Key Trends 2020
Trend to reduce rates. In 2020, the Central Bank reduced the key rate for the first time - the main indicator of the state of the financial market - up to 4.25%. Following it, rates both on loans and deposits gradually decreased. The average mortgage rate has reached a record low value - 7.3% per annum. There are no prerequisites for further substantial reducing rates in the first three months of 2021. The regulator has repeatedly mentioned that it will carry out a soft credit policy in 2021, and therefore sharp changes are unlikely.Self-insulation "forced" banks to accelerately master the remote format of work. On the online began to actively move many banking products and services that were previously available only offline. I note that at the Absolut Bank, the trend on the development of Digital services was noted back in 2018. In contrast to a number of market participants, emergency adaptation to the digital service format was not required. Absolute even then made a bet on digitalization in all key areas of business - in accordance with its strategy "Technological Leadership in Partnership". We predict that in 2021, the digital transformation of the banking business will continue. "Rollback" to Offline will not happen.
In the field of remittances, the "revolution" was the abolition of commissions for all banks connected to the system of rapid payments (SBP). Absolute Bank, among the first, canceled the commission for transfers to the SBP. In addition, we have no top restriction on the amount of free payment. It is convenient for those clients who translate money through the bump for monthly payments and early repayment of the mortgage. By December, the share of transfers through the CAP to Absolut Bank reached 50% of the total P2P payments and continues to grow. This is one of the fastest growing services in the bank.
Key events in 2020
Improving conditions according to standard mortgage programs. First, the Absolut Bank reduced the bet according to the standard mortgage programs to 7.84% per annum. Secondly, we reduced the minimum size of the initial contribution to 10% of the cost of the apartment. Thirdly, our online services allowed most of the operations in a remote format and reduce the time of access to the transaction for 1 day.
Absolute Bank launched a new contribution - "Advance". The main feature of this deposit - the payment of interest is not at the end, but at the beginning of the term under the contract, on the same day or the next one. In the Absolut Bank in Yekaterinburg "advance" became the most popular contribution in December.
Absolute Bank brought a mortgage to a new level - transcontinental. Our Yekaterinburg office first conducted a mortgage online deal with borrowers who were on another continent. With the help of a digital deal, married couple, being in Canada, acquired property in the mortgage in Native Yekaterinburg. Absolute Bank spent this digital transaction remotely from beginning to end.
Read more about the results of 2020 and on forecasts for 2021, you can read in our heading "Results 2020".