks at the market recognized the vulnerability of the environment, the need for social equality and the importance of strong governance needed to build a strong and resilient Ukraine and as part of the global effort for a sustainable planet. For example, since consumers continue to consider the state of the environment, in order for Ukraine to be able to maximize its position as a global powerhouse in agriculture, it needs to move to global standards to ensure competitiveness.  Oschadbank is already positioned as a leader in the social equality aspect of ESG with its work for accessibility, products and employment for disabled/ victims of war / relocated businesses, etc.

The last question is about the future. How do you see Oschad in 2028?

Volodymyr Lavrenchuk: A strong Central European bank in all parameters of process efficiency and service quality. I see a bank that is valued by Ukrainians, I see a leading institution of large-scale financing programs for businesses and citizens, with a preserved and modernized network of branches, which distinguishes it as close to local communities, entrepreneurs and private clients throughout Ukraine. One of the champions of digital services. Modern, innovative, humane.

Elizabeth Nelson: The market leader among all banks in Ukraine, not necessarily the largest in terms of total assets or total customers, but the leader demonstrated by clients, individual and business, and employees, who are proud to work with and for Oschadbank. The bank with a high quality, competitive product and service offering, suitable profitable operations, with an excellent business reputation. The bank and employer of choice supporting sustainable economic growth in Ukraine.

Roza Tapanova: I see Oschad becoming a leader not only in terms of its business decisions, but also in the fact that its values ​​​​correspond to the values ​​​​of society. It is values, and not the cost of services, that often determine whether a client cooperates with a particular bank. The key question is what does the bank do for our victory?

Sergii Naumov: In 2028, I see Oschad as a bank for all client groups, operating throughout Ukraine. Clients trust this bank, and if there is a need for banking services, Ukrainians first of all turn to Oschadbank. Oschad's banking products and services to support Ukrainians and business growth correspond to the best models in Ukraine and the world. We are an important bank for the stable development of the Ukrainian economy.

In our work, we adhere to internationally recognized practices of environmental friendliness, social responsibility and corporate governance. The Bank's work is focused on achieving the goals of its stakeholders: clients, the state-shareholder, civil society, as well as employees, whom Oschad constantly cares about. The Bank's team is working hard to introduce more innovations and constantly improve its performance. By the way, all these meanings are contained in the updated vision of Oschadbank, which is part of the strategic program for 2024-2028.

Original article is available here.